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Elbit Systems Ltd (ESLT) Q4 2024 Earnings Call Highlights: Record Revenue and Strong Global Demand

In This Article:

  • Revenue: Fourth-quarter 2024 revenue increased by 19% to $1.930 billion; full-year 2024 revenue increased by 14% to $6.828 billion.

  • Segment Revenue Growth: Aerospace revenue increased by 27%; C4I and Cyber by 7%; ISTAR and EW by 8%; Land by 29%; Elbit Systems South America by 6%.

  • Non-GAAP Gross Margin: Fourth-quarter 2024 at 24.5%; full-year 2024 at 24.5%.

  • GAAP Gross Margin: Fourth-quarter 2024 at 24.1%; full-year 2024 at 24%.

  • Non-GAAP Operating Income: Fourth-quarter 2024 at $157.5 million or 8.2% of revenues; full-year 2024 at $550 million or 8.1% of revenues.

  • GAAP Operating Income: Fourth-quarter 2024 at $141.4 million or 7.3% of revenues; full-year 2024 at $489 million or 7.2% of revenues.

  • Net R&D Expenses: $456 million or 6.8% of revenues in 2024.

  • Marketing and Selling Expenses: $375 million or 5.5% of revenues in 2024.

  • G&A Expenses: $311 million or 4.6% of revenues in 2024.

  • Financial Expenses: $151 million in 2024.

  • Effective Tax Rate: 11.4% in 2024.

  • Non-GAAP Diluted EPS: $2.66 in Q4 2024; $8.76 for full-year 2024.

  • GAAP Diluted EPS: $2 in Q4 2024; $7.18 for full-year 2024.

  • Backlog of Orders: $22.6 billion as of December 31, 2024.

  • Net Cash Flow from Operating Activities: $535 million for the year ended December 31, 2024.

  • Free Cash Flow: $320 million delivered in 2024.

  • Dividend: $0.60 per share declared by the Board of Directors.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Elbit Systems Ltd (NASDAQ:ESLT) reported a 19% increase in fourth-quarter revenues, reaching $1.930 billion compared to $1.626 billion in the same quarter of 2023.

  • The company's backlog of orders reached a record $22.6 billion, with 65% generated from outside Israel, indicating strong international demand.

  • Elbit Systems Ltd (NASDAQ:ESLT) achieved a non-GAAP diluted EPS of $2.66 in Q4 2024, a significant increase from $1.56 in Q4 2023.

  • Free cash flow generation was strong at $320 million for 2024, supported by $535 million in net cash flow from operating activities.

  • The company continues to expand its production capacity, with new facilities in Israel and Europe, to meet growing demand for its products and solutions.

Negative Points

  • The non-GAAP gross margin for the fourth quarter decreased to 24.5% from 25.3% in Q4 2023, indicating a slight decline in profitability.

  • GAAP gross margin for the full year 2024 was 24%, down from 24.8% in 2023, reflecting ongoing margin pressures.

  • Financial expenses increased to $151 million in 2024 from $137 million in 2023, primarily due to factoring expenses.

  • The effective tax rate rose to 11.4% in 2024 from 10.1% in 2023, impacting net income.

  • Marketing and selling expenses increased to $375 million in 2024, up from $359 million in 2023, which could pressure operating margins.