Elbit Systems' net profit for Q3 2024 reached approximately $100 million, a 30% increase compared to $76.5 million in the same quarter year-on-year. The company reported a 14% growth in revenue, amounting to $1.71 billion — exceeding analysts' forecasts of $1.61 billion. Elbit’s stock rose 3.2% on Tuesday following the release of its financial results.
Earnings per share (non-GAAP) sat at $2.21, surpassing analysts' expectations of $2 per share and reflecting a 29% year-over-year increase. Over the past month, Elbit's stock has climbed approximately 15%, with the company now valued at NIS 32.3 billion ($8.3 billion). The company’s order backlog increased to $22.1 billion, up $1 billion from the previous quarter.
The largest sales growth was marked in the munitions category, which saw a 24% increase. This division, operated by Elbit's subsidiary IMI Systems, ramped up production over the past year in response to significant orders from the IDF following ammunition shortages identified during the war.
Elbit's new ammunition plant in Ramat Beka has already commenced operations and is expected to reach full production capacity in the second half of 2025.
Additionally, aircraft sales rose by 7% in Q3 2024 compared to Q3 2023, mainly due to increased UAV and drone sales. Communication and cybersecurity system sales grew 13% during the same period, driven mainly by demand for radio systems and command-and-control platforms.
Intelligence and electronic warfare sales also increased by 13%, while Elbit America’s sales rose 17%, supported by higher sales of night vision systems and medical devices.
The report indicated that Elbit is growing across all product categories and markets, where overall sales surged by 80%. In the U.S., sales increased by 17%. This marks the third consecutive quarter of sales growth for Elbit. However, sales declined by 3.2% in Europe after two strong years spurred by a surge in defense spending following the outbreak of Russia’s invasion of Ukraine.
The company's operating profit margin reached 8.2% of sales, compared to 8% in the previous quarter, amounting to $140 million. However, gross profit dropped slightly by 0.5%, which the company attributed to low-margin projects.
Research and development expenses in the last quarter totaled $119 million (7% of revenue), compared to $103 million (6.9% of revenue) year-on-year. The company also recently secured a significant order to supply laser technology for its Iron Beam system.
"Elbit Systems is reporting a strong quarter characterized by significant growth in key performance metrics, exceeding our internal targets while meeting the needs of our customers domestically and globally,” Elbit Systems President and CEO Bezhalel Machlis said.
“The company's record-high backlog of over $22 billion provides stability and resilience for the coming years. Our investment in research and development establishes a strong foundation for long-term growth and innovation. The demand for our solutions and products reflects their high quality and excellence. Elbit’s consistent growth is a testament to its leadership and superior performance."
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