# ESLT earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/ESLT) · [Earnings tab](https://www.lopjlb.com/stock/ESLT?tab=earnings) Updated: 2026-09-14T02:53:05 Quarters analyzed: 7 ## Latest CallCard · Q4 Elbit Systems delivered strong Q4/FY2025 results with double-digit growth across revenue, operating profit, EPS, and backlog ($28.1B, +$5.5B), record free cash flow ($553M), dividend hike to $1/share, and CapEx rising to $300M in 2026 to address capacity constraints. **Guidance:** vague — No explicit 2026 revenue/EPS guidance provided; management expresses confidence in sustained growth and margin expansion but offers no quantitative targets. **Tone:** mgmt 0.8 · Q&A pressure 0.6 · divergence 0.3 Management emphasizes 'extremely proud of these results and the outstanding execution,' 'very strong' performance, 'record free cash flow,' and confidence in sustaining growth. ### Demand visibility Strong visibility with $28.1B backlog (54% for 2026-2027), diversified geography, and growing funnel. Backlog up $5.5B YoY; 72% international. Europe 27% of 2025 sales, expected as primary growth engine. Israel added $13B defense budget. Strong funnel noted by management. ### Margins / costs Margins expanded for fourth consecutive year; non-GAAP operating margin 9.8% in Q4, 9.3% FY2025. Management expects continued expansion from operational leverage, strong backlog profitability, and self-funded R&D without harming bottom line. Gross margin stable ~24.7% GAAP. ### Capital allocation Dividend raised to $1/share; CapEx increased to $225M in 2025, planned $300M in 2026; free cash flow $553M (+73%). Investing globally in capacity (Israel, Germany, Sweden, Romania, US) with customer co-investment. Focus on ammunition, electronic assemblies, and land systems. Debt reduced, financial expenses lower. ### Milestones - **Airborne High-Power Laser compact jet fighter Pod** [delivered]: Contract secured from Israeli Ministry of Defense (IMOD). - **High-Power Laser solution for helicopters** [delivered]: Contract secured from IMOD; development advanced, near-term revenue potential. - **Largest ever international contract (~$2.3B)** [delivered]: Strategic solution for unnamed international customer. - **European defense solutions contract ($1.6B)** [delivered]: Range of defense solutions for European countries. - **PULS rocket artillery system** [on_track]: Backlog >$2B; multiple European countries selected; Greece budget approved (contract pending), Germany initial contract (full production pending). - **Iron Fist Active Protection System** [delivered]: Contracts for NATO CV90 fleet and US Army Bradley IFV upgrades. - **DIRCM self-protection solutions** [delivered]: Numerous contracts secured. - **Ramat Beka facility expansion (ammunition)** [on_track]: Factory tripled; deliveries expected soon; parallel production lines approved. ### Fears / risks - **Capacity constraints**: Rapid demand growth may outpace capacity expansion despite $300M CapEx plan and customer co-investment. - **Supply chain**: Red Sea shipping risks could delay component deliveries and production schedules. - **Geopolitical instability**: Middle East conflicts (e.g., Roaring Lion Operation) create unpredictable demand spikes and operational disruption. - **Contract conversion risk**: Greece and Germany PULS approvals not yet firm contracts; revenue timing uncertain. - **Margin pressure from R&D**: Increasing self-funded R&D (6.5% of revenue) could pressure operating margins if not offset by scale. - **CapEx execution risk**: Large global CapEx program ($300M) across multiple countries carries execution and timing risks. - **High-power laser development**: Technical challenges in airborne laser (precision targeting, vibration, weather) could delay commercialization. - **Dependence on Israeli defense budget**: 32% of revenue from Israel; policy shifts could impact outlook. ### Key quotes > “We are extremely proud of these results and the outstanding execution by our global teams.” > “we are confident in our ability to sustain our growth and continue to create long-term value for our stakeholders.” > “we are planning to increase the spend this year in 2026 to around $300 million.” ## Quarter one-liners - **2025 Q4:** Elbit Systems delivered strong Q4/FY2025 results with double-digit growth across revenue, operating profit, EPS, and backlog ($28.1B, +$5.5B), record free cash flow ($553M), dividend hike to $1/share, and CapEx rising to $300M in 2026 to address capacity constraints. - **2025 Q3:** Elbit Systems posted double‑digit Q3 revenue growth, margin expansion and secured two multi‑billion‑dollar contracts while noting a flat domestic backlog and emphasizing Europe and U.S. opportunities. - **2025 Q2:** Elbit Systems reports strong Q2 2025 with double-digit growth across all segments, backlog up 12% to $23.8B, margin expansion, dividend hike, and major contract wins including $1.625B European deal; IRON BEAM laser delivery starting, Ramat Beka site progressing. - **2025 Q1:** Elbit Systems posted double‑digit Q1 2025 growth, record $23.1B backlog and strong free cash flow, while noting robust demand across geographies and flagging geopolitical and margin uncertainties. - **2024 Q4:** Elbit posted double‑digit Q4 revenue and profit growth, a record $22.6 bn backlog and $320 m free cash flow, while highlighting expanding European demand and ongoing capacity investments. - **2024 Q3:** Elbit Systems posted 14% revenue growth, record $22.1B backlog and double‑digit EPS growth while expanding production capacity and reaffirming internal $7B revenue and 10% margin targets, amid execution constraints and a dip in European sales. - **2024 Q2:** Elbit Systems Q2 2024 revenue rose 12% to $1.6B, backlog topped $21B, profitability improved despite margin compression, and management reaffirmed its 10% operating‑margin target and expansion plans. ## Guidance path 2024 Q2:maintained → 2024 Q3:maintained → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:maintained → 2025 Q4:vague --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/ESLT`