Elbit Systems Ltd. (ESLT): History, Ownership, Mission, How It Works & Makes Money

When you look at Elbit Systems Ltd. (ESLT), a global defense technology leader with a market capitalization near $24 Billion, do you really understand how they translate advanced avionics and cyber solutions into massive revenue? Their last twelve months' revenue hit nearly $7.7 Billion, plus the company secured a record order backlog of $25.2 Billion as of Q3 2025, including a single $2.3 Billion international contract signed just this November. That kind of visibility-a backlog representing over three times annual sales-is defintely rare, so how does a company in this sector sustain such explosive growth and where are the near-term risks hiding in that $25.2 Billion figure?

Elbit Systems Ltd. (ESLT) History

You're looking for the foundational story of Elbit Systems Ltd., a defense giant that didn't start with a couple of engineers in a garage, but as a strategic national project. The direct takeaway is that Elbit Systems evolved from a government-backed computer developer in 1966 to a global, diversified defense technology powerhouse through a series of strategic spin-offs, mergers, and massive acquisitions like IMI Systems, which cemented its land systems capabilities.

Given Company's Founding Timeline

Year established

The company was established in 1966, initially under the name Elbit Computers Ltd..

Original location

It was founded in Haifa, Israel, a key hub for Israeli defense technology.

Founding team members

Elbit Systems was a spin-off from Elron Electronic Industries, one of Israel's first high-tech firms, in partnership with the Israeli Ministry of Defense. The founders were visionary leaders within Elron and the Ministry, not individual entrepreneurs in the typical sense, recognizing the critical need for advanced computing in defense.

Initial capital/funding

Initial capital came from government resources allocated for defense technology development and from its parent, Elron Electronic Industries. Specific figures for this initial 1966 funding are not publicly disclosed, but it was part of a broader, strategic national defense budget.

Given Company's Evolution Milestones

To understand where Elbit Systems is today-with a Q3 2025 backlog of over $25.2 billion-you have to look at its strategic moves over the decades. It's a story of calculated expansion.

Given Company's Transformative Moments

The company's trajectory wasn't a straight line; it was a series of pivotal, high-stakes decisions that completely reshaped its business model. Honestly, the biggest shift was moving from a domestic-focused defense contractor to a global exporter.

The 1996 spin-off was critical, separating the core defense electronics business from medical imaging and communications, allowing Elbit Systems to laser-focus on high-margin, complex defense systems. This specialization allowed them to build a competitive edge.

The 2000 merger with El-Op brought Michael Federmann, the current Chairman, into the fold and immediately expanded the company's technology stack into advanced electro-optics, a core component of modern warfare. This move was less about size and more about technological depth.

The acquisition of IMI Systems for nearly half a billion dollars was a game-changer. It instantly diversified Elbit Systems beyond aerial and electronic systems, adding critical land-based capabilities like precision munitions and armored vehicle protection systems. Here's the quick math: it made Elbit Systems a one-stop-shop for a nation's defense needs, not just a niche supplier.

The recent contract momentum in 2025 is defintely a transformative moment, driven by heightened global defense spending.

• Securing a major international contract in November 2025 valued at approximately $2.3 billion, to be delivered over eight years, reinforces its position as a key global supplier.
• The Q3 2025 financial results showed Land segment revenues jumping by 41% year-over-year, mainly from ammunition and munition sales in Israel and Europe, a direct payoff from the IMI Systems acquisition.
• The record order backlog of $25.2 billion as of September 30, 2025, provides an unprecedented level of revenue visibility for the next few years, which is a massive advantage for planning and R&D investment.

If you want to dive deeper into what this means for investors, you need to look at the balance sheet. Breaking Down Elbit Systems Ltd. (ESLT) Financial Health: Key Insights for Investors

Elbit Systems Ltd. (ESLT) Ownership Structure

Elbit Systems Ltd.'s ownership structure is a blend of a powerful controlling private entity and a significant institutional and retail float, which creates a dual-layer of decision-making influence. The company is not a widely-held public firm in the traditional sense; a single private company retains the majority voting power, a key factor for any analyst to consider.

