Elbit Systems raises $512m on Nasdaq for production expansion
Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) has raised $512 million in a share offering on Nasdaq. The Israeli defense electronics company issued 1.37 million shares at a price of $375 per share, at a 5% discount on its closing share price yesterday.
All the shares were sold by Elbit with its underwriters given an option to buy 205,000 shares worth $76 million at the offering price within 30 days. The offering was led by Bank of America Securities, J.P. Morgan, Jefferies, and Morgan Stanley. Barak Capital served as a distributor for underwriters in Israel.
Elbit Systems opened on Wall Street today with the share price down 2.68%, giving a market cap of $18.2 billion. Elbit is the biggest defense company traded on the Tel Aviv Stock Exchange (TASE). Business has been booming in recent due to the war in Israel and higher defense spending in Europe following Russia’s invasion of Ukraine, as well as military tensions in East Asia.
Elbit ended the first quarter of 2025 with a record $23.1 billion backlog of orders, up $500 million from the end of 2024. Revenue in the first quarter was $1.9 billion, up 22% from the corresponding quarter of 2024. GAAP net profit was $107 million, up 45% from the corresponding quarter.
Elbit CEO: “We will expand production infrastructure and acquire companies
Elbit Systems plans to use the funds raised to expand production infrastructure, mainly in Europe, which has been seeing a formidable arms race in the past year as part of concerns about Russia. Elbit Systems CEO Bezhalel Machlis says Elbit is considering acquiring companies and complementary activities with the funds raised.
“This is an incredible vote of confidence in the company,” Machlis tells “Globes.” “We received requests that are 3 times (almost 6 billion shekels) more than what we asked to raise. We had amazing discussions with investors, and we received their full confidence in the company. The offering will contribute to Elbit becoming a more international company with a broader base of foreign investors. I also estimate that it will increase the tradability of the company’s shares in Israel and on Nasdaq.”
What will you do with the money?
“The offering is supposed to be used for capital investments. We need to establish more production infrastructure in order to turn our future backlog into sales, profit and cash. We will mainly make investments in Europe, where we will establish more infrastructure that we need. Secondly is to improve the company’s working capital. The funding will allow us to do this. We want to invest more in R&D. Elbit has areas in which it is a world leader. One of them is the ground laser field (in October, the company won a $200 million contract to supply the Iron Beam system in Israel).”
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Machlis adds that laser systems will become a future emphasis for the company in the air as well. “We are investing in an aerial laser that will revolutionize the market. Of course, we will also carry out mergers and acquisitions in Israel and around the world. The reason for this is to find technologies that we lack, through the acquisition of startups and so on. Another reason for mergers and acquisitions is to increase our position in the market. For example, in the US, through acquisitions we made that complemented us technologically and expanded our market share. Of course, we need to find companies with the right earnings multiples. Bottom line, the IPO strengthens our reputation worldwide.”
Published by Globes, Israel business news – en.globes.co.il – on May 22, 2025.
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2025-05-22 08:37:45
