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Elbit Systems Ltd

ELBIT SYSTEMS REPORTS FIRST QUARTER 2026 RESULTS

Order backlog at $30.2 billion; Revenues of $2.19 billion; GAAP net income of $160.8 million; Non-GAAP net income of $186.4 million; GAAP net EPS of $3.34; Non-GAAP net EPS of $3.87 

HAIFA, Israel , May 26, 2026 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company"), the international high technology defense company, reported today its consolidated results for the first quarter ended March 31, 2026.

Elbit Systems Logo

In this release, the Company is providing US-GAAP results as well as Non-GAAP financial data, which are intended to provide investors with a more comprehensive view of the Company's business results and trends. For a description of the Company's Non-GAAP definitions see page 10 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.

Management Comment:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, stated:

"We began 2026 with a strong quarter across all key metrics, including double–digit growth in revenue and profitability, with Non–GAAP operating margins surpassing the 10% mark. Free Cash Flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time.

Earlier today, we announced a significant European contract win, further strengthening our position as a trusted strategic partner to customers worldwide and reinforcing our ability to support their evolving defense needs and challenges.

Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air. With demand rising well above historical levels, we continue to focus on order execution. To meet this demand and support sustainable long-term growth, we are scaling production capacity, increasing the use of automation, robotics and AI, while maintaining strict capital discipline and expanding operational margins. At the same time, we are increasing our investment in R&D and innovation to shape the Company's next-generation offering and strengthen our long-term growth platform."

First quarter 2026 results:

Revenues in the first quarter of 2026 were $2,188.8 million, as compared to $1,895.8 million in the first quarter of 2025.

Aerospace revenues increased by 2% in the first quarter of 2026, as compared to the first quarter of 2025, mainly due to project mix. C4I and Cyber revenues increased by 17%, mainly due to sales of radio systems and command and control systems in Europe. ISTAR and EW revenues increased by 17%, mainly due to increased sales of airborne and land High Power Laser and Electronic Warfare systems. Land revenues increased by 27%, mainly due to ammunition and munition sales in Israel and Europe. Elbit Systems of America revenues increased by 5%, mainly due to the increase in sales of Night-Vision Systems, partially offset by the decrease in sales of medical devices.

For distribution of revenues by segments and geographic regions see the tables on page 9.

GAAP gross profit in the first quarter of 2026 was $552.1 million (25.2% of revenues), as compared to $454.3 million (24.0% of revenues) in the first quarter of 2025. Non-GAAP(*) gross profit amounted to $558.7 millions (25.5% of revenues) in the first quarter of 2026, as compared to $460.6 million (24.3% of revenues) in the first quarter of 2025.

Research and development expenses, net were $150.4 million (6.9% of revenues) in the first quarter of 2026, as compared to $114.3 million (6.1% of revenues) in the first quarter of 2025.

Marketing and selling expenses, net were $100.9 million (4.6% of revenues) in the first quarter of 2026 similar to $100.9 million (5.3% of revenues) in the first quarter of 2025.

General and administrative expenses, net were $95.7 million (4.3% of revenues) in the first quarter of 2026, as compared to $89.4 million (4.7% of revenues) in the first quarter of 2025.

GAAP operating income in the first quarter of 2026 was $205.1 million (9.4% of revenues), as compared to $149.7 (7.9% of revenues) in the first quarter of 2025. Non-GAAP(*) operating income was $222.0 million (10.1% of revenues) in the first quarter of 2026, as compared to $165.1 million (8.7% of revenues) in the first quarter of 2025.

Financial expenses, net were $32.2 million in the first quarter of 2026, as compared to $39.0 in the first quarter of 2025. The decrease in financial expenses, net in the first quarter of 2026 was mainly due to a reduction in the average debt.

Taxes on income were $22.8 million (effective tax rate of 13.0%) in the first quarter of 2026, as compared to $16.1 million (effective tax rate of 13.9%) in the first quarter of 2025.

GAAP net income attributable to the Company's shareholders in the first quarter of 2026 was $160.8 million (7.3% of revenues), as compared to $107.1 million (5.6% of revenues) in the first quarter of 2025. The increase in net income attributable to the Company's shareholders in the first quarter of 2026 was in line with the increase in the Company's activity and order backlog. Non-GAAP(*) net income attributable to the Company's shareholders in the first quarter of 2026 was $186.4 million (8.5% of revenues), as compared to $117.2 million (6.2% of revenues) in the first quarter of 2025.

