Elbit Systems stock (IL0010811243): defense orders and cash flow shape investor focus

Elbit Systems stock is in focus after new defense contracts and recent quarterly figures highlighted strong demand but uneven cash generation. What is driving the Israeli defense specialist – and what should US investors know about its business mix?

Elbit Systems stock is drawing attention as the Israeli defense technology group continues to secure new contracts while navigating cash flow pressures seen in recent quarterly results. On 03/26/2026 the company reported fourth-quarter and full-year 2025 figures, showing solid revenue growth but volatile cash generation, according to Elbit Systems investor update as of 03/26/2026. In parallel, Elbit has announced several orders for artillery and electronic warfare systems in early 2026, underscoring sustained global demand for its defense solutions, as noted by Reuters as of 04/18/2026.

As of: 21.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Elbit Systems Ltd
• Sector/industry: Defense technology / aerospace and defense
• Headquarters/country: Haifa, Israel
• Core markets: Israel, Europe, North America, Asia-Pacific
• Key revenue drivers: Land systems, airborne solutions, C4I, electro-optics
• Home exchange/listing venue: Nasdaq and Tel Aviv Stock Exchange (ticker: ESLT)
• Trading currency: Primarily USD on Nasdaq, ILS on TASE

Elbit Systems: core business model

Elbit Systems operates as a diversified defense technology provider with a focus on electronic and integrated solutions for land, air, naval and homeland security applications. The group develops and manufactures systems such as command-and-control platforms, unmanned aircraft, advanced radio communications and precision-guided munitions for military and security customers worldwide, according to the company’s profile in its 2025 annual report released on 03/26/2026, as summarized by Elbit Systems investor relations as of 03/26/2026.

The company structures its operations across several business segments, including Aerospace, C4I and Cyber, ISTAR and Electro-Optics, and Land Systems. Each segment targets specific mission profiles but frequently combines hardware, software and life-cycle support, aiming to embed Elbit technologies deeply into customer platforms and networks. This integrated approach seeks to generate long-term service and upgrade revenue on top of initial equipment sales, as noted in the 2025 Form 20-F filed on 03/27/2026 with the U.S. Securities and Exchange Commission, according to SEC filing overview as of 03/27/2026.

Elbit’s customer base is mainly government defense ministries and national security agencies. Contracts are often large in value and multi-year in duration, which can support revenue visibility but expose the company to political decisions, budget cycles and export regulations. In addition to supplying the Israel Ministry of Defense, Elbit has grown its international footprint through local subsidiaries and joint ventures, especially in the United States and Europe, as described in the 2025 annual report released on 03/26/2026, according to Elbit Systems annual reporting as of 03/26/2026.

Main revenue and product drivers for Elbit Systems

In its fourth-quarter and full-year 2025 results published on 03/26/2026, Elbit Systems reported full-year revenue of approximately 6.1 billion USD for 2025, up from around 5.5 billion USD in 2024, reflecting growth driven by strong demand for land and airborne systems, according to Elbit Systems results release as of 03/26/2026. The company highlighted that orders from European customers and upgrades to existing Israeli platforms contributed meaningfully to the top line during the year.

Operating income for 2025 reached about 430 million USD, representing an operating margin in the mid-single-digit percentage range. While margins improved versus 2024, management pointed to ongoing pressure from supply chain costs and the need to ramp up capacity to fulfill a growing backlog, according to commentary in the 2025 earnings release dated 03/26/2026, as summarized by Reuters as of 03/26/2026. On a net basis, 2025 profit attributable to shareholders came in near 280 million USD for the year.

Elbit’s backlog is a key revenue driver because it reflects contracted but not yet recognized sales. The company reported a record backlog of approximately 18.5 billion USD at year-end 2025, up from around 16.6 billion USD one year earlier, indicating multi-year revenue visibility, according to the 03/26/2026 earnings statement cited by The Globe and Mail company news as of 03/26/2026. A large share of this backlog is linked to land systems, artillery and precision munitions, which have seen heightened interest amid rising defense budgets in Europe and other regions.

Cash flow, however, has been more volatile than revenue growth. In 2025 the company generated negative operating cash flow of roughly 150 million USD, compared with positive operating cash flow of about 70 million USD in 2024, mainly due to higher working capital needs and inventory build-up to support new programs, according to the 2025 cash flow statement contained in the annual report published on 03/26/2026, as referenced by MarketWatch company news as of 03/26/2026. The company indicated that it expects cash generation to improve as key projects move from initial investment to delivery phases.

In early 2026 Elbit continued to announce contract wins that feed into its backlog and future revenue. On 04/18/2026 Reuters reported that the company secured a multi-year international contract valued at around 350 million USD to supply artillery rocket systems and related support, with deliveries scheduled over several years, according to Reuters as of 04/18/2026. Earlier, on 02/20/2026, Elbit disclosed an order worth approximately 120 million USD for electronic warfare suites for European air platforms, to be executed over a four-year period, as mentioned by Elbit Systems contract update as of 02/20/2026.

Dividend payments also form part of Elbit’s equity story. The company declared a quarterly dividend of 0.50 USD per share for the fourth quarter of 2025, payable on 05/06/2026 to shareholders of record on 04/25/2026, according to the dividend announcement included in the 03/26/2026 earnings release, as summarized by Nasdaq company news as of 03/26/2026. Management reiterated that future dividends remain subject to business conditions, capital requirements and board approval.

Why Elbit Systems matters for US investors

Elbit Systems has been listed on Nasdaq since the mid-1990s and its American depositary shares trade under the ticker ESLT, providing direct access for US investors to a non-US defense contractor, according to the company’s listing information updated on 03/26/2026, as referenced by Nasdaq stock overview as of 03/26/2026. The stock offers exposure to global defense spending trends, which increasingly include modernization programs for artillery, drones and electronic warfare rather than purely traditional manned platforms.

In addition, Elbit’s growing US footprint, including manufacturing and engineering sites that support the U.S. Department of Defense, links its performance partly to US defense budgets. The company notes in its 2025 Form 20-F filed on 03/27/2026 that a meaningful share of revenue is derived from U.S. government and commercial customers, either directly or via prime contractors, according to SEC company filing as of 03/27/2026. This connection makes Elbit part of the broader US defense industry supply chain, even though it is headquartered in Israel.

The stock’s valuation and trading dynamics can differ from pure-play US contractors due to currency exposure, geopolitical risks and the dual listing on Nasdaq and the Tel Aviv Stock Exchange. According to Nasdaq data as of 03/27/2026, Elbit Systems shares traded around 206 USD on Nasdaq, while the Tel Aviv listing is denominated in Israeli shekels, with price movements sometimes diverging due to local market conditions, as reported by Nasdaq quote overview as of 03/27/2026. For US investors, this means that exchange-rate fluctuations between the US dollar and the Israeli shekel can influence the dollar value of earnings reported in shekels.

Conclusion

Elbit Systems combines a sizable and growing order backlog with exposure to rising global defense budgets, particularly in Europe and Israel. Recent annual results showed solid revenue growth in 2025 and improving operating margins, while negative operating cash flow underlined the working-capital demands of ramping large projects. New contracts for artillery and electronic warfare systems in early 2026 further support the company’s revenue visibility but also require continued execution and supply-chain management. For US investors, the Nasdaq listing, links to US defense programs and sensitivity to exchange rates and geopolitical developments are important context when following Elbit Systems stock from a diversified portfolio perspective.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.