Elbit Systems of America subsidiary Sparton is one of Three Companies Awarded a joint Ceiling of $5.1 Billion For Modifications to an ID/IQ Contract to Supply Sonobuoy Capabilities to the U.S. Navy

Rhea-AI Summary

Elbit Systems Ltd (NASDAQ: ESLT) announced that its subsidiary, Sparton De Leon Springs LLC, along with two other companies, received an estimated aggregate joint ceiling of $5.1 billion for modifications to a previous indefinite-delivery/indefinite-quantity (ID/IQ) contract to supply sonobuoy capabilities to the U.S. Navy. No funds were obligated at the time of the award, and individual orders will dictate when funds are allocated. The award emphasizes competitive opportunities, but there's uncertainty regarding the timing and value of future orders.

Positive

• Awarded a joint ceiling of $5.1 billion for sonobuoy capabilities, enhancing growth potential.
• Opportunity to compete for individual orders under the ID/IQ contract.

Negative

• No funds were obligated at the time of the award, indicating uncertainty in cash flow.
• Uncertainty regarding the timing and allocation of future orders may affect revenue predictions.

HAIFA, Israel, Oct. 27, 2022 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems") announced today that Sparton De Leon Springs LLC, a subsidiary of Elbit Systems of America LLC, together with two other companies, were awarded an estimated aggregate joint ceiling of $5.1 billion for firm-fixed-price modifications to a previously awarded indefinite-delivery/indefinite-quantity (ID/IQ) contract to supply sonobuoy capabilities to the U.S. Navy. According to the U.S Department of Defense, no funds were obligated at the time of award. The companies have an opportunity to compete for individual orders and funds will be obligated on individual orders as they are issued.

It is clarified that the aforementioned ID/IQ is a frame agreement with a joint potential maximum ceiling for all three qualified companies. There is no certainty as to the value or timing of orders to be issued under the ID/IQ or any allocation between the companies. 

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

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 
EK Global IR 
Tel: 1-212-378-8040 
elbitsystems@ekgir.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 recent contract awarded to Elbit Systems Ltd (ESLT)?

Elbit Systems Ltd's subsidiary Sparton De Leon Springs LLC, along with two other companies, was awarded a joint ceiling of $5.1 billion for modifications to a contract supplying sonobuoy capabilities to the U.S. Navy.

How much is the joint ceiling contract awarded to ESLT's subsidiary worth?

The joint ceiling contract awarded to Elbit Systems Ltd's subsidiary is worth approximately $5.1 billion.

Did Elbit Systems receive immediate funding for the awarded contract?

No, no funds were obligated at the time of the award for the contract.

What are the implications of the ID/IQ contract for ESLT?

The ID/IQ contract allows Elbit Systems and its competitors the opportunity to compete for individual orders, but there is uncertainty regarding the timing and value of these orders.