ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

Backlog of orders at $22.6 billion; Revenues of $6.8 billion; Non-GAAP net income of $392 million; GAAP net income of $321 million; Non-GAAP net EPS of $8.76; GAAP net EPS of $7.18 , /PRNewswire/ -- Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT) (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2024. In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 7 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data. Management Comment: Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: "Elbit Systems reports a solid set of annual and quarterly results today with a fourth consecutive quarter of double-digit growth in revenues and backlog year-over-year. In addition to these strong metrics Elbit Systems generated $320 million in free cash flow. The Company has secured significant contracts worldwide, with its advanced technologies achieving major successes and milestones alongside investments in R&D and production infrastructure. Our global presence and diversified portfolio position us well to capture increasing global defense budgets. I would like to thank Elbit Systems' employees and managers who are dedicated and committed to the Company's customers and business partners, and constantly striving to create significant added value in view of global security challenges." Fourth quarter 2024 results: Revenues in the fourth quarter of 2024 were $1,930.2 million, as compared to $1,625.8 million in the fourth quarter of 2023. Aerospace revenues increased by 27% in the fourth quarter of 2024, as compared to the fourth quarter of 2023 mainly due to increased UAS revenues in Israel and Europe, and increased Precision Guided Munition (PGM) revenues. C4I and Cyber revenues increased by 7% mainly due to radio systems and command and control systems sales. ISTAR and EW revenues increased by 8% mainly due to Electronic Warfare and Electro-Optic systems sales in Israel. Land revenues increased by 29% mainly due to ammunition and munition sales in Israel. Elbit Systems of America revenues increased by 6% mainly due to the increase in night-vision systems and medical instrumentation sales. For distribution of revenues by segments and geographic regions see the tables on page 14. * see page 7 Non-GAAP(*) gross profit amounted to $472.1 million (24.5% of revenues) in the fourth quarter of 2024, as compared to $411.4 million (25.3% of revenues) in the fourth quarter of 2023. GAAP gross profit in the fourth quarter of 2024 was $465.2 million (24.1% of revenues), as compared to $382.1 million (23.5% of revenues) in the fourth quarter of 2023. The increase in gross profit in the fourth quarter of 2024 was in line with the increase in the Company's activity and order backlog. Research and development expenses, net were $131.2 million (6.8% of revenues) in the fourth quarter of 2024, as compared to $117.4 million (7.2% of revenues) in the fourth quarter of 2023. Marketing and selling expenses, net were $107.2 million (5.6% of revenues) in the fourth quarter of 2024, as compared to $91.3 million (5.6% of revenues) in the fourth quarter of 2023. General and administrative expenses, net were $85.4 million (4.4% of revenues) in the fourth quarter of 2024, as compared to $105.9 million (6.5% of revenues) in the fourth quarter of 2023. General and administrative expenses in the fourth quarter of 2023 include approximately $34 million of expenses related to a write-off of an uncollectible balance of contract assets of a discontinued project. Non-GAAP(*) operating income was $157.5 million (8.2% of revenues) in the fourth quarter of 2024, as compared to $104.8 million (6.4% of revenues) in the fourth quarter of 2023. GAAP operating income in the fourth quarter of 2024 was $141.4 million (7.3% of revenues), as compared to $67.6 million (4.2% of revenues) in the fourth quarter of 2023. Financial expenses, net were $45.9 million in the fourth quarter of 2024, as compared to $45.8 million in the fourth quarter of 2023. Other expenses, net were $6.5 million in the fourth quarter of 2024, as compared to other income, net of $0.6 million in the fourth quarter of 2023. Other expenses, net in the fourth quarter of 2024 were mainly a result of revaluation of investments