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ISRAEL, TEL AVIV — Defense giant Elbit Systems experiences rising global demand as ongoing US-Israel conflict with Iran fuels international military procurement interest
Israel’s largest defense contractor, Elbit Systems, is witnessing a significant surge in global demand for its military technologies, driven by escalating tensions in the Middle East following the recent conflict involving the United States, Israel, and Iran.
The company’s chief executive, Bezhalel Machlis, stated that the firm has ramped up operations to ensure continuous supply of ammunition and advanced defense systems to Israel’s military, while also meeting growing demand from international clients.
Speaking to Reuters, Machlis emphasized that Elbit is working “around the clock” to support both domestic defense needs and foreign customers, including countries in the Gulf region. He noted that Israel’s operational success in Iran has sparked heightened interest among nations facing similar security threats.
“The success of Israel in Iran creates a lot of interest and a lot of traction,” Machlis said, adding that several countries are closely monitoring the effectiveness of Israeli defense systems in real combat scenarios.
The latest escalation began on February 28, when the United States and Israel launched coordinated airstrikes targeting Iranian positions. In response, Iran retaliated with drone and missile attacks against Israeli territory and neighboring Gulf states, further intensifying regional instability.
Elbit Systems has played a crucial role in supplying the Israeli military with advanced capabilities, including long-range guided munitions and electronic warfare technologies. These systems are considered vital in countering Iran’s drone and missile strategies.
Industry analysts point out that real-world combat validation significantly boosts the appeal of defense products. Chief financial officer Yaacov Kagan highlighted this trend, stating that international customers are increasingly drawn to systems that have proven their effectiveness in active conflict zones.
“לקוחות prefer systems tested in battle,” Kagan said, noting that Elbit is actively engaging with global clients and expects sustained demand in the coming years.
Elbit is one of the three pillars of Israel’s defense industry, alongside Rafael Advanced Defense Systems and Israel Aerospace Industries. Together, these companies form the backbone of Israel’s military technology sector, supplying both domestic and international markets.
The company’s financial performance reflects this surge in demand. Elbit reported a record order backlog of $28.1 billion at the end of 2025, a substantial increase from $22.6 billion in 2024. Notably, 72% of these orders originate from outside Israel, underlining the firm’s expanding global footprint.
More than half of the backlog is scheduled for execution between 2026 and 2027, providing strong visibility for future revenue growth. Kagan expressed confidence that this pipeline will drive continued expansion into 2026 and beyond.
Elbit’s revenue rose by 16% in 2025, reaching $7.9 billion, while adjusted earnings per share climbed to $12.75, up from $8.76 the previous year. The fourth quarter alone marked a milestone, with revenue surpassing $2 billion for the first time.
The company also reported quarterly earnings of $3.56 per diluted share, compared to $2.66 a year earlier, demonstrating robust operational performance amid heightened geopolitical demand.
In addition to traditional weapons systems, Elbit is advancing next-generation technologies. Israeli defense officials confirmed that the company has received an order from the Ministry of Defense for an airborne high-powered laser system, a cutting-edge project still under development.
Such innovations are expected to play a critical role in future warfare, particularly in countering drones and missile threats at lower operational costs compared to conventional interceptors.
Investor confidence in Elbit has also strengthened considerably. The company’s shares have risen by 4.1% recently, contributing to an impressive 51% gain so far in 2026. Market analysts attribute this growth to a combination of strong financial results and sustained geopolitical demand.
The broader defense sector has similarly benefited from rising global tensions, with countries increasing military spending to address emerging security challenges. Nations aligned through frameworks such as the Abraham Accords are reportedly among those showing heightened interest in Israeli defense technologies.
While Machlis declined to specify individual clients, he indicated that several countries facing threats from Iran are actively exploring procurement opportunities with Elbit.
Experts warn that the ongoing conflict may further accelerate the global arms race, as nations prioritize defense readiness in an increasingly volatile geopolitical environment. At the same time, the reliance on battle-tested technologies underscores a shift in procurement strategies toward proven effectiveness over theoretical capability.
Despite the commercial benefits, the surge in defense demand also highlights the broader human and geopolitical costs of prolonged conflict. The Middle East remains a flashpoint, with continued uncertainty surrounding the trajectory of tensions between Israel and Iran.
For Elbit Systems, however, the current environment presents both opportunity and responsibility. As one of Israel’s leading defense exporters, the company is positioned at the intersection of technological innovation and global security dynamics.
With a strong order pipeline, expanding international reach, and continued investment in advanced systems, Elbit appears set to maintain its upward trajectory in the coming years—provided geopolitical tensions continue to drive demand.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members