Elbit Systems reported strong financial results for 2025, with revenue rising sharply and its order backlog reaching a record $28.1 billion, as ongoing conflicts in the Middle East fueled demand for defense technologies.
The Israeli defense company said annual revenue climbed 16% to $7.9 billion, while net income jumped to $534 million, up from $321 million in 2024. Earnings per share rose to $11.39.
Fourth-quarter results also showed solid growth, with revenue up 11% to $2.15 billion and net income nearly doubling year over year.
CEO Bezhalel Machlis described the performance as “excellent,” citing increased global demand and major contract wins, including deals with Israel’s Defense Ministry for high-power laser systems for aircraft and helicopters.
The company said its backlog grew by $5.5 billion over the year, with about 72% of orders coming from outside Israel. More than half of the backlog is expected to be executed over the next two years.
Growth was driven primarily by land systems, including ammunition and munitions sales in Israel and Europe, as well as strong demand for electronic warfare, intelligence systems and command-and-control technologies. Revenue in Elbit’s land segment surged 38% over the year.
Operating income rose to $671 million, reflecting improved margins and higher activity levels, while the company generated $778 million in operating cash flow.
Elbit also said it invested more than $500 million in research and development, focusing on artificial intelligence and next-generation defense capabilities.
The company noted that ongoing regional conflicts, including fighting with Hamas, Hezbollah and Iran, have significantly increased demand for its products. At the same time, the war has created operational challenges, including supply chain disruptions, higher transportation costs and workforce constraints due to reserve duty call-ups.
Despite these challenges, Elbit said it has taken steps to maintain production and expand capacity, including increasing inventories and investing in infrastructure.
Recent contracts included deals worth hundreds of millions of dollars for armored vehicle upgrades, electronic warfare systems and advanced munitions for international customers.
The company also declared a dividend of $1 per share.
Looking ahead, Elbit said the current security situation remains uncertain, but demand for its systems is expected to remain strong as global defense spending continues to rise.