in affiliated companies held under the fair value method. Taxes on income in the fourth quarter of 2024 were tax expenses of $3.4 million, as compared to tax benefits of $5.0 million in the fourth quarter of 2023. The lower tax rate in 2024 and tax benefits in 2023 were related to adjustments for prior years following tax settlements in some of the Company's subsidiaries in Israel. Equity in net earnings of affiliated companies was $4.6 million in the fourth quarter of 2024, as compared to $3.0 million the fourth quarter of 2023. * see page 7 Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2024 was $119.3 million (6.2% of revenues), as compared to $69.7 million (4.3% of revenues) in the fourth quarter of 2023. GAAP net income attributable to the Company's shareholders in the fourth quarter of 2024 was $90.0 million (4.7% of revenues), as compared to $30.0 million (1.8% of revenues) in the fourth quarter of 2023. The high level of net income for the fourth quarter of 2024 was primarily driven by increased revenues. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $2.66 for the fourth quarter of 2024, as compared to $1.56 for the fourth quarter of 2023. GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2024 were $2.00, as compared to $0.67 in the fourth quarter of 2023. Full year 2024 results: Revenues for the year ended December 31, 2024 increased by 14% to $6,827.9 million from $5,974.7 million in 2023. Aerospace revenues increased by 9% in 2024 as compared to 2023, mainly due to increased UAS revenues in Israel and Europe, and increased PGM revenues, partially offset by lower training and simulation sales. C4I and Cyber revenues increased by 11% year-over-year mainly due to sales of radio systems and command and control systems. ISTAR and EW revenues increased by 12% mainly due to increased sales of Electronic Warfare and Electro-Optic systems in Israel, partially offset by lower Electro-Optic systems sales in Europe. Land revenues increased by 29% mainly due to the increase in sales of ammunition and munitions in Israel. Elbit Systems of America revenues increased by 8% mainly due to the increase in sales of night-vision systems and medical instrumentation. For distribution of revenues by segments and by geographic regions see the tables on page 14. Cost of revenues for the year ended December 31, 2024 was $5,186.1 million, as compared to $4,491.8 million in the year ended December 31, 2023. Non-GAAP(*) gross profit for the year ended December 31, 2024 was $1,671.0 million (24.5% of revenues), as compared to $1,533.9 million (25.7% of revenues) in the year ended December 31, 2023. GAAP gross profit in 2024 was $1,641.8 million (24.0% of revenues), as compared to $1,483.0 million (24.8% of revenues) in 2023. Research and development expenses, net for the year ended December 31, 2024 were $466.4 million (6.8% of revenues), as compared to $424.4 million (7.1% of revenues) in the year ended December 31, 2023. The increase in research and development expenses, net was mainly due to significant investment in expanding the Company's portfolio of PGM, as well as, increased investment in High-Power Laser. Marketing and selling expenses, net for the year ended December 31, 2024 were $375.4 million (5.5% of revenues), as compared to $359.1 million (6.0% of revenues) in the year ended December 31, 2023. * see page 7 General and administrative expenses, net for the year ended December 31, 2024 were $311.0 million (4.6% of revenues), as compared to $330.3 million (5.5% of revenues) in the year ended December 31, 2023. General and administrative expenses in 2023 include approximately $34 million of expenses related to a write-off of an uncollectible balance of contract assets of a discontinued project. Non-GAAP(*) operating income for the year ended December 31, 2024 was $550.4 million (8.1% of revenues), as compared to $448.7 million (7.5% of revenues) in the year ended December 31, 2023. GAAP operating income in 2024 was $489.1 million (7.2% of revenues), as compared to $369.1 million (6.2% of revenues) in 2023. Aerospace operating income in 2024 was $149.1 million (7.3% of Aerospace segment revenues), compared to 125.4 million (6.7% of segment revenues in 2023). The $23.7 million increase in