Elbit Systems Announces Underwritten Public Offering of 1,365,450 Shares

Rhea-AI Summary

Elbit Systems (NASDAQ: ESLT) has announced a public offering of 1,365,450 ordinary shares, with an additional 30-day option for underwriters to purchase up to 15% more shares. The offering will be managed by joint book-running managers BofA Securities, J.P. Morgan, Jefferies, and Morgan Stanley. The shares will be listed on the Nasdaq Global Select Market, with proceeds intended for general corporate purposes.

Elbit Systems, a leading global defense technology company, reported revenues of $1.9 billion for Q1 2025 and maintains an order backlog of $23.1 billion. The company employs approximately 20,000 people across five continents, specializing in next-generation defense solutions.

Positive

• Strong financial position with $1.9 billion in quarterly revenue
• Substantial order backlog of $23.1 billion indicating robust future business pipeline
• Proceeds will strengthen company's financial flexibility for general corporate purposes

Negative

• Share offering will lead to dilution of existing shareholders' ownership
• Additional shares in the market could potentially pressure stock price

Insights

Financial Capital Markets Specialist

Elbit Systems is raising capital through 1.37M share offering, diluting existing shareholders while strengthening their balance sheet.

Elbit Systems, a leading defense technology company, has announced a significant capital raising initiative through a public offering of 1,365,450 ordinary shares with an additional 15% greenshoe option for underwriters. This move represents a deliberate strategic decision to strengthen the company's financial position.

The transaction structure reveals careful planning – all shares are being sold by the company itself (not existing shareholders), meaning the proceeds will directly strengthen Elbit's balance sheet rather than exit capital. The company states proceeds will be used for "general corporate purposes," which provides flexibility but lacks specificity on strategic deployment of these funds.

The offering employs a syndicate of four major investment banks (BofA Securities, J.P. Morgan, Jefferies, and Morgan Stanley) as joint book-running managers, indicating a sophisticated approach to market the offering to institutional investors. This blue-chip banking consortium brings significant distribution capabilities and implies strong institutional interest in the defense sector.

For existing shareholders, this offering will create dilution of ownership, as the new shares represent an expansion of the outstanding share count. The company reported impressive Q1 2025 revenues of $1.9 billion and maintains a substantial order backlog of $23.1 billion, suggesting this capital raise is likely opportunistic rather than driven by immediate financial necessity.

The timing aligns with Elbit's position as a key defense contractor during a period of heightened global security concerns, particularly considering the company's location in Israel and its role in defense technology development. This offering allows Elbit to capitalize on current market conditions while strengthening its balance sheet to pursue future opportunities in the defense sector.

HAIFA, Israel, May 21, 2025 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today the public offering of 1,365,450 of its ordinary shares. All of the ordinary shares in the proposed offering will be sold by the Company. In addition, the Company expects to grant the underwriters of the offering a 30-day option to purchase from the Company an amount of additional ordinary shares of up to 15% of the ordinary shares offered in the public offering at the public offering price, less underwriting discounts and commissions. The ordinary shares offered in this offering are expected to be listed for trading on the Nasdaq Global Select Market. Elbit Systems intends to use the net proceeds from this offering for general corporate purposes.

BofA Securities, J.P. Morgan, Jefferies and Morgan Stanley have been engaged to act as the joint book-running managers with respect to the offering of the ordinary shares.

The offering is being made pursuant to an effective shelf registration statement on Form F-3, filed with the U.S. Securities and Exchange Commission (the "SEC") on May 21, 2025, which became effective immediately. The offering of ordinary shares is being made only by means of a prospectus supplement and accompanying prospectus. When available, copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained free of charge at the SEC's website at www.sec.gov. Alternatively, copies of the prospectus supplement and the accompanying prospectus may be obtained from: BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255, by telephone (toll-free) at 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone: 1-866-803-9204, or email: prospectus-eq_fi@jpmorgan.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at 1-877-821-7388, or by email at prospectus_department@jefferies.com; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, solicitation or sale of these securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").

About Elbit Systems 

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs approximately 20,000 people in dozens of countries across five continents. The Company reported $1.9 billion in revenues for the three months ended March 31, 2025 and an order backlog of $23.1 billion as of such date.

Company Contact:  

Dr. Yaacov (Kobi) Kagan, Executive VP - CFO
Tel:  +972-77-2946663
kobi.kagan@elbitsystems.com

Daniella Finn, VP, Investor Relations
Tel: +972-77-2948984
daniella.finn@elbitsystems.com

Dalia Bodinger, VP, Communications & Brand
Tel: +972-77-2947602
dalia.bodinger@elbitsystems.com

Forward-Looking Statements

This press release may contain forward-looking statements (within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively, the "Company"), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of the net proceeds from the offering. Therefore, actual future results, performance and trends may differ materially from these forward-looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others, including the duration and scope of the current war in Israel, and the potential impact on the Company's operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the SEC, and in the registration statement and prospectus supplement and accompanying prospectus referred to above. All forward-looking statements speak only as of the date of this release. 

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements, except as required by applicable law.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this press release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies.  All other brand, product, service and process names appearing are the trademarks of their respective holders.  Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

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SOURCE Elbit Systems Ltd.

FAQ

How many shares is Elbit Systems (ESLT) offering in its May 2025 public offering?

Elbit Systems is offering 1,365,450 ordinary shares, with an additional 30-day option for underwriters to purchase up to 15% more shares.

What will Elbit Systems use the proceeds from its 2025 share offering for?

Elbit Systems intends to use the net proceeds from the offering for general corporate purposes.

Who are the underwriters for Elbit Systems' 2025 public offering?

The joint book-running managers are BofA Securities, J.P. Morgan, Jefferies, and Morgan Stanley.

What is Elbit Systems' current order backlog as of Q1 2025?

Elbit Systems reported an order backlog of $23.1 billion as of March 31, 2025.

What were Elbit Systems' revenues for Q1 2025?

Elbit Systems reported revenues of $1.9 billion for the three months ended March 31, 2025.