Elbit Systems (IL:ESLT)
TASE:ESLT
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Elbit Systems
(TASE:ESLT)
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Rating:71Outperform
Price Target:
284,538
▲(8.11% Upside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by strong financial performance and a constructive earnings-call outlook (record backlog, improving margins, and strong cash generation). These positives are tempered by a rich valuation and only mixed/neutral technical momentum.
Positive Factors
Large, diversified backlog
A $28.1B backlog, heavily international and largely scheduled into 2026-27, provides multi-year revenue visibility and supports production planning. The geographic diversification reduces single-country dependence and underpins durable top-line support as programs convert to deliveries.
Negative Factors
Working-capital and cash timing sensitivity
Heavy program work and multi-year contracts drive working-capital swings. Inventory and receivable builds tied to contract timing can produce volatile cash flow and stress liquidity in adverse timing, making cash conversion uneven across cycles despite current strong FCF.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, diversified backlog
A $28.1B backlog, heavily international and largely scheduled into 2026-27, provides multi-year revenue visibility and supports production planning. The geographic diversification reduces single-country dependence and underpins durable top-line support as programs convert to deliveries.
Read all positive factors
Elbit Systems (ESLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪108.80B
Dividend Yield0.49%
Average Volume (3M)76.24K
Price to Earnings (P/E)62.0
Beta (1Y)0.62
Revenue Growth3.44%
EPS Growth43.70%
CountryIL
Employees19,712
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)12.84
Shares Outstanding46,835,934
10 Day Avg. Volume50,572
30 Day Avg. Volume76,236
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)6.38
Price to Sales (P/S)3.32
P/FCF Ratio44.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪280,203.68Price Target Upside6.46% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)14.09
Revenue Forecast (FY)₪9.18B
Elbit Systems Business Overview & Revenue Model
Company Description
Established in Haifa, Israel, in 1966, Elbit Systems Ltd. is a leading provider of comprehensive defense, homeland security, and commercial aviation solutions. The company designs and manufactures an extensive portfolio of advanced systems tailore...
How the Company Makes Money
Elbit Systems primarily makes money by selling defense products and capabilities and by delivering long-term programs under contracts with government defense ministries and armed forces, as well as defense prime contractors. Revenue is typically g...
Elbit Systems Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operating and financial performance: double-digit revenue growth, record backlog and free cash flow, expanding margins, sizable contract wins (including advanced directed-energy programs), and a planned CapEx ramp to address capacity. Challenges include a Q4 aerospace revenue decline, near-term capacity and supply-chain pressures, working capital build, and timing uncertainty for some large international opportunities. Overall, the positives (broad-based growth, margin expansion, record backlog and cash generation, and large strategic contract awards) outweigh the lowlights.Positive Updates
Record Revenue Milestones
Q4 2025 revenues increased 11% to $2.149 billion (first quarterly result > $2.0B). Full year 2025 revenues rose 16% to $7.939 billion from $6.828 billion in 2024.
Negative Updates
Aerospace Revenue Decline
Aerospace segment revenues decreased 14% in Q4 2025, driven by lower training and simulation activity in Europe and higher prior-year PGM sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue Milestones
Q4 2025 revenues increased 11% to $2.149 billion (first quarterly result > $2.0B). Full year 2025 revenues rose 16% to $7.939 billion from $6.828 billion in 2024.
Read all positive updates
Company Guidance
Management's guidance focused on capacity and investment to convert a record $28.1 billion backlog (up ~$5.5 billion year‑over‑year; ~72% from outside Israel; ~54% scheduled for 2026–27) into continued double‑digit growth rather than specific revenue targets: they plan to increase CapEx to ~ $300 million in 2026 (up from $225 million in 2025 and ~ $200 million average over the past five years) to expand factories (including Ramat Beka, with deliveries expected to begin soon) and ammunition and electronics production (some capacity co‑funded by customers); this build‑out is supported by strong cash generation (operating cash flow $778 million in 2025, free cash flow $553 million, +73% YoY) and sustained R&D investment (> $0.5 billion total; net R&D $517 million or 6.5% of revenues), with Europe (27% of 2025 revenues) flagged as a primary growth engine and a $1.00 per‑share dividend declared.Elbit Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.30B | 7.94B | 6.83B | 5.97B | 5.51B | 5.28B |
| Gross Profit | 2.05B | 1.94B | 1.64B | 1.48B | 1.37B | 1.36B |
| EBITDA | 868.46M | 941.72M | 632.80M | 488.62M | 492.78M | 559.88M |
| Net Income | 593.46M | 578.41M | 321.14M | 215.13M | 275.45M | 274.35M |
Balance Sheet | ||||||
| Total Assets | 13.36B | 12.66B | 10.97B | 9.74B | 9.22B | 9.32B |
| Cash, Cash Equivalents and Short-Term Investments | 925.26M | 815.91M | 266.68M | 207.95M | 212.15M | 260.18M |
| Total Debt | 895.11M | 965.01M | 1.37B | 1.47B | 1.29B | 1.45B |
| Total Liabilities | 9.06B | 8.53B | 7.69B | 6.79B | 6.46B | 6.77B |
| Stockholders Equity | 4.30B | 4.13B | 3.28B | 2.95B | 2.76B | 2.53B |
Cash Flow | ||||||
| Free Cash Flow | 613.02M | 598.40M | 319.56M | -73.33M | 34.96M | 228.31M |
| Operating Cash Flow | 892.42M | 842.57M | 534.61M | 113.71M | 240.07M | 416.93M |
| Investing Cash Flow | -648.22M | -422.94M | -178.83M | -210.60M | -151.98M | -587.72M |
| Financing Cash Flow | -159.45M | -19.35M | -287.85M | 83.21M | -135.97M | 150.99M |
Elbit Systems Technical Analysis
Negative
263200.00
Price Trends
247617.77
Negative
245605.70
Negative
206700.87
Positive
Market Momentum
-441.56
Positive
43.72
Neutral
14.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ESLT, the sentiment is Negative. The current price of 263200 is above the 20-day moving average (MA) of 241818.50, above the 50-day MA of 247617.77, and above the 200-day MA of 206700.87, indicating a neutral trend. The MACD of -441.56 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ESLT.
Elbit Systems Peers Comparison
UnderperformOutperform
Sector (55)
IL:ESLT
Elbit Systems
234,770.00
86,837.72
58.70%
IL:ASHO
Ashot
9,000.00
3,488.09
63.28%
IL:BSEN
Bet Shemesh
87,490.00
37,010.00
73.32%
IL:GKL
Global Knafaim
86.60
3.30
3.96%
IL:ISHI
Israel Shipyard
12,580.00
-390.00
-3.01%
IL:ISI
Imagesat I.S.I
1,034.00
-61.00
-5.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.