Q4 2025 Elbit Systems Ltd Earnings Call

March 17, 2026

Speaker #1: Conference call. Our participants are as present and listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. And a reminder this conference is being recorded.

Speaker #1: I would now like to hand over the call to Daniella Fine, ELBIT SYSTEMS VP, Investor Relations. Daniella, please go ahead.

Speaker #2: Thank you, Operator. Hello everyone, and welcome to our fourth quarter 2025 earnings call. On the call with me today are Gupti Machlis, President and CEO, and Kobe e Kagan, CFO, and myself, Daniella Finn, VP Investor Relations.

Speaker #2: Earlier today, we held an investor conference at the Tel Aviv Stock Exchange. A full recording of the event is available in the Investor Relations section of our website, at www.elbitsystems.com.

Speaker #2: Before I begin, I would like to point out to the safe harbor statement in the company's press release issued earlier today also refers to the contents of this conference call.

Speaker #2: I would like to remind all listeners that the conference call today may contain forward-looking statements regarding the company and its subsidiaries' business. Actual future results may differ materially from those forward-looking statements.

Speaker #2: As usual, we will provide you with both gap financial data as well as certain supplemental non-gap information. We believe that this non-gap information provides additional transparency to better understand the performance of the ongoing business.

Speaker #2: You can find all the detailed gap financial data as well as the non-gap information and the reconciliation in today's press release. Kobe will begin by discussing the financial results followed by Gupti, who will elaborate on the main events during the quarter and beyond.

Speaker #2: We will then turn the call over to a Q&A session. With that, I'd like to now turn the call over to Kobe. Kobe, please go ahead.

Speaker #3: Thank you, Daniella. Hello everyone, and thank you for joining us today. We are closing another strong year and quarter delivering double-digit growth in revenues, operating profit, EPS, and backlog, which grew by 5.5 billion dollars.

Speaker #3: In 2025, we also generated record free cash flow surpassing the half billion dollar mark where extremely proud of these results. And the outstanding execution by our global teams.

Speaker #3: Taking closer look into the fourth quarter results, fourth quarter revenues increased by 11% to 2 billion 149 million dollars. Compared to 1 billion 930 million dollars in the fourth quarter of 2024.

Speaker #3: This is the first time our quarterly revenues surpassing the 2 billion dollar mark full year to 2025 revenues increased by 16% to 7 billion 939 million dollars compared to 6 billion 828 million dollars in 2024.

Speaker #3: In terms of quarterly revenues by segment, Cifarine Cyber revenues increased by 19% in the fourth quarter of 2025 as compared to the fourth quarter of 2024, mainly due to sales of radio and command and control systems in Europe and in Israel.

Speaker #3: ISTAR and EW revenues increased by 39%, mainly due to increased sales of maritime and electro-optic systems, which include electronic warfare and counter-UAS solutions. Land revenues increased by 22%, mainly due to ammunition and munition sales in Israel and Europe.

Speaker #3: ELBIT Systems of America revenues increased by 9%, mainly due to the increase in the sales of night vision and maritime systems partially offset by the decrease in the sales of medical devices.

Speaker #3: Aerospace revenue decreased by 14%, mainly due to training and simulation in Europe, and higher sales of PGM in the fourth quarter of 2024. We take great pride in our diverse global customer base which is a key differentiator for ELBIT and ensures we are not reliant on any single country's defense budget.

Speaker #3: For the full year of 2025, Europe contributed 27% of revenues, North America 21%, Asia-Pacific 16%, and Israel contributed 32% of revenues. We expect Europe to be a meaningful growth engine going forward following by Asia-Pacific.

Speaker #3: Gap growth margin in the fourth quarter of in the fourth quarter was 24.7% of revenues, compared to 24.1% in the fourth quarter of 2024.

Speaker #3: Gap growth margin for the full year 2025 was 24.4%, compared to 24% at 2024. Non-gap growth margin for the fourth quarter was 25%, compared to the fourth quarter of 2024 at 24.5%.

Speaker #3: Non-gap growth margin for the full year 2025 was 24.7%, compared to fourth quarter of 2024 at 24.5%. Gap operating income in the fourth quarter was 192 million dollars or 9% of revenues, as compared to 141 million dollars or 7.3% of revenues in the fourth quarter of 2024.

Speaker #3: Non-gap operating income was 210 million dollars or 9.8% of revenues in the fourth quarter of 2025, as compared to 157 million dollars or 8.2% of revenues in the fourth quarter of 2024.

Speaker #3: Gap operating income for the full year 2025 was 671 million dollars or 8.5% of revenues as compared to 489 million dollars or 7.2% of revenues in 2024.

Speaker #3: Non-gap operating income for 2025 was 737 million dollars or 9.3% of revenues as compared to 550 million dollars or 8.1% of revenues in 2024.

Speaker #3: I am happy we have reached our internal targets for operating profit margins. The operating expense breakdown for the full year was as follows: net R&D expenses were 517 million dollars or 6.5% of revenues, as compared to 466 million dollars or 6.8% of revenues in 2024.

Speaker #3: This increase is mainly due to investment in expanding our portfolio of precision-guided munitions, as well as increased investment in night vision solutions. ELBIT continues to invest heavily in disruptive R&D initiatives including advanced AI capabilities to drive future profitable growth and reinforce the company's position as a market leader in the years ahead.

Speaker #3: Our strategy focuses on development of advanced solutions funded both internally and in some cases partially supported by the Israeli Ministry of Defense ensuring sustainable growth today and well into the future.

Speaker #3: Marketing and selling expenses were 399 million dollars or 5% of revenues in million dollars or 5.5% of revenues in 2024. GNA expenses were 347 million dollars or 4.4% of revenues in 2025 as compared to 311 million dollars or 4.6% of revenues in the same period last year.

Speaker #3: Financial expenses were 138 million dollars in 2025 as compared to 151 million dollars in 2024. The decrease in financial expenses net in 2025 is mainly due to lower interest expenses and lower levels of debt.

Speaker #3: We recorded the tax expense of 55 million dollars in 2025 compared to 39 million dollars in 2024. The effective tax rate in 2025 was 9.9% compared to 11.4% in 2024.

Speaker #3: The decrease in the tax rate in 2025 was as a result of the valuation allowance releases and adjustments to deferred taxes related to prior years, following tax settlements in some of the company's subsidiaries in Israel.

Speaker #3: Gap diluted EPS for the fourth quarter of 2025 was $3.52 compared to $2 in the fourth quarter of 2024. Once again, a significant double-digit EPS growth in the quarter.

Speaker #3: Our non-gap diluted EPS was $3.56 in the fourth quarter of 2025 compared to $2.66 in the fourth quarter of 2024. Gap diluted EPS for 2025 was $11.39 compared to $7.18 in 2024.

Speaker #3: Non-gap diluted EPS was $12.75 in the full year of 2025 compared to $8.76 in 2024, well ahead of our internal targets. Our backlog of orders as of December 31st, 2025, was 28.1 billion dollars approximately 5.5 billion dollars higher than the backlog at the end of 2024.