GAAP diluted earnings per share attributable to the Company's shareholders in the first quarter of 2026 were $3.34, as compared to $2.35 in the first quarter of 2025. Non-GAAP(*) diluted net earnings per share attributable to the Company'sshareholders were $3.87 for the first quarter of 2026, as compared to $2.57 for the first quarter of 2025.

The Company's order backlog as of March 31, 2026 totaled $30.2 billion. The increase in backlog during the quarter came mainly from Israel and Asia. Approximately 71% of the current backlog is attributable to orders outside of Israel. Approximately 49% of the order backlog is scheduled to be performed during the remainder of 2026 and 2027. 

Cash flow provided by operating activities in the first quarter of 2026 was $281.0 million, as compared to cash flow provided by operating activities of $183.6 million in the first quarter of 2025. The cash flow in the first quarter of 2026 was affected mainly by the strong increase in net income and an increase in contract liabilities.

* see page 10

Impact of the recent conflicts in the Middle East on the Company:

The war which began on October 7, 2023, continued throughout most of 2025, with ceasefires agreed to between Israel and Lebanon involving the conflict with Hezbollah in November 2024, and, after an intensified period of conflict that lasted 12 days, a ceasefire was declared with Iran in June 2025. A ceasefire with Hamas was agreed to in January 2025, and a subsequent ceasefire with Hamas was agreed to in October 2025. On February 28, 2026, the U.S. and Israel launched a joint attack on Iran named "Operation Epic Fury" by the U.S., and "Operation Roaring Lion" by Israel, targeting key Iranian officials and targets. Iran launched attacks against Israel and at U.S. military bases across the region, including strikes in Bahrain, Qatar, Saudi Arabia, the United Arab Emirates, Kuwait and Jordan. On March 2, 2026Hezbollah launched an attack on Israel. After an intensified period of conflict that lasted 40 days, a two-week ceasefire between the United States and Iran, which was subsequently extended, took effect on April 8, 2026, and a separate ten–day cessation of hostilities between Israel and Lebanon, which was subsequently extended, began on April 16, 2026. The current situation remains uncertain, including in light of violations of the cessation of hostilities.

Since the commencement of the war and the escalation of conflicts in the Middle East, Elbit Systems has experienced a continued material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.

As a result of the war and the other conflicts in the Middle East, some of Elbit Systems' operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages and elevated prices, employee call-ups for reserve duty, limitations imposed by some countries on engagement with Israel and attacks on some of Elbit Systems' global facilities by anti-Israeli organizations.

Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the ceasefire agreements described above, these operational effects on the Company have been reduced, however, such effects on the Company's performance could increase again, depending on future developments that are difficult to predict at this time, including the duration and scope of these conflicts and the continuity and stability of the ceasefire arrangements.

Recent Events:

On April 6, 2026, the Company announced, further to its announcement from December 16, 2025, that as part of an agreement between the Israeli Ministry of Defense and the Hellenic Ministry of National Defense, it was awarded a contract worth approximately $750 million (€650 million) to supply Precise & Universal Launching System (PULS) artillery rocket systems to the Hellenic Armed Forces. The contract will be performed over a period of 4 years and will include an additional ten-year period of follow-on support.

On April 22, 2026, the Company announced that during Operation "Roaring Lion", the Company was awarded several contracts in an aggregate amount of approximately $200 million for the supply of advanced airborne munitions to the Israel Ministry of Defense (IMOD).

On May 12, 2026, the Company announced that its U.S. subsidiary, Elbit Systems of America – Night Vision LLC ("Elbit Systems of America"), received a delivery order valued at approximately $212 million, for the continued production of the Enhanced Night Vision Goggle - Binocular (ENVG-B) systems for the U.S. Army. Deliveries under the award will take place through 2028.

On May 20, 2026, the Company announced that S&P Global Ratings Maalot Ltd., an Israeli rating agency ("S&P Global Ratings"), issued its rating report regarding Elbit Systems (the "Rating Report"). In its Rating Report, S&P Global Ratings raised its long term rating to "ilAAA" (on local scaling) with a stable outlook regarding the Company's Series B, C and D Notes, and reaffirmed its short term rating of "ilA-1+" (on local scaling).