operating income was mainly due to increased revenues and positive program mix. C4I and Cyber operating income in 2024 was $62.0 million (7.8% of C4I and Cyber segment revenues), compared to $50.7 million (7.0% of segment revenues in 2023). The $11.3 million increase in operating income was mainly due to increased revenues and positive program mix. ISTAR and EW operating income in 2024 was $96.1 million (7.3% of ISTAR and EW segment revenues), compared to $134.9 million (11.4% of segment revenues in 2023). The $38.8 million decrease in operating income was mainly due to the lower level of Electro-Optic systems revenues in Europe, partially offset by an increase in Electronic Warfare and Electro-Optic systems' revenues in Israel. Land operating income in 2024 was $150.7 million (9.0% of Land segment revenues, compared to $80.6 million (6.2% of segment revenues in 2023). The $70.1 million increase in operating income was mainly due to increased revenues, positive program mix and progress in the operational transformation of IMI. ESA operating income in 2024 was $56.2 million (3.5% of ESA segment revenues), compared to an operating loss of $4.7 million (0.3% of segment revenues in 2023). The $60.9 million increase in operating income was mainly due to increased revenues and positive program mix. For distribution of operating income by segments see the tables on page 15. Financial expenses, net for the year ended December 31, 2024 were $151.1 million, as compared to $137.8 million in the year ended December 31, 2023. The increase in financial expenses, net in 2024, was mainly due to factoring expenses related to the extension of the premises evacuation agreement. Other income, net in 2024 was $3.8 million, as compared to other expenses, net of $4.8 million in 2023. Other expenses,net in 2023, resulted mainly from revaluation of holdings in affiliated companies, and expenses related to non-service costs of pension plans. Taxes on income for the year ended December 31, 2024 were $39.1 million (effective tax rate of 11.4%), as compared to $22.9 million (effective tax rate of 10.1%) in the year ended December 31, 2023. The tax expenses in 2024 and 2023 were affected by tax benefits related to adjustments for prior years following tax settlements in some of the Company's subsidiaries in Israel. Equity in net earnings of affiliated companies for the year ended December 31, 2024 were $19.2 million, as compared to $12.3 million in the year ended December 31, 2023. * see page 7 Non-GAAP(*) net income attributable to the Company's shareholders for the year ended December 31, 2024 was $391.5 million (5.7% of revenues), as compared to $298.8 million (5.0% of revenues) in the year ended December 31, 2023. GAAP net income attributable to the Company's shareholders in the year ended December 31, 2024 was $321.1 million (4.7% of revenues), as compared to $215.1 million (3.6% of revenues) in the year ended December 31, 2023. The higher level of net income in 2024 was mainly due to the increase in revenues. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders for the year ended December 31, 2024 were $8.76, as compared to $6.70 for the year ended December 31, 2023. GAAP diluted net earnings per share attributable to the Company's shareholders in the year ended December 31, 2024 were $7.18, as compared to $4.82 in the year ended December 31, 2023. Backlog of orders for the year ended December 31, 2024 totaled $22.6 billion, as compared to $17.8 billion as of December 31, 2023. Approximately 65% of the current backlog is attributable to orders from outside of Israel. Approximately 57% of the current backlog is scheduled to be performed during 2025 and 2026. Net cash provided by operating activities in the year ended December 31, 2024 was $534.6 million, as compared to $113.7 million in the year ended December 31, 2023. Operating cashflows in 2024 were affected mainly by the increase in contract liabilities offset by the increase in inventories and trade receivables. * see page 7 Impact of the "Swords of Iron" War on the Company: On October 7, 2023, Hamas terrorists infiltrated Israel's southern border from the Gaza Strip and conducted a series of brutal attacks on civilian and military targets. Hamas and soon thereafter