ESLT ELBIT SYSTEMS LTD
Price Chart
Executive Summary
S&P Global Ratings Maalot raised Elbit Systems' long-term issuer rating to ilAAA (local scale) from ilAA+, with a stable outlook, citing continued improvement in financial ratios, record backlog of $28.1 billion, and strong operating performance. The upgrade reflects a sharp decline in adjusted debt-to-EBITDA leverage to 1.8x in 2025 from 3.0x in 2024, and an increase in FFO-to-debt to about 50% from 28%. This is a credit-positive signal for bondholders and supports the company's strong liquidity profile.
Actionable Insight
The rating upgrade to ilAAA is a clear credit-positive catalyst that should tighten credit spreads on Elbit's Series B, C, and D bonds and support the equity via improved sentiment. Monitor upcoming quarterly results for continued revenue growth and margin expansion toward the 12% EBITDA margin target. The stable outlook suggests no near-term downgrade risk, but watch for any backlog erosion or margin compression below 9% as downside triggers.
Key Facts
- S&P Maalot raised long-term issuer rating to ilAAA from ilAA+ on May 20, 2026
- Adjusted debt-to-EBITDA fell to ~1.8x in 2025 from ~3.0x in 2024
- FFO-to-debt ratio increased to ~50% in 2025 from ~28% in 2024
- Backlog reached a record $28.1 billion as of December 31, 2025
- Revenues grew 16% in 2025 to about $7.9 billion
- Adjusted debt decreased about 24% to ~$1.7 billion
- EBITDA grew ~28.5% to about $1 billion
- S&P expects backlog to exceed $30 billion in 2026 and revenues to exceed $9 billion
- S&P expects adjusted EBITDA margin of at least 12% in next two years
- S&P expects adjusted FFO to debt to exceed 60% and adjusted debt to EBITDA to be about 1.5x in next 24 months
- Liquidity assessed as strong with sources-to-uses ratio exceeding 1.5x
- Stable outlook reflects expectation of maintained strong business position
Financial Impact
Credit rating upgrade to highest local scale level (ilAAA) reflects materially improved leverage and coverage ratios; debt-to-EBITDA halved from 3.0x to 1.8x, FFO-to-debt nearly doubled to 50%
Risk Factors
- Geopolitical escalation could disrupt operations or supply chains
- Cost overruns on fixed-price contracts could compress margins below 9%
- Dependence on defense budgets which may shift with political changes
- High R&D and capital expenditure requirements may pressure cash flows
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001027664-26-000009 |
| Exhibit: exhibit_1-20260520.htm | 0001027664-26-000009 |
| Document: cover6k202605.htm | 0001027664-26-000009 |
| Document: 0001027664-26-000009-index-headers.html | 0001027664-26-000009 |
| Document: 0001027664-26-000009-index.html | 0001027664-26-000009 |
| Document: 0001027664-26-000009.txt | 0001027664-26-000009 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 28, 2026
16d ago
|
6-K
| $892.63 $837.94 | ▼ −6.13% | ▼ −6.44% | $854.06 (−4.32%) |
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May 27, 2026
17d ago
|
GOVT-CONTRACT
| $828.81 $829.81 | ▲ +0.12% | ▼ −0.38% | $854.06 (+3.05%) |
|
May 26, 2026
18d ago
|
6-K
| $852.41 $858.06 | ▲ +0.66% | ▼ −0.42% | $854.06 (+0.19%) |
|
May 26, 2026
18d ago
|
6-K
| $852.41 $849.15 | ▼ −0.38% | ▼ −1.59% | $854.06 (+0.19%) |
|
May 20, 2026
24d ago
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6-K
| $768.84 $892.63 | ▲ +16.10% | ▲ +14.30% | $854.06 (+11.08%) |
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Apr 27, 2026
6w ago
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6-K
| $819.65 $857.79 | ▲ +4.65% | ▲ +4.25% | $854.06 (+4.20%) |
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Apr 22, 2026
7w ago
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6-K
| $860.97 $804.29 | ▼ −6.58% | ▼ −6.64% | $854.06 (−0.80%) |
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Apr 9, 2026
9w ago
|
Insider Cluster
| $927.47 $869.79 | ▲ +6.22% | ▲ +9.40% | $854.06 (+7.91%) |
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Apr 6, 2026
9w ago
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6-K
| $922.68 $935.05 | ▲ +1.34% | ▼ −2.79% | $854.06 (−7.44%) |
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Mar 3, 2026
14w ago
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GOVT-CONTRACT
| $822.19 $876.17 | ▲ +6.57% | ▲ +7.04% | $854.06 (+3.88%) |
US Market Status
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