This Defense Stock Has More Than Doubled In A Year – And It Just Bagged Its Second Contract This Week

• The company said that the contract will be carried over for four years.
• As per the contract, the company will revamp the tanks’ systems to broaden their service life and enhance battle readiness.
• Earlier this week, Elbit Systems reported handsome quarterly earnings with a record backlog of over $30 billion.

The U.S.-listed shares of Elbit Systems (ESLT) rose over 4% premarket on Thursday after the company announced an award of about $350 million from an international customer to provide upgrades for Main Battle Tanks (MBTs).

The deal comes just days after Elbit unveiled a $1.4 billion European modernization program, underscoring what CEO Bezhalel (Butzi) Machlis called the company's ability to "deliver comprehensive and integrated solutions that incorporate the latest generation" systems across domains.

Elbit Systems' stock has more than doubled in value over the last 12 months.

ESLT’s $350M Tank Upgrade Contract

Elbit said that the contract will be carried out over four years, and the upgrade program includes features such as integration of advanced fire control systems, electric gun & turret drive systems, communication and situational awareness solutions, as well as a mid-life upgrade package.

As per the contract, the company will revamp the tanks’ systems to broaden their service life and enhance battle readiness. The upgrade program also covers lightweight, high-performance electro-optical sights with artificial intelligence capabilities that provide day-and-night observation plus advanced target detection and tracking.

The deal also includes provisions for the supply of spare parts and required technical and maintenance support to ensure long–term operational availability, as well as the integration of a secure, high-capacity voice communication suite.

"Elbit Systems is a global leader in tank modernization programs. By leveraging the strengths and expertise of our divisions, we deliver comprehensive and integrated solutions that incorporate latest generation fire control, electro–optical, and communication systems, along with other state–of–the–art subsystems,” said Bezhalel (Butzi) Machlis, President and Chief Executive Officer at Elbit Systems 

Deal Comes Days After $1.4B European Defense Award

The tank contract follows a $1.4 billion European modernization award announced earlier this week. The award from the European customer would be implemented for a five-year period. I would cover improved maneuverability and survivability, spanning the entire battle domain, according to Elbit Systems.

That deal, plus the $350 million tank upgrade, adds roughly $1.75 billion to Elbit's already record $30.2 billion backlog

ESLT’s Q1 Beat And War-Driven Demand Surge

The contract flurry builds on a strong first-quarter 2026 report. 

Revenue for the first quarter hit $2.19 billion, up from $1.90 billion year over year, with adjusted earnings per share of $3.87, up from $2.57 a year prior. 

Elbit Systems said the ongoing conflict in the Middle East has led to a “continued material increase” in demand for its products and solutions from the Israeli Ministry of Defense compared with levels prior to the war.

The company reported a record backlog of $30.2 billion at the end of the first quarter. Machlis said that free cash flow during the quarter was very strong, and the company achieved a record backlog, surpassing a mark of $30 billion for the first time.

What Retails Thinks About ESLT

The retail sentiment surrounding the stock has improved to ‘extremely bullish’ from ‘bullish’ while message volumes remained ‘high’ over the past 24 hours.

Elbit Systems’ stock has gained over 40% year to date.

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