Elbit Systems Reports First Quarter 2026 Results | Elbit Systems

Order backlog at $30.2 billion; Revenues of $2.19 billion;
GAAP net income of $160.8 million; Non-GAAP net income of $186.4 million;
GAAP net EPS of $3.34; Non-GAAP net EPS of $3.87

Elbit Systems Ltd., a global leader in high technology defense solutions, announced its consolidated financial results for the first quarter ending March 31, 2026.

This announcement includes results compliant with US-GAAP as well as Non-GAAP financial figures, aimed at giving investors a clearer picture of the Company’s operational trends. For definitions of Non-GAAP terms, refer to page 10 below.

Management Commentary:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, remarked:
“We commenced 2026 robustly, witnessing double-digit growth across our revenue and profitability metrics, with Non-GAAP operating margins exceeding 10%. Our Free Cash Flow generation was formidable during this period, complemented by a record backlog that has surpassed $30 billion for the very first time.

We recently secured a noteworthy contract in Europe, reinforcing our role as a strategic partner to customers globally, adept at meeting their dynamic defense requirements.

Our strategic positioning marks our transformation into a comprehensive end-to-end defense organization across land, sea, and air domains. With demand levels significantly above historical averages, our focus is on effective order execution. To satisfy this rising demand and ensure sustainable growth, we are increasing production capabilities and enhancing automation, robotics, and AI implementations, all while observing stringent budget controls and broadening operational margins. Concurrently, we are amplifying investments in R&D and innovation to enhance our next-gen offerings and bolster our long-term growth trajectory.”

First Quarter 2026 Financial Results:

Revenues for the first quarter of 2026 amounted to $2,188.8 million, a notable increase from $1,895.8 million recorded in the same quarter of 2025.

Aerospace revenue grew by 2% year-over-year, attributed primarily to changes in project mix. C4I and Cyber revenues surged by 17%, driven by sales of radio systems and command and control systems in Europe. ISTAR and Electronic Warfare revenues also increased by 17%, resulting from augmented sales of high-power laser systems and electronic warfare solutions. Additionally, land revenues showed a 27% increase, largely due to ammunition sales across Israel and Europe. Elbit Systems of America saw an uptick of 5% in revenues, primarily propelled by greater sales of Night Vision Systems, slightly offset by declines in medical device sales.

GAAP gross profit in the first quarter of 2026 was $552.1 million, representing 25.2% of total revenues, up from $454.3 million (24.0% of revenues) in the first quarter of 2025. Non-GAAP gross profit was recorded at $558.7 million (25.5% of revenues) for Q1 2026, compared to $460.6 million (24.3% of revenues) for the same period last year.

Research and development expenses reached $150.4 million (at 6.9% of revenues) for Q1 2026, compared to $114.3 million (at 6.1% of revenues) in the first quarter of 2025.

The Company incurred $100.9 million in marketing and selling expenses (at 4.6% of revenues) during Q1 2026, consistent with $100.9 million (at 5.3% of revenues) the previous year.

Furthermore, general and administrative expenses amounted to $95.7 million (at 4.3% of revenues) in the first quarter of 2026, compared to $89.4 million (at 4.7% of revenues) in Q1 2025.

GAAP operating income for Q1 2026 was $205.1 million (at 9.4% of revenues), increasing from $149.7 million (at 7.9% of revenues) in the first quarter of 2025. Non-GAAP operating income stood at $222.0 million (at 10.1% of revenues) for Q1 2026, compared to $165.1 million (at 8.7% of revenues) in the same quarter last year.

Financial expenses amounted to $32.2 million in the first quarter of 2026, a reduction from $39.0 million in Q1 2025, mainly attributed to a decrease in average debt levels.

Tax liabilities for the first quarter were $22.8 million (with an effective tax rate of 13.0%), up from $16.1 million (with an effective rate of 13.9%) year-over-year.

GAAP net income attributable to shareholders for Q1 2026 was $160.8 million (equating to 7.3% of revenues), compared to $107.1 million (at 5.6%) for the same period in 2025. This increase aligns with the rise in activity levels and the Company’s order backlog. Non-GAAP net income attributable to shareholders for Q1 2026 was $186.4 million (representing 8.5% of revenues), up from $117.2 million (at 6.2%) the prior year.

GAAP diluted earnings per share for Q1 2026 stood at $3.34, compared to $2.35 in Q1 2025. Non-GAAP diluted net earnings per share were recorded at $3.87 in the first quarter of 2026, up from $2.57 in the same quarter of 2025.

The total order backlog as of March 31, 2026, was $30.2 billion, primarily fueled by significant demand from Israel and Asia. Approximately 71% of the current backlog is attributed to international orders. Furthermore, about 49% of this backlog is planned to be executed during the remainder of 2026 and in 2027.

Cash flow provided by operating activities in the first quarter of 2026 was $281.0 million, a significant rise from $183.6 million in Q1 2025, mainly due to the robust net income growth and higher contract liabilities.

The ongoing geopolitical situation continues to influence the demand for the Company’s products, notably following the escalation of conflicts in the Middle East since October 7, 2023. The Israel Ministry of Defense (IMOD) has shown increased demand for Elbit Systems’ offerings relative to pre-war periods. However, certain operations have faced challenges due to supply chain disruptions and other constraints.

Source: Elbit Systems (2026-05-26T12:00:00Z)