Q3 2025 Elbit Systems Ltd Earnings Call
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For the third quarter was 107.
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Yaacov Kagan: For Q3 was 170-
Operator: In listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. I would now like to hand over the call to Daniella Finn, Elbit Systems VP, Investor Relations. Daniella, please go ahead.
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Boeing managements formal presentation instructions will be given for the question and answer session. As a reminder, this conference is being recorded I would now like to hand over the call to Daniella Finn Elbit systems VP Investor Relations Daniela. Please go ahead.
Thank you, Karen and Hello, everyone and welcome to our third quarter of 2025 earnings call on.
On the call with me today are booked Cmos, president and CEO of Elbit systems, and Coty Kagan corporate CFO.
Daniella Finn: Thank you, Karen. Hello, everyone, and welcome to our Q3 2025 Earnings Call. On the call with me today are Bezhalel Machlis, President and CEO of Elbit Systems, and Yaacov Kagan, Corporate CFO. Before we begin, I would like to point out that the safe harbor statement in the company's press release issued earlier today also refers to the contents of this conference call. As usual, we will provide you with both GAAP financial data as well as certain supplemental non-GAAP information. We believe that this non-GAAP information provides additional detail to help understand the performance of the ongoing business. You can find all the detailed GAAP financial data as well as the non-GAAP information and the reconciliation in today's press release.
Before we begin I would like to point out that the safe Harbor statement in the company's press release issued earlier today.
As to the contents of this conference call.
As usual, we will provide you with both GAAP financial data as well as certain supplemental non-GAAP information.
We believe that this non-GAAP information provides additional detail to help understand the performance of the ongoing business.
You can find all the detailed GAAP financial data as well as the non-GAAP information and the reconciliation in today's press release.
We will begin by providing a discussion of our financial results followed by Blue C, who will talk about some of the significant developments during the quarter and beyond.
He will then turn the call over to question and answer session.
Daniella Finn: Kobi will begin by providing a discussion of the financial results, followed by Bucci, who will talk about some of the significant developments during the quarter and beyond. We will then turn the call over to question and answer session. With that, I would like to now turn the call over to Kobi. Kobi, please go ahead.
With that I would like to now turn the call over to Koby, probably please go ahead.
Thank you Daniela.
Hello, everyone and thank you for joining us today.
We're very pleased to announce another solid quarterly results with double digit year over year growth.
Yaacov Kagan: Thank you, Daniela. Hello, everyone, and thank you for joining us today. We're very pleased to announce another set of quarterly results with double-digit year-over-year growth in revenues, backlog, and EPS. Quarterly free cash flow was solid at $101 million, underscoring our healthy cash generation. I will now highlight and discuss some of the key figures and trends in our financial results this quarter. Q3 2025 revenues were $1,922 million compared to $1,718 million in Q3 2024. A solid 12% growth in quarterly revenues year-over-year, and 18% growth for the 9 months ended 30 September.
Revenues backlog and EPS.
The free cash flow was solid at $110 million underscoring our healthy cash generation.
I will now highlight and discuss some of the key figures and trends and off dimensional results this quarter.
Third quarter 125 revenues were 1 billion minus <unk> $922 million.
<unk>, two 1 billion 700 $718 million in the third quarter of 2024.
12% growth.
Quarterly revenues year over year, and 18% growth for the nine months ended September.
In the third quarter of 2025 Europe countries.
Interpreted 28% North America, 21%.
Asia Pacific, 14% in Israel with 33% of revenues.
Yaacov Kagan: In Q3 2025, Europe contributed 28%, North America 21%, Asia Pacific 14%, and Israel was 33% of revenues. GAAP gross margin in Q3 was 24.9% of revenues, compared to 24% in Q3 2024. The non-GAAP gross margin for Q3 was 25.2% of revenues, compared to 24.4% in Q3 2024. GAAP operating income for Q3 was $171.4 million or 8.9% of revenues versus $125.8 million or 7.3% of revenues in Q3 2024.
GAAP gross margin in the third quarter was 24, 9% of revenues compared to 24% in the third quarter of 2024.
The non-GAAP gross margin for the quarter was <unk>.
95, 2% of revenues.
Compared to 24, 4% in the third quarter of 2024.
GAAP operating income for the third quarter was 171 $4 million or eight 9% of revenues versus $125 $8 million or seven 3% of revenues in the third quarter of 2024.
Cash generation.
I will now highlight and discuss some of the key figures and trends in after initial results this quarter.
non-GAAP operating income was $186 $7 million or nine 7% of revenues.
Third quarter 2025 revenues were 1 billion 900 $922 million.
Compared with $147 million or eight 2% of revenues in the third quarter last year.
Yaacov Kagan: Non-GAAP operating income was $186.7 million or 9.7% of revenues, compared with $140.7 million or 8.2% of revenues in Q3 of last year. We are very pleased with this margin expansion trajectory. The operating expense breakdown in Q3 was as follows: Net R&D expense were $129.1 million or 6.7% of revenues, compared to $119.9 million or 7% of revenues in Q3 2024. Elbit continues to invest in R&D to secure future profitable growth, which will maintain Elbit's position as the market leader in years to come.
<unk>, two 1 billion 700 $718 million in the third quarter of 2024.
We're very pleased with this margin expansion trajectory.
The operating expense breakdown in the third quarter was as follows.
Solid 12% growth in quarterly revenues year over year and 18% growth.
R&D expense were $129 1 million or six 7% of revenues.
For the nine months ended 30 September.
In the third quarter of 2025 Europe countries.
Compared to $119 9 million or 7% of revenues in the third quarter of 2024.
Contributed 28% North America, 21%.
Asia Pacific, 14% in Israel with 33% of revenues.
Elbit continues to invest in R&D to secure future profitable growth.
GAAP gross margin in the third quarter was 24, 9% of revenues compared to 24% in the third quarter of 2024.
Which will maintain <unk> position as the market leader in years to come.
Marketing and selling expenses were $91 million or four 7% of revenues versus $91 3 million or five 3% in the third quarter of 2024.
non-GAAP gross margin for the third quarter was 25, 2% of revenues.
<unk> to 24, 4% in the third quarter of 2024.
Yaacov Kagan: Marketing and selling expenses were $91 million or 4.7% of revenues versus $91.3 million or 5.3% in Q3 2024. G&A expenses were $86.7 million or 4.5% of revenues, compared to $75.7 million or 4.4% of revenues in Q3 2024. Financial expenses were $34.5 million in Q3 compared to $45 million in Q3 2024. The decrease in financial expenses net in Q3 2025 was mainly due to a reduction in the average net debt. We recorded a tax expense of $11.4 million in Q3 compared to $12.8 million in Q3 2024.
G&A expenses were $86 7 million or four 5% of revenues.
