Elbit Systems, a manufacturer of combat drones, experienced a significant increase in its share price, rising by nearly 12% over the trading week, according to data from S&P Global Market Intelligence. This rise was due to investor satisfaction with the recent earnings report from the Israel-based defense company.
Elbit Systems reported its fourth-quarter and full-year financial results before the market opened on Tuesday. The company announced revenue of just over $1.93 billion, surpassing the $1.63 billion recorded in the same quarter of 2023. Additionally, non-GAAP adjusted net income saw a 71% year-over-year increase, reaching over $119 million, or $2.66 per share. These results exceeded the average expectations of analysts, who had predicted $1.75 billion in revenue and an adjusted profit of $1.85 per share.
In its earnings release, Elbit Systems highlighted that this was the fourth consecutive quarter with a double-digit revenue increase. CEO Butzi Machlis stated that the company had secured significant contracts globally and achieved major milestones with its advanced technologies, supported by investments in research and development and production infrastructure. Machlis also emphasized the company’s strong global presence and diversified portfolio, positioning it well to benefit from increasing global defense budgets.
The company’s order backlog at the end of December was reported at $22.6 billion, a notable increase from the $17.8 billion at the end of 2023. Approximately 57% of this backlog is expected to be delivered in the current and following year. With the growing reliance on drone technology due to various global conflicts, Elbit Systems appears to be strategically positioned within its industry.
