Elbit Systems of America Awarded $49 Million ID/IQ Contract to Supply Mortar Systems for the U.S. Army

Rhea-AI Summary

Elbit Systems Ltd. (NASDAQ: ESLT) announced its U.S. subsidiary, Elbit Systems of America, has secured a maximum potential $49 million Indefinite Delivery/Indefinite Quantity (ID/IQ) contract to provide 120mm mortar systems for the U.S. Army. The contract covers five years, starting with an initial delivery order of $10 million over two years. This follows a successful similar contract awarded in 2016, underscoring the company's role as a trusted defense partner.

Positive

• Awarded a maximum potential contract valued at $49 million to supply mortar systems for the U.S. Army.
• Initial delivery order of $10 million indicates immediate revenue influx.
• Follows a successful prior contract awarded in 2016, showcasing ongoing trust from the U.S. Army.

Negative

• None.

HAIFA, Israel , Sept. 12, 2022 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems") announced today that its U.S. subsidiary, Elbit Systems of America LLC, ("Elbit Systems of America"), was awarded an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with a maximum potential value of up to approximately $49 million, to provide 120mm mortar systems for the U.S. Army. The contract will be executed in Fort Worth, Texas over a period of five years. An initial delivery order of approximately $10 million has been issued under this ID/IQ contract, to be executed over a two-year period.

The contract was awarded following the successful completion of a previous contract of this type that was awarded to the company in 2016.

Raanan Horowitz, President and CEO of Elbit Systems of America, said, "Being a trusted provider of choice for critical missions and needs is part of our vision. I am honored the U.S. Army continues to value the solutions our company provides to U.S. Soldiers and we look forward to a continued partnership."

About Elbit Systems

Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios, cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems.

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

Company Contacts:

Joseph Gaspar, Senior EVP – Business Management
Tel:  +972-77-2948661
j.gaspar@elbitsystems.com

Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer
Tel:  +972-77-2946663
kobi.kagan@elbitsystems.com

Rami Myerson, Director, Investor Relations
Tel: +972-77-2948984
rami.myerson@elbitsystems.com

David Vaaknin, VP, Head of Corporate Communications
Tel: +972-77-2946691
david.vaaknin@elbitsystems.com

IR Contact:

Ehud Helft
Kenny Green
GK Investor Relations 
Tel: 1-646-201-9246
elbitsystems@gkir.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; 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 Press 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 the recent contract awarded to Elbit Systems (ESLT)?

The recent contract awarded to Elbit Systems has a maximum potential value of approximately $49 million.

How long is the contract for 120mm mortar systems with the U.S. Army?

The contract for 120mm mortar systems is set to be executed over a five-year period.

What is the initial order value from the ID/IQ contract awarded to Elbit Systems of America?

The initial delivery order from the contract is approximately $10 million.

When was the contract awarded to Elbit Systems for mortar systems?

The contract was announced on September 12, 2022.

Which subsidiary of Elbit Systems was awarded the contract for mortar systems?

The contract was awarded to Elbit Systems of America LLC, a U.S. subsidiary of Elbit Systems.