Elbit Systems (Nasdaq: ESLT; TASE: ESLT) has been awarded two contracts, altogether worth $240 million, to upgrade main battle tanks for an unnamed international customer. Elbit Systems will upgrade the tanks and provide advanced electronics suites. A $60 million contract will be delivered over a period of two years and a $180 million contract will be delivered over a period of four years.
According to "Defense News", Elbit Systems has the highest annual revenue among Israeli defense companies, amounting to $4.77 billion in 2021, up 13% from $4.22 billion in 2020. Yesterday, the company reported results that missed growth expectations for the first half of 2022. Revenue in the second quarter of 2022 was $1,303.4 million, which compares with $1,302.4 million in the second quarter of 2021, while non-GAAP net profit was $76.9 million (5.9% of revenue), down from $93.4 million (7.2% of revenue) in the second quarter of 2021. The company explained that its new contracts were mainly for very large projects that were not reflected in quarterly results, and that the growth would be seen later.
Elbit Systems is considered a leading company in technological systems for armored military vehicles. It develops and produces fire control systems, electro-optic systems (its tank sights have won the Israel Defense Prize), and protective systems such as the Iron Fist active protection system that will protect the IDF’s new Eitan armored fighting vehicle and the Engineering Corps’ D9 bulldozers, and is supplied internationally, to the US Army and the Royal Netherlands Army among other military forces. Elbit Systems has also developed the Iron Vision system for tank crew based on its helmets for combat pilots. It also produces precision munitions for tanks, sold to, among other forces, the Finnish Army and the Swedish Army.
Elbit Systems CEO Bezhalel Machlis, said, "There is a renewed interest from militaries looking to improve the operational capabilities of their armoured platforms. I believe that Elbit Systems is uniquely positioned to address the growing demand in this market due to our ability to provide comprehensive solutions."
Published by Globes, Israel business news - en.globes.co.il - on August 17, 2022.
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