Elbit Systems Awarded Approximately $200 Million Contract by the Israeli MOD to Supply High-Power Laser for the "Iron Beam" Air Defense System

Rhea-AI Summary

Elbit Systems (NASDAQ: ESLT) has secured a $200 million contract from the Israeli Ministry of Defense to supply high-power laser systems for the 'Iron Beam' air defense system. The contract includes the provision of ongoing support services. The company's high-power laser solution is designed to provide robust defense against various threats. Elbit Systems, serving as Israel's Laser Center, highlights this development as a significant advancement in future defense capabilities.

Positive

• Secured major $200 million defense contract
• Contract includes ongoing support services revenue stream
• Strengthens position in advanced defense technology sector

Negative

• None.

Insights

Defense Technology Analyst

The $200 million contract for Iron Beam laser defense systems marks a significant milestone in Israel's air defense capabilities. This high-power laser system represents a revolutionary shift from traditional kinetic interceptors to directed-energy weapons, offering a potentially more cost-effective solution for intercepting aerial threats.

The strategic importance of this contract extends beyond its monetary value. Iron Beam's development addresses the critical need for defending against evolving threats like rockets, UAVs and mortars. The system's integration into Israel's multi-layered air defense network alongside Iron Dome could substantially reduce interception costs, as laser shots are significantly cheaper than conventional interceptor missiles.

For Elbit Systems, this contract strengthens its position in the advanced defense technology sector and could lead to additional international sales opportunities as other nations seek cost-effective air defense solutions. The company's designation as Israel's Laser Center validates its technological leadership in this emerging field.

Financial Analyst

This contract represents a substantial revenue boost for Elbit Systems, accounting for approximately 2.15% of its market capitalization. The deal's significance extends beyond immediate financial impact, potentially opening doors to a new market segment in directed-energy weapons systems. With ongoing support services included, this creates a valuable recurring revenue stream.

The timing is particularly strategic given the current global focus on advanced air defense systems. This breakthrough could position Elbit for similar contracts in other markets, especially among NATO allies and countries facing similar aerial threats. The company's proven expertise in laser technology could drive long-term growth in this emerging defense sector, potentially leading to increased valuations and market multiples.

HAIFA, Israel, Oct. 28, 2024 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that it was awarded an approximately $200 million contract by the Israeli Ministry of Defense (IMOD) to supply high-power laser systems for the "Iron Beam" air defense system.

Under the contract, Elbit Systems will supply the IMOD, under the "Iron Beam" project, its high-power laser solution, developed by the Company to provide a robust defense against a variety of threats. Additionally, the contract includes ongoing support services.

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "As Israel's Laser Center and a global leader in high-power laser technology, Elbit Systems congratulates on the significant progress made in the "Iron Beam" project and is proud of its contribution to its success. The capabilities developed at Elbit Systems represent a leap forward in future defense against various threats."

About Elbit Systems

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported as of June 30, 2024, approximately $1.6 billion in revenues and an order backlog of approximately $21.1 billion.

For additional information, visit: https://elbitsystems.com, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn Channels.

Company Contact:   
Dr. Yaacov (Kobi) Kagan, Executive VP - CFO
Tel:  +972-77-2946663
kobi.kagan@elbitsystems.com 

Dr. David Ravia, Investor Relations
Tel: +972-77-2947169
david.ravia@elbitsystems.com

Dalia Bodinger, VP, Communication & Brand
Tel: 972-77-2947602
dalia.bodinger@elbitsystems.com

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business.  Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States, among others, including the duration and scope of the current war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies.  All other brand, product, service and process names appearing are the trademarks of their respective holders.  Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

 

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SOURCE Elbit Systems Ltd.

FAQ

What is the value of Elbit Systems' (ESLT) Iron Beam contract with Israeli MOD?

Elbit Systems (ESLT) was awarded an approximately $200 million contract by the Israeli Ministry of Defense for the Iron Beam air defense system.

What will Elbit Systems (ESLT) supply under the Iron Beam contract?

Under the contract, Elbit Systems will supply high-power laser systems and ongoing support services for the Iron Beam air defense system.

When did Elbit Systems (ESLT) announce the Iron Beam contract?

Elbit Systems announced the Iron Beam contract on October 28, 2024.