Order Backlog at $28.1 billion; Revenues of $7.9 billion; GAAP net income of $534 million; Non-GAAP net income of $598 million; GAAP net EPS of $11.39; Non-GAAP net EPS of $12.75;
HAIFA, Israel, March 17, 2026 /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, 2025.
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 15 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:
"The Company is reporting excellent financial results. In 2025, revenues grew by 16%, profit margins expanded significantly, GAAP net EPS increased by 59%, non-GAAP net EPS increased by 46% and backlog grew by $5.5 billion surpassing the $28 billion mark. We also generated record Free Cash Flow of more than $550 million, representing a 100% cash conversion rate.
During 2025, Elbit Systems achieved significant milestones, most notably securing a contract from the IMOD for an Airborne High--Power Laser (HPL) combat jet fighter Pod and for a High--Power Laser (HPL) system for helicopters.
The Company continues to meet its commitments to an expanding global customer base while strengthening its presence across Europe, the United States, and Asia.
We continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms for a total sum of over $500 million. In addition, we are making significant strategic CAPEX investments to address growing global capacity constraints, recognizing that capacity is a critical element of our long--term strategy.
Elbit Systems and its employees are playing a key role in providing the IMOD and the IDF capabilities during the Operation Roaring Lion and will continue to serve as a strategic partner to its global customers, maintaining the highest standards and remaining at the forefront of global defense innovation."
Fourth quarter 2025 results:
Revenues in the fourth quarter of 2025 increased by 11.3% to $2,148.6 million from $1,930.2 million in the fourth quarter of 2024.
C4I and Cyber revenues increased by 19%, mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 39%, mainly due to increased sales of Maritime systems, Electro-Optic systems and C-UAS Electronic Warfare. Land revenues increased by 22%, mainly due to ammunition and munition sales in Israel and in Europe. Elbit Systems of America revenues increased by 9%, mainly due to the increase in sales of Night-Vision systems and Maritime systems, partially offset by the decrease in sales of medical devices. Aerospace revenues decreased by 14% in the fourth quarter of 2025, as compared to the fourth quarter of 2024, mainly due to the decrease in training and simulation sales in Europe and significant sales of Precision Guided Munition $(PGM)$ in the fourth quarter of 2024.
For distribution of revenues by segments and geographic regions see tables on page 13.
GAAP gross profit in the fourth quarter of 2025 was $529.8 million (24.7% of revenues), as compared to $465.2 million (24.1% of revenues) in the fourth quarter of 2024. Non-GAAP(*) gross profit amounted to $536.3 million (25.0% of revenues) in the fourth quarter of 2025, as compared to $472.1 million (24.5% of revenues) in the fourth quarter of 2024. The increase in gross profit in the fourth quarter of 2025 was in line with the increase in the Company's activity and order backlog.
Research and development expenses, net were $144.1 million (6.7% of revenues) in the fourth quarter of 2025, as compared to $131.2 million (6.8% of revenues) in the fourth quarter of 2024.
Marketing and selling expenses, net were $116.1 million (5.4% of revenues) in the fourth quarter of 2025, as compared to $107.2 million (5.6% of revenues) in the fourth quarter of 2024.
General and administrative expenses, net were $77.2 million (3.6% of revenues) in the fourth quarter of 2025, as compared to $85.4 million (4.4% of revenues) in the fourth quarter of 2024.
GAAP operating income in the fourth quarter of 2025 was $192.5 million (9.0% of revenues), as compared to $141.4 million (7.3% of revenues) in the fourth quarter of 2024. Non-GAAP(*) operating income was $210.8 million (9.8% of revenues) in the fourth quarter of 2025, as compared to $157.5 million (8.2% of revenues) in the fourth quarter of 2024.
Financial expenses, net were $34.0 million in the fourth quarter of 2025, as compared to $45.9 million in the fourth quarter of 2024.
