Elbit Systems: Record Backlog Makes The Pullback A Buy

Elbit Systems remains a Buy despite a 17% stock drop, supported by strong Q2 growth and a record $32B backlog. Q2 revenue rose 15.9% year-over-year, with margin expansion and free cash flow more than doubling, though capacity constraints cap near-term upside. Backlog growth is driven by international demand, especially from Europe, but delivery schedules and operational risks remain material. Valuation is elevated; execution on capacity expansion and backlog conversion is critical to justifying ESLT's premium multiple.

As an Israeli defense contractor, the company is set to benefit from a temporary defense budget hike in support of the war. Since then, the This article was written by Dhierin Bechai 24.46K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.