Elbit Systems
Israel's largest publicly traded defense company (TASE and Nasdaq), privately owned unlike IAI and Rafael. Record Q2 2026 order backlog of $32.0 billion; 2025 revenue of $7.94 billion (+16.3%), GAAP net income $534 million. CEO Bezhalel Machlis. Over 21,000 employees; growth driven by land-segment ammunition demand, European modernization contracts, and new laser-weapon systems for Israel's Ministry of Defense.
Elbit Systems is Israel's largest publicly traded defense company, listed on both the Tel Aviv Stock Exchange and Nasdaq. It produces land, air, naval and C4ISR systems and is a leading exporter of drones, electro-optics and artillery. Unlike IAI and Rafael, it is privately owned rather than state-held, and it posted a record $32.0 billion order backlog in the second quarter of 2026.
How Has Elbit Performed Financially Through 2025 and 2026?
Elbit's full-year 2025 revenue reached $7.94 billion, up 16.3% year over year, with GAAP net income of $534 million and non-GAAP net income of $598 million, alongside record free cash flow above $550 million and a 100% cash conversion rate, the company reported. Order backlog closed 2025 at a record $28.1 billion, up $5.5 billion for the year. Growth continued into 2026: backlog reached $30.2 billion in the first quarter and a further record of $32.0 billion in the second quarter, with Q2 2026 revenue of $2.3 billion, up 16% year over year, and GAAP net income of $173.6 million. CEO Bezhalel "Butzi" Machlis said the company began 2026 "with a strong quarter across all key metrics," with non-GAAP operating margins surpassing 10% for the first time.
What Is Driving Elbit's Growth?
Land-segment revenue, driven by ammunition and munitions demand in Israel and Europe, rose 38% in 2025 and a further 32% year over year in the second quarter of 2026. Approximately 71-73% of Elbit's order backlog through 2026 is attributable to orders outside Israel, with Europe a particular growth driver: Elbit signed a $1.4 billion European modernization contract in early 2026, alongside a $350 million main battle tank upgrade deal and $370 million in U.S. border security awards. The company also secured landmark contracts from Israel's Ministry of Defense for high-power airborne laser weapon systems for combat jets and helicopters.
How Large Is Elbit's Workforce?
Elbit employed more than 21,000 people across dozens of countries on five continents as of its 2025 annual report, up from roughly 20,000 a year earlier, reflecting the company's continued hiring alongside rising backlog and revenue.
Why Does Elbit Matter to Public Investors?
As the private-sector pillar of Israel's defense industrial base, Elbit is the cleanest market proxy for global demand for Israeli defense technology, and the most direct way public investors gain exposure to it, since IAI and Rafael remain state-owned and not independently listed.
Related Olam Coverage
- Elbit Systems: The Largest Commercial Israeli Defense Company and the IMI Acquisition
- Bezhalel Machlis: The Elbit Systems CEO Behind the Post-Ukraine Defense Rerating
- Michael Federmann: The Elbit Systems and Dan Hotels Chairman
See also: MAFAT · Rafael Advanced Defense Systems · Israel Aerospace Industries · DECA · Offset Obligation · SIBAT · Iron Dome · Order Backlog · Federmann Family