Zinger Key Points
- Elbit Systems clinches a $760M contract to supply ammunitions to the Israeli Ministry of Defense amid increased demand during war.
- While reporting Q4, CEO Bezhalel Machlis committed to meeting heightened requirements of the IMOD while registering revenue growth.
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Elbit Systems Ltd. ESLT shares are trading mildly higher in the premarket session on Tuesday.
The company said it was awarded a group of contracts in an aggregate amount of approximately $760 million for the supply of ammunitions to the Israeli Ministry of Defense.
“As previously reported by the company, since the beginning of the Swords of Iron war, Elbit Systems has experienced a material increased demand for its products and solutions from the IMOD compared to the demand levels prior to the war,” per a press release.
The contracts will be performed over a period of two years.
“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,” Elbit Systems added.
While reporting fourth-quarter results, Bezhalel (Butzi) Machlis, President and CEO, said, “Elbit Systems is committed to supporting the increased requirements of the IMOD as well as maintaining our commitments to all our customers around the world.”
“The acceleration in revenue growth reflects the successful implementation of our operational transformation plan, as we increase capacity to convert a growing backlog into revenues,” Machlis added.
Price Action: ESLT shares are trading higher by 0.64% to $197.62 premarket at last check Tuesday.
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