Elbit Systems Secures $1.4 Billion European Defense Contract

Elbit Systems secured a defense contract worth approximately $1.4 billion from an undisclosed European nation to support military modernization over the next five years. The agreement covers the delivery of uncrewed autonomous systems, networked land electronic warfare systems, precision-guided munitions for artillery and air-to-ground use, and electro-optical designating and reconnaissance technology, all integrated via software-defined radios.

The contract announcement coincided with the company's first-quarter 2026 financial results, which reported a 15.5% year-over-year revenue increase to $2.19 billion and a record order backlog exceeding $30 billion. President and CEO Bezhalel Machlis highlighted the strategic value of the new contract and the record backlog levels. To manage this substantial backlog, Elbit Systems plans to increase the use of automation, robotics, and artificial intelligence across its manufacturing facilities.

The deal was secured despite ongoing challenges in the European defense market. Spain declared an arms embargo and partial import ban on Israeli defense products in September 2025, and France barred Israeli defense firms from participating in major global arms expos in 2024. These restrictions have created a complicated landscape for Israeli defense contractors operating in Europe. Nevertheless, Elbit Systems has continued to expand its order book and revenue, securing major contracts even as some European nations impose political barriers on Israeli defense trade.