Elbit Systems: A $127 Million Opportunity in U.S. Army Modernization
Tuesday, Nov 5, 2024 2:27 am ET
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Elbit Systems, a leading global defense technology company, has been awarded a $127 million contract to supply Iron Fist Active Protection Systems (APS) for upgrading the U.S. Army's Bradley M2A4E1 Infantry Fighting Vehicles (IFVs). This significant contract highlights Elbit's strategic position in the U.S. defense sector and offers investors an opportunity to capitalize on the company's growth potential.
Elbit's Iron Fist APS is a cutting-edge, hard-kill mounted capability that provides enhanced self-defense for light utility to heavy armored vehicles against modern threats. The system, which debuted in the early 2000s and is now serving as the Israel Defense Force's second-generation active protection system, offers 360-degree protection against a wide range of anti-tank threats, including anti-tank rockets, guided missiles, aerial drones, and loitering munitions. The Iron Fist APS incorporates a radar sensor and infrared tracker to neutralize targets through a "very-near" contact approach, decreasing fragmentation effects and collateral damage in both open terrain and urban battlefields.
This contract is part of General Dynamics' ongoing project to upgrade the U.S. Army's IFVs for eight years, integrating second-generation active protection systems for approximately nine Bradley brigades, or more than 1,200 vehicles. The contract will be performed over a period of 34 months, contributing to Elbit Systems' revenue growth and order backlog. As of June 30, 2024, Elbit Systems reported approximately $1.6 billion in revenues and an order backlog of approximately $21.1 billion.
Elbit Systems' recent contract win underscores the company's strong relationship with General Dynamics and its position in the U.S. Army's modernization efforts. This deal follows a previous contract in 2023 for gunner hand stations, demonstrating Elbit's strategic role in the U.S. military's modernization initiatives. The contract's duration and scale indicate a long-term commitment, reinforcing Elbit's position as a key supplier to the U.S. military.
The Iron Fist APS contract presents a significant opportunity for Elbit Systems, with potential follow-on opportunities in the U.S. defense sector. The success of Iron Fist APS on the Bradley IFVs could lead to further contracts for Elbit Systems in the U.S. defense market, given the system's proven effectiveness and the U.S. Army's ongoing efforts to modernize its fleet. As the U.S. Army continues to upgrade its vehicles, Elbit Systems could secure additional contracts for Iron Fist APS on other platforms, such as the Stryker and Abrams tanks. Moreover, the U.S. Army's interest in active protection systems may lead to further opportunities for Elbit Systems in developing and integrating advanced protection systems for other military vehicles and platforms.
In conclusion, Elbit Systems' $127 million contract to supply Iron Fist APS for upgrading the U.S. Army's Bradley IFVs offers investors an attractive opportunity to capitalize on the company's growth potential in the U.S. defense sector. With a strong track record, innovative technology, and a solid partnership with General Dynamics, Elbit Systems is well-positioned to continue its growth trajectory and create value for shareholders.
Elbit's Iron Fist APS is a cutting-edge, hard-kill mounted capability that provides enhanced self-defense for light utility to heavy armored vehicles against modern threats. The system, which debuted in the early 2000s and is now serving as the Israel Defense Force's second-generation active protection system, offers 360-degree protection against a wide range of anti-tank threats, including anti-tank rockets, guided missiles, aerial drones, and loitering munitions. The Iron Fist APS incorporates a radar sensor and infrared tracker to neutralize targets through a "very-near" contact approach, decreasing fragmentation effects and collateral damage in both open terrain and urban battlefields.
This contract is part of General Dynamics' ongoing project to upgrade the U.S. Army's IFVs for eight years, integrating second-generation active protection systems for approximately nine Bradley brigades, or more than 1,200 vehicles. The contract will be performed over a period of 34 months, contributing to Elbit Systems' revenue growth and order backlog. As of June 30, 2024, Elbit Systems reported approximately $1.6 billion in revenues and an order backlog of approximately $21.1 billion.
Elbit Systems' recent contract win underscores the company's strong relationship with General Dynamics and its position in the U.S. Army's modernization efforts. This deal follows a previous contract in 2023 for gunner hand stations, demonstrating Elbit's strategic role in the U.S. military's modernization initiatives. The contract's duration and scale indicate a long-term commitment, reinforcing Elbit's position as a key supplier to the U.S. military.
The Iron Fist APS contract presents a significant opportunity for Elbit Systems, with potential follow-on opportunities in the U.S. defense sector. The success of Iron Fist APS on the Bradley IFVs could lead to further contracts for Elbit Systems in the U.S. defense market, given the system's proven effectiveness and the U.S. Army's ongoing efforts to modernize its fleet. As the U.S. Army continues to upgrade its vehicles, Elbit Systems could secure additional contracts for Iron Fist APS on other platforms, such as the Stryker and Abrams tanks. Moreover, the U.S. Army's interest in active protection systems may lead to further opportunities for Elbit Systems in developing and integrating advanced protection systems for other military vehicles and platforms.
In conclusion, Elbit Systems' $127 million contract to supply Iron Fist APS for upgrading the U.S. Army's Bradley IFVs offers investors an attractive opportunity to capitalize on the company's growth potential in the U.S. defense sector. With a strong track record, innovative technology, and a solid partnership with General Dynamics, Elbit Systems is well-positioned to continue its growth trajectory and create value for shareholders.