ELBIT SYSTEMS REPORTS THIRD QUARTER 2025 RESULTS
Rhea-AI Summary
Elbit Systems (NASDAQ: ESLT) reported Q3 2025 revenues of $1,921.6 million and a GAAP net income attributable to shareholders of $133.4 million (GAAP diluted EPS $2.80; non-GAAP diluted EPS $3.35). The Company closed the quarter with an order backlog of $25.2 billion and announced an $2.3 billion international contract to be performed over eight years.
Cash flow from operations for the nine months ended September 30, 2025 was $461.0 million. The Board declared a dividend of $0.75 per share payable January 5, 2026 (record date December 22, 2025). The release also notes regional revenue shifts, supply‑chain disruptions tied to Middle East conflicts, and steps taken to mitigate operational effects.
Positive
- Order backlog of $25.2 billion
- Q3 revenues of $1,921.6 million
- GAAP diluted EPS of $2.80
- $2.3 billion international contract over eight years
- Operating cash flow of $461.0 million (nine months)
Negative
- Aerospace revenues down 3% in Q3 2025
- Elbit Systems of America revenues down 2% in Q3 2025
- Operations affected by supply‑chain disruptions and higher transportation costs
- Cash and cash equivalents decreased to $142.6 million as of Sept 30, 2025
News Market Reaction 3 Alerts
On the day this news was published, ESLT gained 0.16%, reflecting a mild positive market reaction. Argus tracked a trough of -9.1% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $37M to the company's valuation, bringing the market cap to $23.33B at that time.
Data tracked by StockTitan Argus on the day of publication.
Order backlog at
In this release, the Company is providing US-GAAP results as well as non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 10 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, stated:
"Elbit Systems today reports strong quarterly results, with double-digit growth in sales and profits, as well as continued, consistent expansion of the order backlog, which has reached a record level of over
Third quarter 2025 results:
Revenues in the third quarter of 2025 were
Aerospace revenues decreased by
For distribution of revenues by segments and geographic regions see the tables on page 9.
GAAP gross profit in the third quarter of 2025 was
Research and development expenses, net were
Marketing and selling expenses, net were
General and administrative expenses, net were
GAAP operating income in the third quarter of 2025 was
Financial expenses, net were
Taxes on income were
GAAP net income attributable to the Company's shareholders in the third quarter of 2025 was
GAAP diluted earnings per share attributable to the Company's shareholders in the third quarter of 2025 were
The Company's order backlog as of September 30, 2025 totaled
Cash flow provided by operating activities in the nine months ended September 30, 2025 was
* see page 10
Impact of recent conflicts in the
The war which began on October 7, 2023, continued throughout most of 2025, until a cease fire was agreed with Hamas on October 9, 2025. A cease fire between
Since the commencement of the war, Elbit Systems has experienced a material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.
As a result of the war and the other conflicts in the
Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the cease fires, these operational effects on the Company have been reduced. Future developments are difficult to predict at this time.
Recent Events:
On September 17, 2025, the Company announced that the Israel Securities Authority extended the term of the Company's shelf prospectus filed in September 2023, by 12 months, until September 27, 2026.
On October 30,
2025, the Company announced that at its Annual General Meeting of Shareholders held on October 29, 2025 at the Company's offices in
On November 17, 2025, the Company announced that it has signed an international contract for a strategic solution in an amount of approximately
Dividend:
The Board of Directors declared a dividend of
Conference Call:
The Company will be hosting a conference call today, Tuesday, November 18, 2025, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.
To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918-0644
International Dial-in Number: 972-3-918-0644
at 9:00am Eastern Time; 6:00am Pacific Time; 4:00pm Israel Time
The conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.
Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and
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
Elbit Systems employs approximately 20,000 people in dozens of countries across five continents. The Company reported
For additional information, visit: https://elbitsystems.com/, follow us on X or visit our official Facebook, YouTube and LinkedIn channels.
