Elbit restructures its U.S. business as American defense demand accelerates
The Israeli defense group is placing its 3,300-worker American operation under Twenty-Six Defense as its U.S. business expands. The move follows more than $370 million in recent contracts from Customs and Border Protection and comes as Elbit seeks to expand manufacturing capacity to meet a record $32 billion backlog.
Elbit Systems is reorganizing its U.S. operations under a new American defense company, Twenty-Six Defense, as the Israeli defense group expands its presence in the U.S. market and puts greater emphasis on domestic manufacturing and engineering.
The new company will employ about 3,300 Americans and become Elbit's U.S. operating segment. Headquartered in Fort Worth, Texas, Twenty-Six Defense will remain wholly owned by Elbit Systems, while Elbit America will continue operating as a subsidiary and brand through which the Israeli company's technologies are offered to U.S. customers.
The restructuring comes as Elbit's American business is becoming an increasingly important part of the company's global operations. Its U.S. operations grew 17% in the second quarter of 2026, according to the company's latest results, while the group has continued to win major contracts from American government customers.
In July, Elbit announced more than $370 million in contracts from U.S. Customs and Border Protection, with the awards running through May 2029. The company did not disclose the specific systems involved. The contracts followed years of expansion by Elbit's American subsidiary across defense and security programs.
The new structure gives that business a distinct American identity at a time when Elbit is also expanding manufacturing capacity to meet a surge in global defense demand.
“Launching Twenty-Six Defense underscores our growth in the American market and reinforces our commitment to supporting U.S. warfighters, wherever the mission takes place,” Luke Savoie, president and CEO of Twenty-Six Defense, said in the announcement.
Twenty-Six Defense will focus on U.S.-based design, engineering and manufacturing. Elbit said the new structure is intended to strengthen its ability to serve American customers and partners while expanding domestic production and investing in mission-critical technologies.
“We will increase domestic customer value as we expand manufacturing and invest in mission-critical technologies,” Savoie said.
The timing reflects the broader expansion underway at Elbit. The company ended the second quarter with a record $32 billion order backlog, up from $23 billion a year earlier. Elbit has been investing heavily in production capacity as it seeks to convert that backlog into revenue, with more than $157 million invested in manufacturing expansion during the first half of 2026.
The new American company will not, however, be independent of Elbit's Israeli operations. Twenty-Six Defense will remain a reportable operating segment of Elbit Systems and will continue to operate under a Special Security Agreement. Elbit Systems will retain full ownership.
“American-led innovation and a strong U.S. defense industrial base” are central to the new structure, Elbit CEO Bezhalel Machlis said. He said the reorganization was intended to better serve American customers and partners while reinforcing Elbit's commitment to the U.S. defense industrial base.
Elbit-developed technologies will continue to be offered to the U.S. market under the Elbit America brand.
The new name is a reference to iron, whose atomic number is 26. Savoie said the name was chosen to symbolize strength, resilience and durability.