Hezbollah, operating from Lebanon, launched extensive rocket attacks on the Israeli population and industrial centers, including areas in which some of Elbit's facilities and employees were located. Following the October 7 attacks, the State of Israel declared a state of war, which it called "Swords of Iron", commencing a military campaign in Gaza and, at a later stage, in Lebanon. Israel was also subject to missile and drone attacks by Iran and other terrorist organizations on different fronts, including the Houthi movement from Yemen and rebel militia groups in Syria. These attacks prompted military responses by Israel. In addition, the Houthi movement launched attacks on shipping in the Red Sea, resulting in widespread rerouting of cargo ships and some shipping companies ceasing shipments to Israel. The current situation is complex, with a temporary ceasefire agreed to between Israel and Lebanon at the end of November 2024 and a separate temporary ceasefire declared with Hamas in January 2025. The results of both ceasefires are uncertain. Since the commencement of the war, Elbit Systems has experienced a material increased demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. The Company has also increased its support to the IMOD, mainly through deliveries of its various systems and the dedicated efforts of its employees. At the same time, the Company and its subsidiaries around the world continued to conduct their business in international markets. During 2024, the Company was awarded contracts by the IMOD totaling over $5 billion. Subject to further developments, which are difficult to predict, the IMOD's increased demand for the Company's products and solutions may continue and could generate material additional orders to the Company. While the vast majority of the Company's facilities in Israel continue to operate uninterrupted, some of Elbit's operations have experienced disruptions due to supply chain and operational constraints, including among others due to the temporary evacuation of employees working at facilities subject to missile attack, significant employee call up for reserve duty, increase in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages, limitations imposed by some countries on exports to Israel and attacks on some of Elbit's global facilities by anti-Israeli organizations. Elbit Systems has taken a number of steps to protect the safety and security of its employees in Israel and abroad, to support increased production, mitigate existing and potential supply chain disruptions and to maintain business continuity, including the relocation of certain production lines from facilities in evacuated areas to alternative facilities, recruitment of additional employees, increased monitoring of global supply chains to identify delays, shortages and bottlenecks, rescheduling deliveries to certain customers as necessary, and increased inventories. As of March 6, 2025, most relocated production lines have returned to their original locations, most employees evacuated from facilities subject to attacks have returned to their original locations and the percentage of employees called up for reserve duty has declined from approximately 5% on December 31, 2024 to approximately 4%. This rate could fluctuate depending on future developments. The extent of the effects of the war on the Company's performance will depend on future developments that are difficult to predict at this time, including its duration and scope. We continue to monitor the situation closely. * Non-GAAP financial data: The following non-GAAP financial data, including adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, uncompensated costs related to "Swords of Iron" war, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. We present these non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods. Specifically, management uses adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year. We believe adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data. Management uses adjusted diluted earnings per share to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods. We believe adjusted diluted earnings per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis. The non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data: (US Dollars in millions, except for per share amounts) Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 GAAP gross profit $ 465.2 $ 382.1 $ 1,641.8 $ 1,483.0 Adjustments: Amortization of purchased intangible assets(*) 4.1 7.1 18.9 27.3 Restructuring of a subsidiary's activities — 17.5 — 17.5 Stock-based compensation 0.9 0.4 2.4 1.8 Uncompensated labor costs related to "Swords of Iron" war 1.9 4.3 7.9 4.3 Non-GAAP gross profit $ 472.1 $ 411.4 $ 1,671.0 $ 1,533.9 Percent of revenues 24.5 % 25.3 % 24.5 % 25.7 % GAAP operating income $ 141.4 $ 67.6 $ 489.1 $ 369.1 Adjustments: Amortization of purchased intangible assets(*) 7.7 11.2 34.2 43.9 Restructuring of a subsidiary's activities — 17.5 — 17.5 Stock-based compensation 5.7 2.4 15.8 12.1 Uncompensated labor costs related to "Swords of Iron" war 2.7 6.1 11.3 6.1 Non-GAAP operating income $ 157.5 $ 104.8 $ 550.4 $ 448.7 Percent of revenues 8.2 % 6.4 % 8.1 % 7.5 % GAAP net income attributable to Elbit Systems' shareholders $ 90.0 $ 30.0 $ 321.1 $ 215.1 Adjustments: Amortization of purchased intangible assets(*) 7.7 11.2 34.2 43.9 Restructuring of a subsidiary's activities — 17.5 — 17.5 Stock-based compensation 5.7 2.4 15.8 12.1 Capital gain — — (2.0) — Revaluation of investments measured under fair value method 12.0 3.0 19.4 3.0 Non-operating foreign exchange (gains) losses 3.6 6.2 (0.6) 12.0 Uncompensated labor costs related to "Swords of Iron" war 2.7 6.1 11.3 6.1 Tax effect and other tax items, net (2.4) (6.7) (7.7) (10.9) Non-GAAP net income attributable to Elbit Systems' shareholders $ 119.3 $ 69.7 $ 391.5 $ 298.8 Percent of revenues 6.2 % 4.3 % 5.7 % 5.0 % GAAP diluted net EPS $ 2.00 $ 0.67 $ 7.18 $ 4.82 Adjustments, net 0.66 0.89 1.58 1.88 Non-GAAP diluted net EPS $ 2.66 $ 1.56 $ 8.76 $ 6.70 (*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation. Dividend: The Board of Directors declared a dividend of $0.60 per share. The dividend's record date is April 22, 2025. The dividend will be paid on May 5, 2025, after deduction of taxes at the source, at the rate of 16.8%. Conference Call: The Company will be hosting a conference call today, Tuesday, March 18, 2025, at 10:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions. To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number. US Dial-in Number: 1-866-744-5399Canada Dial-in Number: 1-866-485-2399Israel Dial-in Number: 03-918- 0644International Dial-in Number: 972-3- 918- 0644 at 10:00am Eastern Time; 7:00am Pacific Time; 4:00pm Israel Time The conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends. Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International). Investor conference Starting at 10:00 am Israel time (4:00 am Eastern Time) Tuesday, March 18, 2025, Elbit Systems will host an investor conference in Israel. The event will be streamed live in Hebrew. A recording of the event will be available shortly after the event concludes. The live webcast and recording will be available in the Investor Relations section of Elbit Systems' website at http://www.elbitsystems.com. Investors that wish to ask questions related to topics discussed at the investor conference are welcome to present their questions during the Q&A part of the financial results conference call. Annual Report The Company's Annual Report on Form 20-F (including its financial statements for the fiscal year ended December 31, 2024) will be filed on March 20, 2025. 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 approximately 20,000 people in dozens of countries across five continents. As of December 31, 2024, the Company reported $6.8 billion in revenues and an order backlog of $22.6 billion. For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn channels. Attachments: Consolidated balance sheetsConsolidated statements of incomeConsolidated statements of cash flowsConsolidated revenue distribution by geographical regions and by segmentsConsolidated operating income by segments Company Contact: Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer Tel: +972-77-2946663 [email protected] Daniella Finn, VP, Investor Relations Tel: +972-77-2948984 [email protected] Dalia Bodinger, VP, Communications & Brand Tel: +972-77-2947602 [email protected] 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 