GAAP operating income for the third quarter was 171 $4 million.
Compared to $75 $7 million or four 4% of revenues in the third quarter of 2024.
Or eight 9% of revenues.
Versus $125 8 million or seven 3% of revenues in the third quarter of 2024.
Financial expenses were $34 $5 million in the third quarter.
non-GAAP operating income was $186 $7 million or nine 7% of revenues.
Compared to $45 million in the third quarter of 2024.
The decrease in financial expenses net in the third quarter of 2025 was mainly due to a reduction in the average net debt.
Compared with $147 million or eight 2% of revenues in the third quarter last year.
Yeah.
We recorded a tax expense of $11 $4 million in the third.
We're very pleased with this margin expansion trajectory.
The operating expense breakdown in the third quarter was as follows net R&D expense were $129 1 million or six 7% of revenues.
Third quarter compared to $12 $8 million in third quarter of 2024.
The effective tax rate in the third quarter of 2025 was eight 2% compared to 14, 6% in third quarter of 2024.
Compared to $119 9 million or 7% of revenues in the third quarter of 2024.
Yaacov Kagan: The effective tax rate in Q3 2025 was 8.2% compared to 14.6% in Q3 2024. The decrease in the effective tax rate for Q3 2025 was mainly due to the increase in deferred tax assets. GAAP diluted EPS was $2.80 for Q3 2025 compared to $1.77 in Q3 2024. Our non-GAAP diluted EPS was $3.35 for Q3 2025 compared to $2.21 in Q3 2024. Quarterly segment revenue for Q3 2025. Aerospace.
The decrease in the effective tax rate for the third quarter of 2025 was mainly due to the increase in deferred tax assets.
Elbit continues to invest in R&D to secure future profitable growth, which will maintain <unk> position as the market leader in years to come.
GAAP diluted EPS was $2 80 for the third quarter of 2025 compared to $1 77.
Marketing and selling expenses were $91 million or four 7% of revenues versus $91 3 million or five 3% in the third quarter of 2024.
In the third quarter of 2024, our non-GAAP diluted EPS was $3 and 35.
For the third quarter of 2025 compared to $2 21.
G&A expenses were $86 7 million or four 5% of revenues.
In the first quarter of 2024.
<unk> to $75 7 million or four 4% of revenues in the third quarter of 2024.
Quarterly segment revenue for the third quarter of 2025 Aerospace first.
Third quarter revenues decreased by 3% year over year, mainly due to a decrease in precision guided munitions sales in Asia Pacific.
Financial expenses were $34 $5 million in the third quarter.
Compared to $45 million in the third quarter of 2024.
Partially offset by the increase in PGM sales in Israel, and an increase in unmanned aerial system sales in Europe.
Yaacov Kagan: Third quarter revenues decreased by 3% year-over-year, mainly due to decrease in precision-guided munition sales in Asia Pacific, partially offset by the increase in PGM sales in Israel and an increase in unmanned aerial system sales in Europe. Revenues for the nine months were up 9%. C4I & Cyber. Revenues increased by 14% year-over-year, mainly due to radio systems and command and control system sales in Europe. For the nine months, revenue rose by 15%. ISTAR & EW. Revenues increased by 5% in the third quarter of 2025, mainly due to electro-optic systems and electronic warfare system sales in Israel and high-power laser sales in Israel. For the nine months, revenue increased by 8%. Land. Revenue increased by 41% in the third quarter of 2025 due to ammunition and munition sales in Israel and in Europe.
The decrease in financial expenses net in the third quarter of 2025 was mainly due to a reduction in the average net debt.
Revenues for the nine months were up 9%.
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Revenues increased by 14% to your year over year, mainly due to radio systems and command and control system sales in Europe for.
We recorded a tax expense of $11 $4 million in the third.
Third quarter compared to $12 $8 million in third quarter of 2024.
For the nine months revenue rose by 15%.
The effective tax rate in the third quarter of 2025 was eight 2% compared to 14, 6% in third quarter of 2024.
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Revenues increased by 5% in the third quarter of 2025, mainly due to electro optic systems and electronic warfare system sales in Israel and high power laser sales in Israel.
The decrease in the effective tax rate for the third quarter of 2025 was mainly due to the increase in deferred tax assets.
For the nine months revenue increased by 8% land.
<unk> revenue increased by 41% in the third quarter of 2025 due to ammunition ammunition sales in Israel and in Europe for the nine months revenue were up 44%.
GAAP diluted EPS was $2 80 for the third quarter of 2025 compared to $1 77.
In the third quarter of 2024, our non-GAAP diluted EPS was $3 35.
But system. So for America revenues decreased by 2% due to due to a decrease in <unk>.
Electronic systems and medical instrument sales, partially offset.
For the third quarter of 2025 compared to $2 21.
Yaacov Kagan: For the nine months, revenue were up 44%. Elbit Systems of America. Revenues decreased by 2% due to decrease in electronic systems and medical instrument sales, partially offset by the increase in maritime and warfighter system sales. For the nine months, revenue rose 6%. The order backlog as of 30 September 2025 was $25.2 billion, $3.1 billion higher than the backlog at the end of Q3 2024, and $1.4 billion higher than the backlog in Q2 2025. The increase in backlog during the quarter came mainly from new European orders. Approximately 69% of the current backlog is derived from order outside of Israel.
By the increase in maritime and Warfighters system sales.
In the first quarter of 2024.
For the nine months revenue rose 6%.
Quarterly segment revenue for the third quarter of 2025 aerospace.
The order backlog as of September 30 of 2025 was $25 $2 billion $3 $1 billion higher than the backlog at the end of the third quarter of 2024, and $1 $4 billion higher than the backlog in the second quarter of 2025.
Third quarter revenues decreased by 3% year over year, mainly due to decrease in precision guided munitions sales in Asia Pacific.
Partially offset by the increase in PGM sales in Israel, and an increase in unmanned aerial system sales in Europe.
The increase in backlog during the quarter came mainly from new European orders.
Revenues for the nine months were up 9%.
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Approximately 69% of the current backlog is derived from order outside of Israel, approximately 38% of the current backlog is scheduled to be performed during the reminder of 2025 and during 2026 and the rest is scheduled for 2027 and beyond.
Revenues increased by 14% to your year over year, mainly due to radio systems and command and control system sales in Europe for.
For the nine months revenue rose by 15%.
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Revenues increased by 5% in the third quarter of 2025, mainly due to electro optic systems and then joining <unk> system sales in Israel and high power laser sales in Israel.
