Elbit’s Iron Beam set to go live in 2025 in “operational breakthrough”
As Israel's war in Gaza boosts domestic demand and global conflicts drive record orders, Elbit Systems reports surging profits, and bets on laser weapons to power its next phase of growth.
Israel’s largest defense firm, Elbit Systems, reported higher first-quarter profit on Tuesday and said it expects a laser-based system designed to intercept incoming missiles to become operational by the end of the year.
Elbit posted earnings of $2.57 per diluted share, excluding one-time items, for the first quarter of 2025, up from $1.81 in the same period last year.
The improved results were driven by a 20% increase in aerospace sales, particularly in precision-guided munitions, with related revenue rising 22% to $1.9 billion.
Shares of the company rose 2.4% in Tel Aviv trading.
More than 32% of Elbit’s revenue came from Israel, which has ramped up arms orders since the start of the war on October 7, 2023. The company has supplied munitions, drones, guided rocket systems, reconnaissance capabilities, and other military technologies.
Amid a surge in global conflicts and rising defense budgets, Elbit’s backlog of orders climbed to $23.1 billion. Approximately 66% of the backlog originates from outside Israel, and 51% of the orders are scheduled for delivery in 2025 and 2026.
“The company is growing rapidly,” CEO Bezhalel Machlis told Reuters. “I still see growing demand in the Israeli market, and hopefully this war will end soon. Israel’s military needs are substantial... but strategically, growth should come from abroad.”
Machlis noted that higher defense spending in the United States and Europe will support Elbit’s expansion. The company manufactures drones, avionics, precision-guided missiles, electro-optics, and electronic warfare systems, and operates a wide network of global subsidiaries.
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Elbit is also co-developing Iron Beam, a laser-based air defense system intended to complement Israel’s Iron Dome, which has intercepted thousands of rockets launched by Hamas in Gaza, Hezbollah in Lebanon, and the Houthis in Yemen.
Machlis said the ground-based Iron Beam system is expected to be ready for deployment in 2025 and called it “an operational breakthrough.”
He also pointed to a similar airborne laser system currently under development. “It’s still in development and will take time,” he said. “Laser is just one example of the various types of energy weapons we are developing.”
“I see growth coming for energy weapons this year and next year. There is huge interest in these solutions.”
Elbit announced it would pay a quarterly dividend of 60 cents per share, unchanged from the previous quarter.
