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Elbit Systems
Elbit Systems was founded in 1966 by Elron Electronic Industries to build computing systems for defense applications.
Elbit Systems
Elbit Systems was founded in 1966 by Elron Electronic Industries to build computing systems for defense applications. Over six decades it evolved through serial acquisitions — most notably the 2018 merger of its IMI Systems subsidiary — into a diversified public defense electronics firm based in Haifa. Chairman Michael Federmann controls the largest voting stake through a pyramidal structure anchored by Federmann Enterprises. The company designs, integrates, and upgrades land, air, naval, and C4ISR systems, deriving roughly 60% of revenue from airborne platforms and electronic warfare (per the firm's annual report, 2024). Core programs include the Hermes family of tactical UAS, the SkyStriker loitering munition deployed in Azerbaijan's 2020 Nagorno-Karabakh campaign, and the Iron Fist active protection system for armored vehicles. Geographically, Israel accounts for roughly 20% of sales, with North America — where Elbit operates a wholly owned subsidiary in Fort Worth, Texas — generating about 25%, followed by Europe and Asia-Pacific. The firm operates a dense network of in-country manufacturing sites in the UK, Brazil, and Australia. As of 2024, the firm reported a backlog exceeding $21 billion and employs over 18,000 people worldwide (per the firm's annual report, 2024). Adjacent structures include Elbit Systems of America, a standalone entity with its own proxy board to satisfy U.S. regulatory requirements for defense contractors handling ITAR-sensitive programs. In May 2024, the firm secured a $760 million contract from the Israeli Ministry of Defense to supply advanced artillery munitions, part of a multi-year procurement surge following the October 2023 Hamas attacks (per Reuters, May 2024). Elbit's structural differentiator is its position as a publicly traded, for-profit defense prime in a market dominated by state-owned enterprises (IAI, Rafael). This forces it to operate a two-tier sourcing model: proprietary R&D for export-facing surveillance and missile-warning systems sold to European and Asian governments, while simultaneously competing for Israeli government cost-plus contracts that require technology transfer back to state labs. Machlis, an engineer by training who rose through the electro-optics division, has publicly stated the firm's strategy is to convert battlefield feedback from Israeli forces into commercial off-the-shelf products for allied militaries within 18 to 24 months (per Janes, 2023).
General information
Firm type
other
Year founded
1966
AUM
Undisclosed
Location
Region
Middle East
Country
Israel
City
Haifa
Corporate office
Haifa, Israel
Additional offices
Tel Aviv, Israel · Fort Worth, Texas, United States · London, United Kingdom · Melbourne, Australia
Principals
Bezhalel (Butzi) Machlis
President & CEO
Michael Federmann
Chairman of the Board
Sector focus
Frequently asked questions
Who controls Elbit Systems?
Michael Federmann, the chairman, is the controlling shareholder through Federmann Enterprises, which holds roughly 44% of voting rights. The company is publicly traded on the Tel Aviv Stock Exchange and NASDAQ. Federmann has maintained effective control since 1999, when Elron sold its stake following a restructuring.
Is Elbit Systems a state-owned Israeli defense company?
No. Unlike Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems, which are government-owned, Elbit is a publicly traded for-profit company. It competes with, and sometimes partners alongside, these state-owned primes for Israeli Ministry of Defense contracts while operating independently in export markets.
What is Elbit's relationship with the U.S. defense market?
Elbit operates through a wholly owned U.S. subsidiary, Elbit Systems of America, headquartered in Fort Worth, Texas. That subsidiary is governed by a proxy board of independent U.S. citizens to satisfy national security requirements for handling classified contracts. It supplies pilot helmet-mounted displays, night-vision systems, and mortar fire-control systems to the U.S. Army and Marine Corps (per U.S. Department of Defense contract announcements).
What are Elbit's most significant battlefield-proven systems?
The Hermes 900 and Hermes 450 tactical unmanned aerial systems have been exported to more than a dozen countries. The SkyStriker loitering munition was first used operationally during the 2020 Nagorno-Karabakh conflict by Azerbaijan. The Iron Fist active protection system is installed on Israeli Namer armored personnel carriers and has been selected for U.S. Army Bradley fighting vehicle upgrades.
Does Elbit Systems face active divestment or boycott campaigns?
Yes. Advocacy groups have targeted the company's operations in the UK and Australia, particularly its Oldham and Melbourne manufacturing sites producing components and munitions used by the Israeli military in Gaza operations. In 2024, Bridgepoint divested from Elbit bonds in response to pressure from limited partners. These campaigns have not materially reduced the firm's $21 billion backlog (per public record and the firm's 2024 annual report).
How does Elbit finance its R&D?
Elbit funds roughly 7-8% of annual revenue as self-funded R&D, distinct from government-funded development contracts. The firm's export-driven product strategy relies on internal R&D to create intellectual property it can sell without technology-transfer restrictions — a structural advantage over Israeli state-owned primes whose core IP is often government-owned (per the firm's investor communications, 2024).
What is Elbit's M&A strategy?
Elbit has historically grown through acquisitions of distressed or divested defense assets. Major deals include the purchase of Tadiran Communications (2007), Ferranti's UK defense electronics unit, and IMI Systems from the Israeli government (2018). The firm targets businesses with complementary electromagnetic spectrum or precision guidance technologies that can be cross-sold through its existing export channels.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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