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Elbit Systems reported on Tuesday a strong fourth quarter, with continued high demand for its products.
Its revenues grew by 19% compared to the same quarter in 2023, reaching $1.9 billion. This marks the fourth consecutive quarter in 2024 in which Elbit has enjoyed double-digit revenue growth.
"Europe is rearming, and demand is increasing," said Elbit President and CEO Bezhalel Machlis following the release of the company’s reports.
Annual sales totaled $6.8 billion, approaching the company’s target of $7 billion per year. Sales to the IDF continued to grow, reaching $2 billion in 2024, compared to $1 billion in 2023, accounting for 29% of the company’s total sales, compared to 19% in 2023. The division that generated the highest revenue for Elbit over the past year was the Airborne Division, with annual sales exceeding $2 billion.
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This growth is primarily due to increased procurement of drones and precision aerial munitions for the ongoing war. The Land Division (mainly ammunition) came in second, with $1.7 billion in sales—a 30% increase compared to the previous year. This growth also stems from heightened IDF procurement, along with significant contracts from Europe that were fulfilled this year.
One of the company’s best-selling products was the PULS multiple rocket launcher, manufactured by Elbit alongside various munitions (with IMI Systems, an Elbit subsidiary, being the ammunition producer).
Additionally, the Iron Sting, a 120mm precision-guided mortar munition, was used for the first time during the Gaza war. A target set by the company, which it has not yet reached, is an operating profit margin of 10% of sales. In 2024, the operating profit margin reached 8.5%, compared to 7.5% in the same period last year. Annual net profit amounted to $400 million, approximately 6% of total sales—an increase of 30% compared to the same period in 2023.
Fourth-quarter net profit was $90 million, compared to $30 million in the same quarter of 2023 (the previous year’s quarter included a $34 million write-off related to discontinued operations). The company distributed $89 million in dividends in 2024. Earnings per share increased by 31%, from $6.70 per share to $8.76 per share. The order backlog this year reached $22.6 billion, a $5 billion increase compared to the previous year. The global arms buildup was reflected in the growth of international orders, which accounted for approximately 65% of the total.
The number of Elbit employees in 2024 stood at around 20,000, an increase of 1,500 employees thanks to recruitment efforts. Throughout 2024, the company generated $320 million in cash flow from operating activities after investments.
"We’ve achieved significant growth across all financial metrics, with a substantial increase in demand both domestically and internationally, thanks to our broad portfolio," Machlis said.
"The fact that we have dozens of subsidiaries worldwide enables Elbit to leverage this growing demand. We’ve had significant successes this year, particularly in Europe, where the order backlog has grown considerably. We know how to capitalize on the increasing demand for rearmament internationally."
Despite renewed combat in Gaza and declines in the Tel Aviv Stock Exchange, Elbit’s stock jumped 11.8% following the strong results.