Israel-based defence electronics company Elbit Systems has reported a 21% increase in revenue in the second quarter of this year driven by strong demand.
The company’s revenue totalled $1.3bn in the three-month period that ended on 30 June 2021. The figure was $1.08bn in the same quarter a year ago.
Elbit attributed the increase to the organic growth of the company. The contribution of Sparton, which Elbit recently acquired, also boosted its revenues.
The company’s order backlog at the end of the second quarter amounted to $13.6bn compared to $11.8bn by 31 March 2021.
GAAP gross profit increased to $339.2m in Q2 2021 from $280.5m in Q2 2020, while GAAP operating income was stable at $117.1m on a quarterly year-on-year (Y-o-Y) basis.
GAAP net income attributable to the shareholders was $101.7m in the second quarter of 2021, up from $89.3m in the prior-year period.
Elbit spent a net $95.4m on research and development in the quarter, while net marketing and selling expenses were $75.4m.
The company added that its defence activities were not materially impacted by the ongoing Covid-19 pandemic during 2020 and the first half of 2021.
However, certain businesses faced disruptions due to supply chain delays, travel restrictions and other government directed safety measures.
Elbit Systems president and CEO Bezhalel (Butzi) Machlis said: “Our second quarter results included a 21% growth in revenues, underscoring our diversified portfolio of technologies and broad global footprint.
“I am also pleased by the improvement in profitability and cash generation. Demand for our systems and services from customers around the world supported the 26% growth in our backlog to $13.6bn.”
In June this year, the US-based subsidiary of Elbit Systems secured two task orders to upgrade US Army’s AN/AVS-6 Aviator’s Night Vision Imaging Systems (ANVIS).