Israel’s Elbit accelerates work on high-power laser weapon systems as order backlog crosses record $20B
The defense company’s sales in the first quarter were approximately $1.55 billion, marking an 11% increase year-on-year. Rafael’s "Iron Beam" laser system is expected to reach maturity next year, and Elbit's El-Op company is developing a laser weapon for aircrafts
Elbit Systems' sales in the first quarter of 2024 were largely directed to the Israeli market due to the ongoing war in Gaza and the fighting on the northern border. Israel accounted for nearly 30% of Elbit’s sales, amounting to over $452 million. In the corresponding quarter of the previous year, sales to Israel totaled approximately $255 million, representing 18.3% of the company’s total sales.
Overall, Elbit's sales in the first quarter were approximately $1.55 billion, marking an 11% increase from $1.39 billion in the same quarter last year. The company's order backlog reached a record $20.4 billion, a 12% increase compared to the end of the corresponding quarter last year. Net profit for the quarter was $81 million, slightly higher than the $79 million reported in the previous year.
CEO Bezhalel (Butzi) Machlis highlighted that the continued growth in global defense budgets and the high demand for weapons will support Elbit's strategic plan, which aims for annual sales of approximately $7 billion by 2026. He believes that due to high sales rates in Israel and globally, Elbit will be able to achieve this target sooner and increase its operating profit to 10%. In the first quarter, operating profit was about $122 million, or 7.8% of revenues.
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Machlis noted the significant increase in the order backlog, emphasizing Elbit's relevance in Israel and globally. He pointed out that the digital ground force system, used by the IDF, was crucial during the recent conflicts. Elbit, in collaboration with Rafael, has accelerated work on high-power laser weapon systems. Rafael’s "Iron Beam" laser system is expected to reach maturity next year, and Elbit's El-Op company is developing a laser weapon for aircrafts.
Last week, Elbit reported orders worth approximately NIS 2.8 billion from the Ministry of Defense. Recently, it also announced a $260 million deal with an international client, though details about the deal remain undisclosed.
