Elbit Systems Awarded a Contract of Approximately $260 Million by an International Customer

Rhea-AI Summary

Elbit Systems (NASDAQ: ESLT) has secured a $260 million contract to supply systems to an international customer. Announced on May 23, 2024, the contract will be executed over a two-year period. Elbit Systems' CEO, Bezhalel Machlis, expressed pride in offering advanced solutions to enhance national security and technological capabilities for their international clientele. The contract reflects Elbit Systems' ongoing commitment to providing cutting-edge technology and strengthening global security measures.

Positive

• Secured a $260 million contract, indicating strong business growth.
• Two-year contract duration ensures sustained revenue stream.
• Contract with an international customer extends Elbit Systems' global reach.
• Company's advanced solutions recognized for enhancing national security.

Negative

• Details about the specific systems or services provided are not disclosed.
• The contract's impact on profit margins remains unclear.
• Potential risks associated with fulfilling a large international contract are not addressed.

Financial Analyst

Elbit Systems' $260 million contract signals a strong revenue boost over the next two years, accounting for a significant portion of their earnings. This deal will likely enhance the company's financial stability and could positively impact the stock price in the short term due to increased investor confidence.

The contract's size is notable and its performance period is relatively short, suggesting quick revenue recognition. $260 million in two years adds $130 million annually, which can improve quarterly earnings reports and potentially lead to better-than-expected financial results.

However, it's important to consider the operational risks involved, such as delivery timelines and cost management, which can impact profitability. Any delays or cost overruns could diminish the financial impact of this contract.

Market Research Analyst

Elbit Systems' contract win underscores their strong market position and ability to secure high-value international contracts. This deal may indicate the company's growing influence and competitive edge in the global defense sector.

Winning a large contract can enhance Elbit's market reputation, opening doors for further international opportunities. However, market dynamics in the defense sector, including geopolitical factors and defense budgets, can influence future prospects.

The contract also reflects demand for Elbit's advanced technological solutions, which could lead to increased R&D spending to maintain their competitive edge. Investors should watch for any subsequent announcements of new contracts or partnerships that could further solidify Elbit's market position.

Tech Expert

The contract highlights Elbit Systems' technological prowess in the defense industry. The company's ability to secure such a significant deal suggests strong capabilities in delivering cutting-edge technology solutions that meet international standards.

For investors, it's essential to understand the specific systems Elbit will supply. If these include advanced technologies like AI, cyber defense, or autonomous systems, it could mean higher margins and a stronger competitive position.

This contract may lead to technological advancements and innovations, positioning Elbit as a leader in emerging defense technologies. However, maintaining technological superiority requires continuous investment in R&D, which could impact profit margins if not managed effectively.

HAIFA, Israel, May 23, 2024 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that it was awarded a contract to supply systems to an international customer, in an amount of approximately $260 million. The contract will be performed over a period of 2 years.

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "We are proud to continue providing our advanced solutions to our international customers, enhancing national security and advancing technological capabilities."

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 19,000 people in dozens of countries across five continents. In 2023, the Company reported approximately $6.0 billion in revenues and an order backlog of $17.8 billion.

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

Dr. David Ravia, Investor Relations
Tel: +972-77-2947169
david.ravia@elbitsystems.com

Dalia Bodinger, VP, Communication & 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 the recent contract awarded to Elbit Systems?

Elbit Systems was awarded a contract valued at approximately $260 million.

When was the Elbit Systems contract announced?

The contract was announced on May 23, 2024.

How long will it take to complete the Elbit Systems contract?

The contract will be performed over a period of two years.

What is the stock symbol for Elbit Systems?

The stock symbol for Elbit Systems is ESLT.

Who is the CEO of Elbit Systems?

The CEO of Elbit Systems is Bezhalel Machlis.

What is the significance of the new contract for Elbit Systems?

The new contract signifies business growth, international reach, and recognition of Elbit Systems' advanced solutions.