ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
PR Newswire
HAIFA, Israel, March 18, 2025
Backlog of orders at $22.6 billion; Revenues of $6.8 billion; Non-GAAP net income of $392 million;
GAAP net income of $321 million;
Non-GAAP net EPS of $8.76; GAAP net EPS of $7.18
HAIFA, Israel, March 18, 2025 /PRNewswire/ -- Elbit Systems Ltd. ("Elbit Systems" or the "Company") $(ESLT)$ (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2024.
In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 7 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:
"Elbit Systems reports a solid set of annual and quarterly results today with a fourth consecutive quarter of double-digit growth in revenues and backlog year-over-year. In addition to these strong metrics Elbit Systems generated $320 million in free cash flow. The Company has secured significant contracts worldwide, with its advanced technologies achieving major successes and milestones alongside investments in R&D and production infrastructure. Our global presence and diversified portfolio position us well to capture increasing global defense budgets.
I would like to thank Elbit Systems' employees and managers who are dedicated and committed to the Company's customers and business partners, and constantly striving to create significant added value in view of global security challenges."
Fourth quarter 2024 results:
Revenues in the fourth quarter of 2024 were $1,930.2 million, as compared to $1,625.8 million in the fourth quarter of 2023.
Aerospace revenues increased by 27% in the fourth quarter of 2024, as compared to the fourth quarter of 2023 mainly due to increased UAS revenues in Israel and Europe, and increased Precision Guided Munition $(PGM.AU)$ revenues. C4I and Cyber revenues increased by 7% mainly due to radio systems and command and control systems sales. ISTAR and EW revenues increased by 8% mainly due to Electronic Warfare and Electro-Optic systems sales in Israel. Land revenues increased by 29% mainly due to ammunition and munition sales in Israel. Elbit Systems of America revenues increased by 6% mainly due to the increase in night-vision systems and medical instrumentation sales.
For distribution of revenues by segments and geographic regions see the tables on page 14.
* see page 7
Non-GAAP(*) gross profit amounted to $472.1 million (24.5% of revenues) in the fourth quarter of 2024, as compared to $411.4 million (25.3% of revenues) in the fourth quarter of 2023. GAAP gross profit in the fourth quarter of 2024 was $465.2 million (24.1% of revenues), as compared to $382.1 million (23.5% of revenues) in the fourth quarter of 2023. The increase in gross profit in the fourth quarter of 2024 was in line with the increase in the Company's activity and order backlog.
Research and development expenses, net were $131.2 million (6.8% of revenues) in the fourth quarter of 2024, as compared to $117.4 million (7.2% of revenues) in the fourth quarter of 2023.
Marketing and selling expenses, net were $107.2 million (5.6% of revenues) in the fourth quarter of 2024, as compared to $91.3 million (5.6% of revenues) in the fourth quarter of 2023.
General and administrative expenses, net were $85.4 million (4.4% of revenues) in the fourth quarter of 2024, as compared to $105.9 million (6.5% of revenues) in the fourth quarter of 2023. General and administrative expenses in the fourth quarter of 2023 include approximately $34 million of expenses related to a write-off of an uncollectible balance of contract assets of a discontinued project.
Non-GAAP(*) operating income was $157.5 million (8.2% of revenues) in the fourth quarter of 2024, as compared to $104.8 million (6.4% of revenues) in the fourth quarter of 2023. GAAP operating income in the fourth quarter of 2024 was $141.4 million (7.3% of revenues), as compared to $67.6 million (4.2% of revenues) in the fourth quarter of 2023.
Financial expenses, net were $45.9 million in the fourth quarter of 2024, as compared to $45.8 million in the fourth quarter of 2023.
Other expenses, net were $6.5 million in the fourth quarter of 2024, as compared to other income, net of $0.6 million in the fourth quarter of 2023. Other expenses, net in the fourth quarter of 2024 were mainly a result of revaluation of investments in affiliated companies held under the fair value method.
Taxes on income in the fourth quarter of 2024 were tax expenses of $3.4 million, as compared to tax benefits of $5.0 million in the fourth quarter of 2023. The lower tax rate in 2024 and tax benefits in 2023 were related to adjustments for prior years following tax settlements in some of the Company's subsidiaries in Israel.