Yaacov Kagan: Approximately 38% of the current backlog is scheduled to be performed during the remainder of 2025 and during 2026, and the rest is scheduled for 2027 and beyond. Cash flow provided by operating activities in the 9 months ended 30 September 2025 was $461 million as compared to $82.5 million in the 9 months ended 30 September 2024. The cash flow in the 9 months ended 30 September 2025 was affected mainly by the strong increase in net income. On the back of the continuous strength of the company's result, the board of directors declared a dividend of $0.75 per share to be paid on 5 January 2026. I will now turn the call over to Mr. Machlis, Elbit's CEO. Butsi, please go ahead.
Cash flow provided by operating activities in the nine months ended September 32025 was $461 million as compared to $82 5 million in the nine months ended September 32024.
For the nine months revenue increased by 8% land revenue increased by 41% in the third quarter of 2025 due to ammunition ammunition sales in Israel and in Europe for the nine months revenue were up 44%.
The cash flow in the nine months ended September 30th 2025 was affected mainly by the strong increase in net income.
Elbit systems of America revenues decreased by 2% due to due to a decrease in electronic systems and medical instrument sales partially offset.
On the back of the continued strength of the company's result.
<unk> directors declared the dividend of <unk> 75 per share.
On January 5th.
By the increase in maritime and Warfighters system sales.
2026.
I will now turn the call over to Mr. Marr, Please all be CEO.
For the nine months revenue rose 6%.
Please go ahead.
The order backlog as of September 30 of 2025 was $25 $2 billion $3 $1 billion higher than the backlog at the end of the third quarter of 2024, and $1 4 billion higher than the backlog in the second quarter of 2025.
Thank you Colby Hello, everyone and thank you once again for joining us today.
And Colby just described.
Continuing the growth and margin expansion project.
Bezhalel Machlis: Thank you, Koby. Hello, everyone, and thank you once again for joining us today. As Koby just described, these results continue the growth and margin expansion trajectory driven by strong demand for our solutions, particularly in Europe and Israel. Elbit's seventh consecutive quarter of double-digit growth further demonstrates our global leadership on the modern battlefield. Our recently tested and proven solutions position us as the leading authority in our rapidly changing industry as defense budgets continue to rise globally and our customers seek cutting-edge battle-proven systems to secure and protect their population. Our portfolio of ever-relevant technologies support our customers' pursuit of advanced warfighter solutions across all domains. On the back of the strong results, I'm proud that we continue to improve the translation of our revenue growth to growth in both profit and cash flow.
Driven by strong demand for our solutions, particularly in Europe.
The increase in backlog during the quarter came mainly from new European orders.
Lbs, seventh consequent quarter of double digit growth.
Approximately 69% of the current backlog is derived from order outside of Israel, approximately 38% of the current backlog is scheduled to be performed during the reminder of 2025 and during 2026 and the rest is scheduled for 2027 and beyond.
Further demonstrate our global leadership.
More than <unk>.
Ah recently tested and proven solutions position us as the leading authority.
Oh, obviously changing industry as defense budgets continue to rise globally, and our customers seek cutting.
Cutting edge, but improving system to secure and book the population.
Cash flow provided by operating activities in the nine months ended September 32025 was $461 million as compared to $82 5 million in the nine months ended September 32024.
Our portfolio of relevant technologies to support our customers pursue.
Advanced won't fight this solution across all domains.
On the back.
On the strong results I'm proud that we continue to improve.
The cash flow in the nine months ended September 30 is 2025 was affected mainly by the strong increase in net income.
The translation of our revenue goals and growth in both profits and cash flow.
This is a fixed consequently, this quarter, where we delivered positive free cash flow and improve the company's cash conversions.
On the back of the continued strength of the company's result, the board of directors declared a dividend of <unk> 75 per share.
Yesterday, we announced the signing of an international corn crop.
Bezhalel Machlis: This is the fifth consecutive quarter where we delivered positive free cash flow and improved the company's cash conversions. Yesterday, we announced the signing of an international contract for a strategic solution for approximately $2.3 billion US dollars. This contract will be performed over a period of 8 years. I'm extremely pleased with this announcement of the largest contract in Elbit's history. Further testament to the superiority of our product and technologies. We will continue to equip our customers with advanced and relevant solutions. During the quarter, Elbit received another large contract to supply a European country with a range of our solutions totaling of $1.625 billion US dollars to be delivered over the next 5 years.
On January 5th.
<unk> 2026.
Our strategic solution.
I will now turn the call over to Mr. Mok, Please all be CEO.
Oxiclean $2 3 billion in U S dollars.
Please go ahead.
This contract will be performed over a period of Ecu.
Thank you Colby.
Everyone and thank you once again for joining us today.
I'm extremely pleased with.
Announcement of the largest contract in <unk> history.
As Koby just described it as a continuum.
Continuing the growth and margin expansion project Tony.
Sure.
Testament to the discipline.
Driven by strong demand for our solutions, particularly in Europe and UK.
For our product.
We will continue to equip our customers with.
Lbs.
Advanced and relevant solutions.
Consequent to quarter of double digit growth.
During the quarter Elbit received another large contract and supply you have been in country needs a range or closed solutions totally.
Further demonstrate our global leadership on the <unk>.
Model.
Ah recently tested and proven solutions position us as the leading authority.
162 5 billion.
In all optically changing industry as defense budgets continue to rise globally and our customers seek.
<unk> to be delivered over the next five years.
The contract include long range precision cycle okay.
Cutting edge, but improving system to secure and book their population.
System and broad spectrum of unmanned the cornerstone and <unk> air combat systems, highly sophisticated lifestyle capabilities, including seeking coming and electric office system and neighborhood intelligence collections and processing system will also be delivered along with.
Our portfolio of ever relevant technology.
Bezhalel Machlis: The contract includes long-range precision strike artillery rocket system, a broad spectrum of unmanned reconnaissance and loitering aerial combat systems, and highly sophisticated ISTAR capabilities, including SIGINT, COMINT, and Electronic Warfare system. An enabled intelligence collections and processing system will also be delivered along with advanced electro-optics and night vision system, combat vehicle upgrade, and protective systems. New orders also included a contract for our Hermes 900 drones, advanced airborne munition for the IMOD, and a $260 million contract for DIRCM system to Elbit. Following the 12-day campaign against Iran, Elbit has seen growing interest in our solutions, mainly through, not exclusively, for the Hermes drones, EW system, and training platforms. The Hermes platforms enable us to cross-sell products from other segments and offer our customers comprehensive solutions.
Total customers through a suite of advanced worldwide. This solution across all domains.
On the back.
On the strong results I'm proud that we continue to improve.
Advanced optics and night vision system combat vehicle upgrade and protective systems.
The translation of our lithium rules the growth in both profits and cash flow.
This is the sixth consequently, a quarter, where we delivered positive free cash flow and improve the company's cash conversion.
New orders also included contracts for all of her Mr. 100 loans advanced Airborne Munition holds the I am indeed.
Yesterday, we announced the signing of an international corn crop.
$160 million contract for income system.
Our strategic solution.