Attachments:
Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments
Company Contact:
Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer
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
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.
(FINANCIAL TABLES TO FOLLOW)
|
ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (US Dollars in thousands) |
||||
|
|
||||
|
|
|
As of September 30, 2025 |
|
As of December 31, 2024 |
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ 142,593 |
|
$ 265,351 |
|
|
Short-term bank deposits |
593,037 |
|
1,330 |
|
|
Trade and unbilled receivables and contract assets, net |
3,154,023 |
|
2,942,886 |
|
|
Other receivables and prepaid expenses |
404,936 |
|
371,918 |
|
|
Inventories, net |
3,146,124 |
|
2,773,696 |
|
|
Total current assets |
7,440,713 |
|
6,355,181 |
|
|
|
|
|
|
|
|
Investments in affiliated companies and other companies |
128,582 |
|
126,007 |
|
|
Long-term trade and unbilled receivables and contract assets |
666,966 |
|
516,299 |
|
|
Long-term bank deposits and other receivables |
54,903 |
|
67,510 |
|
|
Deferred income taxes, net |
52,895 |
|
34,064 |
|
|
Severance pay fund |
236,278 |
|
223,167 |
|
|
Total |
1,139,624 |
|
967,047 |
|
|
|
|
|
|
|
|
Operating lease right of use assets |
515,750 |
|
527,075 |
|
|
Property, plant and equipment, net |
1,353,493 |
|
1,276,948 |
|
|
Goodwill and other intangible assets, net |
1,829,663 |
|
1,845,345 |
|
|
Total assets |
$ 12,279,243 |
|
$ 10,971,596 |
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
Short-term bank credit and loans |
$ 168,482 |
|
$ 450,856 |
|
|
Current maturities of long-term loans and Series B, C and D Notes |
81,399 |
|
74,561 |
|
|
Operating lease liabilities |
96,681 |
|
84,912 |
|
|
Trade payables |
1,569,589 |
|
1,343,816 |
|
|
Other payables and accrued expenses |
1,396,021 |
|
1,207,717 |
|
|
Contract liabilities |
2,324,024 |
|
2,149,306 |
|
|
Total current liabilities |
5,636,196 |
|
5,311,168 |
|
|
|
|
|
|
|
|
Long-term loans, net of current maturities |
18,077 |
|
27,395 |
|
|
Series B, C and D Notes, net of current maturities |
231,548 |
|
278,529 |
|
|
Employee benefit liabilities |
493,087 |
|
454,334 |
|
|
Deferred income taxes and tax liabilities, net |
109,474 |
|
73,916 |
|
|
Contract liabilities |
1,018,803 |
|
816,796 |
|
|
Operating lease liabilities |
473,126 |
|
454,057 |
|
|
Other long-term liabilities |
280,554 |
|
274,421 |
|
|
Total long-term liabilities |
2,624,669 |
|
2,379,448 |
|
|
|
|
|
|
|
|
Elbit Systems Ltd.'s equity |
4,013,808 |
|
3,277,540 |
|
|
Non-controlling interests |
4,570 |
|
3,440 |
|
|
Total equity |
4,018,378 |
|
3,280,980 |
|
|
Total liabilities and equity |
$ 12,279,243 |
|
$ 10,971,596 |
|
ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (US Dollars in thousands, except for share and per share amounts) |
|||||||||
|
|
|||||||||
|
|
|||||||||
|
|
Nine months |
|
Nine months |
|
Three months |
|
Three months |
|
Year ended |
|
Revenues |
$ 5,790,068 |
|
$ 4,897,655 |
|
$ 1,921,608 |
|
$ 1,717,547 |
|
$ 6,827,871 |
