Elbit Systems Wins $1.4B European Defence Contract, Q1 Revenue Rises 15%
ESLT•Elbit reported Q1 2026 revenue of $2.19 billion, up 15% year-on-year, with gross profit rising to $552.1 million (25.2% margin) and non-GAAP operating margin topping 10%. The company secured a $1.4 billion European defence contract, pushing its order backlog above $30 billion for the first time.
1. Strong Q1 Financial Performance
Elbit Systems reported first-quarter 2026 revenue of $2.19 billion, up from $1.90 billion in Q1 2025. Gross profit rose to $552.1 million (25.2% of revenue) versus $454.3 million (24.0%), while non-GAAP gross profit reached $558.7 million (25.5%). Net profit was $160.8 million, or $3.34 per share, with adjusted EPS of $3.87 beating estimates.
2. $1.4 B European Defence Modernization Deal
The company secured a $1.4 billion military modernization agreement with a European government, marking its largest single-country defence contract in the region. This award underscores Elbit’s role as a strategic supplier and contributed to an 8% stock rally on the announcement day.
3. Backlog Expansion and Operational Investments
Order backlog exceeded $30 billion for the first time, driven by new contract wins. Elbit is expanding manufacturing capacity and integrating automation, robotics and AI to meet rising defence demand, while ramping R&D spending to advance next-generation systems and maintain disciplined capital allocation.
