Elbit Systems Ltd
Elbit Systems Ltd. is an Israel-based defense technology company that develops, manufactures, integrates, and sustains mission systems and equipment for military and security customers. Its portfolio spans airborne, land, naval, unmanned, ISR, targeting, electronic warfare, command-and-control, and defense electronics solutions, with operations and subsidiaries in multiple countries.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSensors, optics, mission computers, and targeting subsystems for battlefield awareness.
Avionics, mission equipment, and self-protection systems for aircraft.
UAV platforms, payloads, and autonomous mission solutions.
Ground-based command, protection, and soldier systems for armored and infantry forces.
Maritime electronics, combat systems, and mission equipment for naval platforms.
Electronic warfare, communications, and command-and-control systems.
Upgrades, repairs, training, and lifecycle support for installed defense platforms.
Products
Reported · share of revenue- Products91.9 %
- Services8.1 %
Source: 20-F FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Elbit Systems sells primarily to defense ministries, armed forces, homeland security agencies, and government procurement bodies. It also serves prime contractors and platform integrators that embed its subsystems into aircraft, vehicles, naval platforms, and border/security networks. Demand is driven by long program cycles, technical qualification, and the need for mission-critical capability rather than commodity pricing.
Buy combat, ISR, avionics, and protection systems for military platforms and missions.
Buy surveillance, border security, and situational-awareness systems for domestic protection.
Integrate Elbit subsystems into aircraft, vehicles, and naval platforms.
Buy upgrades, repairs, and lifecycle support for installed systems.
Foreign government buyers seeking tailored defense electronics and mission systems.
Strategy
Elbit Systems focuses on delivering integrated, multi-domain defense capabilities that combine sensors, electronics, platforms, and sustainment. Its strategy is built around securing long-duration programs, expanding installed-base support, and using its technology stack to win larger system-level contracts and upgrades. The company also uses international subsidiaries and partnerships to address local procurement requirements and broaden market access.
Bundling sensors, electronics, and platforms improves program win rates and customer stickiness.
Installed-base support extends revenue relationships beyond initial platform delivery.
Local subsidiaries help meet procurement rules and strengthen customer proximity.
Geography
2025Elbit Systems is headquartered in Israel but operates through a broad international footprint across dozens of countries on five continents. The company’s reported activity includes substantial business in the United States, Israel, and other defense markets where procurement is tied to national budgets and security priorities. This geographic mix creates exposure to government spending cycles, export controls, and country-specific political and operational conditions.
Share of the revenue the company reports by geography.
Risks
Elbit Systems depends heavily on government defense budgets, procurement timing, and export approvals, so program delays or policy shifts can affect demand and contract timing. The business also faces execution risk on long-term fixed-price programs, plus geopolitical and operational exposure tied to Israel, the United States, and other markets where it operates. Like other defense suppliers, it is exposed to competition, legal and regulatory reviews, and the risk that customer requirements or battlefield priorities change faster than product cycles.
- Government budget and procurement dependenceImpact: HighLikelihood: High
Most customers are defense and security agencies that buy through budgeted procurement cycles.
Exposure: Defense program timing
- Geopolitical and security disruptionImpact: HighLikelihood: High
Operations in Israel and conflict-sensitive regions can affect supply, staffing, and customer demand.
Exposure: Israel and broader Middle East
- Export controls and regulatory approvalsImpact: HighLikelihood: Medium
Many products and contracts require government approvals across jurisdictions.
Exposure: International sales
- Program execution on long-term contractsImpact: HighLikelihood: Medium
Long-duration, often fixed-price projects can suffer from cost overruns or delays.
Exposure: System integration and delivery
- Competitive bidding pressureImpact: MediumLikelihood: High
Defense contracts are contested and require ongoing technology investment to stay relevant.
Exposure: Global defense procurement
Accounting
Judgemental itemsMission systems and sustainment programs may be recognized over time or at delivery depending on contract terms.
Impact: Revenue timing and quarterly comparability
Fixed-price integration and development contracts rely on management estimates of future costs.
Impact: Gross margin and provision risk
Loss-making programs may require upfront reserves when estimated costs exceed consideration.
Impact: Earnings volatility
Defense acquisitions can create large intangibles that require impairment testing if expected cash flows change.
Impact: Non-cash impairment charges
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Last updated: 28/09/2026