Elbit Systems Q1 Revenue Up 15.5% to $2.19B with $30B Backlog
ESLT•Elbit Systems posted Q1 revenue of $2.189 billion, up 15.5% year-over-year, with GAAP gross margin rising to 25.2% and non-GAAP margin to 25.5%. Backlog topped $30 billion for the first time, 71% from international markets, while GAAP EPS climbed 42% to $3.34 and free cash flow rose 30%.
1. Revenue and Margin Expansion
Elbit Systems delivered Q1 revenue of $2.189 billion, marking a 15.5% increase from Q1 2025. GAAP gross margin improved to 25.2% from 24% last year, while non-GAAP gross margin climbed to 25.5% from 24.3%.
2. Record Backlog and Global Orders
Backlog surged past $30.2 billion for the first time, driven by a 71% contribution from markets outside Israel. Strong order funnels in the US, Europe, Gulf countries and the Far East underpin the company’s growth strategy.
3. Profitability and Cash Generation
GAAP operating income rose to $205.1 million (9.4% of revenues), with non-GAAP operating income at $222 million (10.1%). GAAP diluted EPS climbed 42% to $3.34, non-GAAP EPS jumped 51% to $3.87, and free cash flow increased 30% to $210 million.
4. R&D Investment and Dividend Policy
Net R&D spend reached $150.4 million (6.9% of revenues), up from $114.3 million, focusing on AI and advanced capabilities. The board approved a $1.00 per share dividend payable July 6, 2026.
