Elbit Systems hits record high as it sees demand surge from Iran war

U.S.-listed shares of Israeli defense firm Elbit Systems ESLT.O up 10.6% at $967.18 and touch fresh all-time high early Tues as it sees a new surge in demand from war on Iran after reaping strong rev during the Gaza war

ESLT shares rise as high as $975.70, surpassing prior $960 record intraday high from March 6, and tracking biggest daily pct gain in a year

Defense firm said 2025 adj EPS rose to $12.75 from $8.76 in 2024 as rev grew 16% to $7.9 bln, while Q4 rev crossed the $2 bln mark for the first time

Q4 adj EPS grew 34% y/y to $3.56

"The success of Israel in Iran creates a lot of interest and a lot of traction. There is a lot of interest in many countries who are suffering from the same enemy (Iran)," CEO Bezhalel Machlis told Reuters, citing Abraham Accords countries, but without specifying which

Order backlog rose to $28.1 bln from $22.6 bln a yr earlier, with 72% attributable to orders outside Israel

Jefferies, which rates ESLT shares 'hold' with $690 PT, said in note Q4 adj earnings came in above its estimate of $2.88

Middle East conflicts have disrupted co's operations including increased transportation costs and delays due to attacks on shipping in the Red Sea, Jefferies wrote, adding that while the situation remains uncertain, the effects on operations could increase again depending on the duration and scope of these conflicts

U.S.-listed shares recently traded around 62x expected earnings, vs their 5-yr avg forward PE of 27, suggesting shares may be overvalued, per LSEG Datastream

With move on Tues, ESLT shares up ~67% YTD and >160% over the past 12 months