Oxiclean $2 3 billion in U S dollars.
Yeah.
Walgreens is a 12 day campaign against Iran.
This contract will be performed over the period of <unk>.
Ted.
Yes.
<unk>.
I'm extremely pleased with this announcement of the largest contract in <unk> history.
Growing interest in our solutions mainly.
Sure not exclusively for the Hell, Miss Jones, EW system and funding.
For the.
Testament to the discipline.
Product and deployment.
The illness platforms enable us to cross sell product for other segment and offer our customers comprehensive solutions.
Continuing to equip our customers with.
Advanced and relevant solutions.
During the quarter.
It received another large corn crop and supply.
Since its first order in 2011.
The country needs a range of solutions totally.
900, hasnt been selected but over 20 customers worldwide.
162 5 billion.
And all.
Bezhalel Machlis: Since its first order in 2011, the Hermes 900 has been selected by over 20 customers worldwide. In August, we successfully launched the advanced JUPITER space camera aboard the National Advanced Optical System satellite, supporting a wide span of Earth observation mission, including military operations, environmental monitoring, and statistic research. Developed by Elbit Systems ISTAR & EW, JUPITER is one of the world's most advanced space camera, featuring a very large aperture.
<unk> to be delivered over the next five years.
We successfully launched the advanced Jupiter based come along a broad international advanced optical system.
The contract include long range precision strike at <unk>.
System and broad spectrum of unmanned the cornerstone and looting air combat systems, highly sophisticated ISR capabilities, including seeking comment and electric office system.
Yeah.
Supporting a wide span of Earth observation missions, including military operations environmental monitoring and scientific research.
Developed by Elbit system Eyestone EW Jupiter is one of the wound most advanced based come along.
Enabled intelligence collections and processing system will also be delivered along with advanced optics and night vision system combat vehicle upgrades and protective.
Switching it really like a very large upper jewel and an X.
Yes.
New orders also included contracts for our <unk> hundred launch.
Yeah.
Exceptionally lightweight design.
The camera is multi spectral offering a combination of imaging Chen.
Unsaleable ammunition.
I am indeed, and $260 million contract.
ULIN is a quarter.
Operator: Exception.
The income system.
Bezhalel Machlis: Exceptionally lightweight design. The camera is multi-spectral, offering a combination of imaging channels. During the quarter, we expanded our operation in Europe, opening new facilities in Sweden and Germany to enhance our local delivery capabilities to ensure more secure, faster support to our customers. Being close to our customers is crucial for us. Our enhanced presence in Europe strengthen our ability to deliver modern and reliable solutions at the pace required to ensure the armed forces capability to defend Europe from its offenders. In June, we launched PAWS 2, a next-generation infrared missile warning system for fighter aircraft designed to enhance their survivability and operational effectiveness. The system detects a wide range of threats regardless of seeker type, and provide advanced protection for fighter jets, transport aircraft, and helicopter operating in complex high-threat environments.
<unk> expanded our operation in Europe, opening new facilities in Sweden and Germany.
Following is a 12 day campaign against Iran.
To enhance our local delivery capabilities to ensure a more secure foster support all custom.
<unk> has seen.
Growing interest in our solutions mainly.
So not exclusively for the helmet loans EW systems and training.
Being close to our customers is crucial for us.
And hence president and CEO.
The illness platforms enable us to cross sell product from other segments and offer our customers comprehensive solutions.
So listen our ability to deliver a modern and reliable solution.
Space required to ensure the onslaught of ability.
And Europe formal fenders.
Since its first order in 2011.
Yes.
In June we launched falls due in next generation infrared missile warning system for FICA aircraft designed to enhance this mobility and population on the.
Mr 100 has been selected by over 20 customers worldwide.
And all.
We successfully launched the advanced Jupiter based carnival abroad, and National advanced optical system.
The system.
The wide wide range of threats regardless of secrecy.
Yeah.
Supporting a wide span of Earth observation mission, including military operations, environmental monitoring and scientific research.
And provides advanced protection for fighter jet transport aircraft and helicopter operating in complex high spread environments at CACI.
Developed by Elbit system, ISO and EW Jupiter is one of the wall.
<unk>, a cutting edge one wide area persistence awareness system designed to address.
<unk> most advanced based come along.
The increasing complexity and intensive intensity of border protection challenges.
Switching it really like a very large upper tool and an X.
Bezhalel Machlis: At DSEI, we unveiled Frontier, a cutting-edge wide area persistent surveillance system designed to address the increasing complexity and intensity of border protection challenges. Frontier autonomously operates multiple type of sensors to visually confirm and classify threats, transmitting only the most relevant analyzed information to the appropriate forces. It leverage advanced artificial intelligence to optimize intelligence gathering and decision making across land, air, and maritime domains. All these notable achievements would not have been possible without our dedicated employees, whose day and night commitment to Elbit is truly unique. I would like to thank each and every one of our outstanding employees for their continued professionalism and dedication. With that, I will be happy to answer your questions. Operator.
<unk> autonomously operate multiple Doug Central's, two visionary confirmed and classify splits.
Okay.
Exceptionally lightweight design.
The camera is multi spectral offering a combination of imaging Chen.
Meeting only the most relevant information.
Okay.
It was the appropriate for.
<unk> this quarter.
Its leverage advanced artificial intelligence to optimize instead of just gathering and decision making across land and maritime domains.
Expanded our operations in Europe, opening new facilities in Sweden, and Germany to enhance our local delivery capabilities and ensure a more secure foster support our customers.
All of these notable achievements would not have been possible result, or dedicated employees.
Being close to our customers.
<unk> for Us Oh enhanced presence in Europe.
Day and night commitment to Elbit is truly unique.
But listen our ability to deliver a modern and reliable solution base.
I would like to take each and every one of our outstanding employees for their continued professionalism and dedication.
<unk> required to ensure the onslaught of ability.
And Europe formal fenders only defendants.
And we said that we'd be happy to answer your questions operator.
In June we launched pulse two and next generation infrared missile warning system for fighter aircraft designed to enhance this capability and the pollution on the.
Yeah.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two.
The system.
The one wide range of threats, regardless of secret diet.
Operator: Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. The first question is from Jordan Lyonnais of Bank of America. Please go ahead.
And provides advanced protection for fighter jet transport aircraft and helicopter operating in complex hybrid environments.
You are using speaker equipment kindly lift the handset before pressing the numbers.
Questions will be called in the order they are received.
At CACI.
Please stand by while we poll for your questions.
Our cutting edge one wide area of persistent so when a system designed to address.
The first question is from Jordan scientists.
The increasing complexity and intensive intensity of border protection challenges.
Bank of America. Please go ahead.
Hey, good morning, Thanks for taking the question or afternoon for you guys.
<unk> autonomously operate multiple type of Central's two visionary confirmed and classify splits.
