Elbit Systems has announced its financial results for the third quarter of 2024, showcasing a notable increase in its order backlog, which rose by 5.2% to reach $2.2 billion. This upward trend is consistent with the performance of other local defense companies amid ongoing military engagements involving Israel against Hamas and Hezbollah.
In this quarter, Elbit secured several significant contracts, notably a $127 million deal to provide Iron Fist active protection systems for U.S. Bradley infantry fighting vehicles. Additionally, the company landed a substantial $335 million contract to supply PULS rocket launchers and Hermes 900 drones to an unnamed European nation.
Elbit Systems reported a 14.4% rise in quarterly revenue compared to the same period last year, totaling $1.71 billion. This revenue growth is largely attributed to increased orders from the Israeli Ministry of Defense for the country’s armed forces. Specifically, the company noted a 7% rise in aircraft sales, a 13% hike in information technology and cyber sales—spurred primarily by radio and control systems—a 13% increase in sales from intelligence and electronic warfare, as well as a significant 24% rise in land sales.
From a geographical perspective, Elbit’s sales distribution for the third quarter was as follows: 29% to Israel, 25% to Europe, 22.5% to North America, 18.3% to the Asia Pacific region, 2.2% to Latin America, and the remaining 3% to other global markets. Notably, sales to the United States surged by 17% compared to the same quarter last year, driven by heightened demands for night-vision systems and medical instrumentation. Conversely, sales in Europe saw a decline of 3.2%, reflecting a reduction after two consecutive years of robust sales, largely influenced by the ongoing war in Ukraine.
Another significant player in the defense sector, Israel Aerospace Industries (IAI), also reported impressive results amid the backdrop of the ongoing “Iron Swords” War, with its order backlog escalating to $25 billion, including $2 billion attributed to orders from the Israeli Ministry of Defense. IAI’s revenue for the quarter rose by 16% from the same period last year, amounting to approximately $1.54 billion. This growth was observed across all operational divisions and geographic areas in which IAI operates, with the missile and space systems division accounting for 42% of total sales. A company spokesperson remarked that the results signify IAI’s “most profitable period in the company’s history.”
These advancements in the defense sector reflect the broader trend of increasing military spending and the growing demand for advanced weaponry in response to regional conflicts.
