Elbit Systems Secures $1.4B Military Modernization Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 28 minutes ago
0mins
Source: seekingalpha
- Significant Contract Value: Elbit Systems has secured a contract worth approximately $1.4 billion with a European customer, expected to be executed over five years, showcasing the company's strong competitiveness in the international defense market.
- Comprehensive Modernization Scope: The contract encompasses extensive military modernization programs aimed at enhancing maneuverability and survivability across the entire battle domain, indicating the company's capability to meet complex operational demands.
- Leadership Confidence: CEO Bezhalel Machlis emphasized that this contract reflects the breadth and attractiveness of Elbit Systems' defense portfolio, highlighting its ability to deliver high-performance systems and integrated solutions.
- Optimistic Market Outlook: With increasing global defense spending, Elbit Systems continues to demonstrate strong order execution capabilities, indicating growth potential in future performance, particularly in the demand for modernization and integrated solutions.
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Analyst Views on ESLT
Wall Street analysts forecast ESLT stock price to fall
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 763.720
Low
531.00
Averages
553.67
High
580.00
Current: 763.720
Low
531.00
Averages
553.67
High
580.00
About ESLT
Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land and naval systems and products for defense, homeland security and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company's activities include military aircraft and helicopter systems; helmet mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasures systems; electronic warfare and signal intelligence systems, and various commercial activities. It operates primarily in the defense and homeland security arenas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Elbit Systems Secures $1.4 Billion Military Modernization Contract
- Significant Contract Value: Elbit Systems has secured a contract valued at approximately $1.4 billion from a European customer for extensive military modernization programs over five years, which is expected to significantly enhance the client's operational capabilities and survivability.
- Diverse Technological Solutions: The contract includes a variety of advanced uncrewed autonomous solutions, networked land electronic warfare systems, precision-guided munitions, and electro-optical designating and reconnaissance systems, all interconnected via software-defined radios, thereby improving overall operational effectiveness.
- Growing Market Demand: The CEO of Elbit Systems stated that this contract reflects the breadth and attractiveness of the company's defense portfolio, showcasing its strong collaborative capabilities with armed forces worldwide, which continues to drive growing demand for its solutions.
- Strong Financial Performance: As of December 31, 2025, Elbit Systems reported revenues of $7.938 billion and an order backlog of $28.1 billion, indicating a solid position in the global defense market and potential for future growth.
See More
Elbit Systems Secures $1.4B Military Modernization Contract
- Significant Contract Value: Elbit Systems has secured a contract worth approximately $1.4 billion with a European customer, expected to be executed over five years, showcasing the company's strong competitiveness in the international defense market.
- Comprehensive Modernization Scope: The contract encompasses extensive military modernization programs aimed at enhancing maneuverability and survivability across the entire battle domain, indicating the company's capability to meet complex operational demands.
- Leadership Confidence: CEO Bezhalel Machlis emphasized that this contract reflects the breadth and attractiveness of Elbit Systems' defense portfolio, highlighting its ability to deliver high-performance systems and integrated solutions.
- Optimistic Market Outlook: With increasing global defense spending, Elbit Systems continues to demonstrate strong order execution capabilities, indicating growth potential in future performance, particularly in the demand for modernization and integrated solutions.
See More
Major Earnings Reports Expected Tuesday Morning
- Earnings Report Preview: AutoZone (AZO) is set to release its earnings before the market opens on Tuesday, which may provide insights into its retail performance and impact investor confidence in the auto parts sector.
- Multiple Company Reports: Ituran Location and Control Ltd. (ITRN) and Xiaomi Corporation (XIACF) are also scheduled to report on the same day, reflecting the latest trends in the tech and automotive industries, likely drawing market attention.
- Sector Impact: Earnings from Pony AI (PONY) and Elbit Systems Ltd. (ESLT) are highly anticipated, particularly in the autonomous driving and defense sectors, which could influence the short-term performance of related stocks.
- Additional Earnings: Furthermore, companies like MNSO, SKY, and VNET are also set to report before Tuesday's open, and the overall performance of this earnings season will provide critical economic signals to the market.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Elbit Systems Q1 Earnings Announcement Scheduled
- Earnings Announcement Date: Elbit Systems (ESLT) is set to announce its Q1 earnings on May 26 before market open, with a consensus EPS estimate of $3.33, reflecting a 29.6% year-over-year increase, indicating sustained profitability.
- Revenue Growth Expectations: The revenue estimate for Q1 stands at $2.14 billion, representing a 12.6% year-over-year growth, which underscores robust demand in the defense and security sectors, further solidifying the company's market position.
- Historical Performance: Over the past two years, Elbit has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, showcasing its strong execution and market adaptability, which boosts investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward and one downward revision, indicating some divergence in market sentiment regarding the company's future performance, which may impact short-term stock price volatility.
