In this release, the Company is providing US-GAAP results as well as Non-GAAP financial data, which are intended to provide investors with a more comprehensive view of the Company’s business results and trends. For a description of the Company’s Non-GAAP definitions see page 10 below, “Non-GAAP financial data”. Unless otherwise stated, all financial data presented is US-GAAP financial data.<\/p>\n
Management Comment:<\/p>\n
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, stated:<\/p>\n
“We began 2026 with a strong quarter across all key metrics, including double\u2013digit growth in revenue and profitability, with Non\u2013GAAP operating margins surpassing the 10% mark. Free Cash Flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time.<\/p>\n
Earlier today, we announced a significant European contract win, further strengthening our position as a trusted strategic partner to customers worldwide and reinforcing our ability to support their evolving\u00a0defense needs and challenges.<\/p>\n
Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air. With demand rising well above historical levels, we continue to focus on order execution. To meet this demand and support sustainable long-term growth, we are scaling production capacity, increasing the use of automation, robotics and AI, while maintaining strict capital discipline and expanding operational margins. At the same time, we are increasing our investment in R&D and innovation to shape the Company’s next-generation offering and strengthen our long-term growth platform.”<\/p>\n
First quarter 2026 results:<\/p>\n
Revenues in the first quarter of 2026\u00a0were $2,188.8 million, as compared to $1,895.8 million in the first quarter of 2025.<\/p>\n
Aerospace revenues increased by 2% in the first quarter of 2026, as compared to the first quarter of 2025, mainly due to project mix.\u00a0C4I and Cyber revenues increased by 17%, mainly due to sales of radio systems and command and control systems in Europe. ISTAR and EW revenues increased by 17%, mainly due to increased sales of airborne and land High Power Laser and Electronic Warfare systems. Land revenues increased by 27%, mainly due to ammunition and munition sales in Israel and Europe. Elbit Systems of America revenues increased by 5%, mainly due to the increase in sales of Night-Vision Systems, partially offset by the decrease in sales of medical devices.<\/p>\n
For distribution of revenues by segments and geographic regions see the tables on page 9.<\/p>\n
GAAP gross profit in the first quarter of 2026 was $552.1 million (25.2% of revenues), as compared to $454.3 million (24.0% of revenues) in the first quarter of 2025. Non-GAAP(*) gross profit amounted to $558.7 millions (25.5% of revenues) in the first quarter of 2026, as compared to $460.6 million (24.3% of revenues) in the first quarter of 2025.<\/p>\n
Research and development expenses, net were $150.4 million (6.9% of revenues) in the first quarter of 2026, as compared to $114.3 million (6.1% of revenues) in the first quarter of 2025.<\/p>\n
Marketing and selling expenses, net were $100.9 million (4.6% of revenues) in the first quarter of 2026 similar to $100.9 million (5.3% of revenues) in the first quarter of 2025.<\/p>\n
General and administrative expenses, net were $95.7 million (4.3% of revenues) in the first quarter of 2026, as compared to $89.4 million (4.7% of revenues) in the first quarter of 2025.<\/p>\n
GAAP operating income\u00a0in the first quarter of 2026 was $205.1 million (9.4% of revenues), as compared to $149.7 (7.9% of revenues) in the first quarter of 2025. Non-GAAP(*) operating income was $222.0 million (10.1% of revenues) in the first quarter of 2026, as compared to $165.1 million (8.7% of revenues) in the first quarter of 2025.<\/p>\n
Financial expenses, net\u00a0were $32.2 million in the first quarter of 2026, as compared to $39.0 in the first quarter of 2025. The decrease in financial expenses, net in the first quarter of 2026 was mainly due to a reduction in the average debt.<\/p>\n
Taxes on income were $22.8 million (effective tax rate of 13.0%) in the first quarter of 2026, as compared to $16.1 million (effective tax rate of 13.9%) in the first quarter of 2025.<\/p>\n
GAAP net income\u00a0attributable to the Company’s shareholders in the first quarter of 2026 was $160.8 million (7.3% of revenues), as compared to $107.1 million (5.6% of revenues) in the first quarter of 2025. The increase in net income attributable to the Company’s shareholders in the first quarter of 2026 was in line with the increase in the Company’s activity and order backlog.\u00a0Non-GAAP(*) net income attributable to the Company’s shareholders in the first quarter of 2026 was $186.4 million (8.5% of revenues), as compared to $117.2 million (6.2% of revenues) in the first quarter of 2025.<\/p>\n
GAAP diluted earnings per share attributable to the Company’s shareholders\u00a0in the first quarter of 2026 were $3.34, as compared to $2.35 in the first quarter of 2025. Non-GAAP(*) diluted net earnings per share attributable to the Company’s shareholders were $3.87 for the first quarter of 2026, as compared to $2.57 for the first quarter of 2025.<\/p>\n
The Company’s order backlog as of March\u00a031, 2026 totaled $30.2 billion. The increase in backlog during the quarter came mainly from Israel and Asia. Approximately 71% of the current backlog is attributable to orders outside of Israel. Approximately 49% of the order backlog is scheduled to be performed during the remainder of 2026 and 2027.\u00a0<\/p>\n
Cash flow provided by operating activities\u00a0in the first quarter of 2026 was $281.0 million, as compared to cash flow provided by operating activities of $183.6\u00a0million in the first quarter of 2025. The cash flow in the first quarter of 2026 was affected mainly by the strong increase in net income and an increase in contract liabilities.<\/p>\n
* see page 10<\/p>\n
Impact of the recent conflicts in the Middle East on the Company:<\/p>\n
