Elbit Systems (ESLT) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenues of $2.189 billion, up 15.5% year-over-year, with a record backlog of $30.2 billion, surpassing Q4 for the first time and reflecting double-digit growth in revenue and profitability.

• Non-GAAP EPS for Q1 2026 was $3.87, up 51% year-over-year; GAAP EPS rose 42% to $3.34.

• Strong demand across key markets, especially Europe and Israel, with significant new contract awards totaling over $4 billion.

• Strategic focus on expanding production capacity, automation, innovation, and R&D investment to support long-term growth.

• 2025 full-year revenues were $7.9 billion, up 16% from 2024, with non-GAAP EPS of $12.75 (+46%).

Financial highlights

• Q1 2026 revenues rose 15.5% year-over-year to $2.189 billion; gross margin expanded to 25.2% GAAP and 25.5% non-GAAP.

• GAAP operating income was $205.1 million (9.4% margin), up from $149.7 million (7.9%) in Q1 2025; non-GAAP operating income was $222 million (10.1% margin).

• Free cash flow reached $210 million, up 30% year-over-year; net cash from operations was $281 million.

• Book-to-bill ratio in Q1 2026 was 1.9, outperforming peer average of 1.3.

• Dividend doubled to $1 per share, payable July 6, 2026.

Outlook and guidance

• Internal target of mid-teens revenue growth for 2026 and similar expectations for 2027, driven by robust demand and effective backlog conversion.

• Expanding margins and continued bottom-line improvement remain key priorities.

• No formal long-term revenue guidance, but management expects continued strong order flow and backlog growth.

• Sustained growth expected, supported by record backlog and global demand.

• Focus on scaling production and innovation to meet rising demand and support sustainable long-term growth.