Logo of Israeli defence electronics firm Elbit Systems is seen at their offices in Haifa, Israel February 26, 2017. Picture taken February 26, 2017. REUTERS/Baz Ratner/File Photo Purchase Licensing Rights, opens new tab
JERUSALEM, Nov 19 (Reuters) – Elbit Systems
, , one of Israel’s biggest defence companies, reported a 29% rise in third-quarter profit on Tuesday and said it is stepping up development of laser systems to knock out enemy rockets.
Its Nasdaq-listed shares rose nearly 7% in morning trade.
The company said it earned $2.21 per diluted share excluding one-off items in the third quarter, compared to $1.71 a year earlier. Analysts had expected EPS of $1.86, according to LSEG data.
Revenue rose to $1.72 billion from $1.50 billion, led by drone and other aerospace sales. Israel’s military accounted for 29% of sales in the July-September quarter, up from 15% in the third quarter of 2023. Europe accounted for 25% and North America 22.5%.
For the first nine months, revenue was $4.9 billion.
Elbit’s order backlog reached $22 billion, with two-thirds of that from foreign customers. About 37% of the backlog is slated to be completed in the rest of 2024 and in 2025.
“All segments are growing and all markets are growing as well. We see our global position is improving,” Chief Executive Bezhalel Machlis told Reuters.
Elbit will likely hit $7 billion in annual revenue in 2025, a year ahead of schedule, he said, as global demand for weapons increases rises amid conflicts around the world, including Russia-Ukraine, in the South China Sea, and in the Middle East where he said Iran continues to be a threat.
Machlis also expects U.S. President-elect Donald Trump to require NATO nations to boost defence spending.
“So, unfortunately, we see growing demand for our products all around the world because we have very mature products and proven combat technologies,” he said. “I see a big acceleration in our revenues and in our backlog.”
Elbit makes drones, avionics, munition guided missiles, electro-optics and electronic warfare systems.
But the company is banking on two anti-missile laser systems. It is co-developing one that is ground based, called “Iron Beam”, which is set to be deployed in 2025 and complement Israel’s Iron Dome anti-missile system which has been used to intercept thousands of rockets fired by Hamas militants in Gaza and Hezbollah from Lebanon for more than a year.
A second airborne high powered laser system is in advanced development but will still take a few more years, Machlis said.
“When we implement such technology from the sky, you will be able to gain better performance,” he said, noting he saw such systems as a growth engine for the company.
Elbit’s board declared a third-quarter dividend of $0.50 per share, the same as in the second quarter.
Elbit’s Nasdaq shares have gained 18% this year as of Tuesday afternoon.
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Reporting by Steven Scheer, Editing by Louise Heavens and Susan Fenton
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