So I know them well.
Police fire now happening how enduring.
<unk> only the most relevant analyzing information there.
Jordan Lyonnais: Hey, good morning. Thanks for taking the question. Or afternoon for you guys.
I was thinking about.
It was the appropriate for.
Domestic demand and if we do see a slowdown in the domestic buckling salary how should we think about the tradeoffs with margins as we were.
Its leverage advanced artificial intelligence to optimize intelligence gathering and decision, making across land and maritime domains.
Operator: Hi, Jordan
Jordan Lyonnais: With the ceasefire now happening, how enduring are you guys thinking about the demand, domestic demand? If we do see a slowdown in the domestic bookings, how should we think about the trade-off with margins as orders start to skew more towards international?
Start to skew more towards international.
Okay.
Thank you Jordan how are you.
All of these notable achievements would not have been possible result, our dedicated employees.
Ed.
So your question about the domestic demand.
Ooh day and night commitment to Elbit is truly unique.
We can look at this quarter, we had an increase of one $4 billion and our backlog to $100 million in Israel and $1 $2 billion outside of Israel.
Yaacov Kagan: Thank you, Jordan. How are you?
I would like to take each and every one of our outstanding employees for their continued professionalism and dedication.
Jordan Lyonnais: Good.
Yaacov Kagan: Your question about the domestic demand, we can look at this quarter. We had an increase of $1.4 billion in our backlog, $200 million in Israel and $1.2 billion dollar outside of Israel. We are looking at that as some kind of the nature of the growth of the backlog for the future. We were targeting around flattish backlog in Israel and growth outside of Israel predominantly in Europe. That will be the growth area which we see our funnel, we see our opportunities, and we see the demand that's coming out from Europe. We think that this is the place that predominantly will provide the growth in the future in the backlog.
We are looking at that.
And we said that we'd be happy to answer your questions operator.
Some kind of.
The nature of the growth of the backlog for the future.
Yeah.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one.
We were targeting around flattish backlog in Israel and growth outside of Israel predominantly in Europe.
You wish to cancel your request please press star two.
That would be.
The growth area, which are we are we see the our final we see our opportunities and we see the demand that's coming out from Europe, and we think that this is the place that predominantly we will provide the growth in the future in the backlog.
If you are using speaker equipment kind of lift the handset before pressing the numbers questions.
Questions will be called in the order they are received.
Please stand by while we poll for your questions.
The first question is from Jordan Sadler.
Got it thank you so much.
Yes.
Bank of America. Please go ahead.
The next question is from Seth salesman from J P. Morgan.
Hey, good morning, Thanks for taking the question or afternoon for you guys.
Jordan Lyonnais: All right. Thank Thank you so much.
So well.
Yes go ahead.
Okay.
What's the need to fire now happening how enduring are you guys thinking about demand domestic demand and if we do see a slowdown in the domestic buckling salary how should we think about the tradeoffs with margins as it were.
Afternoon, everyone.
Operator: The next question is from Seth Seifman from JPMorgan. Go ahead.
I wanted to ask about when we think about.
Ah Aeronaut aerospace business from here.
And we saw the decline in the quarter, how should we think about the trajectory.
Seth Seifman: Afternoon, everyone. Wanted to ask about when we think about the Aerospace business from here, and we saw the decline in the quarter, how should we think about the trajectory in that business going forward? I know you called out some decline in sales to Asia, but also, you know, some drone orders during the quarter. Kind of where does that go from here?
Start to skew more towards international.
Okay.
In that business going forward.
Thank you Jordan how are you.
I know you called out some decline in sales to Asia, but also some try in orders during the quarter, so kind of where where does that go from here.
Ed.
Your question about the domestic demand.
We can look at this quarter, we had an increase of $1 $4 billion, and our backlog $200 million in Israel and $1 $2 billion outside of Israel.
Hello, Good morning, I believe I believe.
That will continue to see growth in this segment as well.
First I would like to mention that the lagoon xs embedded on top of that most of the western platform.
We are looking at that.
Some kind of.
Bezhalel Machlis: It's Butsi. Hello. Good morning. I believe that we'll continue to see growth in this segment as well. First, I would like to mention that our avionics is embedded on top of the most of the Western platforms. It includes our helmet, but not only that, also quite a lot of other equipment from us is embedded in many platforms all in many countries, not just in the US. So we enjoy from revenues coming from international sales of Boeing, Lockheed, and other OEMs of all the platforms abroad. I really believe that this market will continue to grow for us. I would like also to mention UAVs.
The nature of the growth of the backlog for the future.
It includes all hasn't it but not only that also quite well.
We were targeting around flattish backlog in <unk>.
Well, that's a lot of.
The equipment from us is embedded.
Israel and growth outside of Israel predominantly in Europe.
In.
In our niche.
That would be.
Many many platforms.
The growth area, which are we are.
In many many countries not just in the U S.
We see the our final we see our opportunities and we see the demand that's coming out from Europe, and we think that this is the place that predominantly we will provide the growth in the future in the backlog.
So we enjoy from live me news coming all new International third one located in of the Oems.
For the <unk>.
One of the booked so I really feel that it's most I really believe that this market will continue to work for us.
Got it thank you so much.
And like also to mention there is a huge demand.
The next question is from Seth salesman from JP Morgan.
These forward looking nation.
We have the 20 <unk> international customers, who book to know.
Yeah go ahead.
The illness under from loss.
Afternoon, everyone.
Bezhalel Machlis: There is a huge demand for UAVs, for loitering munition. We have 20 international customers who bought till now, the Hermes and 100 from us. We provide not just a platform, we provide an integrated solution which includes all our sensors and payloads from the company, we have a very unique offering to our customers. I see a growing market for UAVs or many UAVs, but also for small UAVs and for loitering munitions, which are all under the airborne segment. I believe that this segment will continue to grow for the company in Israel and mainly abroad.
We provide and they'll just a blood vessel, we provide an integrated solution, which includes all of sensors and payloads.
I wanted to ask about when we think about.
Aeronaut aerospace business from here.
From the company and we have the ability unique.
And we saw the decline in the quarter, how should we think about the trajectory in that business going forward.
Offering to our customers.
And I see a growing market for <unk> disease, or menu, but ultra small uavs and four looking munitions.
I know you called out some decline in sales to Asia, but also some trying orders during the quarter, so kind of where where does that go from here.
A hole on the edible in Sydney.
So I believe that this segment will continue to grow the company.
It's blue C. Hello.
In Israel, and mainly a blip.
Morning, I believe I've been invested.
And in fact this is toby to further to further add on what his answer.
That will continue to see growth in this segment as well first I would like to mention that <unk> is embedded on top of that most of the western platform.
We if you look at the three quarters over three quarters last year, our aerospace segment.
