Elbit Systems Reports Q2 2025 Earnings: Sales Up 21.3%, Net Income Surges 60.4%

Elbit Systems reported Q2 2025 sales of $1.97bn, up from $1.63bn YoY, and net income of $125.7m, up from $78.37m YoY. For H1 2025, sales reached $3.87bn, up from $3.18bn YoY, and net income rose to $232.78m from $152.04m YoY. Basic and diluted EPS from continuing operations also increased YoY.

Elbit Systems Ltd. (ESLT), an international high technology defense company, reported its second-quarter 2025 financial results, showcasing robust growth and a significant contract win. The company's revenue for the quarter reached $1.97 billion, up 21% year-over-year (YoY) from $1.63 billion in the same period last year [1]. Net income attributable to shareholders climbed to $125.7 million, a 61% increase from $78.37 million in the second quarter of 2024 [1].

Key highlights of the Q2 2025 performance include:

- Revenue Growth: Aerospace revenues increased by 12%, driven by Precision Guided Munition (PGM) sales in Israel and Asia Pacific, and UAS sales in Europe. C4I and Cyber revenues rose by 21%, primarily due to radio systems and command and control systems sales in Israel and Europe. ISTAR and EW revenues grew by 15%, with Electro-Optic systems sales in Israel and Electronic Warfare systems in Europe contributing to this growth. Land revenues surged by 45%, mainly from ammunition and munition sales in Israel and Europe [1].
- Non-GAAP Net Income: The company reported non-GAAP net income of $151.0 million, up 55% YoY from $92.7 million in the second quarter of 2024 [1].
- EPS Growth: Basic and diluted EPS from continuing operations increased YoY, with non-GAAP EPS rising to $3.23 from $2.08 in the second quarter of 2024 [1].
- Major Contract Win: Elbit Systems announced a $1.635 billion contract to deliver a range of defense solutions to an unnamed European country over a 5-year period. The contract includes long-range precision strike artillery-rocket systems, unmanned reconnaissance and loitering aerial combat systems, ISTAR capabilities, and advanced electro-optical (E/O) and night-vision systems [4].

For the first half of 2025, Elbit Systems' sales reached $3.87 billion, up 22% YoY from $3.18 billion in the same period last year. Net income rose to $232.78 million from $152.04 million YoY [1].

Analysts have set new price targets for ESLT, with Wall Street Zen upgrading the stock from a "buy" rating to a "strong-buy" rating and Bank of America initiating coverage with a "buy" rating and a $500.00 target price [2]. The consensus recommendation from brokerage firms is "Outperform," indicating a positive outlook [2].

References:
[1] https://sg.finance.yahoo.com/news/elbit-systems-reports-second-quarter-063900062.html
[2] https://www.gurufocus.com/news/3055376/what-to-expect-from-elbit-systems-ltd-xtaeeslt-q2-2025-earnings
[3] https://www.ainvest.com/news/elbit-systems-q2-2025-earnings-preview-2-57-eps-estimate-23-6-growth-2508/
[4] https://www.rttnews.com/3565347/elbit-systems-q2-results-climb-gets-1-635-bln-european-contract-for-defense-solutions.aspx?type=ern