On May 26, 2026, the Company announced that it has been awarded a contract valued at approximately $1.4 billion by a European customer for extensive military modernization programs. The contract will be performed over a period of five years.

Dividend:

The Board of Directors declared a dividend of $1.00 per share. The dividend's record date is June 23, 2026. The dividend will be paid on July 6, 2026, after deduction of withholding tax, at the rate of 16.8%. 

Conference Call:

The Company will be hosting a conference call today, Tuesday, May 26, 2026, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.

To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399 
 Israel Dial-in Number: 03-918-0644 
 International Dial-in Number: 972-3-918-0644

at 9:00 am Eastern Time; 6:00 am Pacific Time; 4:00 pmIsrael Time

The conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.

Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).

About Elbit Systems:

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported $2,188.8 million in revenues for the three months ended March 31, 2026 and an order backlog of $30.2 billion as of such date.

For additional information, visit: https://elbitsystems.com/, follow us on X or visit our official Facebook, Youtube and LinkedIn channels.

Attachments:

Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments

Company Contact:

Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer 
Tel: +972-77-2946663
kobi.kagan@elbitsystems.com 

Daniella Finn, VP, Investor Relations 
Tel: +972-77-2948984
daniella.finn@elbitsystems.com 

Dalia Bodinger, VP, Communications & Brand
Tel: +972-77-2947602
dalia.bodinger@elbitsystems.com 

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; including the duration and scope of the war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this press release.

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this press release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

(FINANCIAL TABLES TO FOLLOW)

 

ELBIT SYSTEMS LTD.

CONSOLIDATED BALANCE SHEETS

(US Dollars in thousands)


As of

March 31, 2026



As of

December 31, 2025

Assets






Cash and cash equivalents

$

155,248


$

635,141

Short-term bank deposits


770,017



180,604

Trade and unbilled receivables and contract assets, net


3,621,957



3,332,249

Other receivables and prepaid expenses


517,459



457,385

Inventories, net


3,241,557



3,129,756

Total current assets


8,306,238



7,735,135







Investments in affiliated companies and other companies


131,266



126,900

Long-term trade and unbilled receivables and contract assets


657,829



719,078

Long-term bank deposits and other receivables


89,132



51,601

Deferred income taxes, net


89,325



86,679

Severance pay fund


223,039



222,555

Total


1,190,591



1,206,813







Operating lease right of use assets


503,556



515,620

Property, plant and equipment, net


1,417,393



1,382,120

Goodwill and other intangible assets, net


1,814,093



1,821,830

Total assets

$

13,231,871


$

12,661,518







Liabilities and Equity






Short-term bank credit and loans

$

—


$

50,532

Current maturities of long-term loans and Series B, C and D Notes


83,837



83,452

Operating lease liabilities


95,432



98,464

Trade payables


1,562,479



1,511,671

Other payables and accrued expenses


1,590,377



1,549,139

Contract liabilities


2,575,599



2,683,180

Total current liabilities


5,907,724



5,976,438







Long-term loans, net of current maturities


9,153



18,000

Series B, C and D Notes, net of current maturities


239,104



237,625

Employee benefit liabilities


489,467



487,760

Deferred income taxes and tax liabilities, net


131,186



137,662

Contract liabilities


1,506,169



934,256

Operating lease liabilities


467,586



476,737

Other long-term liabilities


221,278



263,067

Total long-term liabilities


3,063,943



2,555,107







Elbit Systems Ltd.'s equity


4,260,189



4,129,598

Non-controlling interests


15



375

Total equity


4,260,204



4,129,973

Total liabilities and equity

$

13,231,871


$

12,661,518

 

 

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF INCOME

(US Dollars in thousands, except for share and per share amounts)



Three months
ended March
31, 2026


Three months
ended March
31, 2025


Year ended
December 31,
2025

Revenues

$

2,188,846


$

1,895,801


$

7,938,627

Cost of revenues


1,636,787



1,441,493



6,003,374

Gross profit


552,059



454,308



1,935,253










Operating expenses:









Research and development, net


150,386



114,269



517,142

Marketing and selling, net


100,860



100,883



399,437

General and administrative, net


95,683



89,449



347,250

Total operating expenses


346,929



304,601



1,263,829

Operating income


205,130



149,707



671,424










Financial expenses, net


(32,188)



