Elbit Systems Ltd. announced that it will begin delivering Watchkeeper X unmanned aerial vehicles to the Romanian Armed Forces under a 1.89 billion‑lei ($428.75 million) framework contract that was originally signed in 2022. The company also confirmed a new $750 million agreement to supply Precise & Universal Launching System (PULS) rocket artillery systems to the Hellenic Armed Forces, a four‑year performance period with an additional ten‑year follow‑on support phase.
The Romanian contract has a complex history. A purchase order for the first three systems was issued in June 2023 for $180 million, with deliveries initially slated for 2025. Delays, largely attributed to force‑majeure events linked to the security situation in Israel, prompted the Romanian defence minister to threaten cancellation. Penalties estimated at €60 million have accrued, and concerns about technology obsolescence have been raised. Elbit has stated that the systems are ready for final acceptance tests in Romania toward the end of April, subject to regulatory approval. "Despite the challenges arising from the exceptional security situation in Israel, which has been recognized as a force majeure event by the company's customers worldwide, the project has been given high priority," the company said.
The Greek agreement covers launchers, training rockets, precision‑guided munitions and loitering munitions, and is designed to strengthen Greece’s artillery capabilities in the Aegean region. The four‑year contract, with a ten‑year support extension, aligns with Greece’s broader modernization efforts and places Elbit alongside other NATO members that have adopted the PULS system. "Elbit Systems has a longstanding and successful cooperation with the Hellenic Ministry of National Defense, and this project further strengthens that relationship. Greece joins additional NATO countries that have selected the PULS system, underscoring its growing reputation as a highly effective and versatile solution for modern artillery requirements in Europe and beyond, and we are honored by the continued confidence shown in our advanced systems," the company added.
These deals add significant revenue streams to Elbit’s already robust backlog of $28.1 billion, up from $22.6 billion a year earlier. The company’s Q4 2025 earnings report highlighted a 16 % revenue increase, a 59 % rise in GAAP net EPS, and record free cash flow of more than $550 million. "In 2025, revenues grew by 16%, profit margins expanded significantly, GAAP net EPS increased by 59%, non‑GAAP net EPS increased by 46% and backlog grew by $5.5 billion surpassing the $28 billion mark. We also generated record Free Cash Flow of more than $550 million, representing a 100% cash conversion rate," CEO Bezhalel (Butzi) Machlis said.
The contracts reinforce Elbit’s strategy to capture NATO‑aligned markets and expand its footprint in Eastern Europe and the Mediterranean. They also demonstrate the company’s resilience amid geopolitical tensions and supply‑chain challenges, positioning it to benefit from the broader European rearmament drive. The deals underscore Elbit’s competitive edge in advanced UAV and artillery systems, and they provide a solid foundation for future growth in the defense sector.
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