Elbit Systems (ESLT) Q4 2024 earnings summary

Executive summary

• Achieved $6.8 billion in 2024 revenues, up 14% year-over-year, with a record $22.6 billion backlog and double-digit growth in revenues, profit, and backlog for the fourth consecutive quarter.

• Ranked 22nd in Defense News Global 100 Defense Companies in 2024, reflecting a broad, innovative portfolio and strong global presence.

• Free cash flow for 2024 was $320 million, with operating cash flow at $535 million, and a $0.60 per share dividend declared.

• Export revenues reached $4.8 billion, with 65% of backlog generated outside Israel, highlighting robust international demand.

Financial highlights

• Q4 2024 revenues rose 19% year-over-year to $1.93 billion; full-year revenues up 14% to $6.8 billion.

• Q4 non-GAAP operating income was $157.5 million (8.2% margin); GAAP operating income was $141.4 million (7.3% margin).

• Full-year non-GAAP diluted EPS was $8.76; GAAP diluted EPS was $7.18.

• Free cash flow improved to $320 million from $(73) million in 2023; operating cash flow up 370% year-over-year.

• Order backlog increased 27% year-over-year to $22.6 billion.

Outlook and guidance

• Management anticipates continued strong growth, especially in Europe and Israel, supported by increased defense budgets and new EU funding.

• Approximately 57% of the backlog is scheduled for delivery in 2025 and 2026.

• Sustained R&D investment at 7% of sales supports future growth and innovation.