(38,957)



(138,618)

Other income, net


1,718



4,946



29,109

Income before income taxes


174,660



115,696



561,915

Taxes on income


(22,765)



(16,060)



(55,539)



151,895



99,636



506,376










Equity in net earnings of affiliated companies


8,960



7,732



29,243










Net income

$

160,855


$

107,368


$

535,619










Less: net income attributable to non-controlling interests


(64)



(285)



(1,280)

Net income attributable to Elbit Systems Ltd.'s shareholders

$

160,791


$

107,083


$

534,339










Earnings per share attributable to Elbit Systems Ltd .'s  
shareholders:









Basic net earnings per share

$

3.46


$

2.40


$

11.69

Diluted net earnings per share

$

3.34


$

2.35


$

11.39










Weighted average number of shares used in computation of:









Basic earnings per share (in thousands)


46,479



44,592



45,710

Diluted earnings per share (in thousands)


48,124



45,546



46,918

 

 

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW

(US Dollars in thousands)



Three
months
ended
March 31,
2026


Three
months
ended
March 31,
2025


Year ended
December
31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES









Net income

$

160,855


$

107,368


$

535,619

Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization


45,818



41,876



171,434

Stock-based compensation


6,893



5,737



26,391

Amortization of Series B, C and D related issuance costs, net


86



110



394

Deferred income taxes and reserve, net


(9,122)



(758)



(14,687)

Loss on sale of property, plant and equipment


223



276



2,893

Loss (gain) on sale of investment, remeasurement of investment held under fair value
method


—



50



(4,518)

Equity in net earnings of affiliated companies, net of dividend received(1)


(3,989)



(5,078)



(10,190)

Changes in operating assets and liabilities, net of amounts acquired:









Increase in trade and unbilled receivables and prepaid expenses


(326,036)



(131,916)



(659,951)

Increase in inventories, net


(111,801)



(91,800)



(357,926)

Increase in trade payables, other payables and accrued expenses


56,596



100,040



463,913

Severance, pension and termination indemnities, net


(2,807)



(10,129)



(26,328)

Increase in contract liabilities


464,333



167,799



651,334

Net cash provided by operating activities


281,049



183,575



778,378

CASH FLOWS FROM INVESTING ACTIVITIES









Purchase of property, plant and equipment and other assets, net of investment grants and
evacuation grants


(71,160)



(22,670)



(225,568)

Investments in affiliated companies and other companies, net


(1,917)



(50)



(2,288)

Proceeds from sale of property, plant and equipment


434



371



1,133

Proceeds from sale of investments


—



—



15,000

Investment in short-term deposits, net


(589,904)



(340,153)



(178,962)

Proceeds from sale of (investment in) long-term deposits, net


686



159



(31)

Net cash used in investing activities


(661,861)



(362,343)



(390,716)

CASH FLOWS FROM FINANCING ACTIVITIES









Proceeds from issuance of shares and exercise of options


33



37



573,064

Repayment of commercial paper


(48,409)



(40,036)



(301,591)

Repayment of long-term bank loans


(8,527)



(7,288)



(11,423)

Repayment of Series B, C and D Notes


—



—



(67,496)

Dividends paid


(35,336)



(22,273)



(111,693)

Change in short-term bank credit and loans and other, net


(6,842)



96,657



(98,733)

Net cash provided by (used in) financing activities


(99,081)



27,097



(17,872)










Net increase (decrease) in cash and cash equivalents


(479,893)



(151,671)



369,790

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

$

635,141


$

265,351


$

265,351

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

$

155,248


$

113,680


$

635,141

  (*) Dividend received from affiliated companies

$

4,971


$

2,654


$

19,053

 

 

ELBIT SYSTEMS LTD.