Given Company's Current Status

As of November 2025, Elbit Systems Ltd. is a publicly traded, high-technology defense contractor, headquartered in Haifa, Israel. It maintains a dual listing, with its ordinary shares traded on the NASDAQ Global Select Market under the ticker ESLT and also on the Tel Aviv Stock Exchange (TASE) under the same ticker. This dual listing provides access to both US and Israeli capital markets, increasing liquidity and visibility. To be fair, its recent performance has been strong, reporting Q3 2025 revenues of $1.922 billion and a record order backlog of $25.2 billion as of September 30, 2025, which gives it long-term visibility.

The company operates under a clear, public governance framework, but its strategic direction is heavily influenced by its primary shareholder, which is a private holding company. You defintely need to understand the controlling interest to predict long-term strategy, especially regarding capital allocation and major acquisitions.

Given Company's Ownership Breakdown

The company's governance is anchored by its largest shareholder, Federmann Enterprises Ltd., a private holding company. This structure means that while the company is publicly traded, the control is concentrated, not dispersed among institutions or the general public. Here's the quick math on the approximate breakdown of ownership as of the 2025 fiscal year data:

The 42.22% stake held by Federmann Enterprises Ltd. is the critical number here; it ensures the Federmann family, through their holding company, maintains effective control over the Board of Directors and major corporate decisions, despite the public listing.

Given Company's Leadership

The company is steered by a seasoned executive team and a board that reflects the significant influence of the controlling shareholder. The leadership team is responsible for executing the company's robust strategy, which you can read more about in our piece on the Mission Statement, Vision, & Core Values of Elbit Systems Ltd. (ESLT).

The key leadership roles as of November 2025 are:

• Chair of the Board: David Federmann (since 2023).
• President & Chief Executive Officer (CEO): Bezhalel (Butzi) Machlis (serving since 2013).
• Executive Vice President & Chief Financial Officer (CFO): Dr. Yaacov (Kobi) Kagan.
• Executive Vice President & Chief Operating Officer (COO): Yuval Ramon.

This structure shows a clear separation between the CEO, who handles the day-to-day operations and strategic execution, and the Board Chair, who represents the primary shareholder's interests. This dual leadership is common in defense companies but still requires careful monitoring for potential conflicts between shareholder returns and long-term strategic investment.

Elbit Systems Ltd. (ESLT) Mission and Values

Elbit Systems Ltd. stands for securing a complex world through technological superiority, which is why its mission and values center on innovation and global partnership. This defense technology leader's cultural DNA is built on a commitment to its people and delivering next-generation solutions for a safer world.

Elbit Systems Ltd.'s Core Purpose

You need to know what drives a company beyond its quarterly earnings, especially in the defense sector. Elbit Systems' core purpose is to be the indispensable technology partner for its customers, helping them manage future threats. This commitment is backed by real investment; for instance, net Research and Development (R&D) expenses in the third quarter of 2025 were $129.1 million, representing 6.7% of revenues, which shows their dedication to innovation.

Official mission statement

The formal mission statement focuses on supporting customer needs through a combination of technology and human capital. It's a clear directive for every one of the approximately 20,000 employees across the globe.

• Support customers' needs with innovative technological solutions.
• Leverage the unique entrepreneurial and team spirit of our people.
• Empower customers to face the future with defintely confidence.

That's the simple goal: deliver the right tech, right now.

Vision statement

The company's vision is a long-term aspiration that maps directly to its position as a global defense contractor. It's about being a leader not just in size, but in the quality and impact of its solutions. This vision is supported by a massive order backlog of $25.2 billion as of September 30, 2025, which gives them long-term visibility to execute their global strategy.

• Be a global leader in designing and delivering innovative solutions.
• Work toward a secure and safer world.

To be fair, that backlog-over three times the last twelve months' revenue of $7.7 billion-gives them the runway they need to realize this vision.

Elbit Systems Ltd. slogan/tagline

While not a traditional advertising slogan, Elbit Systems uses a powerful phrase that captures its forward-looking, intelligence-driven approach to defense electronics, which is the heart of its value proposition.

• Sensing the Future.

This positioning reflects their core value of anticipating customer needs and making a meaningful impact through ethical and responsible solutions, which is critical when dealing with advanced defense technology. You can read more about what drives this approach here: Mission Statement, Vision, & Core Values of Elbit Systems Ltd. (ESLT).

