EMEA defense companies rally on effort to secure Ukraine
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2025
0mins
Source: SeekingAlpha
Defense Stocks Surge: Rheinmetall and Elbit Systems saw significant stock increases, with Rheinmetall rising 15% and Elbit Systems 8.7%, amid a broader rally in defense stocks as European leaders convened to discuss security plans for Ukraine following potential ceasefire negotiations.
Emergency Summit Outcomes: An emergency summit in London aimed to form a "coalition of the willing" to support Ukraine's security, contributing to the positive momentum in defense sector stocks across Europe, including notable gains from companies like BAE Systems and Thales.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ESLT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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 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 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' Rating Upgraded to ilAAA by S&P Global Ratings
- Rating Upgrade: S&P Global Ratings has upgraded Elbit Systems' long-term rating to 'ilAAA', reflecting not only the continued improvement in the company's financial ratios but also its strong operational performance amid rising global defense budgets.
- Short-Term Rating Affirmed: The agency also reaffirmed the company's short-term rating at 'ilA-1+', indicating financial stability in the near term, which enhances investor confidence in its future performance.
- Record Backlog: As of December 31, 2025, Elbit Systems reported a record-high order backlog of $28.1 billion, which not only signifies robust demand in the defense sector but also lays a solid foundation for future revenue growth.
- Successful Strategic Execution: CEO Bezhalel (Butzi) Machlis stated that the rating upgrade reflects the successful execution of the company's long-term strategy, and it is expected to continue driving growth investments while maintaining disciplined financial management.
See More
Elbit Systems' Rating Upgraded to ilAAA by S&P Global Ratings
- Rating Upgrade: S&P Global Ratings has upgraded Elbit Systems' long-term rating to 'ilAAA', the highest level on local scales, reflecting the company's ongoing financial improvement and strong operational performance.
- Strong Financial Performance: Elbit Systems reported revenues of $7.939 billion for the year ended December 31, 2025, with a backlog of $28.1 billion as of that date, indicating robust growth potential amid rising global defense budgets.
- Stable Short-Term Rating: S&P Global Ratings reaffirmed Elbit Systems' short-term rating at 'ilA-1+', suggesting good financial stability and liquidity in the short term, which enhances its competitive position in the market.
- Successful Strategic Execution: The CEO of Elbit Systems noted that the rating upgrade reflects the successful execution of the company's long-term strategy, strengthening its ability to continue investing in growth while maintaining disciplined financial management.
See More
Israel Defense Ministry Awards Elbit Systems $34 Million Contract
- Contract Value: The Israel Defense Ministry has awarded Elbit Systems a $34 million contract aimed at developing external fuel tanks to extend the operational range and flight duration of F-35 fighter jets, significantly enhancing the Israeli Air Force's operational capabilities.
- Technological Innovation: The new external fuel tanks will enable F-35s to have longer endurance during missions, thereby increasing their flexibility and survivability in complex battlefield environments, which will improve overall combat efficiency.
- Industry Impact: The signing of this contract not only demonstrates Israel's trust in Elbit Systems but also reflects the ongoing investment in defense budgets to enhance air force capabilities, which may influence future defense procurement decisions.
- Strategic Significance: By enhancing the operational capabilities of the F-35, Israel can further solidify its military advantage in the increasingly complex regional security landscape, ensuring national security.
See More
Elbit Systems Secures $212M Order for Night Vision Goggles
- Significant Order Value: Elbit Systems' U.S. subsidiary has received a delivery order valued at approximately $212 million for the continued production of Enhanced Night Vision Goggle-Binocular (ENVG-B) systems, with deliveries scheduled through 2028, indicating sustained demand from the U.S. Army for advanced night vision technology.
- Exclusive Supplier Status: Elbit is the only prime supplier selected for this delivery order, highlighting its competitive edge in night vision technology and reflecting the U.S. Army's high regard for the quality and reliability of its products.
