Elbit Systems (ESLT) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with double-digit growth in revenues, operating profit, EPS, and backlog, and record free cash flow exceeding $550 million.

• Surpassed $2 billion in quarterly sales for the first time in Q4 2025, reflecting 16.3% annual revenue growth.

• Secured major contracts, including the largest ever from an international customer ($2.3B), a $1.6B European defense contract, and significant Merkava, EW, and Iron Fist APS deals.

• Expanded global production capacity, especially in Europe and Israel, and continued investment in disruptive R&D, particularly in AI and advanced defense technologies.

• Completed a successful $573 million public share offering, increasing liquidity and analyst coverage, and ended 2025 with a positive net cash position.

Financial highlights

• 2025 revenues rose 16.3% to $7.94 billion; Q4 revenues up 11.3% to $2.15 billion, first time exceeding $2B in a quarter.

• GAAP operating income for 2025 was $671 million (8.5% margin); non-GAAP operating profit $738 million (9.3% margin).

• GAAP EPS for Q4 was $3.52 (up from $2); full-year GAAP EPS $11.39 (up from $7.18); non-GAAP EPS $12.75 (up 46%).

• Free cash flow for 2025 was $553 million, up from $320 million in 2024; net cash from operations $778 million.

• Record backlog of $28.1 billion as of Dec 31, 2025, up $5.5 billion year-over-year, with 72% from outside Israel.

Outlook and guidance

• Europe expected to remain the primary growth engine, with Asia Pacific and Israel also contributing.

• Significant CAPEX planned for 2026 ($300 million) to further expand capacity globally.

• Anticipates continued double-digit growth potential, supported by strong backlog and operational leverage.

• Dividend increased to $1.00 per share as of Q1 2026, reflecting confidence in ongoing cash generation.