Elbit Systems Reports Record $173.6 Million Quarterly Profit

Defense manufacturer Elbit Systems reported a record second-quarter net profit of $173.6 million, representing a 40% increase, with sales rising 16% to $2.3 billion. The company's order backlog reached an all-time high of $32 billion, fueled by global conflicts in Ukraine and tensions involving China and Iran. Growth was strongest in munitions, land systems, and intelligence systems, including high-power laser sales in the Asia-Pacific region and command-and-control systems in Europe.

While UAV sales in Israel increased, overall drone sales fell 8% due to a shift in project mix, and simulator sales in Europe declined. CEO Bezhalel Machlis highlighted strong international interest in new airborne lasers for helicopters and fighter jets.

Machlis also addressed operational and financial challenges, including an investigation into a container held at a port due to boycotts. Additionally, the company is in ongoing dialogues with the Israeli government regarding unsettled debts owed to the firm, despite the Ministry of Defense accounting for 37% of Elbit's activity.