- Production Allocation History: Historically, the U.S. Army has split production of these systems among multiple vendors, and Elbit's selection as the sole supplier may influence future supply chain strategies and market competition dynamics.
- Strategic Implications: This order not only solidifies Elbit's position in the defense market but also provides potential funding for future R&D and production capabilities, further driving the company's expansion in the high-tech military equipment sector.
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 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' Rating Upgraded to ilAAA by S&P Global Ratings
- Rating Upgrade: S&P Global Ratings has upgraded Elbit Systems' long-term rating to 'ilAAA', reflecting not only the continued improvement in the company's financial ratios but also its strong operational performance amid rising global defense budgets.
- Short-Term Rating Affirmed: The agency also reaffirmed the company's short-term rating at 'ilA-1+', indicating financial stability in the near term, which enhances investor confidence in its future performance.
- Record Backlog: As of December 31, 2025, Elbit Systems reported a record-high order backlog of $28.1 billion, which not only signifies robust demand in the defense sector but also lays a solid foundation for future revenue growth.
- Successful Strategic Execution: CEO Bezhalel (Butzi) Machlis stated that the rating upgrade reflects the successful execution of the company's long-term strategy, and it is expected to continue driving growth investments while maintaining disciplined financial management.
See More
Elbit Systems' Rating Upgraded to ilAAA by S&P Global Ratings
- Rating Upgrade: S&P Global Ratings has upgraded Elbit Systems' long-term rating to 'ilAAA', the highest level on local scales, reflecting the company's ongoing financial improvement and strong operational performance.
- Strong Financial Performance: Elbit Systems reported revenues of $7.939 billion for the year ended December 31, 2025, with a backlog of $28.1 billion as of that date, indicating robust growth potential amid rising global defense budgets.
- Stable Short-Term Rating: S&P Global Ratings reaffirmed Elbit Systems' short-term rating at 'ilA-1+', suggesting good financial stability and liquidity in the short term, which enhances its competitive position in the market.
- Successful Strategic Execution: The CEO of Elbit Systems noted that the rating upgrade reflects the successful execution of the company's long-term strategy, strengthening its ability to continue investing in growth while maintaining disciplined financial management.
See More
Israel Defense Ministry Awards Elbit Systems $34 Million Contract
- Contract Value: The Israel Defense Ministry has awarded Elbit Systems a $34 million contract aimed at developing external fuel tanks to extend the operational range and flight duration of F-35 fighter jets, significantly enhancing the Israeli Air Force's operational capabilities.
- Technological Innovation: The new external fuel tanks will enable F-35s to have longer endurance during missions, thereby increasing their flexibility and survivability in complex battlefield environments, which will improve overall combat efficiency.
- Industry Impact: The signing of this contract not only demonstrates Israel's trust in Elbit Systems but also reflects the ongoing investment in defense budgets to enhance air force capabilities, which may influence future defense procurement decisions.
- Strategic Significance: By enhancing the operational capabilities of the F-35, Israel can further solidify its military advantage in the increasingly complex regional security landscape, ensuring national security.
See More
Elbit Systems Secures $212M Order for Night Vision Goggles
- Significant Order Value: Elbit Systems' U.S. subsidiary has received a delivery order valued at approximately $212 million for the continued production of Enhanced Night Vision Goggle-Binocular (ENVG-B) systems, with deliveries scheduled through 2028, indicating sustained demand from the U.S. Army for advanced night vision technology.
- Exclusive Supplier Status: Elbit is the only prime supplier selected for this delivery order, highlighting its competitive edge in night vision technology and reflecting the U.S. Army's high regard for the quality and reliability of its products.
- Production Allocation History: Historically, the U.S. Army has split production of these systems among multiple vendors, and Elbit's selection as the sole supplier may influence future supply chain strategies and market competition dynamics.
- Strategic Implications: This order not only solidifies Elbit's position in the defense market but also provides potential funding for future R&D and production capabilities, further driving the company's expansion in the high-tech military equipment sector.
See More
