Israeli Weapon Firm, Elbit Systems Sees Surge In Profit (image@IDF)
Elbit Systems, one of Israel’s biggest defence contractors has reported 11.5 percentage increase during the first quarter revenue year-on-year, as Israel’s military demands more products as it bolster the attack on Palestine. The company supplies weapons to Tel Aviv, including simulators, drones, artilleries, munition, and high-powered lasers, said the company’s CEO Bezhalel Machlis, as reported by media.
Notably, in addition to the increased profits from Tel Aviv’s Defence Ministry, international customers are also approaching the company based on the fact that Elbit’s systems are “in operational use”, said Machlis. He also added that the company’s revenue goals are expected to reach earlier than anticipated.
Elbit System is one of the leading defence company. It reported adjusted earning per share (EPS) to be $1.81, that is greater than the expectation of analyst which is marked to be $0.48., and a consensus estimate of $1.33. The revenue of the quarter is also reported to be higher than what was anticipated, which is $1.55 billion against the consensus estimate of $1.49 billion.
While compared to the first quarter of 2023, the defence company witnessed an increase from $1.39 billion. Since the beginning of the Israel-Hamas war on October 7th, Elbit Systems has experienced a surge in demand for its products, while compared to the demand prior to the war.
The company said that while the vast majority of the facilities in Israel continue to operate uninterrupted, some of its operations have experienced disruptions due to supply chain and operational constraints, the relocation of certain production lines, evacuation of employees and mobilization of employees for reserve duty. Elbit System said that, since March 2024, the number of employees mobilized has decreased to approximately 6% as of May 19, 2024, and could fluctuate depending on future developments.
