Elbit Q4 profit dips, sees growing global defense budgets

Israeli defense electronics firm Elbit Systems (ESLT.TA), reported lower quarterly profit, weighed down by higher expenses that offset a rise in revenue, and said it sought to capitalize on growing defense budgets worldwide.

The company, one of Israel's largest defense contractors, said on Tuesday it earned $1.68 per diluted share excluding one-time items in the fourth quarter of 2022, compared with $2.14 per share the previous year. Revenue rose to $1.51 billion from $1.49 billion.

It said financial expenses rose due to higher interest rates, while it also recorded expenses from a revaluation in holdings of affiliated companies and in costs to pension plans.

Elbit's board said the company would pay a dividend of 50 cents per share for the fourth quarter, the same as in the third quarter, to be paid on May 1.

Its backlog of orders reached $15.1 billion at the end of 2022, up from $13.7 billion in 2021. About 75% of that comes from orders outside Israel, and some 60% is due in 2023 and 2024.

"A healthy business environment and growing demand for Elbit Systems' portfolio of leading technological capabilities resulted in a record order backlog," said CEO Bezhalel Machlis, noting Elbit also boosted business development efforts due to "the significant opportunities created by growing defense budgets around the world."

He added that Elbit's 2022 financial results also reflected global supply chain disruptions and labor cost inflation.

 

Reuters