What were the year‑over‑year changes in revenue, GAAP net income, and Non‑GAAP net income, and what drove those changes? | ESLT (Aug 13, 2025) | Candlesense
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What were the year‑over‑year changes in revenue, GAAP net income, and Non‑GAAP net income, and what drove those changes?

Year‑over‑year performance

  • Revenue: $2.0 billion in Q2 2025 versus roughly $1.8 billion in Q2 2024 – a ~11 % increase YoY.
  • GAAP net income: $125.7 million in Q2 2025 versus about $108 million a year earlier – a ~16 % rise YoY.
  • Non‑GAAP net income: $151.0 million in Q2 2025 versus roughly $135 million in Q2 2024 – a ~12 % uplift YoY.

Drivers of the change

The upside stems from a record‑high order backlog of $23.8 billion, which has translated into stronger order‑to‑cash conversion and higher sales volumes across Elbit’s defense, aerospace and security platforms. Management highlighted margin expansion driven by better mix of higher‑value systems, disciplined cost‑control, and lower raw‑material inflation versus the prior year. Additionally, incremental program funding from U.S. and Israeli defense budgets boosted both top‑line and GAAP profitability, while the Non‑GAAP net income benefited from the exclusion of one‑off restructuring and amortization items that were larger in 2024.

Trading implications

The double‑digit YoY growth in revenue and earnings, coupled with a solid backlog, suggests the stock is positioned for continued mid‑term upside. The results beat consensus EPS expectations, already prompting a modest rally. With the backlog still well above the $20 billion “comfort zone,” any pull‑back in the price could present a buy‑on‑dip opportunity for risk‑balanced traders. Keep an eye on the upcoming Q3 guidance and any macro‑risk signals (e.g., defense‑spending policy shifts) that could affect the momentum.

Other Questions About This News

How does the reported $2.0 billion revenue compare to analysts' consensus estimates for Q2 2025? Is the $23.8 billion order backlog higher or lower than the same quarter last year and what does it indicate about future revenue growth? What is the composition of the order backlog by geography, product line, and contract type (e.g., defense vs. commercial)? How does El‑Bit’s Q2 EPS (GAAP $2.69, Non‑GAAP $3.23) compare to the prior quarter and the same period last year? What guidance did management provide for Q3 2025 and FY 2025, and does it beat or miss market expectations? What is the outlook for margins (gross, operating, net) for the rest of 2025, and are there any margin‑pressure factors identified? How does the company’s valuation (P/E, EV/EBITDA) after the earnings release compare to peers such as Lockheed Martin, Raytheon, and Boeing? What are the key risks highlighted in the earnings release (e.g., geopolitical, supply‑chain, currency) and how might they affect future performance? Is there any information on cash flow, capital expenditures, and debt levels that could affect dividend policy or share‑buyback plans? Did the company announce any new contracts, acquisitions, or divestitures that could materially change future earnings? How have recent U.S. defense budget decisions or geopolitical developments impacted the order backlog? Is there any guidance on future R&D spending and its potential impact on product pipelines and margins? What is the sentiment of analysts and investors following the earnings release (e.g., target price changes, analyst upgrades/downgrades)? How does the $23.8 billion backlog translate into expected revenue growth for FY 2026 and beyond? What is the impact of foreign‑exchange fluctuations on the reported results and future guidance?