Shares of Elbit Systems (NASDAQ:ESLT) climbed 8% on Tuesday after the company announced a $1.4 billion military modernization agreement in Europe alongside stronger first-quarter financial results.
Revenue and profitability post strong quarterly growth
Elbit Systems reported first-quarter 2026 revenue of $2.19 billion, up from $1.90 billion in the corresponding period last year.
Gross profit increased to $552.1 million, representing 25.2% of revenue, compared with $454.3 million, or 24.0% of revenue, in the first quarter of 2025.
On a non-GAAP basis, gross profit reached $558.7 million, equivalent to 25.5% of revenue, versus $460.6 million, or 24.3% of revenue, a year earlier.
The company also revealed that its order backlog exceeded $30 billion for the first time in its history.
CEO highlights margin expansion and production growth
“We began 2026 with a strong quarter across all key metrics, including double-digit growth in revenue and profitability, with Non-GAAP operating margins surpassing the 10% mark,” said Bezhalel Machlis, President and CEO of Elbit Systems.
Machlis said the new European contract reinforces Elbit’s role as a strategic supplier for customers globally.
Company expands automation and AI capabilities
Elbit Systems said it is continuing to expand manufacturing capacity while increasing the use of automation, robotics and artificial intelligence technologies to address growing defence demand, maintain disciplined capital allocation and improve operating margins.
The company is also stepping up investment in research and development as it works to advance next-generation defence products and systems.