Driven by its agile, collaborative culture, and leveraging Israel’s technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.
Elbit Systems employs approximately 20,000 people in dozens of countries across five continents. As of December 31, 2024, the company reported $6.8 billion in revenues and an order backlog of $22.6 billion.
Announcing the company’s financial results, Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, said, “Elbit Systems reports a solid set of annual and quarterly results today with a fourth consecutive quarter of double-digit growth in revenues and backlog year-over-year. In addition to these strong metrics Elbit Systems generated $320 million in free cash flow. The company has secured significant contracts worldwide, with its advanced technologies achieving major successes and milestones alongside investments in R&D and production infrastructure. Our global presence and diversified portfolio position us well to capture increasing global defence budgets.”
Fourth Quarter-2024 Results
Revenues in the fourth quarter of 2024 were $1,930.2 million, as compared to $1,625.8 million in the fourth quarter of 2023.
Aerospace revenues increased by 27% in the fourth quarter of 2024, as compared to the fourth quarter of 2023 mainly due to increased UAS revenues in Israel and Europe, and increased Precision Guided Munition (PGM) revenues. C4I and Cyber revenues increased by 7% mainly due to radio systems and command and control systems sales. ISTAR and EW revenues increased by 8% mainly due to Electronic Warfare and Electro-Optic systems sales in Israel. Land revenues increased by 29% mainly due to ammunition and munition sales in Israel. Elbit Systems of America revenues increased by 6% mainly due to the increase in night-vision systems and medical instrumentation sales.
Revenues in the fourth quarter of 2024 were $1,930.2 million, as compared to $1,625.8 million in the fourth quarter of 2023
Non-GAAP gross profit amounted to $472.1 million (24.5% of revenues) in the fourth quarter of 2024, as compared to $411.4 million (25.3% of revenues) in the fourth quarter of 2023. GAAP gross profit in the fourth quarter of 2024 was $465.2 million (24.1% of revenues), as compared to $382.1 million (23.5% of revenues) in the fourth quarter of 2023. The increase in gross profit in the fourth quarter of 2024 was in line with the increase in the Company’s activity and order backlog.
Non-GAAP operating income was $157.5 million (8.2% of revenues) in the fourth quarter of 2024, as compared to $104.8 million (6.4% of revenues) in the fourth quarter of 2023. GAAP operating income in the fourth quarter of 2024 was $141.4 million (7.3% of revenues), as compared to $67.6 million (4.2% of revenues) in the fourth quarter of 2023.
Year 2024 Results
Revenues for the year ended December 31, 2024 increased by 14% to $6,827.9 million from $5,974.7 million in 2023.
Aerospace revenues increased by 9% in 2024 as compared to 2023, mainly due to increased UAS revenues in Israel and Europe, and increased PGM revenues, partially offset by lower training and simulation sales. C4I and Cyber revenues increased by 11% year-over-year mainly due to sales of radio systems and command and control systems. ISTAR and EW revenues increased by 12% mainly due to increased sales of Electronic Warfare and Electro-Optic systems in Israel, partially offset by lower Electro-Optic systems sales in Europe. Land revenues increased by 29% mainly due to the increase in sales of ammunition and munitions in Israel. Elbit Systems of America revenues increased by 8% mainly due to the increase in sales of night-vision systems and medical instrumentation.
“Elbit Systems reports a solid set of annual and quarterly results today with a fourth consecutive quarter of double-digit growth in revenues and backlog year-over-year. In addition to these strong metrics Elbit Systems generated $320 million in free cash flow.” – Bezhalel (Butzi) Machlis, President and CEO, Elbit Systems
Non-GAAP gross profit for the year ended December 31, 2024 was $1,671.0 million (24.5% of revenues), as compared to $1,533.9 million (25.7% of revenues) in the year ended December 31, 2023. GAAP gross profit in 2024 was $1,641.8 million (24.0% of revenues), as compared to $1,483.0 million (24.8% of revenues) in 2023.
Non-GAAP operating income for the year ended December 31, 2024 was $550.4 million (8.1% of revenues), as compared to $448.7 million (7.5% of revenues) in the year ended December 31, 2023. GAAP operating income in 2024 was $489.1 million (7.2% of revenues), as compared to $369.1 million (6.2% of revenues) in 2023.
Impact of the “Swords of Iron” War on the Company
On October 7, 2023, Hamas infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas and soon thereafter Hezbollah, operating from Lebanon, launched extensive rocket attacks on the Israeli population and industrial centres, including areas in which some of Elbit’s facilities and employees were located.
Following the October 7 attacks, the State of Israel declared a state of war, which it called “Swords of Iron”, commencing a military campaign in Gaza and, at a later stage, in Lebanon.
Since the commencement of the war, Elbit Systems experienced a material increased demand for its products and solutions from the Israel Ministry of Defence (IMOD) compared to the demand levels prior to the war
Since the commencement of the war, Elbit Systems experienced a material increased demand for its products and solutions from the Israel Ministry of Defence (IMOD) compared to the demand levels prior to the war. The company has also increased its support to the IMOD, mainly through deliveries of its various systems and the dedicated efforts of its employees.
At the same time, the company and its subsidiaries around the world continued to conduct their business in international markets. During 2024, the Company was awarded contracts by the IMOD totalling over $5 billion.
While the vast majority of the company’s facilities in Israel continue to operate uninterrupted, some of Elbit’s operations have experienced disruptions due to supply chain and operational constraints, including among others due to the temporary evacuation of employees working at facilities subject to missile attacks, significant employee call-up for reserve duty, increase in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages, limitations imposed by some countries on exports to Israel and attacks on some of Elbit’s global facilities.
Elbit Systems has taken several steps to protect the safety and security of its employees in Israel and abroad, to support increased production, mitigate existing and potential supply chain disruptions and to maintain business continuity, including the relocation of certain production lines from facilities in evacuated areas to alternative facilities
Elbit Systems has taken a number of steps to protect the safety and security of its employees in Israel and abroad, to support increased production, mitigate existing and potential supply chain disruptions and to maintain business continuity, including the relocation of certain production lines from facilities in evacuated areas to alternative facilities, recruitment of additional employees, increased monitoring of global supply chains to identify delays, shortages and bottlenecks, rescheduling deliveries to certain customers as necessary, and increased inventories.
As of March 6, 2025, most relocated production lines have returned to their original locations, most employees evacuated from facilities subject to attacks have returned to their original locations and the percentage of employees called up for reserve duty has declined from approximately 5% on December 31, 2024 to approximately 4%.
