Elbit Systems Awarded $260 Million Contract to Supply DIRCM Self-Protection Systems for Germany's A400M Aircraft Fleet

Rhea-AI Summary

Elbit Systems (NASDAQ: ESLT) has secured a significant $260 million contract from Airbus Defence and Space to supply J-MUSIC™ Directed Infrared Counter Measures (DIRCM) self-protection systems for the German Air Force A400M transport aircraft fleet. The contract will be executed over a 6-year period following the procurement decision by Germany's Federal Office for Equipment (BAAINBw).

The J-MUSIC™ DIRCM system, part of Elbit's MUSIC™ family of airborne self-protection solutions, defends aircraft against infrared-guided missile threats, particularly MANPADS. The company reported strong financial performance with $1.9 billion in revenues for Q1 2025 and maintains a robust order backlog of $23.1 billion.

Positive

• Secured major $260 million contract with Airbus Defence and Space
• Strong Q1 2025 revenue of $1.9 billion
• Substantial order backlog of $23.1 billion
• Expanding presence in strategic European defense market
• Contract duration of 6 years provides long-term revenue visibility

Negative

• Extended 6-year execution period may expose to cost inflation risks
• High dependence on government defense contracts and budgets
• Geopolitical risks due to operations in multiple countries

Insights

Defense Industry Analyst

Elbit Systems secures major $260M contract for aircraft protection systems, strengthening revenue pipeline and international defense partnerships.

Elbit Systems has secured a $260 million contract with Airbus Defence and Space to supply J-MUSIC™ Directed Infrared Counter Measures systems for Germany's A400M transport aircraft fleet. This 6-year contract represents a significant win in the aircraft protection systems market, where Elbit has established itself as a leading provider globally.

The J-MUSIC™ DIRCM technology provides critical protection against increasingly common infrared-guided missile threats, particularly MANPADS (Man-Portable Air-Defense Systems), which represent one of the most significant threats to military aircraft in conflict zones. These defensive systems essentially blind incoming heat-seeking missiles by disrupting their guidance systems with directed laser energy.

This contract further solidifies Elbit's international market position, adding to their existing DIRCM installations with other NATO countries including the Netherlands and Italy. The German contract also demonstrates continued confidence in Elbit's technology at a time when air defense capabilities are receiving heightened priority among Western military forces.

From a financial perspective, this $260 million contract represents approximately 3.4% of Elbit's current $23.1 billion order backlog. While spread across 6 years, this contributes to revenue stability and visibility. The contract's value is equivalent to nearly 14% of Elbit's quarterly revenue (reported at $1.9 billion for Q1 2025), indicating its material significance to the company's financial outlook.

The selection by Airbus DS, one of the world's premier aerospace manufacturers, also reinforces Elbit's credibility as a technology partner for major defense platforms and opens potential pathways to additional integration opportunities across Airbus's extensive product portfolio.

Military Technology Expert

The J-MUSIC™ DIRCM system represents sophisticated defensive technology addressing a critical vulnerability in military aviation. These systems are essentially automated laser countermeasures that detect, track and neutralize heat-seeking missiles - particularly those fired from portable systems that have proliferated globally.

The integration on Germany's A400M fleet is tactically significant. These aircraft serve as strategic airlift platforms, often operating in contested airspace where MANPADS threats exist. The A400M's role in military operations makes it both a high-value asset and potential target, necessitating advanced protection measures.

What distinguishes Elbit's system technically is its fully autonomous operation, requiring no crew intervention during attacks, allowing flight crews to focus on their primary mission. The system's modular architecture enables integration across diverse platforms while minimizing performance penalties - crucial for transport aircraft where payload and range are operational priorities.

The German procurement decision reflects growing recognition of asymmetric threats to air operations. MANPADS systems, due to their relative affordability and mobility, have become widespread in conflict zones globally. This contract signals continuation of a broader trend where advanced militaries invest in countermeasures against relatively low-cost threats that could disable high-value aviation assets.

The expanding customer base cited in the release - Israel, Germany, Netherlands, Italy, Brazil - indicates market validation across NATO and non-NATO militaries. Particularly noteworthy is Elbit's mention of OEM adoption, suggesting the system is increasingly being designed-in to new aircraft rather than added as a retrofit, potentially streamlining future sales cycles as these platforms proliferate.

HAIFA, Israel, July 28, 2025 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that it was awarded a contract worth approximately $260 million by Airbus Defence and Space ("Airbus DS") to supply its J-MUSIC™ Directed Infrared Counter Measures (DIRCM) self-protection systems, for installation on the German Air Force A400M transport aircraft. The contract, to be executed over a 6-year period, follows a procurement decision by the Federal Office for Equipment, Information Technology and Operations of the Bundeswehr (BAAINBw).

The J-MUSIC™ DIRCM system is part of Elbit Systems' MUSIC™ family of airborne self-protection solutions, designed to defend aircraft against infrared-guided missile threats, particularly those launched from man-portable air-defense systems (MANPADS). The integration of advanced laser technology with high-performance imaging systems, enables the system to detect, track, and disrupt incoming missile threats in real time, providing autonomous protection without requiring crew intervention. The system is characterized by its modular and scalable architecture, allowing for integration with a wide range of aircraft platforms and missile warning systems. Its compact form factor ensures minimal impact on aircraft performance and payload capacity.

Elbit Systems' DIRCM solutions have been deployed operationally on a wide range of military and commercial aircraft globally. Customers include governments, air forces and defense ministries from countries such as Israel, Germany, the Netherlands, Italy and Brazil. The system has also been selected by several leading aircraft manufacturers (OEMs) as their preferred DIRCM solution for integration into new and retrofit platforms.

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "This contract further strengthens Elbit Systems' position as a leading global provider of DIRCM solutions. Our systems are already trusted by numerous air forces and defense organizations around the world, and we are proud to support Germany in enhancing the protection of their strategic air assets. Our successful collaboration with Airbus DS on this important program is highly valued, and we are pleased that our advanced self-protection systems will contribute to the safety and operational readiness of the German A400M fleet."

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.

For additional information, visit: https://elbitsystems.com, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn Channels.

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 

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, 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 projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. 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 our 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 U.S. Securities and Exchange Commission. 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.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this 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

What is the value of Elbit Systems' contract with Airbus Defence and Space for the German Air Force?

Elbit Systems secured a $260 million contract to supply J-MUSIC™ DIRCM self-protection systems for Germany's A400M aircraft fleet.

What is ESLT's Q1 2025 revenue and current order backlog?

Elbit Systems reported revenues of $1.9 billion for Q1 2025 and maintains an order backlog of $23.1 billion.

What is the purpose of Elbit's J-MUSIC™ DIRCM system?

The J-MUSIC™ DIRCM system is designed to defend aircraft against infrared-guided missile threats, particularly those launched from man-portable air-defense systems (MANPADS).

How long will it take Elbit Systems to execute the German Air Force contract?

The contract will be executed over a 6-year period following the procurement decision by Germany's Federal Office for Equipment.

Which countries are currently using Elbit Systems' DIRCM solutions?

Elbit's DIRCM solutions are used by Israel, Germany, the Netherlands, Italy, and Brazil among other countries.