It includes all hasn't it but not only that also quiet.
Yaacov Kagan: Seth Seifman, this is Kobi, to further add on Butsi's answer, if you look at the Q3 over Q3 last year, Aerospace segment grew 9%. We think that the relevant growth number for the Aerospace is a single digit growth in revenues, because this segment is leaning predominantly on the US budget with a lot of revenue coming from the US which is a single digit budget growth. For that reason, that is the number that we think is relevant for Q3, for this segment.
Grew 9%.
Well, that's a lot of others.
We think that are the relevant growth number for the aerospace is a single digit growth in revenues.
The equipment from us is embedded.
In.
In our niche.
Many many platforms.
Because this this segment is leaning.
In many many countries not just in the U S.
Predominantly on the U S budgets.
So we enjoy from Loopnet coming all of them are international third Blayne located.
A lot of our revenue coming from the U S, which is a single digit budget growth.
I M.
And for that reason a that is a that is the number that we think is relevant for this quarter for this segment.
Of all the platforms are booked so I.
I really believe that this market will continue to work for us.
And like also to mention USD.
Okay excellent excellent. Thanks.
<unk> demand.
If I could add one follow up question.
These forward looking nation.
Can you talk a little bit more about the opportunities that are emerging and and directed energy.
We have the 'twenty accustomed to national customers, who book do now.
101 loss.
Seth Seifman: Okay. Excellent. Excellent. Thanks. If I could add one follow-up question. Can you talk a little bit more about the opportunities that are emerging in directed energy? You know, we've seen some of the progress on Iron Beam. Are you seeing a lot of opportunities emerge for directed energy solutions outside of Israel as well?
We've seen some other progress on iron P M.
We provide them they'll just Brussels, we provide an integrated solution, which includes all of sensors and payloads.
Or are you seeing a lot of opportunities emerge for directed energy solutions outside of Israel as well.
From the company and we are really unique.
Yeah. The answer is yes.
As you know will volatile foot.
Hopefully into a customer.
And the growing market for us these or menu Z, but ultra small uavs and fallopian munition, which a hole on the edible and settlement.
Israeli program toward grown the high power laser system they live the salt.
He's coming from us in the first system should be deployed by it.
Bezhalel Machlis: The answer is yes. As you know, we are part of the Israeli program for ground high-power laser systems. The laser source is coming from us, and the first system should be deployed by the end of this year, the Iron Beam system. There's going to be, I believe that next year we'll see many more orders here in Israel for ground high-power laser. Based on the success here in Israel, there is a lot of interest in many, many other places for high-power lasers and for ground high-power laser system. We are part of this solution. Here in Israel, we lead the airborne high-power laser system. It's still in the development phase. Actually, I believe that there is a very big potential for us.
So I believe that this segment will continue to grow the company.
And by the end of this year the island's been system.
There's going to be I believe that next year, we see many more orders healing newsletter for ground Hypo led.
In Israel, and mainly a bullish.
In fact, this is toby to to further to further add on what his answer.
Based on the success soon as well as the lots.
We if you look at the three quarters over three quarters last year, our aerospace segment.
Interest and many many other places.
<unk>.
In high power lasers.
It grew 9%.
And for for growing type of laser system.
And.
We think that are the relevant growth numbers with aerospace is a single digit growth in revenues.
And we our fault.
<unk>.
Here in Israel, we need.
Because this this segment is leaning.
The airborne Hypo litho system.
Predominantly on the U S budget was with a lot of our revenue coming from the U S, which is a single digit budget growth.
During the development phase.
And.
Actually and I believe they didn't see the potential for us.
And for that reason our that is our that is the number that we think is relevant for this quarter for this segment.
For this system I think the typo lasers.
It would be a game changer is the way countries all at Viking.
Okay excellent excellent. Thanks if.
And again Swoons.
And if I could add one follow up question.
The branch closing itself.
Bezhalel Machlis: For this system, I think that high-power laser in the air will be a game changer in the way countries are fighting against drones and against swarms and against cruise missiles. This is still under development, but also it's still in development. There is a lot of interest for that for many, many customers abroad. We are not developing just high-power lasers. We have other type of energy weapons which are in a very advanced phase of development, which are, some of them are confidential, but they are very unique. We really believe that this energy weapon activity is a very important growth engine for Elbit for the future.
Can you talk a little bit more about the opportunities that are emerging and and directed energy.
This is still under development, but also it's only still in.
Development.
There is a lot of interest.
We've seen some other progress on iron P. M or are you seeing a lot of opportunities emerge for directed energy solutions outside of Israel as well.
So is it for.
There are many many customers.
It broke and we are not developing just high power lasers, we have that.
Yeah. The answer is yes, as you know we have volatile foot.
Other type of energy weapons.
Sure.
Easily program for grown the high power laser system they live the salt.
Yeah.
And the ability advanced phase of development.
Each al.
He's coming from us in the first system to be deployed by the end by the end of this year the island's been system.
Some of them are confidential, but I can tell you that the ability to link.
We really believe that this.
Energy weapon activity is a very.
There's going to be I believe that next year, we see many more orders healing is loaded for ground hypo late.
Importantly, the growth.
Growth engine for the future.
Based on the success in Israel.
Thanks very much.
Interest and many many other places.
Thank you.
The next question is from Alan page.
In high power lasers.
Jefferies. Please go ahead.
And for full grown type of laser system.
Hi, guys. Thank you for the question.
Seth Seifman: Thanks. Thanks very much.
And we are volatile.
Yaacov Kagan: Thank you.
The margin was very strong in the quarter on a year over year and sequential basis.
Lucy.
Operator: The next question is from Alan Page of Jefferies. Please go ahead.
The human insulin we need.
Yeah.
The airborne Hypo litho system.
The drivers of that and was there any element of mix that supported profitability in the quarter and how do we think about.
Alan Page: Hi, guys. Thanks for the question. Just the margin was very strong in this quarter on a year-over-year and sequential basis. Can you discuss the drivers of that? Was there any element of mix that supported profitability in the quarter? How do we think about the progression of margins from here?
During the development phase.
And.
Actually and I believe they didn't see the potential for us.
The progression it might change from here.
Hi, Alan how are you.
For this system I think the type of lasers is it would be a game changer is the way countries all fighting against swarms.
If you if your analysis there is.
There is a very strong expansion in margins in that this quarter as you indicated which come.
Swoons.
And against closing itself.
Yaacov Kagan: Hi, Alan. How are you? If you notice, there is a very strong expansion in margin in this quarter, as you indicated, which comes as 0.9% improvement, 1%, shy of 1% in the gross profitability of the company, an additional 0.5% on the operational expenses. We're looking at 1% expansion in the gross profitability and 1.5% expansion in the operational profitability. Those two are the fruits of improvement in our backlog profitability and for using a lot of operational excellence, both investments and also processes that we were inaugurated in the company, including using AI for different purposes of operational use.
