GAAP net income attributable to shareholders increased to $160.8 million, or 7.3% of revenue, from $107.1 million in the first quarter of 2025. Non-GAAP net income rose to $186.4 million, or 8.5% of revenue, from $117.2 million a year earlier.
GAAP diluted earnings per share were $3.34, compared with $2.35 in the same period last year. Non-GAAP diluted earnings per share rose to $3.87 from $2.57.
“We began 2026 with a strong quarter across all key metrics, including double–digit growth in revenue and profitability, with Non–GAAP operating margins surpassing the 10% mark,” said Bezhalel “Butzi” Machlis, President and CEO of Elbit Systems.
“Free Cash Flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time,” Machlis said.
Elbit said GAAP gross profit rose to $552.1 million, equal to 25.2% of revenue, from $454.3 million, or 24.0% of revenue, a year earlier. Non-GAAP gross profit increased to $558.7 million, or 25.5% of revenue, from $460.6 million.
GAAP operating income rose to $205.1 million, or 9.4% of revenue, from $149.7 million, or 7.9% of revenue, in the first quarter of 2025. Non-GAAP operating income increased to $222.0 million, or 10.1% of revenue, from $165.1 million.
The company said aerospace revenue increased by 2% because of project mix. C4I and Cyber revenue rose by 17%, mainly due to sales of radio systems and command-and-control systems in Europe.
ISTAR and electronic warfare revenue increased by 17%, mainly because of higher sales of airborne and land high-power laser and electronic warfare systems. Land revenue rose by 27%, driven mainly by ammunition and munition sales in Israel and Europe.
Elbit Systems of America revenue increased by 5%, mainly due to higher sales of night-vision systems. The increase was partly offset by lower sales of medical devices.
The company’s order backlog stood at $30.2 billion as of 31 March 2026. Elbit said the increase during the quarter came mainly from Israel and Asia.
About 71% of the backlog is attributable to orders outside Israel. Around 49% of the backlog is scheduled to be performed during the remainder of 2026 and in 2027.
Cash flow provided by operating activities rose to $281.0 million in the first quarter, compared with $183.6 million a year earlier. Elbit said the increase was mainly affected by stronger net income and higher contract liabilities.
Research and development expenses, net, rose to $150.4 million, or 6.9% of revenue, from $114.3 million, or 6.1% of revenue. Marketing and selling expenses were $100.9 million, while general and administrative expenses increased to $95.7 million.
Machlis said the company’s strategic position reflects its development into an integrated defence provider across land, sea and air. “Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air,” he said.
“With demand rising well above historical levels, we continue to focus on order execution,” Machlis said. “To meet this demand and support sustainable long-term growth, we are scaling production capacity, increasing the use of automation, robotics and AI, while maintaining strict capital discipline and expanding operational margins.”
“At the same time, we are increasing our investment in R&D and innovation to shape the Company’s next-generation offering and strengthen our long-term growth platform,” Machlis added.
Elbit said demand from the Israel Ministry of Defence has remained materially higher than pre-war levels since the war that began on 7 October 2023 and the escalation of conflicts in the Middle East. The company said such increased demand may continue and could generate material additional orders.
The company said some operations have experienced disruption because of supply chain and operational constraints linked to the war and other regional conflicts. These included higher transport costs, delays linked to Houthi attacks on shipping in the Red Sea, component shortages, elevated prices, reserve-duty call-ups, restrictions imposed by some countries on engagement with Israel, and attacks on some global facilities by anti-Israeli organisations.
Elbit said it had taken steps to protect employees, support increased production, raise raw material and component inventories, mitigate supply chain disruption and maintain business continuity. It said those operational effects had been reduced after ceasefire agreements, but could increase again depending on future developments.
The company also cited several recent contract awards and corporate developments. These included an approximately $750 million contract to supply PULS artillery rocket systems to the Hellenic Armed Forces and an approximately $212 million U.S. Army delivery order for Enhanced Night Vision Goggle-Binocular systems through 2028.
Elbit also announced several contracts worth a combined approximately $200 million for advanced airborne munitions for the Israel Ministry of Defence. On 26 May, the company said it had received a contract worth about $1.4 billion from a European customer for military modernisation programmes over five years.
Machlis said the European award further strengthened the company’s position with customers. “Earlier today, we announced a significant European contract win, further strengthening our position as a trusted strategic partner to customers worldwide and reinforcing our ability to support their evolving defense needs and challenges,” he said.