The war which began on October 7, 2023, continued throughout most of 2025, with ceasefires agreed to between Israel and Lebanon involving the conflict with Hezbollah in November 2024, and, after an intensified period of conflict that lasted 12 days, a ceasefire was declared with Iran in June 2025. A ceasefire with Hamas was agreed to in January 2025, and a subsequent ceasefire with Hamas was agreed to in October 2025. On February 28, 2026, the U.S. and Israel launched a joint attack on Iran named “Operation Epic Fury” by the U.S., and “Operation Roaring Lion” by Israel, targeting key Iranian officials and targets. Iran launched attacks against Israel and at U.S. military bases across the region, including strikes in Bahrain, Qatar, Saudi Arabia, the United Arab Emirates, Kuwait and Jordan. On March 2, 2026 Hezbollah launched an attack on Israel. After an intensified period of conflict that lasted 40 days, a two-week ceasefire between the United States and Iran, which was subsequently extended, took effect on April 8, 2026, and a separate ten\u2013day cessation of hostilities between Israel and Lebanon, which was subsequently extended, began on April 16, 2026. The current situation remains uncertain, including in light of violations of the cessation of hostilities.<\/p>\n
Since the commencement of the war and the escalation of conflicts in the Middle East, Elbit Systems has experienced a continued material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.<\/p>\n
As a result of the war and the other conflicts in the Middle East, some of Elbit Systems’ operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages and elevated prices, employee call-ups for reserve duty, limitations imposed by some countries on engagement with Israel and attacks on some of Elbit Systems’ global facilities by anti-Israeli organizations.<\/p>\n
Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the ceasefire agreements described above, these operational effects on the Company have been reduced, however, such effects on the Company’s performance could increase again, depending on future developments that are difficult to predict at this time, including the duration and scope of these conflicts and the continuity and stability of the ceasefire arrangements.<\/p>\n
Recent Events:<\/p>\n
On April 6, 2026, the Company announced, further to its announcement from December 16, 2025, that as part of an agreement between the Israeli Ministry of Defense and the Hellenic Ministry of National Defense, it was awarded a contract worth approximately $750 million (\u20ac650 million) to supply Precise & Universal Launching System (PULS) artillery rocket systems to the Hellenic Armed Forces. The contract will be performed over a period of 4 years and will include an additional ten-year period of follow-on support.<\/p>\n
On April 22, 2026, the Company announced that during Operation “Roaring Lion”, the Company was awarded several contracts in an aggregate amount of approximately $200 million for the supply of advanced airborne munitions to the Israel Ministry of Defense (IMOD).<\/p>\n
On May 12, 2026, the Company announced that its U.S. subsidiary, Elbit Systems of America \u2013 Night Vision LLC (“Elbit Systems of America”), received a delivery order valued at approximately $212 million, for the continued production of the Enhanced Night Vision Goggle – Binocular (ENVG-B) systems for the U.S. Army. Deliveries under the award will take place through 2028.<\/p>\n
On May 20, 2026,\u00a0the Company announced that S&P Global Ratings Maalot Ltd., an Israeli rating agency (“S&P Global Ratings”), issued its rating report regarding Elbit Systems (the “Rating Report”). In its Rating Report, S&P Global Ratings raised its long term rating to “ilAAA” (on local scaling) with a stable outlook regarding the Company’s Series B, C and D Notes, and reaffirmed its short term rating of “ilA-1+” (on local scaling).<\/p>\n
On May 26, 2026, the Company announced that it has been awarded a contract valued at approximately $1.4 billion by a European customer for extensive military modernization programs. The contract will be performed over a period of five years.<\/p>\n
Dividend:<\/p>\n
The Board of Directors declared a dividend of $1.00 per share. The dividend’s record date is June 23, 2026. The dividend will be paid on July 6, 2026, after deduction of withholding tax, at the rate of 16.8%.\u00a0<\/p>\n
Conference Call:<\/p>\n
The Company will be hosting a conference call today, Tuesday, May\u00a026, 2026, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.<\/p>\n
To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.<\/p>\n
US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399\u00a0
Israel Dial-in Number: 03-918-0644\u00a0
International Dial-in Number: 972-3-918-0644<\/p>\n
at 9:00 am Eastern Time; 6:00 am Pacific Time; 4:00 pm Israel Time<\/p>\n
The conference call will also be broadcast live on Elbit Systems’ website at https:\/\/www.elbitsystems.com<\/a>. An online replay will be available from 24 hours after the call ends.<\/p>\n Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).<\/p>\n About Elbit Systems:<\/p>\n Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.<\/p>\n Driven by its agile, collaborative culture, and leveraging Israel’s technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.<\/p>\n Elbit Systems employs over\u00a020,000 people in dozens of countries across five continents. The Company reported $2,188.8 million in revenues for the three months ended March\u00a031, 2026 and an order backlog of $30.2 billion as of such date.<\/p>\n For additional information, visit: https:\/\/elbitsystems.com\/<\/a>, follow us on\u00a0X<\/a>\u00a0or visit our official\u00a0Facebook<\/a>,\u00a0Youtube<\/a>\u00a0and\u00a0LinkedIn<\/a> channels.<\/p>\n Attachments:<\/p>\n Consolidated balance sheets Company Contact:<\/p>\n Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer\u00a0 Daniella Finn, VP, Investor Relations\u00a0
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments<\/p>\n
Tel:\u00a0+972-77-2946663
[email\u00a0protected]<\/a>\u00a0<\/p>\n
Tel: +972-77-2948984
[email\u00a0protected]<\/a>\u00a0<\/p>\n
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