0.9% improvement of 1% shy of 1% in the gross profitability of the company an additional 0.5% on the operational expenses. So we are we're looking at 1%.
And this is still under development, but also it's only it's still in development.
A lot of interest.
So all of that.
For many many customers.
It broke in.
North Dakota, being just high power lasers, we have that.
Expansion in the gross profitability and one 5% expansion in the operational profitability.
Other type of energy weapons.
Sure.
Those two are.
And the ability of advanced phase of development.
The fruits of Oh for improvement in our backlog profitability.
Each all.
Some of them are confidential, but I can tell you that the ability when it we really believe that this.
For using a lot of operational excellence.
Both investments and also and also processes that are that are where we're inaugurated in the company, including using AI.
Energy weapon activity is a very.
Important.
Growth engine for the future.
For a different purpose to support personal use.
Thanks very much.
And that's a that is driving our not just not just our operational profitability, but also our growth our profitability up and this is the first quarter that we see this kind of expansion in both.
Thank you.
The next question is from Alan page.
Jefferies. Please go ahead.
Hi, guys. Thank you for the question.
Yaacov Kagan: That, that is driving our not just our operational profitability, but also our growth profitability up. This is the first quarter that we see this kind of expansion in both the gross profitability and the operational profitability. On top of that, we are also doing CapEx investments, which are yielding fruits, as we discussed many times in the past, the ERP system that is fully operational, the one ERP system that is fully operational in the company, and also robots and cobots that we are also using now mainly in the ammunition factories.
The margin was very strong in the quarter on a year over year and sequential basis.
The gross profitability and operational profitability.
Yeah.
Including the on top of that we're also doing capex investments, which are yielding fruit.
The drivers of that and was there any element of mix that supported profitability.
And how do we think about.
As we discussed many times in the past the ERP system that is fully operational the one ERP system that is fully operational in the company and also robots and cutbacks.
The progression it might change from here.
Hi, Alan how are you.
If you if your analysis there is a.
There is a very strong expansion in margins in that this quarter as you indicated which come.
We are also using now mainly in the ammunition ammunition.
0.9% improvement of 1% shy of 1% in the gross profitability of the company an additional 0.5% on the operational expenses. So we are we're looking at 1%.
Our factories and on top of that if I can summarize everything.
We can see that we have our advantages to the size.
Was the increase in revenue, we are doing better conversion into profit.
Yaacov Kagan: On top of that, if I can summarize everything, we can see that we have our advantages to the size, which, with the increase in revenue, we are doing better conversion to profits.
Expansion in the gross profitability and one 5% expansion and operational profitability.
Yeah.
Great that's very helpful.
And how do we think about the impact of.
Those two are the fruits of all.
Operational disruption.
Improvement in our backlog profitability.
I R.
And.
For using a lot of operational excellence.
Alan Page: Great. That's very helpful. How do we think about the impact of less operational disruptions, assuming the ceasefire holds? Is that an opportunity for another step up from here?
An opportunity or another.
Yeah.
Both investments and also and also processes that are that are where we're inaugurated in the company, including using AI.
So we see the we are very happy we're very happy with our with the ceasefire for something that.
For a different purpose to support personal use.
That is.
We prayed everybody here right.
And that are that is driving our not just not just our operational profitability, but also our gross.
All four are back up to two years.
Yaacov Kagan: We are very happy. We're very happy with the ceasefire, of course, that is, we prayed, everybody here prayed for that after 2 years of that, this conflict. We are all hope that this quiet will be maintained here in Israel. Of course, for the company, it allows us to regroup, people to come back from mobilization and to get back to normal business, which is, as you know, Elbit is mainly predominantly working outside of Israel. This is our strength of doing around 70% of the business outside of Israel.
Of this conflict and we are all hope.
This is.
Profitability up and this is the first quarter that we see this kind of expansion in both.
This quiet will be maintained here in Israel and of course.
For the company below allows us to regroup.
The gross profitability and operational profitability.
People to come back for mobilization and to to get back to normal business, which is as you know elbit is mainly predominantly working outside of Israel, but this is our strength doing around 70% of the business outside of Israel. It allows us to invest more in the business.
Including the on top of that we're also doing capex investments, which are yielding fruit.
As we discussed many times in the past the ERP system that that is fully operational the one ERP system that is fully operational in the company and also robust in our cutback.
Outside of Israel and to focus sales force more about doing the ordinary business.
We are also using now mainly in the ammunition ammunition.
We did before this southern timber.
Factories and on top of that if I can summarize everything.
Yaacov Kagan: It allows us to invest more in the business outside of Israel and to focus, of course, more about doing the ordinary business as we did before this 7 October conflict. This is an opportunity for the company to receive more opportunities and more new business to strengthen our backlog.
Conflict.
This is an opportunity for the companies to receive more opportunities and more around new business too.
We can see that we have our advantages to the size at which was the increase in revenue are we are doing better conversion to profits.
To strengthen our backlog.
Okay.
Okay.
Yeah.
Yeah.
I'll leave it there.
Great that's very helpful.
And Kevin.
And how do we think about the impact of.
Thank you.
During the call to Daniela. Please go ahead.
Operational disruption.
Thank you operator, we have a couple of questions from Kevin from excellence.
Alan Page: Great. Thank you for that. I'll leave it there.
I R.
Is that an opportunity or another.
Daniella Finn: Thank you, Alan.
Thank you very much for your questions today. The first one is has there been any update to the company's profitability target for 2020.
Yeah.
Operator: Thank you. I'm passing the call to Daniella. Please go ahead.
Yeah.
Okay.
So we see that we are very happy we're very happy with with the ceasefire Austin.
Daniella Finn: Thank you, operator. We have a couple of questions from Chen Keret from Excellence. Chen, thank you very much for your questions today. The first one is, has there been any update to the company's profitability target for 2026, 10% operating profit following the expansion of the order backlog and the improvement in gross margins in the current quarter?
10% operating profit following the expansion of the order backlog and the improvement in gross margins in the current quarter.
This we pray to everybody here for the full for a back up to two years.
Okay.
I think as an airline.
As you know we're not a.
Of this conflict and we are all hope.
Giving the specifics.
Specifically targets and are providing guidance.
This quiet will will be maintained here in Israel and of course for the company below allows us to regroup.
Saying that we will still maintain our internal targets to continue to improve our profitability and this is Paul.
Yaacov Kagan: Thank you, Daniella and Chen. We, as you know, we're not giving specifically targets and providing guidance. Saying that Internal targets to continue to improve our profitability, and this is, of course, a strong target in the company, as well as the cash conversion, which is a principal target in the company to continue the improvement in cash conversion in the company.
People to come back for mobilization and.
