Elbit Systems rallies after securing $1.4 billion European defence contract (ESLT)

Fiona Craig

Tue, May 26, 2026 astatine 5:37 AM CDT 1 min read

Shares of Elbit Systems (NASDAQ:ESLT) climbed 8% connected Tuesday aft the institution announced a $1.4 cardinal subject modernization statement successful Europe alongside stronger first-quarter fiscal results.

Revenue and profitability station beardown quarterly maturation

Elbit Systems reported first-quarter 2026 gross of $2.19 billion, up from $1.90 cardinal successful the corresponding play past year.

Gross nett accrued to $552.1 million, representing 25.2% of revenue, compared with $454.3 million, oregon 24.0% of revenue, successful the archetypal 4th of 2025.

On a non-GAAP basis, gross nett reached $558.7 million, equivalent to 25.5% of revenue, versus $460.6 million, oregon 24.3% of revenue, a twelvemonth earlier.

The institution besides revealed that its bid backlog exceeded $30 cardinal for the archetypal clip successful its history.

CEO highlights borderline enlargement and accumulation maturation

“We began 2026 with a beardown 4th crossed each cardinal metrics, including double-digit maturation successful gross and profitability, with Non-GAAP operating margins surpassing the 10% mark,” said Bezhalel Machlis, President and CEO of Elbit Systems.

Machlis said the caller European declaration reinforces Elbit’s relation arsenic a strategical supplier for customers globally.

Company expands automation and AI capabilities

Elbit Systems said it is continuing to grow manufacturing capableness portion expanding the usage of automation, robotics and artificial quality technologies to code increasing defence demand, support disciplined superior allocation and amended operating margins.

The institution is besides stepping up concern successful probe and improvement arsenic it works to beforehand next-generation defence products and systems.

Elbit Systems banal price