Elbit Systems (NASDAQ:ESLT) Releases Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Elbit Systems (NASDAQ:ESLT) posted its quarterly earnings results on Tuesday. The aerospace company reported $3.56 earnings per share for the quarter, topping analysts’ consensus estimates of $3.23 by $0.33, Zacks reports. Elbit Systems had a net margin of 5.91% and a return on equity of 15.04%. The business had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $2.09 billion.

Here are the key takeaways from Elbit Systems’ conference call:

• Company reported strong results with Q4 revenue of $2.149B, full-year revenue of $7.939B, record free cash flow of $553M, and backlog up ~$5.5B to $28.1B.
• Geographic diversification is a strength—~72% of backlog is outside Israel and Europe (27% of 2025 revenue) is identified as the primary future growth engine.
• The company is increasing capacity and will raise CapEx to about $300M in 2026, expanding factories (Ramat Beka and sites in Europe/US) to boost munitions and electronics production and meet elevated demand.
• Management highlighted major contract and technology wins—including IMOD High‑Power Laser airborne/helicopter programs and a largest-ever international award (~$2.3B), plus PULS backlog topping $2B—supporting future revenue streams.
• Risks remain: wartime operating pressures, some reported European deals (e.g., Greece, Germany) are not yet finalized, aerospace segment revenue fell 14%, and higher inventories/tax adjustments and supply-chain issues could weigh on near-term performance.

Elbit Systems Stock Down 5.5%

NASDAQ ESLT traded down $56.14 during trading on Wednesday, hitting $958.19. 52,364 shares of the company traded hands, compared to its average volume of 172,573. Elbit Systems has a 12 month low of $354.68 and a 12 month high of $1,016.06. The business has a fifty day simple moving average of $751.34 and a 200 day simple moving average of $591.49. The company has a market capitalization of $42.60 billion, a P/E ratio of 97.64, a PEG ratio of 2.66 and a beta of 0.22. The company has a current ratio of 1.32, a quick ratio of 0.76 and a debt-to-equity ratio of 0.06.

Elbit Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, April 27th. Shareholders of record on Monday, April 13th will be issued a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 0.4%. This is an increase from Elbit Systems’s previous quarterly dividend of $0.75. The ex-dividend date is Monday, April 13th. Elbit Systems’s dividend payout ratio is 22.87%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Captrust Financial Advisors increased its position in Elbit Systems by 2.5% in the 4th quarter. Captrust Financial Advisors now owns 741 shares of the aerospace company’s stock worth $428,000 after buying an additional 18 shares during the period. Arax Advisory Partners boosted its position in shares of Elbit Systems by 25.0% in the fourth quarter. Arax Advisory Partners now owns 150 shares of the aerospace company’s stock valued at $87,000 after acquiring an additional 30 shares during the period. Cibc World Market Inc. grew its stake in shares of Elbit Systems by 7.0% in the fourth quarter. Cibc World Market Inc. now owns 608 shares of the aerospace company’s stock worth $351,000 after acquiring an additional 40 shares during the last quarter. Vident Advisory LLC increased its position in Elbit Systems by 2.2% during the third quarter. Vident Advisory LLC now owns 1,827 shares of the aerospace company’s stock worth $931,000 after acquiring an additional 40 shares during the period. Finally, Daiwa Securities Group Inc. increased its position in Elbit Systems by 6.4% during the fourth quarter. Daiwa Securities Group Inc. now owns 681 shares of the aerospace company’s stock worth $393,000 after acquiring an additional 41 shares during the period. Institutional investors and hedge funds own 17.88% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on ESLT shares. Wall Street Zen raised Elbit Systems from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Elbit Systems in a research note on Monday, December 29th. JPMorgan Chase & Co. lifted their price target on Elbit Systems from $530.00 to $580.00 and gave the company a “neutral” rating in a report on Friday, December 19th. Finally, Morgan Stanley began coverage on Elbit Systems in a research note on Thursday, December 11th. They issued an “equal weight” rating and a $531.00 price target for the company. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $550.33.

Elbit Systems News Roundup

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Q4 results beat expectations — Elbit reported $3.56 EPS vs. $3.23 consensus and revenue of $2.15B versus $2.09B, showing margin and top-line upside that likely drove buying. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: Record backlog and contract wins — management disclosed a backlog of about $28.1B and highlighted sizeable multi‑year awards that boost revenue visibility through 2026. This underpins near-term revenue growth expectations. Investing.com: Backlog & Earnings
• Positive Sentiment: Dividend raised — the company declared a quarterly dividend of $1.00 (33.3% increase from $0.75), signaling confidence in cash flow and returning cash to shareholders (record/ex‑dividend dates announced). (Press release disclosures)
• Positive Sentiment: Demand tailwind from regional conflicts — Reuters and other coverage cite a jump in profit and “material” demand linked to the Gaza war, which investors view as supporting orders and near‑term revenue. Reuters: 2025 profit jumps on Gaza war demand
• Neutral Sentiment: Management commentary and investor materials — CEO emphasized proactive R&D and not waiting for customers to define needs; conference call transcript and slide deck are available for guidance and detail. Investors should review the call and slides for forward guidance and margin drivers. Globes: CEO interview MarketBeat: Call & Transcript
• Neutral Sentiment: SEC filing / 20‑F filed — annual report on Form 20‑F was filed (FY2025); useful for institutional investors checking disclosures and risk factors. PR Newswire: 20‑F Filing
• Negative Sentiment: High expectations and valuation risks — analysts warn expectations are elevated after the beat; the stock trades at a rich P/E and has already rallied sharply, increasing downside sensitivity if guidance disappoints. See analyst commentary and cautionary notes. Seeking Alpha: Expectations run high

About Elbit Systems

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.