Elbit Systems (ESLT) Q2 2025 earnings summary

Executive summary

• Revenues reached $1.973 billion in Q2 2025, up 21% year-over-year, with strong double-digit growth across all business segments and geographies, and a $23.8 billion order backlog as of June 30, 2025, with 68% from international orders.

• Achieved $7.5 billion in LTM Q2 2025 revenues, up from $6.3 billion in LTM Q2 2024, and ranked 22nd in Defense News Global 100 Defense Companies in 2024.

• Benefited from increased defense budgets in Israel and Europe, and strong US market presence with $1.6 billion LTM North America revenues.

• Raised $573 million net ($588.8 million gross) through a successful share offering to support future business growth and M&A opportunities.

• Secured several major contracts, including a $1.625 billion European defense deal and $260 million Airbus contract.

Financial highlights

• Q2 2025 revenues were $1.973 billion, up from $1.626 billion in Q2 2024; GAAP gross margin remained at 24%, non-GAAP at 24.4%.

• GAAP operating income was $157.8 million (8% of revenue), up from $116.5 million; non-GAAP operating income was $175.1 million (8.9% of revenue), up from $130.5 million.

• GAAP diluted EPS was $2.69, up from $1.76; non-GAAP diluted EPS was $3.23, up from $2.08.

• Free cash flow for Q2 2025 was $71 million; operating cash flow for Q2 was $304 million.

• Dividend increased to $0.75 per share, 60% higher than last year, declared for October 2025.

Outlook and guidance

• Internal targets for 2025 are mid-teens growth; double-digit growth targeted for 2026, supported by strong backlog and elevated defense budgets in Israel and Europe.

• Margin expansion expected to continue, driven by operational leverage and ERP implementation.

• Management expects continued growth, leveraging strong demand and robust presence in Europe and other markets.