Elbit Systems Posts Record-Breaking Quarter with Double-Digit Growth Across Key Metrics
Elbit Systems, a leading provider of military communications and electronics solutions, has reported another stellar quarter, delivering double-digit growth in revenues, backlog, operating profit, and earnings per share (EPS). The company's second-quarter 2026 results conference call provided insight into the factors driving this impressive performance.
According to Kobi Kagan, Chief Financial Officer, Elbit Systems' Q2 2026 revenues reached $2.287 billion, a 15.9% increase from the same period in 2025. This growth was driven by strong demand across various regions, with Europe and Asia-Pacific emerging as key growth engines. The company's backlog has also reached an all-time high of $32 billion, further solidifying its position in the market.
Breaking down the revenue figures by segment, Elbit Systems' C4I and Cyber revenues increased by 11% due to sales of radio systems and command and control systems in Europe. ISTAR and EW revenues jumped by 22%, mainly attributed to higher sales of airborne and land high-power laser, electronic warfare, and maritime systems in Asia-Pacific.
The company's Land segment saw a significant 32% increase in revenues, primarily driven by ammunition and munition sales in Israel. Elbit Systems of America experienced a 17% rise in revenues, thanks to a favorable project mix during the quarter, as well as increased sales of night vision systems, maritime systems, and electronic systems.
Aerospace revenues, however, declined by 8% due to an unfavorable project mix and lower sales of training and simulation systems in Europe. This dip was partially offset by higher UAV sales in Israel. Despite this setback, Elbit Systems' gross margin expanded to 25.3%, surpassing the company's internal targets.
The Law for the Encouragement and Incentivization of Research and Development, enacted on March 31st, 2026, has provided a boost to Elbit Systems' R&D spend. The company increased its R&D expenditures by about $70 million in the first half of the year, with roughly half funded by the new law and the other half from company resources.
Elbit Systems' President and CEO, Bezhalel Machlis, expressed satisfaction with the company's strong performance, stating that the results were driven by a combination of factors, including continued growth momentum, winning important new business, and expanding its backlog to record levels. The company's success is expected to continue in the coming quarters, given its strong order book and pipeline of future projects.