See More
Elbit Systems Q1 Earnings Forecast
- Earnings Release Date: Elbit Systems is set to report its Q1 earnings on May 26, with analysts forecasting an EPS of $3.37 and revenue of $2.16 billion, indicating the company's sustained growth potential in the defense sector.
- Order Details: On May 12, Elbit Systems secured a $212 million order from the US Army, a significant contract that not only strengthens the company's order book but also has the potential to positively impact future financial performance.
- Market Expectations: Analysts maintain an optimistic outlook on Elbit Systems' financial performance, anticipating that its robust revenue and profitability will attract more investor interest, thereby enhancing the company's market position in the defense industry.
- Strategic Implications: The upcoming earnings report and recent order highlight Elbit Systems' competitive edge and ongoing innovation in defense technology, potentially laying the groundwork for future growth.
See More
Elbit Systems Secures $1.4 Billion Military Modernization Contract
- Significant Contract Value: Elbit Systems has secured a contract valued at approximately $1.4 billion from a European customer for extensive military modernization programs over five years, which is expected to significantly enhance the client's operational capabilities and survivability.
- Diverse Technological Solutions: The contract includes a variety of advanced uncrewed autonomous solutions, networked land electronic warfare systems, precision-guided munitions, and electro-optical designating and reconnaissance systems, all interconnected via software-defined radios, thereby improving overall operational effectiveness.
- Growing Market Demand: The CEO of Elbit Systems stated that this contract reflects the breadth and attractiveness of the company's defense portfolio, showcasing its strong collaborative capabilities with armed forces worldwide, which continues to drive growing demand for its solutions.
- Strong Financial Performance: As of December 31, 2025, Elbit Systems reported revenues of $7.938 billion and an order backlog of $28.1 billion, indicating a solid position in the global defense market and potential for future growth.
See More
Elbit Systems Secures $1.4B Military Modernization Contract
- Significant Contract Value: Elbit Systems has secured a contract worth approximately $1.4 billion with a European customer, expected to be executed over five years, showcasing the company's strong competitiveness in the international defense market.
- Comprehensive Modernization Scope: The contract encompasses extensive military modernization programs aimed at enhancing maneuverability and survivability across the entire battle domain, indicating the company's capability to meet complex operational demands.
- Leadership Confidence: CEO Bezhalel Machlis emphasized that this contract reflects the breadth and attractiveness of Elbit Systems' defense portfolio, highlighting its ability to deliver high-performance systems and integrated solutions.
- Optimistic Market Outlook: With increasing global defense spending, Elbit Systems continues to demonstrate strong order execution capabilities, indicating growth potential in future performance, particularly in the demand for modernization and integrated solutions.
See More
Major Earnings Reports Expected Tuesday Morning
- Earnings Report Preview: AutoZone (AZO) is set to release its earnings before the market opens on Tuesday, which may provide insights into its retail performance and impact investor confidence in the auto parts sector.
- Multiple Company Reports: Ituran Location and Control Ltd. (ITRN) and Xiaomi Corporation (XIACF) are also scheduled to report on the same day, reflecting the latest trends in the tech and automotive industries, likely drawing market attention.
- Sector Impact: Earnings from Pony AI (PONY) and Elbit Systems Ltd. (ESLT) are highly anticipated, particularly in the autonomous driving and defense sectors, which could influence the short-term performance of related stocks.
- Additional Earnings: Furthermore, companies like MNSO, SKY, and VNET are also set to report before Tuesday's open, and the overall performance of this earnings season will provide critical economic signals to the market.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Elbit Systems Q1 Earnings Announcement Scheduled
- Earnings Announcement Date: Elbit Systems (ESLT) is set to announce its Q1 earnings on May 26 before market open, with a consensus EPS estimate of $3.33, reflecting a 29.6% year-over-year increase, indicating sustained profitability.
- Revenue Growth Expectations: The revenue estimate for Q1 stands at $2.14 billion, representing a 12.6% year-over-year growth, which underscores robust demand in the defense and security sectors, further solidifying the company's market position.
- Historical Performance: Over the past two years, Elbit has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, showcasing its strong execution and market adaptability, which boosts investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward and one downward revision, indicating some divergence in market sentiment regarding the company's future performance, which may impact short-term stock price volatility.
See More
Elbit Systems Q1 Earnings Forecast
- Earnings Release Date: Elbit Systems is set to report its Q1 earnings on May 26, with analysts forecasting an EPS of $3.37 and revenue of $2.16 billion, indicating the company's sustained growth potential in the defense sector.
- Order Details: On May 12, Elbit Systems secured a $212 million order from the US Army, a significant contract that not only strengthens the company's order book but also has the potential to positively impact future financial performance.
- Market Expectations: Analysts maintain an optimistic outlook on Elbit Systems' financial performance, anticipating that its robust revenue and profitability will attract more investor interest, thereby enhancing the company's market position in the defense industry.
- Strategic Implications: The upcoming earnings report and recent order highlight Elbit Systems' competitive edge and ongoing innovation in defense technology, potentially laying the groundwork for future growth.
See More