|
Cost of revenues |
4,384,609 |
|
3,721,036 |
|
1,443,369 |
|
1,304,763 |
|
5,186,051 |
|
Gross profit |
1,405,459 |
|
1,176,619 |
|
478,239 |
|
412,784 |
|
1,641,820 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Research and development, net |
373,047 |
|
335,210 |
|
129,110 |
|
119,890 |
|
466,402 |
|
Marketing and selling, net |
283,366 |
|
268,144 |
|
90,955 |
|
91,349 |
|
375,358 |
|
General and administrative, net |
270,087 |
|
225,608 |
|
86,740 |
|
75,736 |
|
311,007 |
|
Total operating expenses |
926,500 |
|
828,962 |
|
306,805 |
|
286,975 |
|
1,152,767 |
|
Operating income |
478,959 |
|
347,657 |
|
171,434 |
|
125,809 |
|
489,053 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses, net |
(104,587) |
|
(105,219) |
|
(34,459) |
|
(44,953) |
|
(151,125) |
|
Other income, net |
4,957 |
|
10,269 |
|
1,354 |
|
7,002 |
|
3,818 |
|
Income before income taxes |
379,329 |
|
252,707 |
|
138,329 |
|
87,858 |
|
341,746 |
|
Taxes on income |
(34,527) |
|
(35,689) |
|
(11,409) |
|
(12,830) |
|
(39,058) |
|
|
344,802 |
|
217,018 |
|
126,920 |
|
75,028 |
|
302,688 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings of affiliated companies |
22,265 |
|
14,625 |
|
6,756 |
|
4,284 |
|
19,176 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 367,067 |
|
$ 231,643 |
|
$ 133,676 |
|
$ 79,312 |
|
$ 321,864 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income attributable to non-controlling interests |
(889) |
|
(498) |
|
(281) |
|
(206) |
|
(726) |
|
Net income attributable to Elbit Systems Ltd.'s shareholders |
$ 366,178 |
|
$ 231,145 |
|
$ 133,395 |
|
$ 79,106 |
|
$ 321,138 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Elbit Systems Ltd .'s shareholders: |
|
|
|
|
|
|
|
|
|
|
Basic net earnings per share |
$ 8.05 |
|
$ 5.20 |
|
$ 2.88 |
|
$ 1.78 |
|
$ 7.22 |
|
Diluted net earnings per share |
$ 7.85 |
|
$ 5.18 |
|
$ 2.80 |
|
$ 1.77 |
|
$ 7.18 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation of: |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in thousands) |
45,484 |
|
44,472 |
|
46,349 |
|
44,478 |
|
44,480 |
|
Diluted earnings per share (in thousands) |
46,638 |
|
44,633 |
|
47,670 |
|
44,618 |
|
44,709 |
|
ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (US Dollars in thousands) |
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Nine |
|
Nine |
|
Year ended |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
$ 367,067 |
|
$ 231,643 |
|
$ 321,864 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
128,826 |
|
117,145 |
|
158,391 |
|
Stock-based compensation |
17,527 |
|
10,060 |
|
15,760 |
|
Amortization of series B, C and D related issuance costs, net |
504 |
|
358 |
|
493 |
|
Deferred income taxes and reserve, net |
(12,072) |
|
12,124 |
|
1,649 |
|
Loss (gain) on sale of property, plant and equipment |
2,261 |
|
(419) |
|
(596) |
|
Loss from remeasurement of investments held under fair value method and sale of an investment |
7,272 |
|
6,079 |
|
18,136 |
|
Equity in net earnings of affiliated companies, net of dividend received (*) |
(8,137) |
