Elbit Systems (IL:ESLT)
TASE:ESLT
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Elbit Systems
(TASE:ESLT)
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Rating:71Outperform
Price Target:
267,410
▲(1.60% 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
Record backlog & international mix
A $28.1B backlog with ~72% international exposure and >50% of work scheduled for the next two years provides multi-year revenue visibility and reduces single-country dependency, supporting sustained top-line growth and predictable program cadence through 2026–27.
Negative Factors
Working-capital & cash timing
The business is working-capital intensive; swings in contract liabilities, inventories and receivables have caused volatile operating cash flow historically. This timing sensitivity can strain liquidity during program ramps and complicates consistent free-cash-flow conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & international mix
A $28.1B backlog with ~72% international exposure and >50% of work scheduled for the next two years provides multi-year revenue visibility and reduces single-country dependency, supporting sustained top-line growth and predictable program cadence through 2026–27.
Read all positive factors
Elbit Systems (ESLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪115.59B
Dividend Yield0.49%
Average Volume (3M)89.22K
Price to Earnings (P/E)68.6
Beta (1Y)0.53
Revenue Growth3.44%
EPS Growth43.70%
CountryIL
Employees19,712
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)12.84
Shares Outstanding46,797,318
10 Day Avg. Volume94,302
30 Day Avg. Volume89,216
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)6.38
Price to Sales (P/S)3.06
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
₪270,764.83Price Target Upside2.87% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)14.09
Revenue Forecast (FY)₪9.17B
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 helicopte...
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 | 8.59B | 6.83B | 5.97B | 5.51B | 5.28B |
| Gross Profit | 2.05B | 2.09B | 1.64B | 1.48B | 1.37B | 1.36B |
| EBITDA | 868.46M | 912.37M | 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
Positive
263200.00
Price Trends
258276.47
Negative
240300.55
Positive
200607.08
Positive
Market Momentum
-4012.28
Negative
56.78
Neutral
80.69
Negative
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 263200 is above the 20-day moving average (MA) of 235665.00, above the 50-day MA of 258276.47, and above the 200-day MA of 200607.08, indicating a neutral trend. The MACD of -4012.28 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ESLT.
Elbit Systems Peers Comparison
UnderperformOutperform
Sector (63)
IL:ESLT
Elbit Systems
253,300.00
105,049.39
70.86%
IL:ASHO
Ashot
9,487.00
4,513.48
90.75%
IL:BSEN
Bet Shemesh
94,940.00
47,310.00
99.33%
IL:GKL
Global Knafaim
98.00
16.60
20.39%
IL:ISHI
Israel Shipyard
15,200.00
2,750.00
22.09%
IL:ISI
Imagesat I.S.I
1,095.00
183.50
20.13%
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.