Elbit lands $1.4 billion European deal as global rearmament accelerates
The Israeli defense group reported record backlog levels as European militaries deepen modernization efforts.
Europe’s accelerating military buildup delivered another major boost to Elbit Systems on Tuesday, as the Israeli defense contractor announced a $1.4 billion contract tied to extensive modernization programs for a European customer, alongside quarterly results showing record backlog levels and rising profitability.
The five-year contract, one of the company’s largest recent deals, highlights how European militaries are increasingly shifting toward integrated battlefield technologies that combine drones, electronic warfare, precision-guided munitions and networked communications systems.
Elbit did not disclose the identity of the customer, but said the modernization programs would include autonomous uncrewed systems, advanced land electronic warfare capabilities, software-defined radios, electro-optical reconnaissance systems and precision-guided artillery and air-to-ground munitions. The company said the systems were intended to improve both maneuverability and survivability across the battlefield.
The announcement came alongside first-quarter results that underscored the scale of the global defense boom now reshaping the industry. Elbit reported revenues of $2.19 billion for the quarter ended March 31, up at double-digit rates, while its order backlog climbed above $30 billion for the first time in the company’s history.
The figures illustrate how Israel’s largest defense companies are benefiting from a sharp increase in global military spending, particularly in Europe, where governments continue to expand procurement programs amid prolonged geopolitical instability and rising concerns over regional security.
“Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air,” Elbit CEO Bezhalel “Butzi” Machlis said in the company’s earnings statement.
The company reported GAAP net income of $160.8 million and non-GAAP net income of $186.4 million during the quarter. Non-GAAP operating margins exceeded 10%, while free cash flow remained strong, according to the company.
