Elbit Systems Ltd (ESLT) expects stronger sales in Europe after the ceasefire in Gaza, and this shift comes as more governments begin to lift restrictions imposed during the war. In an interview with Bloomberg, Chief Executive Officer Bezhalel Machlis said, “Countries that held off placing orders during the war are coming back.” As a result, Europe is now a larger focus for the company.
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Sales in Europe reached about $2 billion over the past year, and the trend continued even as the firm opened new sites in Sweden and Germany. The firm now runs several sites across the region, and each site helps it act as a local player. Governments also seek more local output as they raise defense budgets, and Elbit fits that plan with its broad base of units.
Meanwhile, the ceasefire eased political strain. Germany said it will lift its ban on defense goods linked to Israel, which may support a rise in new orders. Spain has not yet renewed a key order, but the firm sees signs of progress in other parts of Europe.
The interview follows a successful earnings report on Tuesday, November 18, which beat the Street’s forecasts and showed 12% revenue growth compared to the same period in 2024. Meanwhile, ESLT shares are rising in pre-trading, up nearly 3% at the time of writing.
Backlog Expands as Deals Restart
Elbit reported an order backlog of $25.2 billion, and this level gives a guide to future sales. Revenue in the third quarter came in at $1.9 billion. The firm also said it won a new $2.3 billion contract this week. The client asked to stay unnamed due to the high level of security tied to the deal. Machlis said the request also came from Israel’s defense ministry.
Looking ahead, Machlis said Greece is in talks to buy the PULS artillery system, and he said new work is also in play with Albania. While some delays remain due to the war, interest from many states is rising.
In addition, Israel’s defense ministry set a new plan to speed up export rules. The plan aims to cut the time tied to permits and to widen the set of states that can buy goods with no early permit. The ministry said the goal is to help build stronger force support, lift the defense sector, and add new revenue for the state. Altogether, demand that slowed during the war is now picking up, and Elbit sees the trend as part of a wider lift in defense spend across Europe.
Is ESLT Stock a Buy?
Elbit Systems is thinly watched by the Street’s analysts, though the firm holds a Moderate Buy consensus rating. The average ESLT stock price target stands at $520, implying a 3.16% upside from the current price.
