Production of shells at the Elbit factory in Ramat Hasharon,/Ministry of Defense
The combination between the war of iron swords and the war in Ukraine brought Elbit to record results, with an increase in sales to the Ministry of Defense and European countries.
The company is on the verge of reaching the $6 billion mark in annual sales, an increase of 8.4% compared to last year, and its order backlog has reached a record of $17.8 billion, a jump of 17.8%.
However, the net profit was 215 million dollars, a sharp decrease of 22%, which is attributed to the closure of the activities of a subsidiary owned in the USA and the write-off of a bad debt on a project that was managed there and was terminated.
The company's weapon systems and armaments starred in the war in Gaza and the northern border, starting with the tank shells and cannons , such as the attack UAVs Hezik and Kohav, as UAVs with mortars guided by laser stings steel, and more. At the same time, at the height of the war, 2,000 Elbit employees were drafted into the reserves, and five of them were killed in the battles: Liav Atiya, Ohad Asur, Nitai Meisels, Omri Ruth, and Avihai Amsalem.
The company had to evacuate Two of its production lines, in Kiryat Shmona, which manufactures radios, and in Sderot, which manufactures electro-optical systems, have since returned to work. Elbit has helped hundreds of its employees rent apartments in other cities, and the activity of the northern plant has moved to other of its facilities, until it is possible to restart it.
The increase in sales to the IDF is possible Look at the figures for the last quarter: while the company's general sales increased by 8%, sales in Israel jumped by 61.5% to 437 million dollars, while Elbit accelerates the production of shells and other products for the IDF in order not to reach a situation of lack of stocks. For orders from the office Security will also have an impact on the 2024 first quarter report that will be published in the coming weeks.
An Elbit star missile (Hermes 900). In the coming months, the country will inaugurate a factory for UAVs and roving weapons/IDF spokesman
"If in recent years we sold to the defense system for 1.1 billion dollars a year and in 2023 we increased to 1.7 billion dollars, I estimate that in the coming years this increase will be maintained," Elbit CEO Bezalel (Butsi) Machlis told Walla.
"The Ministry of Defense also paid Elbit paid most of its debts in the last quarter, and we estimate that this will be the case in the next quarter as well.
We received new orders for existing systems, as well as for new systems.
Many of the company's systems participate in the fighting, with the first being the Digital Ground Army (DGA) system, which coordinated the complex operations in Gaza, on land, from the air and from the sea, and enabled very close attacks on our forces. The war in Gaza is the first digital war in the world, and it is based on a system that we have been developing for 20 sleep".
Elbit also increased its sales in Europe, which continues to prepare for war with Russia, but records a decrease in sales to the USA and Canada. At the same time, Machlis admits, after a number of statements by foreign countries and primarily Canada about an arms embargo on Israel or revenues in preparation for it, that the company is sometimes beginning to encounter supply difficulties From countries that limit the supply of defense components to Israel following the continuation of the war in Gaza.
Machlis: "There are places where it is difficult for us to purchase components today, but we have no strategic dependence on anyone and we know how to cope, even if it is not a walk in the park.
We have no strategic dependence.
It's on the margins, but you can't say it doesn't exist.
Even if someone does not want to sell to us, we will know how to find an Israeli component or from another country as a replacement."
Most of your sales are for export. Could this situation harm the orders you receive from foreign countries, especially from Europe?
"We are in a developing process, it is hard to know what will happen.
It's not that there are no BDS attacks against us, but there are two parameters that help us.
One, the security systems that are our customers are very sympathetic to Israel, the IDF and Elbit and maintain an intimate dialogue with us. I hear from them a lot, there are no more companies with people like you have. The second, we have local companies, in Germany, the UK, and other countries. In sensitive areas Elbit is not the main contractor, as in the UAV sales in England, where we are partners of the local Thales.
These are connections that took us years to build."
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"The security systems are very sympathetic to Israel, the IDF and Elbit and conduct an intimate dialogue with us.
I hear a lot from them, 'There are no more friendships with people like you have'"/courtesy of Elbit
As published in Vala, Elbit will operate its new factory in Ramat Bekah in the south towards the end of the year, with production lines for shells, rockets and other land systems and is examining its temporary operation at the same time as the factory in Ramat Hasharon which was supposed to be closed.
The plant was planned in advance for a size of 30,000 square meters, but was increased during construction to 50,000 square meters, after the company recognized increased demand for armaments in the world, partly following the outbreak of the war in Ukraine.
In the coming months, the country will also inaugurate a factory for UAVs and roving munitions. Against the background of the Ministry of Defense's desire to rely more on local production of munitions as a lesson from the war and to reduce dependence on shipments from the US, Elbit should be able to meet most of the IDF's demands.
During the war, it established The Air Force squadron of new Star UAVs.
But when countries like Turkey and South Korea are currently launching stealth UAVs, are you not left behind
? , with our advantage being the sensors and the entire surrounding system."
The Ministry of Defense already announced five years ago that it would purchase the Durvan Arrow system from you to protect the Hayatan APCs and the Hedi 9 bulldozers. But in the war in Gaza they were not yet in service. Why the delay?
"A development process is still required after the announcement, and the Ministry of Defense is a customer who knows what it wants , and works closely with us.
First tools with the systems will be presented towards the end of the year.
This year we received large orders for a porcupine arrow from the Netherlands and Australia, and we estimate that the system will become even more significant in our sales in the years to come."
More on the same topic:
Elbit
War of Iron Swords
Gaza war