Elbit Systems Ltd. (ESLT) How It Works

Elbit Systems Ltd. operates as an international high-technology defense contractor, designing, developing, manufacturing, and integrating a full spectrum of advanced electronic systems for military, homeland security, and commercial applications across air, land, and naval domains. The company makes money by securing large, long-term government and defense contracts globally, evidenced by a record order backlog of over $25.2 billion as of September 30, 2025, providing strong revenue visibility for years to come.

Elbit Systems Ltd.'s Product/Service Portfolio

Elbit Systems Ltd.'s Operational Framework

Elbit Systems' operational model centers on a multi-domain, vertically integrated approach, which means they control most of the technology stack from sensor to shooter. This structure lets them deliver complex 'systems of systems' (integrated solutions combining multiple technologies) rather than just selling components.

Here's the quick math on their focus: Research and development (R&D) expenses were approximately $129.1 million in the third quarter of 2025, representing 6.7% of revenues, showing a defintely strong commitment to innovation.

• Global Production Footprint: Operates in dozens of countries across five continents, employing around 20,000 people, which helps mitigate geopolitical risks and meet local content requirements for international contracts.
• Segmented Value Creation: The company is organized into five core segments-Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America-allowing for specialized R&D and targeted sales strategies for specific military needs.
• Supply Chain Management: Actively managing supply chain disruptions, such as those caused by the Houthi movement attacks in the Red Sea, by increasing raw material inventories and monitoring global logistics to maintain business continuity.

Elbit Systems Ltd.'s Strategic Advantages

The company's success comes down to three clear advantages: battle-proven technology, geographic diversification, and a massive, predictable contract pipeline.

• Battle-Proven Technology: Leveraging Israel's technology ecosystem and continuous operational feedback to rapidly develop and field systems that have been tested in real-world, high-intensity conflicts, giving customers confidence in their performance.
• Diversified International Revenue: The order backlog is highly diversified, with approximately 69% of the $25.2 billion backlog coming from orders outside of Israel, insulating the company from dependence on any single defense budget.
• Significant Contract Visibility: The recent international contract win of approximately $2.3 billion, to be performed over eight years, immediately adds long-term revenue stability and validates their unique technological capabilities on a global scale.
• Strategic Market Penetration: Europe has become a major market, contributing 28% of Q3 2025 revenues, a result of a long-term strategy of building local subsidiaries and production infrastructure in key regions.

If you want to dig deeper into the ownership structure and market sentiment driving these numbers, you should read Exploring Elbit Systems Ltd. (ESLT) Investor Profile: Who's Buying and Why?

Elbit Systems Ltd. (ESLT) How It Makes Money

Elbit Systems Ltd. primarily makes money by designing, developing, manufacturing, and supplying a diversified portfolio of high-technology defense and homeland security systems to governments and military forces globally. This is a project-based business, so revenue recognition often follows long-term contracts for advanced military hardware, software, and comprehensive support services.

You're looking at a business model built on securing massive, multi-year government contracts, which means their order backlog is the clearest indicator of future revenue, not just the last quarter's sales. Honestly, the defense sector is all about long-term visibility.

Elbit Systems Ltd.'s Revenue Breakdown

The company's revenue is highly diversified across five main operating segments, which helps mitigate risk if one area sees a temporary slowdown. For the Last Twelve Months (LTM) ending September 30, 2025, total revenue reached a strong $7.7 billion.

Here's the quick math on where that money came from, based on the LTM Q3 2025 segment percentages and the year-over-year (Y/Y) growth trend from Q3 2025.

The Land Systems segment, which includes ammunition, munition, and vehicle-based systems, is the clear growth engine right now, surging by 41% year-over-year in Q3 2025. This massive increase, driven by sales in Israel and Europe, is a direct result of the current geopolitical environment and increased defense spending.

You can see the Exploring Elbit Systems Ltd. (ESLT) Investor Profile: Who's Buying and Why? for a deeper dive into the institutional money behind this growth.

Business Economics

The core economic fundamental for Elbit Systems Ltd. is its massive, high-margin order backlog, which provides exceptional revenue visibility for years to come. The company operates on a premium pricing strategy (cost-plus pricing) because its defense technology is high-end, proprietary, and often critical to national security, which reduces price elasticity.

