A weak year for Elbit, but the backlog is growing

Elbit Systems, a giant on a local scale in the field of military technological equipment in the broadest sense, is one of the companies whose reports are as interesting as they are less important than the backlog. Its order backlog expresses future revenues over years, so a quarterly report, both better than expected and even worse than expected, still stands in the shadow of the backlog. Elbit’s reports in the last year have undergone a shake-up. The increase in salary expenses due to the competition for high-tech workers and the relatively disappointing realization of the backlog resulted in lukewarm quarters, and so did the fourth quarter. But the company’s backlog rose to $15.1 billion.

At the end of 2021, the backlog stood at 13.7 billion dollars – that is, an increase of about 10%. About 75% of the company’s order book comes from orders from customers outside of Israel. About 60% of the total orders are planned for execution during the years 2023 and 2024. In other words, $9 billion from the backlog will be realized in two years, let’s say it’s linear – $4.5 billion. In 2022, sales were 5.5 billion dollars and every year there is a significant component of ongoing sales, meaning not those that are ordered in one year and received the next year or in years to come. This means that 75% of the sales are already closed. This is why the savings is so important

the revenues in the fourth quarter amounted to-1,506.4 million dollar, Compared to-1,494.3 million dollars in the fourth quarter of this year 2021. No growth – disappointing, and as mentioned this is not the first time this year. At the same time, there was an increase in expenses, and not only in salary expenses, and the adjusted operating profit fell to 103 million dollars compared to 120 million in the corresponding quarter.

In the bottom line, the company earned $75 million, compared to $95 million in the corresponding quarter. Earnings per share amounted to $1.68 per share, compared to $2.14 in the corresponding quarter.

Bezalel (muddy) Machlis, President and CEO“For Elbit Systems He noted at the same time as the reports were published that the business results also reflect the global disruptions in the supply chain and an increase in employment expenses. Alongside this, he says – “The growing interest of customers as well as 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 comprehensive solutions that support the future growth of the company”.

the whole year which ended in-31 In December 2022 Revenues totaled 5.5 billion dollars, compared to 5.3 billion dollars in 2021. Most of the revenue in 2022 were in the areas of activity of airborne systems and ICT systems. The increase in revenues in the area of ​​ICT systems activity was mainly due to higher sales of systems UAS to customers in Europe and an increase in the sale of products “Spartan” USA“B.

Geographically, The decrease in the north–America was mainly due to a decrease in revenues from the sale of medical devices. The increase in Europe was mainly due to an increase in income from a housing project–The book for flying in Greece, from selling systems UAS as well as from the sale of armored vehicles and artillery.

Adjusted operating profit in 2022 amounted to approx-356.6 million dollar (6.5% total revenue) compared to total operating profit 450.8 million dollar (8.5% total revenue) last year.

Adjusted annual net profit amounted to268.9 million dollar (4.9% from the income), Compared to– 367.6 million dollar (7.0% total revenue) in the same period last year. Earnings per share The adjusted amount was 6.03 dollar, Compared to-8.30 dollar in the year 2021.

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