Speaker #3: Approximately 70% 72% of the current backlog was generated from outside of Israel. Approximately 54% of the backlog at the end of December is scheduled to be performed during 2026 and 2027.

Speaker #3: While the rest is scheduled to be performed during 2028 and beyond. Backlog growth was driven by international customer demand. Net cash provided by operating activities in the year ended December 31st, 2025, was 778 million dollars as compared to 535 million dollars in the year ended December 31st, 2024.

Speaker #3: Operating cash flows in 2025 were affected mainly by the increase in contract liabilities offset by the increase in inventories and trade receivables. During 2025, we also delivered 553 million dollars of free cash flow up 73% from the 320 million dollars free cash flow generated in 2024.

Speaker #3: The board of directors has declared the dividend of $1 per share. Yet another dividend increase for 2025 on the back of our strong results.

Speaker #3: I will now turn the call over to Mr. Maclis, ELBIT's president and CEO, Bootsy, please go ahead.

Speaker #1: To the conference center. Please hold for an operator.

Operator 1: Welcome to the conference center. Please hold for an operator. Hi, may I have your name, please? Hello?

Speaker #2: Thank you, Colby. I want to begin by acknowledging the remarkable dedication of our global workforce. Despite the challenging realities of wartime here, at home, our teams around the world continue to demonstrate exceptional focus and professionalism.

Speaker #2: Hi, may I have your name, please? Hello? Yes. w-what is your name, please? Just a second. And your phone number, please? Yeah. W-what is your phone number, please?

David Brown: Hi. Yes, we're trying to connect to Elbit Systems.

Operator 1: Yes. What is your name, please?

David Brown: Yes, this is David Brown.

Operator 1: Just a second.

Speaker #2: Their consistent effort, especially during this period of intensified demand, for our advanced systems are a testament to their resilience and commitment to our mission.

David Brown: Thank you.

Operator 1: Your phone number, please.

David Brown: Hello? Sorry.

Speaker #2: As Colby just outlined, our Q4 and full year 2025 results are very strong. We achieved double-digit growth across all key metrics: sales, operating profit, earnings per share, and backlog.

Operator 1: Yeah. What is your phone number, please?

David Brown: Yeah. The phone number for our company, ERA, is 212-960-

Speaker #2: Yeah. 9. 369. 7. Yeah. Oh, I'm sorry. Oh, I have you. Oh, you are. Yeah. Thank you. Enjoy your call.

Operator 1: Yeah.

David Brown: 3697.

Operator 1: 369

Speaker #2: In addition, during 2025, we generated record free cash flow surpassing the half billion dollar mark. During 2025, ELBIT SYSTEMS achieved significant milestones. Most notably, securing contracts from the IMOD for an airborne high-power laser combat jet fighter pod and for a high-power laser solution for helicopters.

David Brown: Seven.

Operator 1: Seven. Yeah, I'm sorry. I have you. Hi, ERA. Yeah. Thank you. Enjoy your call.

David Brown: Thank you so much.

Speaker #3: By the increase in inventories and trade receivables. During 2025, we also delivered 553 million dollars of free cash flow up 73% from just 320 million dollars free cash flow generated in 2024.

Kobi Lavi: By the increase in inventories and trade receivables. During 2025, we also delivered $553 million of free cash flow, up 73% from the $320 million free cash flow generated in 2024. The board of directors has declared a dividend of $1 per share. Yet another dividend increase for 2025 on the back of our strong results. I will now turn the call over to Mr. Machlis, Elbit's president and CEO. Bootsy, please go ahead.

Yaacov Kagan: By the increase in inventories and trade receivables. During 2025, we also delivered $553 million of Free Cash Flow, up 73% from the $320 million Free Cash Flow generated in 2024. The board of directors has declared a dividend of $1 per share. Yet another dividend increase for 2025 on the back of our strong results. I will now turn the call over to Mr. Machlis, Elbit's president and CEO. Butzi, please go ahead.

Speaker #2: These contracts further strengthened ELBIT's position as the world's leading supplier of next-generation directed energy weapons, including state-of-the-art military-grade high-power laser solutions. This has been a remarkable year for ELBIT, winning large-scale contracts.

Speaker #3: The board of directors has declared a dividend of $1 per share. Yet another dividend increase for, for 2025 on the back of our strong results.

Speaker #3: I will now turn the call over to Mr. Machlis, Elbit's President and CEO. Bezhalel, please go ahead.

Speaker #4: Thank you, Kobe. I want to begin by acknowledging the remarkable dedication of our global workforce. Despite the challenging realities of wartime here at home, our teams around the world continue to demonstrate exceptional focus and professionalism.

Bezhalel Machlis: Thank you, Koby. I want to begin by acknowledging the remarkable dedication of our global work, workforce. Despite the challenging realities of wartime here at home, our teams around the world continue to demonstrate exceptional focus and professionalism. Their consistent effort, especially during this period of intensified demand for our advanced systems, are a testament to their resilience and commitment to our mission. As Koby just outlined, our Q4 and full year 2025 results are very strong. We achieved double-digit growth across all key metrics, sales, operating profit, earnings per share, and backlog. In addition, during 2025, we generated record free cash flow, surpassing the half billion dollar mark. During 2025, Elbit Systems achieved significant milestones, most notably securing contract from the IMOD for an airborne high-power laser combat jet fighter pod and for high-power laser solution for helicopters.

Bezhalel Machlis: Thank you, Kobi. I want to begin by acknowledging the remarkable dedication of our global work, workforce. Despite the challenging realities of wartime here at home, our teams around the world cont inue to demonstrate exceptional focus and professionalism. Their consistent effort, especially during this period of intensified demand for our advanced systems, are a testament to their resilience and commitment to our mission. As Kobi

Speaker #2: We received our largest-ever contract from an international customer for a strategic solution worth approximately $2.3 billion. Earlier in the year, we won another large contract worth $1.6 billion to deliver a range of defense solutions to European countries.

Speaker #4: Their consistent effort, especially during this period of in-intensified demand for our advanced systems, are a testament to their resilience and commitment to our mission.

Speaker #2: Our pulse orchest artillery system continues to be a high runner for ELBIT, especially in Europe. Our backlog for this product surpassed the $2 billion mark as more countries selected our agile and technologically advanced system.

Speaker #4: As Kobe just outlined, our Q4 and full year 2025 results are very strong. We achieved double-digit growth across all key metrics: sales, operating profit, earnings per share, and backlog.

Bezhalel Machlis: just outlined, our Q4 and full year 2025 results are very strong. We achieved double-digit growth across all key metrics, sales, operating profit, earnings per share, and backlog. In addition, during 2025, we generated record free cash flow, surpassing the half billion dollar mark. During 2025, Elbit Systems achieved significant milestones, most notably securing contract from the IMOD for an airborne high-power laser combat jet fighter pod and for high-power laser solution for helicopters.

