Elbit Systems has announced impressive second-quarter results for the year, reflecting a robust year-over-year growth driven by heightened demand for its defense electronics products and services. The Israeli company reported adjusted earnings of $2.08 per share for the June quarter, a significant increase from the $1.65 per share seen in the same period last year.
Revenue surged to $1.63 billion, up from $1.45 billion reported in the prior year. Analysts had forecasted normalized EPS and revenue to be at $1.77 and $1.57 billion, respectively, according to a Capital IQ poll. 'Elbit Systems demonstrated a 12% year-over-year increase in revenues in the second quarter,' said Chief Executive Bezhalel Machlis in a statement.
'Our long-term investments in technologies, research and development, in collaboration with our key customers, and the expansion of our manufacturing capabilities, enable us to meet our commitments to our customers and to drive the continued growth and focus on profitability.' Breaking down the performance across its various segments, the company noted a significant uplift in the command, control, communications, computers, intelligence surveillance, reconnaissance, and cyber business area, which saw revenues increase by 11% year-over-year to $187.7 million, primarily due to strong sales in radio systems.
Conversely, the aerospace segment experienced a slight decline, with revenues dropping to $481.2 million compared to $487 million in the same quarter last year. The land segment, however, showcased a substantial growth of 37%, rising to $402.7 million, thanks to successful ammunition and munition sales within Israel.
Other key segments, including intelligence, surveillance, target acquisition, reconnaissance, and electronic warfare, reported a revenue increase of 9% to $318.8 million. Furthermore, the Elbit Systems of America division saw a commendable climb of 11% to reach $392.9 million. Operating expenses for the quarter also rose to $273.2 million from $270.6 million in the previous year, indicating the company's commitment to expanding its operations amid increasing revenues. As of the end of June, Elbit's backlog stood at an impressive $21.1 billion, with approximately 69% comprised of orders sourced from outside of Israel.
About 43% of this backlog is expected to be fulfilled throughout the remainder of 2024 and into 2025, setting a solid foundation for future growth..