Elbit Systems Secures $1.63 Billion Defense Deal with Serbia

Elbit Systems has announced a $1.63 billion contract with Serbia for the supply of defense solutions, including long-range precision strike artillery-rocket systems, unmanned reconnaissance and loitering aerial combat systems, and electronic warfare systems. The deal is the biggest ever by an Israeli defense company, surpassing the $3.5 billion sale of the Arrow 3 missile system to Germany in 2023. The order is expected to be delivered over a five-year period.

Elbit Systems, an Israeli defense contractor, has announced a significant contract with Serbia worth $1.63 billion. The deal, one of the largest ever by an Israeli defense company, involves the supply of advanced defense solutions over the next five years. The contract includes long-range precision strike artillery-rocket systems, unmanned reconnaissance and loitering aerial combat systems, and electronic warfare systems [2].

This contract surpasses the previous record of $3.5 billion set by the sale of the Arrow 3 missile system to Germany in 2023. The agreement reflects the strong demand for Elbit Systems' cutting-edge technologies in Europe and underscores the company's ability to deliver integrated, multi-domain solutions tailored to the needs of modern defense forces [1].

The contract is part of Serbia's ongoing modernization process, aimed at significantly improving its operational capabilities, particularly in light of the ongoing war between Russia and Ukraine. The package includes Elbit Systems' largest drone, the Hermes 900, along with long-range precision missiles, electronic warfare systems, and command-and-control platforms designed to enhance battlefield operations [2].

Elbit Systems has recorded revenues of $1.97 billion in the second quarter of fiscal 2025, up from $1.63 billion in the same quarter of the previous year. The company maintained a steady gross profit for the quarter amounting to $472.9 million, compared to $389.7 million in the prior year quarter. The defense contractor's order backlog as of 30 June 2025, has reached $23.8 billion, with international markets constituting approximately 68% of the current backlog [1].

This contract is a testament to Elbit Systems' robust portfolio of defense solutions and its ability to meet the evolving needs of global defense forces. The company's focus on integrating advanced technologies, such as AI, into its defense systems is likely to continue driving its success in the market.

References:
[1] https://www.army-technology.com/news/elbit-systems-contract-defence-europe/
[2] https://www.calcalistech.com/ctechnews/article/5vr2ehayj