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. (FINANCIAL TABLES TO FOLLOW) ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousands of US Dollar) As of December 31, 2024 As of December 31, 2023 Assets Cash and cash equivalents $ 265,351 $ 197,429 Short-term bank deposits 1,330 10,518 Trade and unbilled receivables and contract assets, net 2,942,886 2,716,762 Other receivables and prepaid expenses 371,918 285,352 Inventories, net 2,773,696 2,298,019 Total current assets 6,355,181 5,508,080 Investments in affiliated and other companies 126,007 145,350 Long-term trade and unbilled receivables and contract assets 516,299 364,719 Long-term bank deposits and other receivables 67,510 87,648 Deferred income taxes, net 34,064 23,423 Severance pay fund 223,167 206,943 Total 967,047 828,083 Operating lease right of use assets 527,075 425,884 Property, plant and equipment, net 1,276,948 1,087,950 Goodwill and other intangible assets, net 1,845,345 1,889,585 Total assets $ 10,971,596 $ 9,739,582 Liabilities and Equity Short-term credit and loans $ 450,856 $ 576,594 Current maturities of long-term loans and Series B, C and D Notes 74,561 75,286 Operating lease liabilities 84,912 67,390 Trade payables 1,343,816 1,254,126 Other payables and accrued expenses 1,207,717 1,194,347 Contract liabilities 2,149,306 1,656,103 Total 5,311,168 4,823,846 Long-term loans, net of current maturities 27,395 41,227 Series B, C and D Notes, net of current maturities 278,529 342,847 Employee benefit liabilities 454,334 510,416 Deferred income taxes and tax liabilities, net 73,916 55,240 Contract liabilities 816,796 354,319 Operating lease liabilities 454,057 363,100 Other long-term liabilities 274,421 298,296 Total 2,379,448 1,965,445 Elbit Systems Ltd.'s equity 3,277,540 2,947,503 Non-controlling interests 3,440 2,788 Total equity 3,280,980 2,950,291 Total liabilities and equity $ 10,971,596 $ 9,739,582 ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousands of US Dollars, except per share data) Year ended December 31, 2024 Year ended December 31, 2023 Three months ended December 31, 2024 Three monthsended December 31, 2023 Revenues $ 6,827,871 $ 5,974,744 $ 1,930,216 $ 1,625,794 Cost of revenues 5,186,051 4,491,790 1,465,015 1,243,685 Gross profit 1,641,820 1,482,954 465,201 382,109 Operating expenses: Research and development, net 466,402 424,420 131,192 117,355 Marketing and selling, net 375,358 359,141 107,214 91,296 General and administrative, net 311,007 330,285 85,399 105,879 Total operating expenses 1,152,767 1,113,846 323,805 314,530 Operating income 489,053 369,108 141,396 67,579 Financial expenses, net (151,125) (137,827) (45,906) (45,836) Other income (expense), net 3,818 (4,787) (6,452) 588 Income before income taxes 341,746 226,494 89,038 22,331 Taxes on income (39,058) (22,913) (3,368) 5,045 Income after taxes on income 302,688 203,581 85,670 27,376 Equity in net earnings of affiliated companies 19,176 12,275 4,551 3,028 Net income $ 321,864 $ 215,856 $ 90,221 $ 30,404 Less: net income attributable to non-controlling interests (726) (725) (228) (394) Net income attributable to Elbit Systems Ltd.'s shareholders $ 321,138 $ 215,131 $ 89,993 $ 30,010 Earnings per share attributable to Elbit Systems Ltd.'s shareholders: Basic net earnings per share $ 7.22 $ 4.85 $ 2.02 $ 0.68 Diluted net earnings per share $ 7.18 $ 4.82 $ 2.00 $ 0.67 Weighted average number of shares used in computation of: Basic earnings per share 44,480 44,375 44,505 44,445 Diluted earnings per share 44,709 44,592 44,937 44,630 ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands of US Dollars) Year ended December 31, 2024 Year ended December 31, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 321,864 $ 215,856 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 158,391 164,799 Stock-based compensation 15,760 12,141 Amortization of Series B, C and D related issuance costs, net 493 579 Deferred income taxes and reserve, net 1,649 (13,165) Gain on sale of property, plant and equipment (596) (651) Loss on sale of investments and revaluation of investments held under fair value method 18,136 4,990 Equity in net earnings of affiliated companies, net of dividend received (*) (8,213) 10,046 Changes in operating