Elbit Systems Awarded Approximately $1.4 Billion Contract for Extensive Military Modernization Programs for a European Customer

Elbit Systems (NASDAQ: ESLT) announced a contract of approximately $1.4 billion from a European customer for extensive military modernization programs, to be executed over five years.

Rhea-AI Summary

Elbit Systems (NASDAQ: ESLT) announced a contract of approximately $1.4 billion from a European customer for extensive military modernization programs, to be executed over five years.

The multi-domain package includes uncrewed autonomous systems, networked land EW, precision-guided munitions, electro-optical systems, and software-defined radios to enhance maneuverability and survivability.

Positive

• Approximately $1.4 billion defense contract with a European customer
• Five-year performance period supports multi-year revenue visibility
• Contract covers multi-domain military modernization across the battle space
• Portfolio includes uncrewed systems, EW, precision munitions, and electro-optics
• Solutions networked by software-defined radios for integrated operations

Negative

• None.

Argus May 26 session

+11.02% close to close Open Argus

Details

News Market Reaction – ESLT

On May 26, the day this news came out, ESLT closed 11.02% above the previous close.

Data tracked by StockTitan Argus for the May 26 session.

Key Figures

Contract value: $1.4 billion Contract duration: 5 years

Contract value

$1.4 billion

European military modernization programs award

Contract duration

5 years

Performance period for modernization programs

Historical Context

5 past events · Latest: May 20

5 events

1. May 20

   Rating upgrade

   24h Move

   +0.7%

   Local rating raised to “ilAAA” with stable outlook and strong ratios.

2. May 12

   Defense contract win

   24h Move

   +0.9%

   U.S. Army ENVG-B delivery order worth $212 million to 2028.

3. Apr 27

   Earnings scheduling

   24h Move

   -0.3%

   Announcement of Q1 2026 results release and investor call timing.

4. Apr 22

   Defense contract win

   24h Move

   -1.5%

   Approx. $200 million in airborne munitions orders from Israel MoD.

5. Apr 06

   Defense contract win

   24h Move

   +3.9%

   $750 million PULS rocket artillery contract for Hellenic Armed Forces.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

electronic warfare (ew), precision-guided munitions, electro-optical, software-defined radios (sdr), +1 more

5 terms

electronic warfare (ew) technical

"advanced networked land electronic warfare (EW), precision-guided munitions"

Electronic warfare is the use of the electromagnetic spectrum—radio waves, radar, GPS signals and similar emissions—to detect, confuse, block or protect electronic systems such as communications, navigation and sensors. Think of it as deliberately creating static, fake signals or protective filters for a radio or GPS device to hide movements or deny an opponent’s view. Investors watch it because governments and companies buy these capabilities as part of defense, security and critical-infrastructure spending, which can drive revenue, contracts and technology risk for suppliers and customers.

precision-guided munitions technical

"precision-guided munitions (artillery and air-to-ground), coupled with electro-optical"

Weapons that use onboard sensors, satellites or guidance systems to home in on a specific target and reduce stray damage, much like a GPS-guided driver steering to a precise address instead of relying on a rough map. Investors watch them because demand, export rules, production bottlenecks and government procurement decisions can sharply affect defense-company revenues, supply chains and political risk, making them a key factor in valuing military suppliers.

electro-optical technical

"coupled with electro-optical designating and reconnaissance systems, all networked"

Electro-optical describes devices and technologies that convert between electrical signals and light or that use light controlled by electricity—think of them as translators between electricity and beams of light. Investors care because these technologies power items like high-speed communications, imaging systems, sensors and targeting equipment; improvements can open new markets, raise product value and affect revenue and competitive position much like a faster engine can change a car maker’s sales.

software-defined radios (sdr) technical

"reconnaissance systems, all networked by software-defined radios (SDR)."

Software-defined radios are radio systems that use general-purpose processors and software to perform tasks that traditional radios do with fixed hardware, letting the same device change frequencies and protocols by downloading code instead of swapping components—like a smartphone changing apps instead of buying a new gadget. For investors, that flexibility can cut manufacturing and upgrade costs, speed product rollouts, enable new services, and shift competitive advantage across telecom, defense, and IoT markets, affecting revenue potential and capital needs.

uncrewed autonomous solutions technical

"solutions to be delivered include a variety of uncrewed autonomous solutions, advanced"

Uncrewed autonomous solutions are systems—vehicles, drones, vessels, or robots—that operate without a person on board and make decisions using sensors and software, like a self-driving delivery van or an automated inspection drone. For investors, they matter because they can reduce labor and operating costs, open new service and market opportunities, and shift capital toward software, sensors, and regulatory compliance; their value depends on safety, reliability, and legal approval.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAIFA, Israel, May 26, 2026 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that it has been awarded a contract valued at approximately $1.4 billion by a European customer for extensive military modernization programs. The contract will be performed over a period of five years.

The modernized programs will provide improved maneuverability and survivability, spanning the entire battle domain. The state-of-the-art solutions to be delivered include a variety of uncrewed autonomous solutions, advanced networked land electronic warfare (EW), precision-guided munitions (artillery and air-to-ground), coupled with electro-optical designating and reconnaissance systems, all networked by software-defined radios (SDR). These solutions will improve the nation's operational effectiveness towards becoming an advanced and modern army.

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "This contract reflects the breadth and attractiveness of Elbit Systems' defense portfolio, as well as our ability to deliver both highly capable, best–in–class systems and comprehensive, integrated solutions tailored to evolving operational needs. Our proven experience working with numerous armed forces worldwide, together with our strong in–house development capabilities and leading–edge technological expertise, continue to drive growing demand for our solutions and position us as a trusted partner for long–term military modernization programs."

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 over 20,000 people in dozens of countries across five continents. The Company reported $7,938.6 million in revenues for the year ended December 31, 2025 and an order backlog of $28.1 billion as of such date.

For additional information, visit: https://elbitsystems.com, follow us on X 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 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 press 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 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.

Logo: https://mma.prnewswire.com/media/2017806/Elbit_Systems_Logo.jpg

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SOURCE Elbit Systems Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Elbit Systems (NASDAQ: ESLT) announce on May 26, 2026?

Elbit Systems announced it was awarded an approximately $1.4 billion contract from a European customer for extensive military modernization programs. According to Elbit Systems, the contract will be performed over five years and covers multi-domain, networked defense capabilities.

How large is the new Elbit Systems ESLT military modernization contract?

The new Elbit Systems contract is valued at approximately $1.4 billion. According to Elbit Systems, this single award funds broad modernization programs for a European customer, including uncrewed autonomous systems, electronic warfare, precision-guided munitions, electro-optical systems, and software-defined radios.

Over what period will Elbit Systems execute the $1.4 billion ESLT contract?

Elbit Systems plans to perform the approximately $1.4 billion contract over five years. According to Elbit Systems, this multi-year schedule supports delivery of integrated, state-of-the-art systems that enhance maneuverability, survivability, and operational effectiveness across the customer's entire battle domain.

What technologies are included in Elbit Systems’ new European modernization deal (ESLT)?

The contract includes uncrewed autonomous solutions, advanced networked land electronic warfare, precision-guided munitions, and electro-optical designating and reconnaissance systems. According to Elbit Systems, these are all networked via software-defined radios to improve the European customer's operational effectiveness and modernization level.

How does the $1.4 billion contract support Elbit Systems’ defense portfolio and strategy?

Elbit Systems views the contract as evidence of the breadth and attractiveness of its defense portfolio. According to Elbit Systems, the award underscores its ability to deliver integrated, best-in-class systems and leverage in-house development and technological expertise for long-term military modernization programs.