Elbit Systems (NASDAQ:ESLT) Issues Quarterly Earnings Results

Elbit Systems (NASDAQ:ESLT) announced its earnings results on Tuesday. The aerospace company reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.23 by $0.33, Zacks reports. The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $2.09 billion. Elbit Systems had a net margin of 5.91% and a return on equity of 15.04%.

Here are the key takeaways from Elbit Systems’ conference call:

• Company reported strong results with Q4 revenue of $2.149B, full-year revenue of $7.939B, record free cash flow of $553M, and backlog up ~$5.5B to $28.1B.
• Geographic diversification is a strength—~72% of backlog is outside Israel and Europe (27% of 2025 revenue) is identified as the primary future growth engine.
• The company is increasing capacity and will raise CapEx to about $300M in 2026, expanding factories (Ramat Beka and sites in Europe/US) to boost munitions and electronics production and meet elevated demand.
• Management highlighted major contract and technology wins—including IMOD High‑Power Laser airborne/helicopter programs and a largest-ever international award (~$2.3B), plus PULS backlog topping $2B—supporting future revenue streams.
• Risks remain: wartime operating pressures, some reported European deals (e.g., Greece, Germany) are not yet finalized, aerospace segment revenue fell 14%, and higher inventories/tax adjustments and supply-chain issues could weigh on near-term performance.

Elbit Systems Stock Down 4.7%

Shares of Elbit Systems stock opened at $967.00 on Wednesday. The firm has a market cap of $42.99 billion, a price-to-earnings ratio of 98.16, a P/E/G ratio of 2.66 and a beta of 0.22. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.32 and a quick ratio of 0.76. Elbit Systems has a 52-week low of $354.68 and a 52-week high of $1,016.06. The stock has a 50-day simple moving average of $751.34 and a 200-day simple moving average of $591.49.

Elbit Systems Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, April 27th. Stockholders of record on Monday, April 13th will be paid a dividend of $1.00 per share. This is a boost from Elbit Systems’s previous quarterly dividend of $0.75. The ex-dividend date of this dividend is Monday, April 13th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 0.4%. Elbit Systems’s dividend payout ratio (DPR) is 22.87%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Morgan Stanley assumed coverage on Elbit Systems in a report on Thursday, December 11th. They set an “equal weight” rating and a $531.00 price target on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Elbit Systems in a research note on Monday, December 29th. JPMorgan Chase & Co. lifted their target price on Elbit Systems from $530.00 to $580.00 and gave the company a “neutral” rating in a research note on Friday, December 19th. Finally, Wall Street Zen upgraded Elbit Systems from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Elbit Systems currently has an average rating of “Hold” and a consensus price target of $550.33.

Trending Headlines about Elbit Systems

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Q4 results beat expectations — Elbit reported $3.56 EPS vs. $3.23 consensus and revenue of $2.15B versus $2.09B, showing margin and top-line upside that likely drove buying. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: Record backlog and contract wins — management disclosed a backlog of about $28.1B and highlighted sizeable multi‑year awards that boost revenue visibility through 2026. This underpins near-term revenue growth expectations. Investing.com: Backlog & Earnings
• Positive Sentiment: Dividend raised — the company declared a quarterly dividend of $1.00 (33.3% increase from $0.75), signaling confidence in cash flow and returning cash to shareholders (record/ex‑dividend dates announced). (Press release disclosures)
• Positive Sentiment: Demand tailwind from regional conflicts — Reuters and other coverage cite a jump in profit and “material” demand linked to the Gaza war, which investors view as supporting orders and near‑term revenue. Reuters: 2025 profit jumps on Gaza war demand
• Neutral Sentiment: Management commentary and investor materials — CEO emphasized proactive R&D and not waiting for customers to define needs; conference call transcript and slide deck are available for guidance and detail. Investors should review the call and slides for forward guidance and margin drivers. Globes: CEO interview MarketBeat: Call & Transcript
• Neutral Sentiment: SEC filing / 20‑F filed — annual report on Form 20‑F was filed (FY2025); useful for institutional investors checking disclosures and risk factors. PR Newswire: 20‑F Filing
• Negative Sentiment: High expectations and valuation risks — analysts warn expectations are elevated after the beat; the stock trades at a rich P/E and has already rallied sharply, increasing downside sensitivity if guidance disappoints. See analyst commentary and cautionary notes. Seeking Alpha: Expectations run high

Hedge Funds Weigh In On Elbit Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wexford Capital LP acquired a new stake in Elbit Systems in the third quarter valued at approximately $63,000. Greenline Wealth Management LLC bought a new stake in Elbit Systems in the fourth quarter worth approximately $85,000. Arax Advisory Partners increased its stake in shares of Elbit Systems by 25.0% during the 4th quarter. Arax Advisory Partners now owns 150 shares of the aerospace company’s stock worth $87,000 after purchasing an additional 30 shares during the last quarter. Gen Wealth Partners Inc raised its holdings in shares of Elbit Systems by 72.0% during the 4th quarter. Gen Wealth Partners Inc now owns 160 shares of the aerospace company’s stock valued at $92,000 after purchasing an additional 67 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Elbit Systems during the 4th quarter valued at $133,000. Institutional investors own 17.88% of the company’s stock.

Elbit Systems Company Profile

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.