Here's what drives the business economics:

• Backlog-to-Revenue Ratio: As of September 30, 2025, the order backlog hit a record $25.2 billion, which is about 3.27 times the LTM annual revenue of $7.7 billion. This is a defintely strong indicator of future sales.
• International Focus: Approximately 69% of that backlog is from orders outside of Israel, with Europe being the key growth area. This geographic diversification insulates the company from reliance on any single government budget.
• Margin Expansion: The Non-GAAP Gross Margin in Q3 2025 was 25.2%, up from the prior year, a positive trend attributed by management to improving backlog profitability and operational excellence, including the use of artificial intelligence (AI) in processes.
• R&D Investment: The company sustains its premium position by reinvesting heavily in research and development (R&D), spending $129.1 million, or 6.7% of revenues, in Q3 2025 alone. This ensures their products remain on the cutting-edge (a competitive advantage).

Elbit Systems Ltd.'s Financial Performance

The financial results for the first nine months of 2025 show a business accelerating, largely due to sustained global defense demand. The company is successfully converting its record order intake into profit and cash.

• Revenue Growth: Q3 2025 revenue was $1.922 billion, representing a solid 12% growth year-over-year. The growth for the nine months ended September 30, 2025, was even higher at 18%.
• Profitability Surge: Non-GAAP Operating Income for Q3 2025 was $186.7 million, or 9.7% of revenues, marking a strong 33% increase compared to Q3 2024.
• Earnings Per Share (EPS): Non-GAAP Diluted EPS jumped 52% year-over-year to $3.35 in Q3 2025, significantly outpacing the prior year's $2.21. This is a clear signal of enhanced operational efficiency.
• Cash Flow Improvement: Free Cash Flow saw a dramatic improvement, reaching $101 million in Q3 2025 alone, compared to just $5 million in the same quarter last year. This enhanced cash generation is a principal target for management and provides financial flexibility.

What this estimate hides is the long-term execution risk on that massive $25.2 billion backlog; any delays in government funding or project milestones could push that revenue out. Still, the near-term picture is exceptionally strong.

Elbit Systems Ltd. (ESLT) Market Position & Future Outlook

Elbit Systems Ltd. is firmly positioned for multi-year structural growth, leveraging a global defense spending supercycle to expand its international footprint, especially in Europe. The company's record order backlog of over $25.2 billion as of September 30, 2025, provides clear revenue visibility for the next three years, underpinning a confident outlook for sustained double-digit growth.

Competitive Landscape

Elbit Systems Ltd. competes globally with defense technology giants, distinguishing itself through an agile, multi-domain focus on smaller, high-tech systems like C4I (Command, Control, Communications, Computers, and Intelligence) and unmanned aerial systems (UAS). The table below illustrates its relative standing against two major global prime contractors, which operate on a much larger scale across all domains.

Opportunities & Challenges

The current geopolitical environment creates both significant tailwinds and specific risks for Elbit Systems Ltd. You need to map these near-term factors to understand the potential for margin expansion and contract stability.

Industry Position

Elbit Systems Ltd. is a leading mid-cap player in the global defense technology sector. The company's ranking as the 22nd largest defense company globally by revenue underscores its scale, but its strategic strength lies in technological depth rather than sheer size. It's a key systems integrator, not just a platform builder.

Here's the quick math on their current momentum: Q3 2025 non-GAAP diluted EPS hit $3.35, a 52% jump year-over-year, and the company signed a massive international contract for approximately $2.3 billion in November 2025. This shows they're converting market demand into high-value, long-term business. The focus is defintely on Europe, which is now a major market for its advanced systems like UAS and command-and-control solutions.

• Rank: 22nd among the Defense News Global 100.
• Backlog-to-Sales Ratio: Approximately 3.27x annual revenue, providing exceptional revenue visibility.
• Growth Driver: Land Systems revenue increased 41% in Q3 2025, outpacing all other segments.
• Strategic Focus: Expanding production capacity in Europe and accelerating R&D investment in high-margin, next-gen technologies.

For more on the foundational strategy driving this growth, you can review the Mission Statement, Vision, & Core Values of Elbit Systems Ltd. (ESLT).