Elbit Systems Ltd (NASDAQ:ESLT) stock fell 3.99% (As on November 19, 11:57:03 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that significantly exceeded analyst expectations, driven by surging global defense demand amid ongoing Middle East conflicts. Elbit’s order backlog reached a record $25.2 billion, providing strong visibility for future growth. The increase in backlog during the quarter came mainly from new European orders. The company reported that approximately 69% of its current backlog comes from orders outside Israel, with 38% scheduled for delivery during the remainder of 2025 and 2026. Cash flow provided by operating activities in the nine months ended September 30, 2025 was $461.0 million, as compared to $82.5 million in the nine months ended September 30, 2024.

Moreover, Aerospace revenues decreased by 3% in the third quarter of 2025, as compared to the third quarter of 2024, mainly due to the decrease in Precision Guided Munition (PGM) sales in Asia Pacific, partially offset by the increase in PGM sales in Israel. C4I and Cyber revenues increased by 14%, mainly due to radio systems and command and control systems sales in Europe. ISTAR and EW revenues increased by 5%, mainly due to Electro-Optic systems and Electronic Warfare systems sales in Israel. Land revenues increased by 41%, mainly due to ammunition and munition sales in Israel and Europe. Elbit Systems of America revenues decreased by 2%, mainly due to the decrease in Electronic systems and medical instrumentation sales, partially offset by the increase in Maritime and in Warfighters systems sales.

ESLT in the third quarter of FY25 has reported the adjusted earnings per share of $3.35, beating the analysts’ estimates for the adjusted earnings per share of $2.48. The company had reported the adjusted revenue growth of 12 percent to $1.92 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $1.99 billion. Non-GAAP gross profit amounted to $484.3 million (25.2% of revenues) in the third quarter of 2025, as compared to $419.4 million (24.4% of revenues) in the third quarter of 2024. Non-GAAP operating income was $186.7 million (9.7% of revenues) in the third quarter of 2025, as compared to $140.7 million (8.2% of revenues) in the third quarter of 2024. Non-GAAP net income attributable to the Company’s shareholders in the third quarter of 2025 was $159.8 million (8.3% of revenues), as compared to $98.8 million (5.8% of revenues) in the third quarter of 2024.