Elbit Systems Reports Strong Q4 & Full Year 2025 Results with 16% Revenue Growth and Record $28.1B Backlog
Summary
Elbit Systems reported strong Q4 and full year 2025 financial results, with significant revenue and EPS growth, a record $28.1 billion order backlog, and robust free cash flow, driven by increased demand and new contract wins.
Key Events
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Strong Full Year 2025 Financial Performance
Revenues increased by 16.3% to $7.94 billion, GAAP net income rose 66.4% to $534.3 million, and GAAP diluted EPS grew 58.6% to $11.39 compared to 2024.
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Record Order Backlog
The order backlog reached a record $28.1 billion as of December 31, 2025, a $5.5 billion increase from the prior year, with 72% from outside Israel.
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Robust Cash Flow Generation
The company generated over $550 million in Free Cash Flow for 2025, achieving a 100% cash conversion rate.
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Significant Recent Contract Awards
Elbit Systems announced multiple contracts totaling approximately $1.225 billion since November 2025, including deals with the IMOD, Asia-Pacific, and international customers for various defense systems.
Analysis
Elbit Systems delivered exceptional financial results for Q4 and full year 2025, significantly exceeding prior year performance across key metrics. The substantial 16% revenue growth, coupled with a 59% increase in GAAP net EPS and a record $28.1 billion order backlog, signals robust demand and strong future revenue visibility. The company's ability to generate over $550 million in free cash flow, representing a 100% cash conversion rate, underscores its operational efficiency. Furthermore, strategic investments in R&D and CAPEX, alongside multiple significant contract wins, position Elbit Systems for continued growth, despite ongoing geopolitical complexities in the Middle East which have both increased demand and presented operational challenges. This report reinforces a strong investment thesis, particularly given the company's position near its 52-week high.
At the time of this filing, ESLT was trading at $930.98 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $40.6B. The 52-week trading range was $354.68 to $960.00. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.