Bond.az - Elbit Systems Ltd. (NASDAQ:ESLT) reported first-quarter results that beat analyst expectations. Adjusted EPS came in at $3.87, surpassing the consensus estimate of $2.84 by $1.03.
Shares surged 8.83% in pre-market trading following the announcement.
Revenue reached $2.19 billion, exceeding the $2.04 billion analyst estimate and representing a 15% increase from $1.90 billion in the same quarter last year.
The defense technology company's adjusted net income rose to $186.4 million, or 8.5% of revenues, compared to $117.2 million, or 6.2% of revenues, in Q1 2025. Adjusted operating margins topped 10% for the quarter.
“We began 2026 with a strong quarter across all key metrics, including double-digit growth in revenue and profitability, with adjusted operating margins surpassing the 10% mark,” said Bezhalel (Butzi) Machlis, President and CEO. “Free cash flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time.”
The company's order backlog reached $30.2 billion as of March 31, 2026, with approximately 71% attributable to orders outside Israel.
Revenue growth was driven by a 27% increase in Land segment sales, primarily from ammunition sales in Israel and Europe, and a 17% increase in both C4I and Cyber revenues and ISTAR and EW revenues.
Cash flow from operations totaled $281.0 million, up from $183.6 million in the prior year. The Board declared a dividend of $1.00 per share, payable on July 6, 2026.
