Shares of Elbit Systems Ltd (ESLT) are surging 5.16% in pre-market trading on Tuesday, following the release of the company's impressive third-quarter 2025 financial results. The Israeli defense technology firm reported earnings that significantly exceeded analyst expectations, despite a slight miss on revenue projections.
Elbit Systems announced adjusted earnings per share of $3.35, handily beating the analyst consensus estimate of $2.78 by 20.68%. This represents a substantial 51.58% increase from the $2.21 per share reported in the same quarter last year. The company's quarterly sales reached $1.922 billion, up 11.85% year-over-year, although slightly below the anticipated $2.017 billion.
The strong performance was underpinned by a record-breaking order backlog of $25.2 billion, providing long-term visibility for the company. Elbit Systems' President and CEO, Bezhalel Machlis, attributed the robust results to significant contracts secured across Europe and from global customers, reflecting increased defense budgets and ongoing global conflicts. The company also reported improvements in gross profit margins and a substantial increase in cash flow from operating activities. With these positive indicators and the recent announcement of a new $2.3 billion strategic contract, investors appear optimistic about Elbit Systems' future prospects, driving the pre-market stock surge.
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