Elbit Systems Stock Soars After Major Defense Contract
Investing.com - Elbit Systems Ltd (NASDAQ: ESLT, TASE: ESLT) shares jumped more than 6% in premarket trading on April 17, 2025, following news that the company had signed a major defense contract worth hundreds of millions of dollars with a NATO country.
The new contract involves the provision of battlefield command and control (C4I) systems and other advanced military electronics. These devices will be integrated into the customer's existing defense infrastructure and are expected to be delivered gradually from the third quarter of this year through 2026.
Elbit Systems, a leading defense and homeland security company, continues to strengthen its global position in providing high-tech solutions to militaries and security forces in more than 70 countries.
“This contract reflects our commitment to providing cutting-edge solutions and flexibility to meet the needs of our international customers,” said CEO Bezhalel Machlis. He stressed that the agreement further strengthens the strategic relationship between Elbit and NATO member states.
Although specific financial details were not disclosed, the contract size is believed to exceed $250 million. This created positive sentiment in the market and pushed ESLT’s stock price up significantly in the first few hours after the news was announced.
This is Elbit’s second major contract this year, demonstrating that the company is actively expanding its market share in the defense technology sector, especially as countries increase military spending to deal with growing security threats.
Investors and analysts are paying more attention to ESLT, considering it one of the most promising defense stocks in 2025.
-Should You Invest in ESLT Now?
In a volatile market, finding stocks with stable growth potential like Elbit is more important than ever. Defense technology is currently attracting large amounts of money from both governments and institutional investors. InvestingPro's AI has found that ESLT is among the stocks with attractive valuations and significant long-term growth potential.
If you are looking for a strategic investment in a sustainable and rapidly growing sector, ESLT may be a good choice.