DISTRIBUTION OF REVENUES

(US Dollars in millions)

Consolidated revenues by geographical regions:



Three months
ended March 31, 
2026


%



Three months
ended March 31,
2025


%


Year ended
December 31,
2025


%

Israel

$

817.9


37.4


$

609.1


32.1


$

2,556.4


32.2

North America


433.7


19.8



393.1


20.7



1,659.3


20.9

Europe


512.3


23.4



456.8


24.1



2,139.5


27.0

Asia-Pacific


341.8


15.6



343.3


18.1



1,243.7


15.7

Latin America


33.0


1.5



28.1


1.5



99.0


1.2

Other countries


50.1


2.3



65.4


3.5



240.7


3.0

Total revenue

$

2,188.8


100.0


$

1,895.8


100.0


$

7,938.6


100.0

 

Consolidated revenues by segments:       



Three months ended
March 31, 2026


Three months ended
March 31, 2025



Year ended
December 31, 2025

Aerospace









External customers

$

454.8


$

448.0


$

1,820.9

Intersegment revenue


61.8



56.3



246.1

Total


516.6



504.3



2,067.0

C4I and Cyber









External customers


242.1



204.2



866.2

Intersegment revenue


14.6



15.8



64.7

Total


256.7



220.0



930.9

ISTAR and EW









External customers


371.8



303.5



1,323.5

Intersegment revenue


51.3



57.5



202.3

Total


423.1



361.0



1,525.8

Land









External customers


699.0



539.2



2,250.3

Intersegment revenue


15.6



21.6



68.4

Total


714.6



560.8



2,318.7

ESA









External customers


421.1



400.9



1,677.7

Intersegment revenue


2.8



3.3



16.4

Total


423.9



404.2



1,694.1

Revenues









Total revenues (external
customers and intersegment) for
reportable segments


2,334.9



2,050.3



8,536.5

Less - intersegment revenue


(146.1)



(154.5)



(597.9)

Total revenues

$

2,188.8


$

1,895.8


$

7,938.6

 

Non-GAAP financial data:

The following Non-GAAP financial data, including Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributable to the Company's shareholders, and Adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The Non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, Non-identified costs in respect to special circumstances, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. We present these Non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods.

Specifically, management uses Non-GAAP gross profit, Non-GAAP operating income, and Non-GAAP net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.

We believe Non-GAAP gross profit, Non-GAAP operating income, and Non-GAAP net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data.

Management uses Non-GAAP diluted net earnings per share attributed to Company's shareholders to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods.

We believe Non-GAAP diluted net earnings per share attributable to Company's shareholders is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis.

The Non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, Non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider Non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.

 

Reconciliation of GAAP to Non-GAAP Supplemental Financial Data:

(US Dollars in millions, except for per share amounts)



Three
months
ended
March 31,
2026


Three
months
ended
March 31,
2025


Year ended
December 31,
2025

GAAP gross profit

$

552.1


$

454.3


$

1,935.3

Adjustments:









Amortization of purchased intangible assets(*)


3.9



4.0



16.2

Stock based compensation


1.0



0.9



4.0

Non-identified costs in respect to special circumstances


1.7



1.4



6.3

Non-GAAP gross profit

$

558.7


$

460.6


$

1,961.8

Percent of revenues


25.5 %



24.3 %



24.7 %










GAAP operating income

$

205.1


$

149.7


$

671.4

Adjustments:









Amortization of purchased intangible assets(*)


7.5



7.7



31.0

Stock based compensation


6.9



5.7



26.4

Non-identified costs in respect to special circumstances


2.5



2.0



9.0

Non-GAAP operating income

$

222.0


$

165.1


$

737.8

Percent of revenues


10.1 %



8.7 %



9.3 %










GAAP net income attributable to Elbit Systems'
shareholders

$

160.8


$

107.1


$

534.3

Adjustments:









Amortization of purchased intangible assets(*)


7.5



7.7



31.0

Stock based compensation


6.9



5.7



26.4

Non-identified costs in respect to special circumstances


2.5



2.0



9.0

Capital gain


—



—



(13.7)

Revaluation of investment measured under fair value option


—



—



(4.5)

Non-operating foreign exchange (gains) losses


8.6



(4.1)



18.5

Tax effect and other tax items, net


0.1



(1.2)



(3.0)

Non-GAAP net income attributable to Elbit
Systems' shareholders

$

186.4


$

117.2


$

598.0

Percent of revenues


8.5 %



6.2 %



7.5 %










GAAP diluted net EPS attributable to Elbit
Systems' shareholders

$

3.34


$

2.35


$

11.39

Adjustments, net


0.53



0.22



1.36

Non-GAAP diluted net EPS attributable to Elbit
Systems' shareholders

$

3.87


$

2.57


$

12.75

(*)     While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies
is reflected in the measures and the acquired assets contribute to revenue generation.

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SOURCE Elbit Systems Ltd.