Elbit Systems Surpasses Expectations with Record $32 Billion Order Backlog

Elbit Systems, led by CEO Bezhalel (Butzi) Machlis, reported strong financial results for the second quarter of 2026, with its order backlog reaching a record $32 billion, up from $28 billion at the end of 2025. The company's revenues for the quarter totaled $2.29 billion, marking a 16% increase compared to the same period last year. Net profit (Non-GAAP) surged 32% to $199 million (600 million shekels), with adjusted earnings per share at $4.14, exceeding Wall Street analysts' expectations of $2.23 billion in revenue and $3.68 per share earnings.

Elbit noted that 73% of its order backlog comes from international customers, with approximately 42% expected to be fulfilled by the end of 2027. The company anticipates continued growth in demand, particularly following the escalation of conflicts in the Middle East. Elbit highlighted a significant and sustained increase in orders from the Israeli Ministry of Defense since the outbreak of recent hostilities, suggesting this heightened demand may lead to further substantial contracts.

CEO Machlis emphasized ongoing investments in research and development and manufacturing infrastructure to support future growth, improve production capacity, and convert the large order backlog into revenue. However, the company also faces challenges, including restrictions imposed by certain countries on dealings with Israel and attacks on some of its facilities worldwide by anti-Israel groups.

Elbit's stock is currently valued at 121 billion shekels, reflecting a 41% rise since the start of the year and a 240% increase over three years, despite a 16% drop from its peak in March 2026.