Elbit Systems Ltd (NASDAQ: ESLT)

Elbit Systems Ltd., or ESLT, is an international high technology company that operates in the defense and homeland security industries. The company was established in 1996 as a result of the Elbit Ltd. corporate demerger, which separated the defense-related assets and business of Elbit Ltd. to ESLT. Elbit Systems is listed on the Nasdaq Global Select Market (Nasdaq) under the symbol ESLT and on the Tel Aviv Stock Exchange (TASE).

Elbit Systems is involved in a wide range of programs across the globe, primarily in the defense and homeland security sectors. The company develops and supplies a diverse portfolio of airborne, land, and naval systems and products for defense, homeland security, and commercial applications. These systems and products are installed on new platforms and are also used for comprehensive platform modernization programs.

The company's main business activities include military aircraft and helicopter systems, commercial aviation systems and aerostructures, unmanned aircraft systems (UAS), flight academy solutions, electro-optic, night vision, high power energy solutions, and countermeasures systems, naval systems, land vehicle systems, munitions, C4ISR and cyber systems, electronic warfare and signal intelligence systems, and other commercial activities. Elbit Systems operates through five reportable segments: Aerospace, C4I and Cyber, Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) and Electronic Warfare (EW), Land, and Elbit Systems of America (ESA).

The Aerospace segment provides products and systems for airborne platforms, including military aircraft and helicopter systems, UAS, and commercial aviation systems and aerostructures. The C4I and Cyber segment provides C4ISR systems, data links and radio communication systems and equipment, cyber intelligence solutions, autonomous solutions, and homeland security solutions. The ISTAR and EW segment provides a wide range of electro-optic and laser systems and products, as well as electronic warfare and signal intelligence systems. The Land segment provides products and systems for land-based platforms, including military vehicle systems, artillery and mortar systems, and munitions. The ESA segment provides products and systems solutions for the U.S. military, homeland security, medical instrumentation, and commercial aviation markets.

Elbit Systems' customers include the Israeli Ministry of Defense, the U.S. Department of Defense, and other government agencies, as well as commercial customers in the defense and homeland security industries. The company's products and systems are used in a variety of applications, including military operations, homeland security, and commercial aviation.

In terms of revenue, Elbit Systems generated $5,278.5 million in 2021, $5,511.5 million in 2022, and $5,974.7 million in 2023. The company's revenue is generated primarily from the sale of its products and systems to customers in the defense and homeland security industries.

Elbit Systems operates in a highly regulated industry, subject to various laws, regulations, and international standards. The company is subject to export controls, anti-bribery and corruption laws, and other regulations that govern its business activities. Elbit Systems is also subject to audits and inspections by regulatory bodies, including the Israeli Ministry of Defense and the U.S. Department of Defense.

In addition to its regulatory compliance obligations, Elbit Systems is committed to maintaining a strong corporate social responsibility program, which includes initiatives to promote diversity and inclusion, support education and training, and contribute to the development of local communities.

The company's competitive advantages include its technological expertise, operational performance, and ability to respond to rapid changes in technology. Elbit Systems competes in a competitive environment for most of its projects, systems, and products. Competition is based on product and program performance, price, reputation, reliability, life cycle costs, overall value to the customer, responsiveness to customer requirements, and the ability to respond to rapid changes in technology.

Elbit Systems' position within the industry is strong, with a diverse product and service offerings, strong regulatory compliance, and a commitment to corporate social responsibility. The company's main competitors include divisions and subsidiaries of Northrop Grumman, Raytheon, General Dynamics, BAE Systems, L3Harris, Thales, Airbus, Leonardo, Saab, Textron, Teledyne Technologies, Boeing, Lockheed Martin, AeroVironment, Rohde & Schwarz, Rheinmetall, Kongsberg, Safran, Hensoldt, CMC, CAE, Aselsan, Bharat Electronics, Cubic, Cognyte, Baykar, Turkish Aircraft Industries, Hanwha, LIG Next1, and Poongsan.

In terms of environmental, social, and governance (ESG) practices, Elbit Systems places importance on its ESG policies, including environmental, health, and safety (EHS) compliance, corporate governance, ethics, and anti-corruption, fair labor practices, and human rights. The company is committed to leading environmental, health, and safety standards in all aspects of its operations and has implemented various measures to promote environmentally friendly operational practices and address climate change goals.

Elbit Systems' supply chain compliance policies and procedures are designed to ensure that its suppliers adhere to leading ESG practices, including fair labor practices, combating human trafficking, ethics and anti-corruption, avoidance of conflicts of interests, restrictions on the use of conflict minerals, cyber security, and prevention of counterfeit parts.