Speaker #2: In December, we reported that the Hellenic Parliament had approved a budget for the purchase of these systems for the Hellenic Armed Forces. Numerous contracts have been secured for our leading electric warfare EW system and our Telecom Self-Protection Solution.

Speaker #4: In addition, during 2025, we generated record free cash flow surpassing the half-billion-dollar mark. During 2025, ELBIT SYSTEMS achieved significant securing contracts from the IMOD for an airborne high-power laser combat jet fighter pod and for a high-power laser solution for helicopters.

Speaker #2: We continued winning contracts for our active protection systems, the Iron Fist for NATO European CV90 fleets, as well as follow-on contracts for the US Army Bradley ISV upgrades.

Speaker #4: These contracts further strengthen ELBIT's position as the world's leading supplier of next-generation directed energy weapons, including state-of-the-art military-grade high-power laser solutions. This has been a remarkable year for ELBIT, winning large-scale contracts.

Bezhalel Machlis: This contract further strengthens Elbit's position as the world's leading supplier of next generation directed energy weapons, including state-of-the-art military-grade high-power laser solutions. This has been a remarkable year for Elbit winning large-scale contracts. We received our largest ever contract from an international customer for a strategic solution worth approximately $2.3 billion. Earlier in the year, we won another large contract worth $1.6 billion to deliver a range of defense solutions to European countries. Our PULS rocket artillery system continues to be a high runner for Elbit, especially in Europe. Our backlog for this product surpassed the $2 billion mark as more countries selected our agile and technologically advanced system. In December, we reported that the Hellenic Parliament had approved a budget for the purchase of these systems for the Hellenic Armed Forces.

Speaker #2: I am very proud with all these contracts' wins which are translated into the exceptional financial performance we presented today. The Iron War continued for the most part of 2025.

Speaker #4: We received our largest-ever contract from an international customer, for a strategic solution work worth approximately approximately 2.3 billion dollars. Earlier in the year, we won another large contract worth 1.6 billion dollars to deliver a range of defense solutions to European countries.

Speaker #2: But as in the Middle East, as one conflict ends, another begins. In the past two weeks, Israel has played a major role in the roaring line, operation.

Speaker #2: As always, ELBIT continues to support the IDF during these times, scaling up production to meet elevated demands. Last week, the Israeli government approved a further addition to the defense budget of 39 billion Israeli shekels about 13 billion US dollars.

Speaker #4: Our pulse rocket artillery system continues to be a high runner for ELBIT, especially in Europe. Our black backlog for this product surpassed the 2 billion dollar mark as more countries selected our agile and technologically advanced system.

Speaker #2: As we told you, in the previous call, at the end of Q3, we continued to expand our production facilities globally and especially in Europe.

Speaker #4: In December, we reported that the Hellenic Parliament had approved a budget for the purchase of these systems for the Hellenic Armed Forces. Numerous contracts have been secured for our leading electric warfare EW system and our DIRCOM self-protection solution.

Speaker #2: We are making significant strategic capital investment to address growing global capacity constraints recognizing that capacity is a critical element of our long-term strategy. This includes, among others, the continued investment in the Ramat Beka facility here in Israel, as well as expanding our production facilities in Germany, Sweden, Romania, in Europe, and in the US.

Bezhalel Machlis: Numerous contracts have been secured for our leading electronic warfare, EW, system and our DIRCM self-protection solution. We continued winning contracts for our active protection system, the Iron Fist, for NATO European CV90 fleets, as well as follow-on contract for the US Army Bradley IFV upgrades. I am very proud with all these contract wins, which are translated into the exceptional financial performance we presented today. The Iron Swords war continued for the most part of 2025, but as in the Middle East, as one conflict ends, another begins. In the past two weeks, Israel has played a major role in the Drawing Line operation. As always, Elbit continues to support the IDF during these times, scaling up production to meet elevated demands. Last week, the Israeli government approved a further addition to the defense budget of ILS 39 billion, about $13 billion.

Speaker #4: We continued winning contracts for our active protection systems, the Iron Fist for NATO European CV90 fleets, as well as follow-on contracts for the US Army Bradley IFV upgrades.

Speaker #2: Europe accounted for 27% of ELBIT's sales in 2025, surpassing the $2 billion mark. We believe Europe will remain our primary growth engine going forward, with Germany playing a central role.

Speaker #4: I am very proud with all these contracts' wins which are translated into the exceptional financial performance we presented today. The Iron Sword War continued for the most part of 2025.

Speaker #4: But as in the Middle East, as one conflict ends another begins. In the past two weeks, Israel has played a major role in the roaring line.

Speaker #2: This momentum was evident through the year, reflected the numerous contracts awarded across a wide range of systems, including our pole forklift launchers, Iron Fist active protection solution, and multiple Telecom programs among others.

Speaker #4: Operation. As always, ELBIT continues to support the IDF during these times, scaling up production to meet elevated demands. Last week, the Israeli government approved a further addition to the defense budget of 39 billion Israeli shekels, about 13 billion US dollars.

Speaker #2: We expect strong revenue growth from Europe as countries continue to rearm, supported by ELBIT's well-established presence on the continent through our subsidiaries and joint ventures with leading local partners.

Speaker #4: As we told you in the previous call, at the end of Q3, we continued to expand our production facilities globally, and especially in Europe.

Bezhalel Machlis: As we told you in the previous call, at the end of Q3, we continued to expand our production facilities globally and especially in Europe. We are making significant strategic CapEx investment to address growing global capacity constraints, recognizing that capacity is a critical element of our long-term strategy. These include, among others, the continued investment in the Ramat Beka facility here in Israel, as well as expanding our production facilities in Germany, Sweden, Romania, in Europe and in the US. Europe accounted for 27% of Elbit's sales in 2025, surpassing the $2 billion mark. We believe Europe will remain our primary growth engine going forward, with Germany playing a central role.

Speaker #2: During 2025, ELBIT continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms. As part of its strategy to develop advanced solutions self-funded or partially funded by the Israeli MOD, ensuring both current and future growth.

Speaker #4: We are making significant strategic capex investment to address global growing global capacity constraints, recognizing that capacity is a critical element of our long-term strategy.

Speaker #4: This includes, among others, the continued investment in the Ramat Beka facility here in Israel, as well as expanding our production facilities in Germany, Sweden, Romania, in Europe, and in the US.

Speaker #2: Dedicated cross-function AI teams are integrated intelligent capabilities across defense systems and core operations strengthening decision-making, operational agility, and scalability as global demand continues to grow.

Speaker #4: Europe accounted for 27% of Elbit's sales in 2025, surpassing the $2 billion mark. We believe Europe will remain our primary growth engine going forward, with Germany playing a central role.

Speaker #2: In closing, ELBIT entered 2026 stronger, more resilient, and better positioned than ever. With a record backlog, breakthrough technologies achievement, expanding capacity, and global team that delivers under the most demanding conditions, we are confident in our ability to sustain our growth and continue to create long-term value for our stakeholders.