* see page 15
Other income, net was $24.2 million in the fourth quarter of 2025, as compared to other expenses, net of $6.5 million in the fourth quarter of 2024. Other income, net in the fourth quarter of 2025 included mainly capital gains from the termination of the pension plans, in the amount of approximately $13.7 million, and from the revaluation of investments in affiliated companies held under the fair value method of approximately $11.8 million.
Taxes on income in the fourth quarter of 2025 were $21.0 million, as compared to $3.4 million in the fourth quarter of 2024. The lower tax rate in 2024 relates to adjustments made for prior years following tax settlements in some of the Company's subsidiaries in Israel.
Equity in net earnings of affiliated companies were $7.0 million in the fourth quarter of 2025, as compared to $4.6 million the fourth quarter of 2024.
GAAP net income attributable to the Company's shareholders in the fourth quarter of 2025 was $168.2 million (7.8% of revenues), as compared to $90.0 million (4.7% of revenues) in the fourth quarter of 2024. Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2025 was $169.9 million (7.9% of revenues), as compared to $119.3 million (6.2% of revenues) in the fourth quarter of 2024. The increase in net income for the fourth quarter of 2025 was primarily driven by increased revenues.
GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2025 were $3.52, as compared to $2.00 in the fourth quarter of 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $3.56 for the fourth quarter of 2025, as compared to $2.66 for the fourth quarter of 2024.
Full year 2025 results:
Revenues for the year ended December 31, 2025 increased by 16.3% to $7,938.6 million from $6,827.9 million in 2024.
C4I and Cyber revenues increased by 16% year-over-year mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 16% mainly due to increased sales of Maritime systems, Electro-Optic systems which include Space systems, as well as a variety of Electronic Warfare systems including C-UAS. Land revenues increased by 38% mainly due to the increase in sales of ammunition and munitions in Israel and Europe. Elbit Systems of America revenues increased by 7% mainly due to the increase in sales of night-vision systems and Maritime systems, partially offset by the decrease in medical devices sales. Aerospace revenues increased by 2% in 2025 as compared to 2024, mainly due to increased sales of Precision Guided Munition (PGM) in Asia Pacific and Israel, partially offset by lower training and simulation sales in Europe.
For distribution of revenues by segments and by geographic regions see tables on page 13.
Cost of revenues for the year ended December 31, 2025 was $6,003.4 million, as compared to $5,186.1 million in the year ended December 31, 2024.
* see page 15
GAAP gross profit in 2025 was $1,935.3 million (24.4% of revenues), as compared to $1,641.8 million (24.0% of revenues) in 2024. Non-GAAP(*) gross profit for the year ended December 31, 2025 was $1,961.8 million (24.7% of revenues), as compared to $1,671.0 million (24.5% of revenues) in the year ended December 31, 2024.
Research and development expenses, net for the year ended December 31, 2025 were $517.1 million (6.5% of revenues), as compared to $466.4 million (6.8% of revenues) in the year ended December 31, 2024. The increase in research and development expenses, net during 2025 was mainly due to significant investments expanding the Company's portfolio of ammunition and munitions, as well as increased investment in Night Vision solutions.
Marketing and selling expenses, net for the year ended December 31, 2025 were $399.4 million (5.0% of revenues), as compared to $375.4 million (5.5% of revenues) in the year ended December 31, 2024.
General and administrative expenses, net for the year ended December 31, 2025 were $347.3 million (4.4% of revenues), as compared to $311.0 million (4.6% of revenues) in the year ended December 31, 2024.
GAAP operating income in 2025 was $671.4 million (8.5% of revenues), as compared to $489.1 million (7.2% of revenues) in 2024. Non-GAAP(*) operating income for the year ended December 31, 2025 was $737.8 million (9.3% of revenues), as compared to $550.4 million (8.1% of revenues) in the year ended December 31, 2024.
C4I and Cyber operating income in 2025 was $55.9 million (6.0% of C4I and Cyber segment revenues), compared to $62.0 million (7.8% of segment revenues in 2024). The $6.1 million decrease in operating income was mainly due to a project mix.
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