Elbit Systems Order Backlog Hits $32 Billion Amid Global Defense Boom

Elbit Systems has achieved another record quarter, reporting a 16% increase in sales to $2.3 billion for the second quarter of the year, putting it on track for annual sales of $9 billion. Net profit surged even more dramatically, jumping 40% to $173.6 million. The defense manufacturer's order backlog reached an all-time high of $32 billion, a significant 33% increase from $23.8 billion a year earlier.

This surge in business is attributed to the ongoing global defense boom, fueled by conflicts such as the war in Ukraine and heightened geopolitical tensions. Sales to Israel's Defense Ministry grew, constituting 37% of the company's activity, driven by demand for munitions, drones, and intelligence systems. Sales of C4I and cyber systems rose approximately 11%, primarily due to increased demand for radio and command-and-control systems in Europe. Intelligence and electronic warfare sales climbed about 22%, largely from higher sales of high-power laser systems and electronic warfare systems in the Asia-Pacific region.

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Most of the new orders are from abroad, which indicates the demand and interest in our products.

Land systems sales saw a substantial rise of about 32%, bolstered by ammunition sales within Israel. Conversely, drone sales experienced a slight decrease of about 8%. This dip was mainly due to an unfavorable mix of one-time projects and reduced sales of training systems and simulators in Europe, though this was partially offset by increased sales of unmanned aerial vehicles in Israel.

"Most of the new orders are from abroad, which indicates the demand and interest in our products," said Bezhalel "Butzi" Machlis, president and CEO of Elbit Systems. He highlighted significant interest in the company's airborne laser system for fighter jets and combat helicopters, designed to counter swarm attacks by UAVs and drones. "At the same time, we are continuing to increase deliveries of the high-power laser to the Defense Ministry and Rafael. Hundreds of our engineers are employed on this."

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At the same time, we are continuing to increase deliveries of the high-power laser to the Defense Ministry and Rafael. Hundreds of our engineers are employed on this.