Speaker #4: This momentum was evident through the year, reflected the numerous contracts awarded across a wide range of systems, including the our pulse rocket launchers, Iron Fist active protection solution, and multiple DIRCOM programs among others.

Bezhalel Machlis: This momentum was evident through the year, reflected in the numerous contracts awarded across a wide range of systems, including our PULS rocket launchers, Iron Fist active protection solution, and multiple deal count programs, among others. We expect strong revenue growth from Europe as countries continue to re-arm, supported by Elbit's well-established presence on the continent through our subsidiaries and joint ventures with leading local partners. During 2025, Elbit continued to invest heavily in disruptive R&D programs, including AI enhancement across multiple platforms. As part of its strategy to develop advanced solutions, self-funded or partially funded by the Israeli MOD, ensuring both current and future growth. Dedicated cross-function AI teams are integrated intelligence capabilities across defense systems and core operations, strengthening decision-making, operational agility, and scalability as global demand continue to grow. In closing, Elbit enters 2026 stronger, more resilient, and better positioned than ever.

Speaker #2: And with that, I will be happy to take your questions. Operator.

Speaker #4: We expect strong revenue growth from Europe as countries continue touring arm supported by ELBIT's well-established presence on the continent through our subsidiaries and joint ventures with leading local partners.

Speaker #1: Thank you. Ladies and gentlemen, at this time, we will begin question and answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two.

Speaker #1: If you are using speaker equipment, kindly leave the hands up before pressing the number. Your questions will be pulled in the order they are received.

Speaker #4: During 2025, ELBIT continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms. As part of its strategy to develop advanced solutions self-funded or partially funded by by the Israeli MOD, ensuring both current and future growth.

Speaker #1: Please stand by while we pull for your questions. The first question is from Kristine Liwag of Morgan Stanley. Please go ahead.

Speaker #3: Hi, good afternoon, Betsy. I'm Kobe, and Daniella. So we did call you guys called out the record backlog that the company has today, but then we see the conflict and Betsy, you mentioned it in your prepared remarks, that one conflict ends and another starts in the Middle East.

Speaker #4: Dedicated cross-function AI teams are integrated intelligent capabilities across defense systems and cooperations strengthening decision-making, operational agility, and scalability, as global demand continues to grow.

Speaker #3: And with this global demand growing, can you talk about what your capacity or CapEx investments could mean in terms of potential maximum revenue that you could generate off of the incremental capacity increases?

Speaker #4: In closing, Elbit entered 2026 stronger, more resilient, and better positioned than ever. With a record backlog, breakthrough technology achievements, expanding capacity, and a global team that delivers under the most demanding conditions, we are confident in our ability to sustain our growth and continue to create long-term value for our stakeholders.

Speaker #3: And also, as you increase your CapEx, when do we anticipate this capacity opening up new revenue? How do we think about that with the supply issue that's coming out of the Red Sea?

Bezhalel Machlis: With a record backlog, breakthrough technologies achievement, expanding capacity, and a global team that delivers under the most demanding conditions, we are confident in our ability to sustain our growth and continue to create long-term value for our stakeholders. With that, I will be happy to take your questions. Operator?

Speaker #3: Any context for the ability to meet this unprecedented high demand would be really helpful.

Speaker #4: Hi, Kristine. Thank you for the question. It's a combination of questions. I'll talk first to the CapEx investment. The company increased CapEx investment this year to 225 million dollars.

Speaker #4: And with that, I will be happy to take your questions. Operator.

Speaker #5: Thank you. Ladies and gentlemen, at this time, we'll begin question and answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two.

Operator 2: 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. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be pulled in the order they are received. Please stand by while we pull for your questions. The first question is from Kristine Liwag of Morgan Stanley. Please go ahead.

Operator: 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. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be pulled in the order they are received. Please stand by while we pull for your questions. The first question is from Kristine Liwag of Morgan Stanley. Please go ahead.

Speaker #4: We are consistently investing CapEx nearly 200 million dollars for the past five years, and we are planning to increase the spend this year in 2026 to around 300 million

Speaker #5: If you are using speaker equipment, can lift the handset before pressing the number. Your questions will be pulled Please stand by while we pull for your questions.

Speaker #1: Dallas and this additional investment comes with stronger cash flow . So we both increased the free cash flow and increased in CapEx And that is we are very happy with this result Having investing around $300 million will go specifically to invest in Israel and out of Israel .

Speaker #5: The first question is from Christine Liwag of Morgan Stanley. Please go ahead.

Speaker #6: Hi. good afternoon, Bootsy. Kobe and Daniella. So maybe, you know, you guys called out the, the record backlog that the that the company has today.

Kristine Liwag: Hi, good afternoon, Bezhalel, Kobi, and Daniella. Maybe, you know, you guys called out the record backlog that the company has today. We see the conflict, you know, and Bezhalel, you mentioned it, you know, in your prepared remarks, that one conflict ends and another starts in the Middle East. With this global demand growing, can you talk about what your capacity or CapEx investments could mean in terms of potential, you know, maximum revenue that you could generate off of the incremental capacity increases? With, as you increase your CapEx, when do we anticipate, you know, this capacity opening up new revenue? How do we think about that with the supply issue that's coming out of the Red Sea?

Speaker #6: But then we see the conflict, you know, and Bootsy, you mentioned it, you know, in your prepared remarks that one conflict ends and another starts in the Middle East.

Speaker #1: We're not just investing in Israel . We're investing also outside of Israel in mostly factories for for land capacity . We tripled the size of the factory in the southern part of Israel .

Speaker #6: And with this global demand growing, can you talk about what your capacity or capex investments could mean in terms of potential, you know, maximum revenue that you could generate off of the incremental capacity increases?

Speaker #1: The the new the new ammunition , ammunition factory It was tripled and additional investment are planned to meet the high demand , especially for munition ammunition .

Speaker #6: And also, with, as you increase your capex, when do we anticipate, you know, the this capacity, opening up new, new, new revenue? How do we think about that with the supply, issue that's coming out of the Red Sea?

Speaker #1: Demand . We're also increasing investment in electronic assemblies , factories in Israel and outside of Israel . And by that , we . We feel comfortable with meeting the .

Speaker #6: any context for for the ability to meet this unprecedented high demand, would be really helpful.

Kristine Liwag: Any context for the ability to meet this unprecedented high demand would be really helpful?

Speaker #7: Hi, Christine. Thank you for the question. it's a combination of questions. I'll talk first to the capex investment. The company, increased the capex investment this year to 225 million dollars.

Kobi Lavi: Hi, Christine. Thank you for the question. It's a combination of questions. I'll talk first to the CapEx investment. The company increased their CapEx investment this year to $225 million. We are consistently investing in CapEx nearly $200 million for the past 5 years. We are planning to increase the spend this year in 2026 to around $300 million. This additional investment comes with stronger free cash flow. We both increased the free cash flow and increasing CapEx, and that is we are very happy with this result. Having investing around $300 million will go specifically to invest in Israel and out of Israel.

