Elbit Systems Ltd. (NASDAQ:ESLT) stock is trading lower premarket on Tuesday after the company reported second-quarter results. The stock remains up 90.50% over the past 12 months.
Earnings Snapshot
Adjusted EPS of $4.14 exceeded the $3.69 analyst estimate. Revenue reached $2.287 billion, surpassing the $2.220 billion consensus.
Adjusted gross profit increased to $586.5 million from $480.4 million in the year-ago quarter, with margin expanding to 25.6% from 24.4% a year ago quarter. Also, adjusted operating income increased to $237.5 million from $175.1 million in the prior year quarter.
Operating cash flow for the first six months of 2026 rose to $517.8 million from $304.0 million a year earlier, supported by higher net income and increased contract liabilities.
As of June 30, 2026, cash and cash equivalents stood at $255.3 million.
The Board of Directors declared a $1.00 per-share dividend, with October 13, 2026 set as the record date. The dividend will be payable on October 26, 2026, net of a 16.8% withholding tax.
Order & Business Performance
Order backlog reached $32.0 billion as of June 30, with growth during the quarter mainly driven by Europe. About 73% of backlog is tied to orders outside Israel, while 42% is expected to be executed during the remainder of 2026 and 2027.
C4I and Cyber revenue rose 11% year over year, while ISTAR and EW increased 22% year over year, Land revenue jumped 32% year over year, and Elbit Systems of America grew 17% year over year in the quarter.
Meanwhile, Aerospace revenue declined 8% year over year, mainly due to an unfavorable project mix and lower training and simulation sales in Europe.
Impact of Middle East Conflict
Elbit Systems continues to see materially higher demand from Israel’s Ministry of Defense, which could drive additional orders, amid the Middle East conflict.
However, the company says that the conflict has also caused supply-chain and operational disruptions, including higher transportation costs, shipping delays, material shortages, employee reserve-duty call-ups, trade restrictions and attacks on some facilities.
The company has increased production, strengthened inventories, protected employees and taken steps to mitigate supply-chain risks.
ESLT Price Action: Elbit Systems shares were down 6.24% at $793.25 during premarket trading on Tuesday, according to Benzinga Pro data.
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