To get back to normal business, which is as you know elbit is mainly predominantly.
<unk> targets in the company.
As well as our cash conversion, we should which is a very.
Looking outside of Israel, but this is our <unk>.
Is the principal target in the company to continue the improvement in cash conversion in the company.
Strengths doing around 70% of the business outside of Israel. It allows us to invest more in the business outside of Israel and to focus sales force more about doing the ordinary business.
Thank you Coby and the second question is how does <unk> plan to generate added value from the significant expansion in the U S Dod's budget.
We did before this October.
October comps.
Lee is there a concrete plan to do an M&A transaction in the U S.
Daniella Finn: Thank you, Kobi. The second question from Chen is: How does Elbit plan to generate added value from the significant expansion in the U.S. DoD's budget? Specifically, is there a concrete plan to pursue an M&A transaction in the U.S. and/or to expand into verticals such as drone swarms or border protection applications?
Conflict and of course this is an opportunity for the companies to receive more opportunities and more around new business.
Or to expand into vertical such as drone order.
To strengthen our backlog.
The protection applications.
Thank you <unk>.
Okay.
Yeah.
The U S mall cookies are very strategic.
I'll leave it there.
And Kevin.
Thank you.
We see that you look at our home market.
During the call to Daniela. Please go ahead.
And we are I am very pleased with our performance in the U S.
Thank you operator, we have a couple of questions from <unk> from excellent and thank you very much for your questions. Today. The first one is has there been any update to the company's profitability target for 2020.
Bezhalel Machlis: Thank you. Thank you, Daniella Finn and Chen Keret. The US market is very strategic to Elbit Systems. We see the US as our home market, and I'm very pleased with our performance in the US. The last two acquisitions we made, the night vision activity and Sparton's thermal boards activities, both of them are very successful. Both of them are growing. We certainly look for opportunities for acquisitions in the US. We're exploring the market. I would like to say that in the past, we delivered a system to the CBP for border protection, and our equipment is deployed along the borders.
Two acquisitions that we made as.
The night vision activity and bottom of the funnel both activities most of them are very successful.
And we're growing.
10% operating profit following the expansion of the order backlog and the improvement in gross margin.
We certainly look for opportunities for acquisitions of the Westwood rolling into the market.
Okay.
Okay.
Oh, I would like to I'd like to say that in the past we delivered.
Thank you Daniela and Sam.
As you know we're not a.
Giving a specifically targets and are providing guidance.
System to the CBD or border protection.
The equipment is deployed their own along the border the borders.
Saying that we will still maintain our internal targets to to continue to improve our profitability and this is of course, a strong targets in the company.
And we all certainly we believe that the column to the current need for additional assistance along the borders although relevant to us and we are.
As well as our cash conversion, we should which is a very is the principal target in the company to continue the improvement in cash conversion in the company.
We're planning to pursue it.
Bezhalel Machlis: We are certainly, we believe that the current need for additional systems along the borders are very relevant to us, and we are planning to pursue it. The rest of our activities in the US are very successful as well. Our Aerospace avionics activities are growing, and our active protection system is doing very well in the US on top of the Bradley light tank. We will continue to invest in the US. We will continue to recruit additional people, and we would like to expand our position in this very important market for us.
And.
We have.
We put out the rest of our activities in view of the world.
Thank you Coby and the second question is how does <unk> plan to generate added value from the significant expansion in the U S. Dod's budget, specifically is there a concrete plan to do an M&A transaction in the U S.
Our very successful a little off.
No.
It will not have the onyx activities ongoing.
Our active protection system and doing very well in the U S on top of the Brittany.
Like them and we see we will continue to invest in the U S.
Or to expand into vertical such as drone order protection applications.
Due to include additional people and we would like to extend our position with this very important market for it.
Thank you <unk>.
The U S market is very strategic.
Thank you Budd say operate got it fair enough.
We see that you look at our home markets.
My questions, we can wrap up.
And we are very pleased with our performance in the U S.
Thank you.
All I ask Mr. Matthew just to go ahead with his closing statement I would like to remind participants that a replay of this call will be available two hours. After the conference ends in the U S. Please call 188878 to 40 291.
Two acquisitions that we made.
Vision activity and also on the funnel both activities most of them are very successful most of them are growing.
Daniella Finn: Thank you, Bezhalel Machlis. Operator, if there are no more questions, we can wrap up.
Operator: Thank you. Before I ask Mr. Machlis to go ahead with his closing statement, I'd like to remind participants that a replay of this call will be available two hours after the conference ends. In the US, please call 1-888-782-4291. In Israel, please call 03-925-5900. Internationally, please call 972-3-925-5900. A replay of the call will also be available at the company's website, www.elbitsystems.com. Mr. Machlis, would you like to make your concluding statement?
And.
We certainly look for opportunities for acquisitions as the Westwood exploring the market.
Israel, Please call zero suite.
I would like to I'd like to say that in the past, we delivered an assistant to the TBD for border protection.
9255900, and internationally. Please call nine seven to three nine to 55900 and we.
Equipment is deployed their own along the border the borders.
And do we all certainly we believe that the.
Replay of the call will also be available at the company's website Www Elbit systems Dot com.
Going to the current need for additional assistance along the borders although relevant to us and we are planning to pursue it.
Mr. <unk> would you like to make your concluding statement.
And.
We have.
I would like to thank everyone on the call for joining us today and for your continued trust and support.
We put out the rest of our activities in the U S.
Our very successful a little off.
Have a good day and goodbye.
It will not have the onyx activities ongoing.
Thank you. This concludes the Elbit systems Ltd's third quarter 2025 results conference call. Thank you for your participation you May go ahead and disconnect.
Bezhalel Machlis: I would like to thank everyone on the call for joining us today and for your continued trust and support of Elbit. Have a good day, and goodbye.
Our active protection system.
<unk> is doing very well in the U S on top of the Brittany.
Like tank and we see we will continue to invest in the U S.
Operator: Thank you. This concludes the Elbit Systems Ltd Q3 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.
We continue to include additional people.
And we would like to extend our position with this very important market for it.
Thank you Budd say operator, if there are no more questions, we can wrap up.
Thank you before I ask Mr. Matthew just to go ahead with his closing statement I would like to remind participants that a replay of this call will be available two hours. After the conference ends.
In the U S. Please call 18887825291 in Israel. Please call 039 to 55900 and internationally. Please call nine seven to three <unk>.
255900, and replay of the call will also be available at the company's website Www Elbit systems Dot com.
Mr. <unk> would you like to make your concluding statement.
I would like to thank everyone on the call for joining us today and for your continued trust and support.
Have a good day and goodbye.
Thank you. This concludes the Elbit systems Ltd's third quarter 2025 results conference call. Thank you for your participation you May go ahead and disconnect.