Yaacov Kagan: Hi, Christine. Thank you for the question. It's a combination of questions. I'll talk first to the CapEx investment. The company increased their CapEx investment this year to $225 million. We are consistently investing in CapEx nearly $200 million for the past 5 years. We are planning to increase the spend this year in 2026 to around $300 million. This additional investment comes with stronger free cash flow. We both increased the free cash flow and increasing CapEx, and that is we are very happy with this result. Having investing around $300 million will go specifically to invest in Israel and out of Israel.

Speaker #1: The high demand , as you mentioned . The record backlog and the very strong panel that we see ahead Lucy , I would like to add .

Speaker #1: Thank you . I'd like to add that on top of our own investment , some customers of ours are investing with us here in Israel as well as abroad , in order to create additional capacity and mainly around production And so actually , every dollar that we that we that we invest is , is an additional investment by our customer .

Speaker #7: we are consistently investing in capex nearly 200 million dollars for, for the past, five years. And we are planning to, increase the spend this year in 2026 to around 300 million dollars.

Speaker #7: And, this, additional investment, comes with stronger free cash flow. So we, we, both increased, the free cash flow and increasing capex, and that is, we're, we're very happy with this, result.

Speaker #1: So that's number one . Number two , this year , we , we believe that we will start delivering equipment from the facility .

Speaker #7: having inve investing around 300 million dollars will, will goes, specifically to, invest in Israel and out of Israel. We're not just investing in Israel.

Speaker #1: It should happen quite soon It will be . And the Israeli government has approved to continue working in the current facility . We have in the central part of the country , in the in the current infrastructure We have .

Bezhalel Machlis: We're not just investing in Israel, we're investing also outside of Israel in mostly factories for land capacity. We tripled the size of the factory in the southern part of Israel. The new ammunition factory, it was tripled. Additional investment are planned to meet the high demand, especially for ammunition demand. We're also increasing investment in electronic assemblies factories in Israel and outside of Israel. By that, we feel comfortable with meeting the high demand, as you mentioned, the record backlog and the very strong funnel that we see ahead. Bezhalel Machlis?

Speaker #7: We're investing also outside of Israel. In, mostly, factories for, for, land capacity, we triple the size of, the factory in the southern part of Israel.

Speaker #1: So in parallel , we have two active production lines which will enable us to deliver the growing demand . I also want to emphasize that our new facilities are all equipped with robots and with a lot of AI in them .

Speaker #7: The, the new the new ammunition and munition factory, it was tripled. And the additional investment, our planned, to meet, the high demand, especially to munition and munition, demand, we're also increasing, investment in, electronic, assemblies, factories.

Speaker #1: In order to increase effectiveness and productivity And with the most advanced technology which is available in the market to , we are working in some cases in in three shifts in order to meet the demand .

Speaker #7: in Israel and outside of Israel. And, by that, we we feel comfortable with meeting the, the high demand, as you mentioned, the record backlog.

Speaker #1: And with the new factory that we will start part of them . Some of them are active already and some some will will start will be effective quite soon .

Speaker #7: And the very strong funnel that we see ahead. Bootsy?

Speaker #8: Yeah. I would like to, thank you, Kobe. I would like to add that on top of our own investment, some customers of ours are investing with us.

Bezhalel Machlis: Yeah, I would like to add. Thank you, Kobi. I would like to add that on top of our own investment, some customers of ours are investing with us.

Speaker #1: I believe we'll be able to meet the current demand and the future demand with regards to supply chain a bit . As part of the strategy .

Bezhalel Machlis: Here in Israel as well as abroad, in order to create additional capacity, mainly around production. Actually every dollar that we invest, there is an additional investment by our customer, so that's number one. Number two, this year we believe that we will start delivering equipment from the Ramat Beka facility, which it should happen quite soon. It will be. The Israeli government approved to continue working in the current facility we have in the center part of the country, in the current infrastructure we have. In parallel, we have two active production lines, which will enable us to deliver the growing demand.

Speaker #8: here in Israel as well as abroad. In order to create, additional capacity, mainly around production. and, so actually, every dollar that we that we, that we invest, there is there is an additional investment by our customer.

Speaker #1: The company and we are trying to reduce dependencies from internal . From from external suppliers as part of our strategy , we develop our own diodes and our own Detectors and many , many and many other examples .

Speaker #8: So that's number one. Number two, this year we, we believe that we will start delivering equipment from the Ramat Beka facility. Actually, it should happen quite soon.

Speaker #1: And . And through the last two , this war we have invested with the Israeli energy , even more funds to be more vertical and to control our distance .

Speaker #8: It will be, and the Israel government had approved to continue working in the current facility we have in the central part of the country, in the current infrastructure we have.

Speaker #1: And in areas where we are lacking material , we were able to , to create enough inventories to support the current and the future demand that we see Kobe , do you want to add on top of what you mentioned ?

Speaker #8: So in parallel, we'll have two active production lines. Which will enable us to deliver the growing demand. I also want to emphasize that our new facilities are all equipped with robots, and, with a lot of AI in them, in order to increase, effectiveness and productivity.

Bezhalel Machlis: I also want to emphasize that our new facilities are all equipped with robots and with a lot of AI in them in order to increase effectiveness and productivity, and with the most advanced technology which is available in the market. We are working, in some cases, in three shifts in order to meet the demand, and with the new factories that we will start, part of them, some of them are active already, and some will be effective quite soon. I believe we'll be able to meet the current demand and the future demand. With regards to supply chain, Elbit, as part of its strategy, is a very vertical company. We are trying to reduce dependencies from external suppliers. That's part of our strategy.

Speaker #1: We are also streamlining the roadmap . This is the sovereign part of Israel factory . Which are streamlining the processes , the factory processes , which are will bring additional yields and additional effectiveness of this of this factory and another more financial point .

Speaker #8: And, with the most advanced, technology, which is available in the market, to we are working in some cases in, in three shifts in order to meet the demand.

Speaker #8: And with the new factories that we will start, south of them some of them are active already and some, some, we will we will start be we'll be effective quite soon.

Speaker #1: We saw 24% growth in our backlog in during 2025 and 16% growth of revenue . And as you know , Christine , there should be convergence between those two numbers .

Speaker #8: I believe we'll be able to meet the current demand and the future demand. With regards to supply chain, ELBIT, as part of his strategy, is a very vertical company.

Speaker #1: And that means that the potential growth is very significant . A double digit potential growth . Also in the future

Speaker #8: And we are trying to reduce dependencies, both internal and external, from other suppliers as part of our strategy. We develop our own diodes and our own detectors, and many, many other examples.

Speaker #2: Wonderful Super helpful . Thank you . And if I could have a second question , you know , you've called out the contract wins that you've had on directed energy specifically on high powered lasers .

