Elbit Systems Ltd. (NASDAQ:ESLT) stock rose Tuesday after the company reported better-than-expected third-quarter 2025 results.
Details
The revenue for the quarter stood at $1.92 billion, missing the consensus of $2.02 billion.
Adjusted gross margin expanded to 25.2% from 24.4% a year ago, and adjusted operating margin expanded to 9.7% from 8.2% in the same quarter last year.
Adjusted EPS rose to $3.35 from $2.21 a year ago, beating the consensus of $2.78.
As of September 30, 2025, the order backlog stood at $25.2 billion, with 69% from outside Israel and 38% scheduled for the remainder of 2025 and 2026.
Cash provided by operating activities for the nine-month quarter totaled $461.0 million, versus $82.5 million a year ago quarter.
Segment Revenues
Aerospace revenues fell 3% year over year (Y/Y) to $477.7 million due to lower Precision Guided Munition (PGM) sales in the Asia Pacific, and Elbit Systems of America (ESA) declined 2% Y/Y to $407.7 million on lower sales of Electronic systems and medical instrumentation.
Meanwhile, C4I and Cyber revenues rose 14% Y/Y to $243.3 million, led by strong sales of radio systems and command and control systems in Europe.
Also, ISTAR and EW revenues grew 5% Y/Y to $340.7 million, aided by increased sales of Electro-Optic and Electronic Warfare systems in Israel.
Additionally, Land revenues surged 41% Y/Y to $593.7 million, fueled by higher ammunition and munition sales across Israel and Europe.
Management Commentary
Elbit CEO Bezhalel (Butzi) Machlis added, ”These results reflect the significant contracts the company has secured across Europe and from customers worldwide, who continue to choose Elbit Systems’ advanced systems amid the ongoing global conflicts and increasing defense budgets. Our tested and proven systems contribute to substantial operational successes and achievements, and they strengthen the national security of many countries, including those in Europe, which has become a major market for the company.”
Dividend
The board declared a dividend of 75 cents per share, payable on January 5, 2026 to the shareholders of record on December 22, 2025.
Recent key Deals
On Monday, Elbit Systems disclosed that it has secured an international contract worth approximately $2.3 billion.
The company will execute the contract over the next eight years.
Price Action: ESLT shares were trading higher by 5.23% to $529.55 premarket at last check Tuesday.
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Photo by T. Schneider via Shutterstock