assets and liabilities, net of amounts acquired: Increase in short and long-term trade receivables and contract assets and prepaid expenses (473,926) (96,594) Increase in inventories, net (480,309) (351,594) Increase in trade payables, other payables and accrued expenses 65,663 175,446 Severance, pension and termination indemnities, net (40,159) (24,331) Increase in contract liabilities 955,857 16,187 Net cash provided by operating activities 534,610 113,709 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment and other assets, net of investment grants and evacuation grants (215,051) (187,037) Acquisitions of subsidiaries and business operations, net of cash assumed — (10,380) Proceeds from sale of a subsidiary 7,376 — Investments in affiliated companies and other companies, net (3,603) (5,416) Proceeds from sale of property, plant and equipment 4,107 1,466 Proceeds from sale of investments 18,594 151 Proceeds from sale of (investment in) long-term deposits, net (180) 83 Proceeds from (investment in) short-term deposits, net 9,923 (9,467) Net cash used in investing activities (178,834) (210,600) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of shares 26 30 Issuance of commercial paper, net 36,380 313,620 Repayment of long-term loans (11,320) (246,231) Proceeds from long-term bank loans — 20,000 Repayment of Series B, C and D Notes (61,862) (62,434) Dividends paid (**) (88,958) (89,248) Change in short-term bank credit and loans, net (162,120) 147,475 Net cash provided by (used in) financing activities (287,854) 83,212 Net increase (decrease) in cash and cash equivalents 67,922 (13,679) Cash and cash equivalents at the beginning of the period $ 197,429 $ 211,108 Cash and cash equivalents at the end of the period $ 265,351 $ 197,429 (*) Dividend received from affiliated companies $ 10,963 $ 22,321 (**) Dividends paid during 2023 included approximately $500 paid by subsidiaries to non-controlling interests. ELBIT SYSTEMS LTD. DISTRIBUTION OF REVENUES (In millions of US Dollars) Consolidated Revenues by Geographical Regions: Year endedDecember 31, 2024 % Year endedDecember 31, 2023 % Three months ended December 31, 2024 % Three months endedDecember 31, 2023 % Israel $ 1,988.0 29.1 $ 1,167.2 19.5 $ 592.9 30.7 $ 437.2 26.9 North America 1,520.3 22.3 1,417.7 23.7 438.0 22.7 368.1 22.6 Europe 1,820.9 26.7 1,776.4 29.7 533.7 27.6 446.7 27.5 Asia-Pacific 1,132.7 16.6 1,263.8 21.2 274.3 14.2 295.6 18.2 Latin America 150.0 2.2 120.7 2.0 38.2 2.0 35.6 2.2 Other countries 216.0 3.1 228.9 3.9 53.1 2.8 42.6 2.6 Total revenues $ 6,827.9 100.0 $ 5,974.7 100.0 $ 1,930.2 100.0 $ 1,625.8 100.0 Consolidated Revenues by Segments: Year endedDecember 31, 2024 Year endedDecember 31, 2023 Three months ended December 31, 2024 Three months endedDecember 31, 2023 Aerospace External customers $ 1,780.5 $ 1,613.2 $ 564.3 $ 425.0 Intersegment revenue 255.8 260.1 76.7 78.4 Total 2,036.3 1,873.3 641.0 503.4 C4I and Cyber External customers 750.6 668.4 192.2 177.7 Intersegment revenue 49.2 52.7 9.5 10.9 Total 799.8 721.1 201.7 188.6 ISTAR and EW External customers 1,118.6 996.9 285.8 261.3 Intersegment revenue 199.4 182.5 43.4 43.6 Total 1,318.0 1,179.4 329.2 304.9 Land External customers 1,605.1 1,241.0 461.1 356.3 Intersegment revenue 74.3 65.2 13.7 13.1 Total 1,679.4 1,306.2 474.8 369.4 ESA External customers 1,573.1 1,455.2 426.8 405.5 Intersegment revenue 12.6 9.7 5.3 4.0 Total 1,585.7 1,464.9 432.1 409.5 Revenues Total revenues (external customers and intersegment) for reportable segments 7,419.2 6,544.9 2,078.8 1,775.8 Less - intersegment revenue (591.3) (570.2) (148.6) (150.0) Total revenues $ 6,827.9 $ 5,974.7 $ 1,930.2 $ 1,625.8 ELBIT SYSTEMS LTD. DISTRIBUTION OF REVENUES (CONT.) (In millions of US Dollars) Operating Income by Segments: Year ended December 31, 2024 Year ended December 31, 2023 Aerospace $ 149.1 $ 125.4 C4I and Cyber 62.0 50.7 ISTAR and EW 96.1 134.9 Land 150.7 80.6 ESA 56.2 (4.7) Segment operating income 514.1 386.9 Unallocated corporate expense, net (25.0) (17.8) Operating income $ 489.1 $ 369.1 Logo: https://mma.prnewswire.com/media/2017806/Elbit_Systems_Logo.jpg SOURCE Elbit Systems Ltd. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

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