Bezhalel Machlis: We develop our own diodes and our own detectors, and many other examples. Through this war, we have invested with the Israeli IMOD even more funds to be more vertical and to control our destiny. In areas where we are lacking material, we were able to create enough inventories to support the current and the future demand that we see. Kobi, do you want to add?

Speaker #2: I was wondering , can you talk more about what's the breakthrough in technology that you were able to achieve here ? And then also , when we think about fighting low cost drone swarms , what's the role for for this kind of equipment and how is Elbit positioned

Speaker #8: And, and through the last through the this war, we have invested with the Israeli IMOD even more funds to be more vertical and to control our destiny.

Speaker #8: And, in areas where we are lacking, material, we were able to, to create enough inventories. to support the current and, the future demand that we see.

Speaker #3: I will say the following . First , currently , many countries are fighting against wrongs and against cruise missiles with air to air missiles .

Speaker #3: That's a very expensive fight , and it's not sustainable . So because of that , we thought that bringing high power laser to the air will create a new situation where actually we are becoming the asymmetric player and and putting high power , high power laser in the air enable us first to overcome Some of the some of the challenges of the ground , like weather and dust and turbulence .

Speaker #8: Kobe, do you want to add?

Speaker #7: Yeah. On, on top of, what Bootsy Bootsy mentioned, we, we are also streamlining the Ramat Beka this is the southern southern part, of Israel, factory.

Kobi Lavi: Yeah. On top of what Buti mentioned, we are also streamlining the Ramat Beka. This is the southern part of Israel factory. We are streamlining the processes, the factory processes, which will bring additional yields, additional effectiveness of this factory. One more financial point, we saw 24% growth in our backlog during 2025, and 16% growth of revenue. As you know, Christine, there should be convergence between those two numbers, and that means that the potential of growth is very significant, a double-digit potential of growth also in the future.

Yaacov Kagan: Yeah. On top of what Buti mentioned, we are also streamlining the Ramat Beka. This is the southern part of Israel factory. We are streamlining the processes, the factory processes, which will bring additional yields, additional effectiveness of this factory. One more financial point, we saw 24% growth in our backlog during 2025, and 16% growth of revenue. As you know, Christine, there should be convergence between those two numbers, and that means that the potential of growth is very significant, a double-digit potential of growth also in the future.

Speaker #7: We are, streamlining the, the processes, the factory processes. Which, will bring additional yields and additional, effe-effectiveness of this, of, of this factory. And, another, more financial point, we saw 24% growth in our backlog in, during 2025 and 16% growth of revenue.

Speaker #7: and as you know, Christine, there should be convergence between those two numbers. And that means that, that potential growth is, very significant. The double-digit, potential of growth, also in the future.

Speaker #3: And so flying above clouds will enable us to gain more ranges and to be more effective . And also to eliminate the stretch far away from our borders .

Speaker #1: Wonderful, super helpful. Thank you. And if I could have a second question—you know, you've called out the contract wins that you've had on directed energy, specifically on high-powered lasers.

Kristine Liwag: Wonderful. Super helpful. Thank you. If I could have a second question. You know, you've called out the contract wins that you've had on directed energy, specifically on high-powered lasers. I was wondering, can you talk more about what's the breakthrough in technology that you were able to achieve here? Then also, when we think about fighting low-cost drone swarms, what's the role for this kind of equipment and how is Elbit positioned?

Speaker #3: Now , from a technical point of view , it's it's not an easy task . You need to monitor the elements and you need to , while moving , you need to lock yourself on a target and be very way .

Speaker #1: I was wondering, can you talk more about what's the breakthrough in technology that you were able to achieve here? And then also, when we think about, fighting, low-cost drone swarms, what's the role for, for this kind of equipment?

Speaker #3: But we were able to overcome all the minimal . And we were able to overcome all these challenges and we are very advanced in the development and when the solution will be mature and will be operational , I believe it will be a breakthrough in the way countries are defeating swarms and other type of of threats .

Speaker #1: And, how is ELBIT positioned?

Speaker #8: I would say the following. First, currently, many countries are fighting against drones and against cold missiles with air-to-air missiles. That's a very expensive fight.

Bezhalel Machlis: I would say the following. First, currently many countries are fighting against drones and against cruise missiles with LTO missiles. That's a very expensive fight, and it's not sustainable. Because of that, we thought that bringing high power laser to the air will create a new situation where actually we are becoming the asymmetric power player. And putting high power laser in the air enable us first to overcome some of the challenges of the ground, like weather, dust, and turbulence. Flying above clouds will enable us to gain more ranges and to be more effective, and also to eliminate the threats far away from our borders. Now, from a technical point of view, it's not an easy task.

Speaker #3: There is a huge demand for such solutions in the market . We are a leading player in this domain . We are controlling the entire technology in-house and we see currently a very big demand for such solutions and worldwide .

Speaker #8: and it's not sustainable. So, because of that, we thought that, bringing high-power laser to the air will create a new situation where actually we are becoming the asymmetric power player.

Speaker #3: And I believe that it will bring a a new stream of revenues and profits in the near future . And I also want to add that high power laser is not just a defensive weapon .

Speaker #8: and putting, high-power air high-power laser in the air, enable us, first, to overcome, the sum of, the sum of the challenges of the ground as like weather, and, dust, and turbulence, and so flying above clouds, will enable us to gain more ranges and to be more effective.

Speaker #3: As you can understand , it has more applications . That's that's an example . One example of unique technologies that we are developing with our R&D funds .

Speaker #3: Actually , the company is investing about more than half $1 billion in R&D on top of that , we gave more R&D from our customers .

Speaker #3: It's 6.5% of our revenues . Were invested in R&D , and we do it in order . We are we are able to predict what will be the demand in the market in the future .

Speaker #8: And also, to eliminate a straight far away from our borders. Now, from a technical point of view, it's, it's not an easy task. You need to miniature the, the, the elements, and you need to while moving, you need to lock yourself on a target, and be in a very precise way.

Bezhalel Machlis: You need to miniaturize the elements, and you need to, while moving, lock yourself on a target and in a very precise way. We were able to overcome all these challenges, and many more, and we are very advanced in the development. When the solution will be mature and will be operational, I believe it will be a breakthrough in the way countries are defeating swarm and other type of threats. There is a huge demand for such solutions in the market. We are a leading player in this domain. We are controlling the entire technology in-house. We see currently a very big demand for such solution worldwide.

Speaker #3: To understand the operational needs . We understand very well the technological opportunities we have . We are combining them both and we are coming with new technologies to the market .

Speaker #8: But we were able to overcome all the and many more. And we were able to overcome all the challenges, and we are a very advanced in the development.

Speaker #3: This is just one example . As we speak , we develop more unique solutions that will prevent you in the future

Speaker #8: And, when this solution will be mature and will be operational, I will I believe it will be a breakthrough. And the way countries are defeating swarms, and other type of, of, threats.

