Israeli defense contractor Elbit Systems had a great year in 2020, in spite of the worldwide recession caused by the Covid-19 crisis. The company just released its fourth quarter and full year results for last year which saw $4.7 billion in revenue and $11 billion in new orders.
Well nations still need to be concerned about their defense no matter what is happening in the economy. And tensions have been building for some time in a number of regions. Both the U.S. and the Arab Gulf states have been concerned about Iranian aggressions over the past year. There is still strife in Ukraine and a number of African nations. And North Korea continues to threaten the world’s security with more and more missile tests.
And Elbit, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems, and more. And it also offers services upgrading already existing defense systems.
Just last October Elbit Systems U.S. snagged a $50 million contract to provide helicopter systems to the U.S. Army. Already this year Elbit Systems’ UK Subsidiary got the contract to provide the Royal Navy Future Naval Training Program. The contract is for $166 million and will be performed over a 12-year period. The program calls for the transformation and modernization of the shore-based training of the Royal Navy including the establishment of the Future Submarine School. As the provider and integrator of training solutions for the Consortium, Elbit Systems UK will develop and deliver a new Combat Systems Operator Trainer in the Future Submarine School and modernize and manage legacy synthetic training systems across the Royal Navy.
From cockpits to combat vehicles and vessels, from headquarters to field soldiers, every day around the globe, we deliver solutions, provide support – realizing our commitment to increase effectiveness and protect lives. Watch: pic.twitter.com/4BA35FJeXA
— Elbit Systems (@ElbitSystemsLtd) February 16, 2021
Some of the good news reported by Elbit includes:
Revenues in the fourth quarter of 2020 were $1,377.7 million, as compared to $1,321.5 million in the fourth quarter of 2019.
Non-GAAP(*) gross profit amounted to $363.0 million (26.3% of revenues) in the fourth quarter of 2020, as compared to $345.8 million (26.2% of revenues) in the fourth quarter of 2019. GAAP gross profit in the fourth quarter of 2020 was $357.8 million (26.0% of revenues), as compared to $284.3 million (21.5% of revenues) in the fourth quarter of 2019. The gross profit in the fourth quarter of 2019 included expenses of $55.0, related to the acquisition of a U.S. subsidiary, Elbit Night Vision (“ENV”).
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “2020 saw our employees around the world successfully address the challenges presented by the global Covid-19 pandemic and enabled Elbit Systems to achieve positive results for both the fourth quarter and the year.”
“Our year-end backlog increased by 10% relative to the end of 2019 demonstrating sustained demand for our systems and services from our customers around the world. I am pleased with our operational performance in a challenging year, particularly the improved cash generation.”
“Our solid backlog, combined with ongoing worldwide demand for our broad portfolio of technologies and solutions, provides us with confidence in the Company’s future prospects.”