Full security: high-tech is stalled, but security exports are soaring - voila! Of money

Launching a 122 mm guided rocket made by Elbit (Elbit)

While this morning we were informed that the "Ofek 13" satellite of the aerospace industry was successfully launched into space, it seems that it can be stated that international stability, which is increasingly being undermined, is leading the Israeli security companies to record results.

Elbit Systems, for example, which develops and manufactures various air, land and naval systems for defense uses, reported this week its financial results for 2022, in which it presented record revenues of approximately $5.5 billion, representing an increase of approximately 4.4% over its revenues in 2021. Most of the

revenues arose from the sale of aerial systems such as drones and amounted to approximately $2 billion in the year of the report, and in addition the company sold command and control systems (communication and ICT systems) for approximately $1.6 billion, various terrestrial systems for approximately $1.2 billion, and more.

Its main sales were divided between North America (27%), Asia-Pacific (25.5%), Europe (22.5%), Israel (19.4%) and the rest of the world (5.6%).

In addition to being the focus of nearly a fifth of its sales, Israel is also the center of its development and human capital for Elbit.

In total, Elbit employs about 19,000 people, of which about 14,000 are in Israel.

Employees who left want to come back

By the way, an interesting section of the report shows that the retention of employees, especially development employees, cost the company about 72 million dollars during the year 2022. The

retention efforts of the Israeli defense companies began with the flourishing of capital raising in the local start-up companies during the Corona period, which led many employees to squint towards the startups, also At the expense of their safe work in the defense industries.

It should be noted that today the trend is reversed, and many employees are trying to return to their previous workplaces, in light of the widespread layoffs in Israeli start-up companies due to a lack of cash and recruitment difficulties.

This is how it is when the wheel turns and turns defense exports into the new engine of the Israeli economy, alongside the tech industry which is having trouble dealing with the crisis in the capital market.

The increase in wages, along with the various maintenance costs, led the company's operating profit to about 367 million dollars, which is a decrease of about 12.2% compared to the operating profit a year earlier, which was about 418 million dollars.

The net profit, however, remained similar and stood at about 275 million dollars, and the company reported that it will distribute a dividend of about half a dollar per share, which is about 86 million dollars that will be distributed among its shareholders.

Looking ahead, the company reports a total order backlog of billions, alongside the preparation of its site for the new work pace, in which it doubled the company's site in Ramat Hasharon, inaugurated a new automatic plant in Yokneam, expanded the facility for international production of radios by about 60%, and the facility by about 40% its laser, along with the construction of about 6 new plants around the world.

Bezalel Machlis, CEO of Elbit Systems (Photo: Israel Sun)

"Solution Providers"

Bezalel Machlis, CEO of Elbit Systems

: "A healthy business environment alongside increasing demand for Elbit Systems' portfolio and technological capabilities contributed to a record order accumulation for the company, which stands at 15.1 billion dollars.

The growing interest of customers, and the growing scope of new contracts, reflect the successful transformation of Elbit Systems in recent years from a supplier of systems to a supplier of solutions, which support the company's future growth.

Our business results in 2022 also reflect the global disruptions in the supply chain and an increase in employment expenses."

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• Elbit Systems

• financial reports

• Israel Aerospace Industries

• Security export