Elbit Systems’ Backlog Hits $32 Billion as Global Defense Demand Surges
Second-quarter revenue jumped 16%, while international orders drove the Israeli defense company to another record backlog
Photo: Elbit Systems website
Elbit Systems continued to ride strong global defense demand in the second quarter of 2026, reporting double-digit growth in revenues, profitability and earnings per share, while its order backlog reached a record $32 billion.
The Israeli defense giant reported second-quarter revenues of $2.29 billion, up 16% from $1.97 billion in the same period last year. GAAP net income attributable to shareholders rose 38% to $173.6 million, while diluted earnings per share increased to $3.61 from $2.69.
The company’s backlog grew to $32 billion as of June 30, with Europe accounting for much of the increase. Some 73% of the backlog comes from customers outside Israel, highlighting the extent to which Elbit’s growth is being driven by international demand. About 42% of the backlog is expected to be executed during the remainder of 2026 and in 2027.
“The strong momentum in the second quarter was sustained,” Elbit President and CEO Bezhalel “Butzi” Machlis said, pointing to the company’s record backlog, improved profitability and strong cash generation.
Growth was particularly pronounced in several of Elbit’s core businesses. Land systems revenues jumped 32%, driven mainly by ammunition and munition sales in Israel. ISTAR and Electronic Warfare revenues increased 22%, reflecting higher sales of airborne and land high-power laser, electronic warfare and maritime systems in the Asia-Pacific region.
C4I and Cyber revenues rose 11%, primarily due to increased sales of radio and command-and-control systems in Europe. Revenues from Elbit Systems of America grew 17%, while Aerospace revenues fell 8%, partly due to an unfavorable project mix and weaker European sales of training and simulation systems.
Profitability also improved. GAAP operating income rose 39% to $218.8 million, with the operating margin increasing to 9.6% from 8%. Non-GAAP operating income reached $237.5 million, up from $175.1 million a year earlier.
Operating cash flow for the first six months of 2026 rose sharply to $517.8 million, compared with $304 million in the first half of 2025.
The results come as defense demand remains elevated following continued conflict and instability across the Middle East. Elbit said demand from Israel’s Ministry of Defense remains materially higher than before the war and could generate additional orders.
At the same time, the company continues to face supply-chain and operational challenges linked to regional conflicts, including higher transportation costs, material shortages, employee reserve-duty call-ups and attacks on some of its facilities.
Elbit is also increasing investment in production infrastructure and R&D as it works to convert its record backlog into future revenue. The company highlighted its development of high-power laser and directed-energy systems, including a new airborne high-power laser designed for helicopters and fighter aircraft.
Recent contracts include a $350 million tank-upgrade program announced in May and more than $370 million in awards to Elbit Systems of America from U.S. Customs and Border Protection announced in July.