Elbit Systems Reports Q2 2025 Earnings: Strong Growth, Optimism Amid Challenges

Elbit Systems reported Q2 2025 earnings with strong revenue growth to $1.973 bln, a 12% increase in the order backlog to $23.8 bln, and a successful share offering raising $573 mln net. The company secured major contracts, including a $1.625 bln deal in Europe, and declared a 50% higher dividend of $0.75 per share. However, general and administrative expenses rose, and supply chain challenges persisted.

Elbit Systems Ltd. (ESLT) reported robust financial results for the second quarter of 2025, showcasing significant revenue growth and a successful share offering. The company's revenue surged to $1.973 billion, marking a 12% increase from the same period last year. This growth was driven by strong performance across all business segments and geographies, particularly in Europe.

The company's order backlog also saw a substantial increase, rising by 12% to $23.8 billion. This growth was primarily attributed to new international orders, with approximately 68% of the backlog derived from orders outside of Israel. Elbit Systems also secured several major contracts during the quarter, including a $1.625 billion deal in Europe and a $260 million contract with Airbus for its J-MUSIC Directed Infrared Counter Measures (DIRCM) self-protection systems.

Elbit Systems' free cash flow for the second quarter of 2025 totaled $71 million, while its GAAP diluted EPS was $2.69, up from $1.76 in the same period last year. The company's non-GAAP diluted EPS stood at $3.23, which exceeded analysts' expectations of $2.57. This strong financial performance led to a 50% increase in the company's quarterly dividend, which was raised to $0.75 per share.

However, the company's general and administrative expenses rose by 4.8% of revenues to $93.9 million, largely due to one-time expenses incurred during the quarter. Additionally, supply chain challenges persisted, with the company noting that these issues could impact its future financial performance.

Overall, Elbit Systems' Q2 2025 earnings highlight the company's strong financial performance and growing market presence. The company's ability to secure major contracts and maintain a healthy order backlog bodes well for its future prospects.

References:
[1] https://www.marketscreener.com/news/elbit-q-financial-results-elbit-systems-transcript-q2-25-0-ce7c50d8d08bf126
[2] https://www.marketbeat.com/instant-alerts/filing-quantbot-technologies-lp-takes-position-in-elbit-systems-ltd-eslt-2025-08-25/