Elbit Systems Ltd. (NASDAQ:ESLT) shares are trading higher on Tuesday after the Haifa, Israel-based company reported fourth-quarter (Q4) 2025 results.

  • Revenue for the quarter rose 11.3% year over year (Y/Y) to $2.148 billion, missing the consensus of $2.151 billion.
  • Adjusted EPS of $3.56, beating the consensus of $3.09.
  • Adjusted gross margin expanded to 25% from 24.5% a year ago, and adjusted operating margin expanded to 9.8% from 8.2% in the same quarter last year.
  • As of December 31, 2025, the order backlog stood at $28.1 billion, with 72% from outside Israel and 54% scheduled for 2026 and 2027.
  • Operating cash flow for the year totaled $778.4 million, versus $534.6 million in the same quarter a year ago.

Segment Revenues

C4I and Cyber revenues rose 19% Y/Y, led by higher sales of radio and command-and-control systems in Europe and Israel.

Also, ISTAR and EW revenues grew 39% Y/Y, driven by higher demand for Maritime systems, Electro-Optic solutions, and C-UAS Electronic Warfare.

Moreover, Land revenues upped 22% Y/Y, mainly from ammunition and munitions sales in Israel and Europe.

Elbit Systems of America saw a 9% Y/Y revenue increase, aided by Night-Vision and Maritime system sales.

However, Aerospace revenues fell 14% Y/Y, driven by lower training and simulation sales in Europe and strong PGM sales in the prior year.

Management Commentary

Elbit CEO Bezhalel (Butzi) Machlis highlighted 2025 milestones, including the securing of a contract from the IMOD for an Airborne High–Power Laser (HPL) combat jet fighter Pod and for a High–Power Laser (HPL) system for helicopters.”

”We continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms for a total sum of over $500 million,” he added.

Dividend

The board declared a dividend of $1.00 per share, payable on April 27 to the shareholders of record on April 13, 2026.

Price Action: ESLT shares were trading 12.06% higher at $977.56 at the last check on Tuesday.

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