Chen Kerrit

Chen Kerrit inquired about Elbit's strategy to leverage the expanded U.S. DOD budget, specifically regarding plans for M&A in the U.S. and expansion into verticals like drone swarms or border protection.

Answer

CEO Bezhalel Machlis affirmed the U.S. as a strategic home market, highlighting successful past acquisitions and ongoing efforts to identify new M&A opportunities. He confirmed plans to pursue border protection applications, building on previous CBP contracts, and noted strong growth in U.S. avionics and active protection systems.

Chen Kerrit asked if there was an update to the company's 2026 profitability target of 10% operating profit, given the expanded backlog and improved gross margins. She also inquired about Elbit's strategy to generate value from the expanded U.S. DOD budget, specifically regarding M&A in the U.S. and expansion into verticals like drone swarms or border protection.

Answer

CFO Kobi Kagan stated that the company does not provide specific targets or guidance but maintains internal goals to continuously improve profitability and cash conversion. CEO Bezhalel Machlis emphasized the U.S. as a strategic home market, expressing satisfaction with performance and the success of recent acquisitions (Night Vision, Sparton). He confirmed actively seeking M&A opportunities in the U.S. and planning to pursue opportunities in border protection, having previously delivered systems to CBP. He also noted growth in avionics and active protection systems in the U.S., affirming continued investment and expansion in this market.