Speaker #2: Great . Thank you very much

Speaker #4: The next question is from Ellen Page . Jeffrey , please go ahead

Speaker #5: Hi , guys . Thanks for the question . Just on your Recent media reports about your POS system in Europe . And you also received budget approval for an order from Greece .

Speaker #8: There is a huge market. We are a leading player in this domain. We are controlling the entire technology. In-house. And we see currently a very big demand for such solutions, worldwide.

Speaker #5: How do we think about the opportunity set there and what differentiates that solution relative to peers ? What makes you win

Speaker #8: And I believe that it will bring ELBIT, a new, stream of revenues and profit in, in the near future. And I also want to add that high-power laser is not just a defensive weapon.

Bezhalel Machlis: I believe that it will bring Elbit a new stream of revenues and profit in the near future. I also want to add that high power laser is not just a defensive weapon. As you can understand, it has more applications. That's an example, one example of unique technologies that we are developing with our IR&D funds. Actually, the company is investing about more than half a billion dollars in R&D. On top of that, we get more R&D from our customers. It's 6.5% of our revenues we invest in R&D. We do it in order we are able to predict what will be the demand in the market in the future, we understand the operational needs, we understand very well the technological opportunities we have.

Speaker #3: First , I want to say that with regards to the Greek opportunity , it's not a contract yet . It didn't receive it yet .

Speaker #8: And as you can understand, it has more applications. That's an ad, that's an example. One example of unique technologies that we are developing with our IR&D funds.

Speaker #3: It was approved by the Parliament and we hope to get the contract soon . But it's not yet in our backlog . It's a big contract that we hope to get soon .

Speaker #3: The same is true also in Germany . We got an initial contract in Germany for small quantity and and it is not yet a full production in Germany .

Speaker #8: Actually, the company is investing about more than half a billion dollar in IR&D. On top of that, we get more R&D from our customers.

Speaker #8: It's 6.5% of our revenues we invest in, in IR&D. And, and we do it in order we are we are able to predict what will be the demands in the market in the future.

Speaker #3: That's a potential that we believe that will mature in the future . But is not yet in our in our in our backlog , we have A very unique solution .

Speaker #8: We understand the operational needs. We understand we understand very well the technological opportunities we have. We are combining them both, and we are coming with new technologies to the market.

Speaker #3: First , we are we have this . It's a generic launcher which is able to fire different types of missiles for different ranges with different capabilities , which includes rotary ammunition as well .

Bezhalel Machlis: We are combining them both, and we are coming with new technology to the market. This is just one example. As we speak, we develop more unique solutions that we'll present to you in the future.

Speaker #8: This is just one example. As we speak, we develop more unique solutions that will present to you in the future.

Speaker #1: Great. Thank you very much. The next question is from Alan Page on Gatorade. Please go ahead.

Kristine Liwag: Great. Thank you very much.

Speaker #3: In short , to very long ranges . With different kinds of guidance solutions , all coming from Elbit . And it's an open architecture for other solutions which are available with our customers , can be implemented as well .

Operator 2: The next question is from Ellen Page of Jefferies. Please go ahead.

Operator: The next question is from Ellen Page of Jefferies. Please go ahead.

Speaker #9: Hi, guys. Thanks for the question. Just on your recent media reports about your Pulse system in Europe, and you also received budget approval for an order from Greece—how do we think about the opportunity set there?

Ellen Page: Hi, guys. Thanks for the question. Just on your recent media reports about your PULS system in Europe, and you also received budget approval for an order from Greece. How do we think about the opportunity set there? What differentiates that solution relative to peers? What makes you win?

Speaker #3: On top of that , and not only that , we have A partnership agreements with RDS and we deal in Germany and with other partners in Europe to continue to develop and to produce fully this solutions and the rocket in Europe , in Europe , and we call it Europass .

Speaker #9: And what differentiates that solution relative to peers? what makes you win?

Speaker #8: First, I want to say that, with regards to the G-Greek opportunity, it's not a contract yet. We didn't receive it yet. It was approved by the parliament, and we hope to get the contract soon.

Bezhalel Machlis: First, I want to say that with regards to the Greek opportunity, it's not a contract yet. We didn't receive it yet. It was approved by the Parliament, and we hope to get the contract soon, but it's not yet in our backlog. It's a big contract that we hope to get soon. The same is true also in Germany. We got an initial contract in Germany for small quantity and it is not yet a full production. In Germany, that's a potential that we believe that will mature in the future, but it's not yet in our backlog. We have a very unique solution.

Speaker #3: It's in European solution that was tailored for the unique requirements of the modern battlefield is unique to the conclusions from the war between Russia and Ukraine and it's operational already by many countries in Europe .

Speaker #8: But it's not yet in our backlog. It's a big contract that we hope to get soon. The same is true also in Germany. We got an initial contract in Germany for a small quantity.

Speaker #8: And, and it is not yet a full production. In Germany, that's a potential that we believe that will mature in the future. But it is not yet in our in, in our in our backlog.

Speaker #3: It was acquired by the Danish forces , by the Dutch and by many other countries , not just in Europe . And we believe that the that the leading solution , which is available currently in the market and we continue to develop it .

Speaker #8: We have a very unique solution. First, we have this generic launcher, which is able to fire different types of missiles for different ranges with different capabilities.

Speaker #3: And you will hear more about this product and about the system in the future

Bezhalel Machlis: First, we have this. It's a generic launcher which is able to fire different type of missiles for different ranges, with different capabilities, which includes launching ammunition as well, from short ranges to very long ranges, with different kind of guidance solutions, all coming from Elbit. It's an open architecture, so other solutions which are available with our customers can be implemented as well on top of the same launcher. Not only that, we have joint venture partnership agreements with KNDS and with Diehl in Germany, and with other partners in Europe to continue to develop and to produce fully this solution, the launcher and the rockets, in Europe. It's in Europe, and we call it EuroPULS.

Speaker #5: Great . Thank you . And if I can just sneak in one more profitability was very strong at 9.8 in the quarter and expanded across most segments except for CFO for ISR .

Speaker #8: which includes loading munition as well. From short ranges to very long ranges. With different kinds of guidance solutions, all coming from ELBIT. And it's an open architecture, so other solutions which are available with our customers can be implemented as well on top of the same launcher.

Speaker #5: How are you thinking about the moving pieces to margins from here ? Across the different segments ? Where is there more room for expansion and where could there be pressure

Speaker #1: Hi , Ellen , this is Kobi . Thank you for the question . We see an expansion in margins now for the fourth consecutive year .

Speaker #8: Not only that, we have a joint venture, a partnership agreement with KNDS and with DILL in Germany. And with other partners in Europe, to continue to develop and to produce fully this solution, the launcher and the rockets, in Europe.

Speaker #1: And we were very we we we are very happy with this result . It's an expansion of nearly a percent annually . And this is a trend that we see now .

