Business Overview

We are an international high technology company engaged in a wide range of programs throughout the world, primarily in the defense and homeland security arenas. We develop and supply a broad portfolio of airborne, land and naval systems and products for defense, homeland security and commercial applications. Our systems and products are installed on new platforms, and we also perform comprehensive platform modernization programs. In addition, we provide a range of training and support services. 

The Company's strategy is generally based on the following pillars:

Strong worldwide presence – developing a unique global footprint and multiple local subsidiaries, to allow broad sourcing of revenues from different regions, thereby reducing risk. Our subsidiaries are located in several of our key markets, enjoying our advanced technologies and collective experience, while supporting local defense forces in their home markets and strengthening supply chains and local economies. 

Trusted and valued partner – positioning ourselves as a strategic partner of our customers, both our end users and OEMs, and not merely a supplier. 

R&D and innovative portfolio – investing in research and development, with an aim to increase the breadth of our portfolio both horizontally and vertically, to maximize our position in the markets in which we operate. In recent years we have invested a material percentage of our revenues to develop a broad range of cutting-edge solutions for our customers.

People – investing in our highly skilled employees to maintain operational experience and technological know-how. 

Principal Market Environment

The nature of military and homeland security requirements has evolved in recent years following the conflicts in Eastern Europe and the Middle East and the growing geopolitical instability in the Asia Pacific region. Governments around the world have announced plans to increase defense spending and to increase demand for a range of advanced capabilities to better prepare for near peer high intensity conflicts.

This global trend has increased demand in the areas of C4ISR systems, cyber-defense systems, network centric information and operational systems, intelligence gathering systems, border and perimeter security systems, unmanned aircraft systems, unmanned surface vessels, autonomous systems, land and aerial precision munitions, tank, artillery and mortar munitions, vehicle survivability and force protection systems, signal intelligence (SIGINT) and electronic warfare (EW) systems, space and satellite-based defense capabilities and homeland security solutions. The technological advances in commercial technologies have led to increasing demand for technological solutions that incorporate digital transformation, including AI, big data analytics, robotics, automation and information assurance by military forces. Moreover, there is a continuing demand for cost-effective logistic support and training and simulation services, and overall integrated solutions for the modern battlefield. We believe our synergistic approach of finding solutions that combine elements of our various activities positions us to meet evolving customer requirements in many of these areas.

We tailor and adapt our technologies, integration skills, market knowledge and operationally-proven systems to our customers' requirements in both existing and new platforms. By upgrading existing platforms with advanced technologies, we provide customers with cost-effective solutions, and our customers are able to improve their technological and operational capabilities within limited budgets. Our experience in providing “systems of systems” enables us to provide overall solutions in a range of areas to meet our customers’ comprehensive defense, homeland security and safety needs.

Following recent conflicts, governments around the world are striving to achieve independent capabilities by focusing on the utilization of local defense industries. We believe Elbit Systems' global presence via its subsidiaries as well as its partnerships with leading defense companies worldwide is a significant advantage for the Company. In light of supply chain challenges since October 7, 2023, the IMOD announced a “Blue and White” strategy in 2024 that involves expanded investment in local production of defense systems and critical components to decrease its dependency on external suppliers. Implementation of this strategy has been reflected in several awards to Elbit Systems, and may lead to additional awards to the Company in the future.