Elbit Systems Achieves Record Revenues and Growth in 2024
Elbit Systems Reports Fourth Quarter and Full Year 2024 Results
Elbit Systems Ltd. (NASDAQ: ESLT), a leader in high technology defense solutions, delivered strong financial results for the fourth quarter and the entire year 2024. The company achieved a significant backlog of orders totaling $22.6 billion and revenues reaching $6.8 billion, marking a ten-year high.
Elbit Systems' non-GAAP net income for 2024 was reported at $392 million with a GAAP net income of $321 million. This translated to a non-GAAP net EPS of $8.76 and a GAAP net EPS of $7.18, demonstrating substantial performance improvements year-over-year.
Upon reviewing these results, Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:
"Our annual and quarterly growth highlights the continuous demand for our advanced technologies, especially in global markets where defense budgets are on the rise. We are particularly proud of generating $320 million in free cash flow and securing significant contracts globally. Our commitment to innovation in R&D and our diversified portfolio enable us to thrive in this dynamic landscape."
Financial Highlights for Fourth Quarter and Year-End 2024
In the fourth quarter of 2024, Elbit Systems reported revenues of $1,930.2 million, compared to $1,625.8 million in the same quarter of 2023, reflecting an increase attributed to rising sales in sectors such as Aerospace and C4I. Specifically, the Aerospace segment saw a remarkable 27% increase in revenue, bolstered by drone technology advancements and Precision Guided Munitions (PGMs).
The C4I and Cyber divisions reported a 7% revenue increase, primarily due to robust sales in radio systems and command and control systems. Meanwhile, Electronic Warfare (EW) and ISTAR sectors recorded an 8% uptick in revenue from sales of Electronic Warfare and Electro-Optic systems.
Key Operating Metrics
Non-GAAP gross profit for the fourth quarter stood at $472.1 million (24.5% of revenues), representing a slight decrease in margin from the previous year, which recorded $411.4 million (25.3% of revenues). Concurrently, GAAP gross profit for the fourth quarter was reported at $465.2 million (24.1%), up from $382.1 million in the same period last year.
The company reported $131.2 million in research and development expenses, netting at 6.8% of revenues, slightly up from $117.4 million (7.2%) in the fourth quarter of 2023. Simultaneously, marketing and selling expenses increased to $107.2 million, maintaining at 5.6% of revenues, while general and administrative expenses decreased to $85.4 million, accounting for 4.4% of revenues.
Annual Performance Overview
The end-of-year performance for 2024 reflected revenues of $6,827.9 million, up 14% from $5,974.7 million in 2023. Revenue increases were predominantly driven by Aerospace (9%), C4I and Cyber (11%), as well as significant contributions from the Land segments, which saw a 29% increase. Elbit Systems of America also reported an 8% rise, indicating strong international demand.
The company recorded a cost of revenues amounting to $5,186.1 million compared to $4,491.8 million in 2023. Reported gross profit metrics also saw improved performance, reinforcing the company's robust and sustainable growth model.
Impact of Global Events
The recent geopolitical tensions have influenced Elbit Systems’ operations positively, as there has been an uptick in demand for defense solutions. The company’s commitment to innovation has enabled it to swiftly adapt to market needs and conduct effective operations amid challenges.
The military responses necessitated larger scales of production and logistics capabilities, leading the Israel Ministry of Defense (IMOD) to award substantial contracts exceeding $5 billion in the current landscape. Growth in contract liabilities further demonstrates the strength of Elbit Systems’ strategic positioning in a competitive environment.
Dividend and Future Outlook
The Elbit Systems Board of Directors has declared a dividend of $0.60 per share, indicating shareholder confidence as the company projects continued revenue growth amid geopolitical complexities.
The upcoming investor conference will take place to discuss these results and future strategies, reflecting Elbit System's commitment to maintaining transparency and engagement with its capital partners. The conference is scheduled and will aim to provide insights into company strategies going forward.
Frequently Asked Questions
1. What were Elbit Systems' revenues for the fourth quarter of 2024?
Elbit Systems reported revenues of $1,930.2 million for the fourth quarter of 2024.
2. What is the non-GAAP net income for 2024?
The non-GAAP net income for 2024 was $392 million.
3. How has geopolitical tension affected Elbit Systems' performance?
The increased geopolitical tensions have led to a heightened demand for defense solutions, positively impacting the company's revenues and order backlog.
4. What is the declared dividend per share for Elbit Systems?
The declared dividend per share is $0.60.
5. What is Elbit Systems’ stock ticker symbol?
The stock ticker symbol for Elbit Systems is NASDAQ: ESLT.
About The Author
Contact Addison Perry privately here. Or send an email with ATTN: Addison Perry as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