Speaker #1: And we believe will go the extension in margins will continue as we have the operational leverage with the very strong growth of revenues .

Speaker #8: So it's a new and we call it Europuls. It's a European solution. that was tailored for the unique requirement of the modern battlefield to the unique to the conclusions from the war with the in, between Russia and Ukraine, and, its operational ready, by many countries, in Europe.

Bezhalel Machlis: It's a European solution that was tailored for the unique requirements of the modern battlefield to the conclusion from the war between Russia and Ukraine. It's operational already by many countries in Europe. It was acquired by the Danish forces, by the Dutch, and by many other countries, not just in Europe. We believe that's the leading solution which is available currently in the market. We continue to develop it. You will hear more about this product and about this system in the future.

Speaker #1: And with with the stronger , the stronger pipeline and backlog , profitability , which turns into stronger profitability . And we believe this , this will continue to the future .

Speaker #1: And as I mentioned earlier , with with the self-funded R&D , additional self-funded R&D that we're going to invest and we're going to continue increasing the self-funded R&D in the future , we'll not harm the will , not will not harm the line .

Speaker #8: It was acquired by the Danish forces. By the Dutch and by many other countries, not just in Europe. And we believe that the li that's the leading solution which is available currently in the market.

Speaker #8: And we continue to develop it. And, you will hear more about this future.

Speaker #1: We will still maintain growth also in the in the OP level and also on the EPS level

Speaker #9: Great. Thank you. And if I can just sneak in one more, profitability was very strong at, 9.8 in the quarter, and con expanded across most segments except for CF4 ISR.

Ellen Page: Great. Thank you. If I can just sneak in one more. Profitability was very strong at 9.8 in the quarter and expanded across most segments, except for C4ISR. How are you thinking about the moving pieces to margins from here across the different segments? Where is there more room for expansion, and where could there be pressure?

Speaker #5: Great . Thank you .

Speaker #1: Thank you Aylin .

Speaker #4: Is there any additional questions , please press star one if you wish to cancel your request , please press star two . Please stand by or call for more questions There are no further questions at this time .

Speaker #9: How are you thinking about the moving, pieces to margins from here and across the different segments, where is there more room for expansion and where could there be pressure?

Speaker #4: Before I ask Mr. Morris to go ahead with the closing statement , I would like to remind participants a replay of this call will be available two hours after the conference rooms in the US .

Speaker #8: Hi, Alan. This is Kobe. Thank you for the question. We see an expansion in margins now for the fourth, consecutive year. And, we were very, we, we, we, we are very happy with this result.

Kobi Lavi: Hi, Ellen Page. This is Kobi Lavi. Thank you for the question. We see an expansion in margins now for the fourth consecutive year. We are very happy with this result. It's an expansion of nearly percent annually. This is a trend that we see now, and we believe the expansion in margins will continue as we have the operational leverage with the very strong growth of revenues and with the stronger pipeline and backlog profitability, which turns into stronger profitability. We believe this will continue to the future.

Yaacov Kagan: Hi, Ellen Page. This is Kobi Lavi. Thank you for the question. We see an expansion in margins now for the fourth consecutive year. We are very happy with this result. It's an expansion of nearly percent annually. This is a trend that we see now, and we believe the expansion in margins will continue as we have the operational leverage with the very strong growth of revenues and with the stronger pipeline and backlog profitability, which turns into stronger profitability. We believe this will continue to the future.

Speaker #4: Please call 1-888-782-4291 in Israel . Please call 039255900 and internationally , please call 97239255900 . A replay of the call will also be available on the company's website .

Speaker #8: it's an expansion of nearly, a percent annually. And, this is a trend that we see, now. And we believe will go up, the expansion in margins will continue as we have, the operational leverage with the very strong, growth of revenues.

Speaker #4: W w systems.com . Mr. McAuliffe , would you like to conclude this statement ?

Speaker #8: And, with, with the stronger, the stronger pipeline and, backlog, profitability, which, turns into, stronger profitability. And, we believe this, this will continue to the future.

Speaker #3: One on the call ? Thank you for joining us today and for your continued support and interest in our company . Have a good day and goodbye .

Speaker #8: And as Buzzi mentioned earlier, with, with the self-funded R&D, additional self-funded R&D that we're going, to invest and we're going to continue increasing the self-funded R&D in the future, will not, harm the will not will not harm the, the bottom line.

Kobi Lavi: As Bezhalel Machlis mentioned earlier, with the self-funded R&D, additional self-funded R&D that we're going to invest and we're going to continue increasing the self-funded R&D in the future, will not harm the bottom line. We will still maintain growth also in the OP level and also on the EPS level.

Yaacov Kagan: As Bezhalel Machlis mentioned earlier, with the self-funded R&D, additional self-funded R&D that we're going to invest and we're going to continue increasing the self-funded R&D in the future, will not harm the bottom line. We will still maintain growth also in the OP level and also on the EPS level.

Speaker #8: We will still maintain growth also in the OP level and, level.

Speaker #9: Great. Thank you.

Ellen Page: Great. Thank you.

Speaker #8: Thank you, Alan.

Kobi Lavi: Thank you, Ellen.

Yaacov Kagan: Thank you, Ellen.

Speaker #1: Is there any additional questions? Please press star one. If you wish to cancel your request, please press star two. Please stand by while we pull for more questions.

Operator 2: If there are any additional questions, please press star one. If you wish to cancel your request, please press star two. Please stand by while we pull for more questions. There are no further questions at this time. Before I ask Mr. Machlis to go ahead with his closing statement, I would like to remind participants 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 on the company's website, www.elbitsystems.com. Mr. Machlis, would you like to make a concluding statement?

Operator: If there are any additional questions, please press star one. If you wish to cancel your request, please press star two. Please stand by while we pull for more questions. There are no further questions at this time. Before I ask Mr. Machlis to go ahead with his closing statement, I would like to remind participants 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 on the company's website, www.elbitsystems.com. Mr. Machlis, would you like to make a concluding statement?

Speaker #1: There are no further questions at this time. Before I ask Mr. Machlis 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.

Speaker #1: In the U.S., please call 1-888-782-4291. In Israel, please call 03-925-5900. And internationally, please call +972-3-925-5900. A replay of the call will also be available on the company's website, www.elbitsystems.com.

Speaker #1: Mr. Machlis, would you like to make a concluding statement?

Bezhalel Machlis: To everyone on the call, thank you for joining us today and for your continued support and interest in our company. Have a good day and goodbye.

Speaker #10: To everyone on the call, thank you for joining us today. And for your continued support and interest in our company. Have a good day and goodbye.

Speaker #1: Thank you. This concludes the ELBIT SYSTEMS LTD fourth quarter 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.

Operator 2: Thank you. This concludes the Elbit Systems Ltd.'s Q4 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.

Operator: Thank you. This concludes the Elbit Systems Ltd.'s Q4 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.

Q4 2025 Elbit Systems Ltd Earnings Call

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