0001027664-26-000005
SEC filingNo MD&A content provided; document contains shareholder and related party information.
Elbit Systems Ltd. is an international high technology company engaged in a wide range of programs throughout the world, primarily in the defense and homeland security arenas. The company develops and supplies a broad portfolio of airborne, land and naval systems and products for defense, homeland security and commercial applications. Its systems and products are installed on new platforms, and it also performs comprehensive platform modernization programs, in addition to providing a range of training and support services.
The Company reports segment information in five segments. The Aerospace segment mainly provides products and systems for airborne platforms, unmanned aerial solutions, precision guided munition (PGM) sensors, aerostructures, training and simulator systems, flight academy solutions, and commercial aviation systems. The C4I and Cyber segment mainly provides command, control, communications, computer, intelligence, surveillance and reconnaissance (C4ISR) systems, data links and radio communication systems and equipment, cyber intelligence solutions, autonomous solutions and homeland security solutions. The ISTAR and EW segment mainly provides a wide range of electro-optic laser solutions and countermeasure systems and products, naval systems and a wide range of EW systems and SIGINT systems. The Land segment mainly provides land-based systems and products for armored and other military vehicles, artillery and mortar systems, munitions for land, air and sea applications including PGM, armored vehicle and other platforms’ survivability and protection systems. The ESA segment mainly provides products and systems solutions to U.S. military, foreign military sales (FMS/FMF), homeland security (HLS), medical instrumentation and commercial aviation customers.
The company's portfolio includes a wide range of named products and platforms. In the Aerospace segment, key offerings include Unmanned Aircraft Systems (UAS), helmet-mounted displays (HMD), and training solutions. The ISTAR and EW segment features high-power laser (HPL) technology for the Iron Beam air defense system, high-power microwave (HPM) technologies, and Directional Infrared Countermeasure (DIRCM) systems. The Land segment includes the Iron Fist Active Protection System (APS) for combat vehicles. The ESA segment includes capabilities from subsidiaries Sparton (sonobuoys and undersea warfare systems) and KMC Systems (HiArc) for life science and diagnostic customers.
The company derives most of its revenues directly or indirectly from government agencies, mainly the Israeli Ministry of Defense (IMOD), the U.S. Department of War (DoW), and other military or governmental authorities of various countries. The company often acts as a prime contractor, but also as a subcontractor. It has a global presence through multiple local subsidiaries. In 2025, approximately 68% of its revenue was derived from exports subject to Israeli export regulations.
The markets Elbit Systems serves are highly competitive and characterized by rapid changes in technologies and evolving industry standards. The company competes with many large and mid-tier defense, homeland security and commercial aviation contractors on the basis of system performance, cost, overall value, delivery and reputation. It also faces increased competition from startups and non-traditional defense contractors, including companies active in the deep-tech and defense-tech field, which often have access to substantial resources from venture capital and private equity.
The Company's strategy is generally based on five pillars: Strong worldwide presence through a unique global footprint and multiple local subsidiaries; positioning as a trusted and valued partner of customers and OEMs; investing in R&D to increase portfolio breadth; investing in highly skilled employees; and fostering a growth culture focused on constant value creation and exploring new opportunities.
The Business section does not disclose a total employee count. However, it notes that the company relies on key management, engineering, scientific and technological personnel and that it has witnessed high competition for such personnel. As of December 31, 2025, approximately 6% of its work force in Israel had been called up for military reserve duty, increasing to approximately 8% as of March 5, 2026.
No MD&A content was provided in the input. The text provided is from Item 7 (Major Shareholders and Related Party Transactions), which is outside the scope of MD&A analysis.
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Cash and cash equivalents more than doubled to $635.1M from $265.4M, driven by strong operating cash flow of $778.4M. Short-term bank deposits increased to $180.6M. Total debt decreased to $389.6M (including current maturities of $83.5M and long-term loans/notes of $255.6M) from $831.3M, reflecting net debt repayment of $380.5M. Shareholders' equity rose to $4,130.0M from $3,281.0M, boosted by $573.1M in net proceeds from share issuance and $534.3M in net income, partially offset by $124.3M in dividends and $157.5M in other comprehensive loss.
No purchase commitments or contractual obligations were disclosed in the Notes section. The company disclosed significant derivative notional amounts ($6,041.0M in forward contracts) used for hedging, with a net negative fair value of $(4.9)M.
Dividends: Aggregate quarterly dividend payments were $2.45 per share in 2025, up from $2.00 in both 2024 and 2023, representing 22.5% growth. Total dividends paid were $124.3M. No share buybacks were reported. Debt: Net debt repayment of $380.5M included $301.6M net repayment of commercial paper, $67.5M repayment of Series B, C and D Notes, and $11.4M repayment of long-term loans. Capex: $225.6M in property, plant and equipment purchases, representing 2.8% of sales.
No segment-level financial data was disclosed in the Notes section. The only geographic reference was export sales of approximately $5.4 billion (68% of total sales) outside Israel, but this was noted as being discussed in MD&A, not in the Notes.
Cash flow statement not included in provided text.