|
(6,085) |
|
(8,213) |
|
Changes in operating assets and liabilities, net of amounts acquired: |
|
|
|
|
|
|
Increase in trade and unbilled receivables and prepaid expenses |
(380,407) |
|
(466,738) |
|
(473,926) |
|
Increase in inventories, net |
(374,294) |
|
(529,345) |
|
(480,309) |
|
Increase (decrease) in trade payables and other payables and accrued expenses |
349,727 |
|
(1,726) |
|
65,663 |
|
Severance, pension and termination indemnities, net |
(13,951) |
|
(28,734) |
|
(40,159) |
|
Increase in contract liabilities |
376,725 |
|
738,177 |
|
955,857 |
|
Net cash provided by operating activities |
461,048 |
|
82,539 |
|
534,610 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Purchase of property, plant and equipment and other assets, net of investment grants and evacuation grants |
(128,387) |
|
(167,002) |
|
(215,051) |
|
Investments in affiliated companies and other companies, net |
(100) |
|
(3,151) |
|
(3,603) |
|
Proceeds from sale of property, plant and equipment |
1,297 |
|
5,013 |
|
4,107 |
|
Proceeds from sale of investments, subsidiary and operation |
400 |
|
24,776 |
|
25,970 |
|
Proceeds from (investment in) short-term deposits, net |
(591,591) |
|
7,068 |
|
9,923 |
|
Proceeds from sale of (investment in) long-term deposits, net |
(254) |
|
(335) |
|
(180) |
|
Net cash used in investing activities |
(718,635) |
|
(133,631) |
|
(178,834) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Issuance of shares |
573,021 |
|
7 |
|
26 |
|
Issuance (repayment) of commercial paper, net |
(195,977) |
|
36,380 |
|
36,380 |
|
Repayment of long-term loans |
(11,410) |
|
(11,262) |
|
(11,320) |
|
Repayment of Series B, C and D Notes |
(67,496) |
|
(61,862) |
|
(61,862) |
|
Dividends paid |
(76,902) |
|
(66,717) |
|
(88,958) |
|
Change in short-term bank credit and loans, net |
(86,407) |
|
76,316 |
|
(162,120) |
|
Net cash provided by (used in) financing activities |
134,829 |
|
(27,138) |
|
(287,854) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
(122,758) |
|
(78,230) |
|
67,922 |
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
$ 265,351 |
|
$ 197,429 |
|
$ 197,429 |
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
$ 142,593 |
|
$ 119,199 |
|
$ 265,351 |
|
(*) Dividend received from affiliated companies |
$ 14,128 |
|
$ 8,540 |
|
$ 10,963 |
|
ELBIT SYSTEMS LTD. DISTRIBUTION OF REVENUES (US Dollars in millions) |
|||||||||||||||||||
|
Consolidated revenues by geographical regions: |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
Nine |
|
% |
|
Nine |
|
% |
|
Three |
|
% |
|
Three |
|
% |
|
Year |
|
% |
|
|
$ 1,921.1 |
|
33.2 |
|
$ 1,395.1 |
|
28.5 |
|
$ 641.6 |
|
33.4 |
|
$ 499.0 |
|
29.1 |
|
$ 1,988.0 |
|
29.1 |
|
|
1,204.3 |
|
20.8 |
|
1,082.4 |
|
22.1 |
|
406.6 |
|
21.2 |
|
386.8 |
|
22.5 |
|
1,520.3 |
|
22.3 |
|
|
1,556.5 |
|
26.9 |
|
1,287.2 |
|
26.3 |
|
536.0 |
|
27.9 |
|
429.9 |
|
25.0 |
|
1,820.9 |
|
26.7 |
|
|
871.3 |
|
15.0 |
|
858.4 |
|
17.5 |
|
266.2 |
|
13.9 |
|
315.6 |
|
18.4 |
|
1,132.7 |
|
16.6 |
|
|
71.4 |
|
1.2 |
|
111.8 |
|
2.3 |
|
20.7 |
|