Equity in net earnings of affiliated companies was $4.6 million in the fourth quarter of 2024, as compared to $3.0 million the fourth quarter of 2023.
* see page 7
Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2024 was $119.3 million (6.2% of revenues), as compared to $69.7 million (4.3% of revenues) in the fourth quarter of 2023. GAAP net income attributable to the Company's shareholders in the fourth quarter of 2024 was $90.0 million (4.7% of revenues), as compared to $30.0 million (1.8% of revenues) in the fourth quarter of 2023. The high level of net income for the fourth quarter of 2024 was primarily driven by increased revenues.
Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $2.66 for the fourth quarter of 2024, as compared to $1.56 for the fourth quarter of 2023. GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2024 were $2.00, as compared to $0.67 in the fourth quarter of 2023.
Full year 2024 results:
Revenues for the year ended December 31, 2024 increased by 14% to $6,827.9 million from $5,974.7 million in 2023.
Aerospace revenues increased by 9% in 2024 as compared to 2023, mainly due to increased UAS revenues in Israel and Europe, and increased PGM revenues, partially offset by lower training and simulation sales. C4I and Cyber revenues increased by 11% year-over-year mainly due to sales of radio systems and command and control systems. ISTAR and EW revenues increased by 12% mainly due to increased sales of Electronic Warfare and Electro-Optic systems in Israel, partially offset by lower Electro-Optic systems sales in Europe. Land revenues increased by 29% mainly due to the increase in sales of ammunition and munitions in Israel. Elbit Systems of America revenues increased by 8% mainly due to the increase in sales of night-vision systems and medical instrumentation.
For distribution of revenues by segments and by geographic regions see the tables on page 14.
Cost of revenues for the year ended December 31, 2024 was $5,186.1 million, as compared to $4,491.8 million in the year ended December 31, 2023.
Non-GAAP(*) gross profit for the year ended December 31, 2024 was $1,671.0 million (24.5% of revenues), as compared to $1,533.9 million (25.7% of revenues) in the year ended December 31, 2023. GAAP gross profit in 2024 was $1,641.8 million (24.0% of revenues), as compared to $1,483.0 million (24.8% of revenues) in 2023.
Research and development expenses, net for the year ended December 31, 2024 were $466.4 million (6.8% of revenues), as compared to $424.4 million (7.1% of revenues) in the year ended December 31, 2023. The increase in research and development expenses, net was mainly due to significant investment in expanding the Company's portfolio of PGM, as well as, increased investment in High-Power Laser.
Marketing and selling expenses, net for the year ended December 31, 2024 were $375.4 million (5.5% of revenues), as compared to $359.1 million (6.0% of revenues) in the year ended December 31, 2023.
* see page 7
General and administrative expenses, net for the year ended December 31, 2024 were $311.0 million (4.6% of revenues), as compared to $330.3 million (5.5% of revenues) in the year ended December 31, 2023. General and administrative expenses in 2023 include approximately $34 million of expenses related to a write-off of an uncollectible balance of contract assets of a discontinued project.
Non-GAAP(*) operating income for the year ended December 31, 2024 was $550.4 million (8.1% of revenues), as compared to $448.7 million (7.5% of revenues) in the year ended December 31, 2023. GAAP operating income in 2024 was $489.1 million (7.2% of revenues), as compared to $369.1 million (6.2% of revenues) in 2023.
Aerospace operating income in 2024 was $149.1 million (7.3% of Aerospace segment revenues), compared to 125.4 million (6.7% of segment revenues in 2023). The $23.7 million increase in operating income was mainly due to increased revenues and positive program mix.
C4I and Cyber operating income in 2024 was $62.0 million (7.8% of C4I and Cyber segment revenues), compared to $50.7 million (7.0% of segment revenues in 2023). The $11.3 million increase in operating income was mainly due to increased revenues and positive program mix.
ISTAR and EW operating income in 2024 was $96.1 million (7.3% of ISTAR and EW segment revenues), compared to $134.9 million (11.4% of segment revenues in 2023). The $38.8 million decrease in operating income was mainly due to the lower level of Electro-Optic systems revenues in Europe, partially offset by an increase in Electronic Warfare and Electro-Optic systems' revenues in Israel.
(MORE TO FOLLOW) Dow Jones Newswires
March 18, 2025 05:26 ET (09:26 GMT)
Comments