Elbit Systems has signed a $1.635 billion contract to supply a range of defense solutions to an undisclosed European country over the next five years, despite recent threats by some European states to limit arms purchases from Israel.
An Elbit Systems SIGMA 155 self‑propelled howitzer
(Video: Elbit, IDF, Yoav Zitun)
Speaking about the political tensions, Elbit CEO Bezhalel Machlis said, “Our customers find ways to continue doing business with Elbit. Professionally, security officials worldwide have a close dialogue with us and value the quality of our products. We have dozens of subsidiaries abroad that also manufacture and develop locally, and some countries maintain direct dialogue with them as part of their economies.”
The deal aims to modernize the country’s military, equipping it with advanced systems that enable seamless communication. It covers two main categories of advanced technologies based on Elbit’s latest portfolio, many integrate artificial intelligence.
The first includes precision long-range artillery rocket systems and a broad range of unmanned aerial combat systems for intelligence and strike missions at operational and tactical ranges, including personal drones. The second includes advanced ISTAR (intelligence, surveillance, target acquisition and reconnaissance) capabilities, such as COMINT, SIGINT and electronic warfare systems. Elbit will also provide intelligence collection and processing systems, advanced electro-optical (E/O) and night-vision systems, upgrades for combat vehicles and defensive systems.
In addition, the company will deliver a complete digital battlefield communications solution, built on its latest C4ISR command-and-control software and advanced communications equipment. This integrated package spans all operational levels, from strategic headquarters to tactical units, including the military’s newest combat vehicles.
“This contract reflects the strong demand for Elbit Systems’ advanced technologies in Europe and demonstrates our ability to deliver integrated, multi-domain solutions tailored to modern defense needs,” Machlis said. “Our comprehensive portfolio has proven itself in the field and is highly regarded by users. We are proud to support this European country in strengthening its national security as part of a strategic partnership. The agreement also includes industrial cooperation to bolster the buyer’s domestic defense production capabilities.”
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Alongside the deal, Elbit released its Q2 2025 financial results, reporting a record $24 billion order backlog—over $600 million higher than the previous quarter, excluding the newly announced contract. Sales rose 21% to around $2 billion, while net profit increased 2% year-over-year to $126 million. Operating profit grew to $175 million, an 8.9% margin.
Sales to Israel accounted for 34% of total revenue ($670 million), up from 27% ($444 million) a year earlier. The land systems division, which supplies the IDF with munitions such as SIGMA 155 self‑propelled howitzers, the Trophy active protection system and shells, saw a 45% annual jump, becoming Elbit’s largest division by sales. Overseas sales also grew—up 20% in Europe, 15% in North America and 10% in Asia—with Israel recording the largest increase at 43%.
Net cash flow reached $71 million, marking the third consecutive quarter of positive growth. “We delivered strong results—the numbers speak for themselves,” Machlis said. “We continue our double-digit growth momentum and maintain a record order backlog.”