1.1 |
|
37.9 |
|
2.2 |
|
150.0 |
|
2.2 |
|
Other countries |
165.5 |
|
2.9 |
|
162.8 |
|
3.3 |
|
50.5 |
|
2.5 |
|
48.3 |
|
2.8 |
|
216.0 |
|
3.1 |
|
Total revenue |
$ 5,790.1 |
|
100.0 |
|
$ 4,897.7 |
|
100.0 |
|
$ 1,921.6 |
|
100.0 |
|
$ 1,717.5 |
|
100.0 |
|
$ 6,827.9 |
|
100.0 |
|
Consolidated revenues by segments: |
|||||||||
|
|
|||||||||
|
|
Nine months |
|
Nine months |
|
Three months |
|
Three months |
|
Year ended |
|
Aerospace |
|
|
|
|
|
|
|
|
|
|
External customers |
$ 1,348.0 |
|
$ 1,216.2 |
|
$ 425.9 |
|
$ 434.0 |
|
$ 1,780.5 |
|
Intersegment revenue |
170.8 |
|
179.1 |
|
51.8 |
|
58.2 |
|
255.8 |
|
Total |
1,518.8 |
|
1,395.3 |
|
477.7 |
|
492.2 |
|
2,036.3 |
|
C4I and Cyber |
|
|
|
|
|
|
|
|
|
|
External customers |
642.9 |
|
558.4 |
|
225.7 |
|
198.7 |
|
750.6 |
|
Intersegment revenue |
47.2 |
|
39.7 |
|
17.6 |
|
14.7 |
|
49.2 |
|
Total |
690.1 |
|
598.1 |
|
243.3 |
|
213.4 |
|
799.8 |
|
ISTAR and EW |
|
|
|
|
|
|
|
|
|
|
External customers |
907.5 |
|
832.8 |
|
292.8 |
|
271.2 |
|
1,118.6 |
|
Intersegment revenue |
161.7 |
|
156.0 |
|
47.9 |
|
52.7 |
|
199.4 |
|
Total |
1,069.2 |
|
988.8 |
|
340.7 |
|
323.9 |
|
1,318.0 |
|
Land |
|
|
|
|
|
|
|
|
|
|
External customers |
1,680.2 |
|
1,144.0 |
|
574.2 |
|
402.6 |
|
1,605.1 |
|
Intersegment revenue |
57.4 |
|
60.6 |
|
19.5 |
|
19.2 |
|
74.3 |
|
Total |
1,737.6 |
|
1,204.6 |
|
593.7 |
|
421.8 |
|
1,679.4 |
|
ESA |
|
|
|
|
|
|
|
|
|
|
External customers |
1,211.5 |
|
1,146.3 |
|
403.0 |
|
411.0 |
|
1,573.1 |
|
Intersegment revenue |
9.5 |
|
7.3 |
|
4.7 |
|
5.6 |
|
12.6 |
|
Total |
1,221.0 |
|
1,153.6 |
|
407.7 |
|
416.6 |
|
1,585.7 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Total revenues (external customers and intersegment) for reportable segments |
6,236.7 |
|
5,340.4 |
|
2,063.1 |
|
1,867.9 |
|
7,419.2 |
|
Less - intersegment revenue |
(446.6) |
|
(442.7) |
|
(141.5) |
|
(150.4) |
|
(591.3) |
|
Total revenues |
$ 5,790.1 |
|
$ 4,897.7 |
|
$ 1,921.6 |
|
$ 1,717.5 |
|
$ 6,827.9 |
Non-GAAP financial data:
The following non-GAAP financial data, including non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributable to the Company's shareholders, and Adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, uncompensated costs related to "Swords of Iron" war, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. We present these non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods.
Specifically, management uses non-GAAP gross profit, non-GAAP operating income, and non-GAAP net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.
We believe non-GAAP gross profit, non-GAAP operating income, and non-GAAP net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data.
Management uses non-GAAP diluted net earnings per share attributed to Company's shareholders to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods.
We believe non-GAAP diluted net earnings per share attributable to Company's shareholders is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis.
The non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.
Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.
|
Reconciliation of GAAP to Non-GAAP Supplemental Financial Data: |
|||||||||
|
(US Dollars in millions, except for per share amounts) |
|||||||||
|
|
|||||||||
|
|
Nine |
|
Nine |
|
Three |
|
Three |
|
Year |
|
GAAP gross profit |
$ 1,405.5 |
|
$ 1,176.6 |
|
$ 478.2 |
|
$ 412.8 |
|
$ 1,641.8 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of purchased intangible assets(*) |
12.1 |
|
14.8 |
|
4.0 |
|
4.2 |
|
18.9 |
|
Stock based compensation |
2.6 |
|
1.5 |
|
0.9 |
|
0.7 |
|
2.4 |
|
Uncompensated labor costs related to "Swords of Iron" war |
5.2 |
|
6.0 |
|
1.2 |
|
1.7 |
|
7.9 |
|
Non-GAAP gross profit |
$ 1,425.4 |
|
$ 1,198.9 |
|
$ 484.3 |
|
$ 419.4 |
|
$ 1,671.0 |
|
Percent of revenues |
24.6 % |
|
24.5 % |
|
25.2 % |
|
24.4 % |
|
24.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
$ 479.0 |
|
$ 347.7 |
|
$ 171.4 |
|
$ 125.8 |
|
$ 489.1 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of purchased intangible assets(*) |
23.2 |
|
26.5 |
|
7.7 |
|
8.1 |
|
34.2 |
|
Stock based compensation |
17.5 |
|
10.1 |
|
6.0 |
|
4.4 |
|
15.8 |
|
Uncompensated labor costs related to "Swords of Iron" war |
7.4 |
|
8.6 |
|
1.6 |
|
2.4 |
|
11.3 |
|
Non-GAAP operating income |
$ 527.1 |
|
$ 392.9 |
|
$ 186.7 |
|
$ 140.7 |
|
$ 550.4 |
|
Percent of revenues |
9.1 % |
|
8.0 % |
|
9.7 % |
|
8.2 % |
|
8.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Elbit Systems' shareholders |
$ 366.2 |
|
$ 231.1 |
|
$ 133.4 |
|
$ 79.1 |
|
$ 321.1 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of purchased intangible assets(*) |
23.2 |
|
26.5 |
|
7.7 |
|
8.1 |
|
34.2 |
|
Stock based compensation |
17.5 |
|
10.1 |
|
6.0 |
|
4.4 |
|
15.8 |
|
Uncompensated labor costs related to "Swords of Iron" war |
7.4 |
|
8.6 |
|
1.6 |
|
2.4 |
|
11.3 |
|
Capital gain |
— |
|
(2.0) |
|
— |
|
(2.0) |
|
(2.0) |
|
Revaluation of investment measured under fair value option |
7.3 |
|
7.4 |
|
0.5 |
|
— |
|
19.4 |
|
Non-operating foreign exchange (gains) losses |
10.4 |
|
(4.2) |
|
11.8 |
|
8.1 |
|
(0.6) |
|
Tax effect and other tax items, net |
(3.9) |
|
(5.3) |
|
(1.2) |
|
(1.3) |
|
(7.7) |
|
Non-GAAP net income attributable to Elbit Systems' shareholders |
$ 428.1 |
|
$ 272.2 |
|
$ 159.8 |
|
$ 98.8 |
|
$ 391.5 |
|
Percent of revenues |
7.4 % |
|
5.6 % |
|
8.3 % |
|
5.8 % |
|
5.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net EPS attributable to Elbit Systems' shareholders |
$ 7.85 |
|
$ 5.18 |
|
$ 2.80 |
|
$ 1.77 |
|
$ 7.18 |
|
Adjustments, net |
1.31 |
|
0.92 |
|
0.55 |
|
0.44 |
|
1.58 |
|
Non-GAAP diluted net EPS attributable to Elbit Systems' shareholders |
$ 9.16 |
|
$ 6.10 |
|
$ 3.35 |
|
$ 2.21 |
|
$ 8.76 |
(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation.
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SOURCE Elbit Systems Ltd.
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