Elbit Systems (ESLT) AI Stock Analysis

• Market Cap: ₪134.30B
• Dividend Yield: 0.49%
• Average Volume (3M): 92.29K
• Price to Earnings (P/E): 73.5
• Beta (1Y): 0.44
• Revenue Growth: 13.02%
• EPS Growth: 63.70%
• Country: IL
• Employees: 19,712
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1094.41
• Shares Outstanding: 46,518,024
• 10 Day Avg. Volume: 111,843
• 30 Day Avg. Volume: 92,292
• PEG Ratio: 0.61
• Price to Book (P/B): 6.38
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 44.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₪334,230.83
• Price Target Upside: 15.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 12.71
• Revenue Forecast (FY): ₪8.81B

• Rating: 71 Outperform
• Price Target: 329,401 ▲(14.10% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by improving financial performance (growth, margin expansion, and reduced leverage) and a strong earnings-call backdrop highlighted by record backlog and major contract wins. Offsetting factors are a technically overbought setup and a demanding valuation (high P/E with low dividend yield), with cash-flow volatility remaining a key fundamental risk.

Positive Factors

Record Backlog & Large Contracts

A $25.2B backlog with large multi-year international contracts provides durable revenue visibility and multi-period cash flow. This backlog supports production planning, scale economics and long-term customer relationships, reducing near-term demand sensitivity and underpinning sustained revenue delivery.

Revenue Growth & Margin Expansion

Accelerating revenue (+12% YoY) alongside improved gross and operating margins reflects stronger pricing, mix toward higher-value C4I/cyber and improved execution. Sustained growth and margin expansion bolster profitability and free cash potential, supporting reinvestment and shareholder returns over the medium term.

Diversified Defense Products & Services

A broad product set across unmanned systems, C4I, EW, sensors, munitions and sustainment creates multiple revenue streams and reduces single-market dependency. This diversification supports resilience to individual program cycles and enables cross-selling, long-term service earnings and repeated lifecycle revenue.

Negative Factors

Free Cash Flow Volatility

Inconsistent free cash generation and a 19% FCF drop despite higher reported earnings highlight working-capital and investment timing risks. Volatile cash conversion can constrain capital allocation, stretch funding for large programs, and increase sensitivity to procurement payment timing over multiple quarters.

Segment Revenue Weakness

Declines in Aerospace and in the U.S. subsidiary show exposure to regional product demand swings and program-specific headwinds. Persistent weakness in key segments could pressure consolidated growth and margins, and implies reliance on strong international orders to offset uneven end-market performance.

Operational Disruption Risk

Regional conflicts have disrupted operations and could reoccur, threatening delivery schedules, supply chains and workforce stability. Such geopolitical operational risk can delay milestone revenues, increase costs and complicate backlog conversion, posing a recurring execution challenge for defense contractors.

Elbit Systems Business Overview & Revenue Model

Company Description

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. It also manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions; laser systems and products; guided rocket systems; and armored vehicle and other platforms survivability and protection systems, as well as provides various training and support services. The company markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in the United States, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.

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 generated through: (1) product sales and program deliveries—design, development, and manufacturing of systems such as avionics and mission systems for aircraft and helicopters, land combat systems, naval systems, C4I/communications networks, sensors (including electro-optics), electronic warfare suites, and unmanned platforms; (2) integration and modernization—upgrading existing military platforms (e.g., adding new sensors, communications, electronic warfare, fire-control, and mission software) and integrating subsystems into customer platforms; (3) sustainment and lifecycle services—maintenance, repair, spares, logistics, training, and other in-service support that continue after delivery and can extend for years; and (4) R&D and engineering services within larger defense programs—earning revenue as a subcontractor or partner to prime contractors on major procurements. The company’s earnings are influenced by the timing and execution of multi-year contracts, backlog and order intake, delivery milestones, and customer defense spending priorities. Specific significant partnerships or customer-by-customer revenue concentrations: null.

Elbit Systems Financial Statement Overview

Summary

Strong improving fundamentals: accelerating revenue growth into 2025, steady ~24–26% gross margin, and higher net margin (~6.7% in 2025 vs ~4.7% in 2024). Balance sheet strength improved with materially lower leverage (debt/equity ~0.23 in 2025). Main drag is cash-flow consistency: free cash flow fell ~19% in 2025 vs 2024 and has been volatile historically.

Income Statement

Revenue growth accelerated meaningfully into 2025 (annual report), with steady gross margin (~24–26%) and improving profitability versus 2023–2024. Net margin expanded to ~6.7% in 2025 from ~4.7% in 2024, and operating profitability also improved, indicating better scale and execution. Offsetting this, profitability has been somewhat volatile over the period (notably weaker 2023 margins and a lower operating margin in 2022–2024 versus 2021), suggesting results can swing with mix and cost pressures.

Balance Sheet

Leverage improved materially: debt relative to equity declined to ~0.23 in 2025 from ~0.42 in 2024 and ~0.50–0.57 in 2021–2023, indicating a stronger capital structure. Equity grew consistently alongside assets, and returns on equity improved to ~14% in 2025 versus ~9.8% in 2024, supporting balance-sheet quality. The main watch item is that assets have expanded quickly, and while leverage is now moderate, maintaining returns will depend on continued earnings and cash conversion.

Cash Flow

Cash generation strengthened in 2024–2025, with free cash flow positive and a solid ~71% conversion of net income into free cash flow in 2025 (annual report). However, free cash flow declined ~19% in 2025 versus 2024 despite higher earnings, pointing to working-capital or investment headwinds. Earlier-period volatility is also notable (including negative free cash flow in 2023), which lowers confidence in consistency even though the recent trend is better.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.59B	6.83B	5.97B	5.51B	5.28B
Gross Profit	2.09B	1.64B	1.48B	1.37B	1.36B
EBITDA	912.37M	632.80M	488.62M	492.78M	559.88M
Net Income	578.41M	321.14M	215.13M	275.45M	274.35M
Balance Sheet
Total Assets	12.66B	10.97B	9.74B	9.22B	9.32B
Cash, Cash Equivalents and Short-Term Investments	815.91M	266.68M	207.95M	212.15M	260.18M
Total Debt	965.01M	1.37B	1.47B	1.29B	1.45B
Total Liabilities	8.53B	7.69B	6.79B	6.46B	6.77B
Stockholders Equity	4.13B	3.28B	2.95B	2.76B	2.53B
Cash Flow
Free Cash Flow	598.40M	319.56M	-73.33M	34.96M	228.31M
Operating Cash Flow	842.57M	534.61M	113.71M	240.07M	416.93M
Investing Cash Flow	-422.94M	-178.83M	-210.60M	-151.98M	-587.72M
Financing Cash Flow	-19.35M	-287.85M	83.21M	-135.97M	150.99M

Elbit Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 288700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ESLT, the sentiment is Positive. The current price of 288700 is above the 20-day moving average (MA) of 265142.00, above the 50-day MA of 237108.20, and above the 200-day MA of 178783.55, indicating a bullish trend. The MACD of 18690.23 indicates Negative momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ESLT.

Elbit Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLT	71 Outperform	₪134.30B	73.49	14.04%	0.49%	13.02%	63.70%
BSEN	65 Neutral	₪7.37B	44.56	―	―	14.00%	20.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISHI	49 Neutral	₪3.73B	87.81	―	0.57%	10.92%	-24.52%