Elbit Systems Company Spotlight
Israeli Defense Contractor Expands Space Technology Operations
Elbit Systems Ltd. is an Israeli defense technology company with a market capitalization of $21.16 billion that develops aerospace, defense electronics, and space technology systems. Founded nearly six decades ago, the company employs approximately 20,000 people across five continents and reported $6.8 billion in revenues for 2024.
Company History and Evolution
The company originated in 1966 when Elron Electronic Industries and Israel's Ministry of Defense established "Elbit Computers Ltd." in Haifa, Israel. The company initially produced the "Elbit 100" minicomputer for Israeli military applications, though it also found civilian market applications. Control Data Corporation acquired the Israeli government's stake for $1 million in July 1970.
Elbit went public on the Tel Aviv Stock Exchange in 1978 and continued minicomputer development, including the ANAT model created with German company Nixdorf Computer. In the early 1980s, the company shifted focus toward defense electronics, developing systems for projects including the Lavi fighter jet and Merkava tank. This strategic change accompanied a name change from "Elbit Computers Ltd." to "Elbit Ltd." as Control Data Corporation divested its stake.
The current corporate structure emerged in 1996 through a spin-off creating three entities: Elbit Medical Imaging, Elbit Systems, and Elbit. Between 1999 and 2000, medical imaging operations were sold to General Electric Medical Systems and Picker, allowing Elbit Systems to concentrate on defense electronics.
Financial Performance and Business Segments
Elbit Systems reported Q2 2025 revenues of $1.97 billion, a 21% increase from the same quarter in 2024. Non-GAAP earnings per share of $3.23 exceeded analyst forecasts by 34.02%. The company maintains an order backlog of $23.8 billion as of Q2 2025, with 65% from international markets and 57% scheduled for completion in 2025 and 2026.
The company operates through five business segments with 2024 revenues: Aerospace ($2.04 billion), Land ($1.68 billion), ISTAR and EW ($1.32 billion), ESA ($1.59 billion), and C4I and Cyber ($800 million). The Aerospace division showed 27% revenue growth in Q4 2024, attributed to increased unmanned aerial systems sales and precision-guided munition revenues.
Revenue distribution by geography in 2024: Israel ($1.99 billion), Europe ($1.82 billion), North America ($1.52 billion), Asia-Pacific ($1.13 billion), Latin America ($150 million), and other countries ($216 million).
Space Technology Operations
Elbit Systems operates in the space technology sector through Earth observation capabilities and satellite imaging systems. The company's JUPITER space camera was launched aboard the National Advanced Optical System (NAOS) satellite in August 2025. The camera provides panchromatic resolution of 0.5 meters and multispectral resolution of 0.76 meters, with a 0.7-meter aperture designed for Low Earth Orbit operations.
The JUPITER system incorporates artificial intelligence for real-time object recognition, pattern detection, and predictive analytics. The camera includes a high-resolution panchromatic channel, RGB channels for color imaging, and a Near-Infrared channel for vegetation and material analysis. It can capture image strips over a 15-kilometer swath.
Elbit Systems developed the technology with OHB Italia and provided algorithms for the ground segment of the NAOS mission. The company's space operations include integration with Israel's OFEK-16 and EROS-C3 satellites and partnerships with Telespazio and Imagesat International.
Market Environment and Growth Factors
The global space economy was valued at $570 billion in 2023 with projected growth at a 7.3% compound annual rate. The global Earth observation and defense satellite sectors are expanding at 6.2% annually through 2030. The U.S. Department of Defense's FY2024 space budget increased 17% to $26.1 billion.
Military applications for the JUPITER camera include movement monitoring and target discrimination using AI enhancement. The system can generate 30-megapixel images over its 15-kilometer swath for area coverage.
Ownership Structure and Investors
Michael Federmann controls 43.9% of Elbit Systems through 19,580,342 shares valued at approximately $9.05 billion Israeli Shekels. Major institutional investors include Clal Pension & Provident Funds Ltd. (4.295%), 1832 Asset Management LP (4.262%), and CLAL Insurance Enterprises Holdings Ltd. (2.775%). Vanguard Fiduciary Trust Co. holds 2.107% of shares.
Additional institutional holdings include Vanguard Group Inc. with 940,000 shares ($419 million), Altshuler Shaham with 730,000 shares ($324 million), and Goodman & Company, Investment Counsel with 700,000 shares ($315 million).
Company shares increased 131.77% over the past year and gained 4.89% in pre-market trading following Q2 2025 earnings.
Competitive Environment
Elbit Systems competes with RTX Corporation, Lockheed Martin Corporation, The Boeing Company, and Airbus SE. While competitors like RTX Corporation (185,000 employees) and Boeing (172,000 employees) are larger, Elbit's 19,712 employees provide operational flexibility.
In space and Earth observation, the company competes with Israel Aerospace Industries, L3Harris Technologies, and other space technology firms. Elbit Systems ranked 22nd in the Defense News Global 100 Defense Companies in 2024.
Recent Contract Activity
In August 2025, Elbit Systems received a $1.635 billion contract to deliver defense solutions to a European country. Other recent contracts include $260 million from Airbus Defense and Space for J-MUSIC Directed Infrared Counter Measures systems, $260 million from Israel's Ministry of Defense for airborne munitions, and $60 million for Counter Unmanned Aerial Systems from a NATO country.
Business Outlook
Elbit Systems faces increasing global defense spending and space economy expansion. The global Earth observation and defense satellite market is projected to reach $7.2 billion by 2030. European and NATO defense budgets emphasizing space-based capabilities create market opportunities.
The company continues investing in production capacity and supply chain optimization to address its order backlog and product demand. Current strategic focus includes space technology, artificial intelligence, and advanced defense systems development.
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This article was produced with the assistance of A.I.