Israel’s Elbit Systems has signed a $1.65 billion agreement to supply an undisclosed European country with a broad range of defense systems over the next five years. The package is expected to include PULS long-range precision rocket launchers, Hermes 900 unmanned aerial vehicles (UAVs) and other unmanned systems, along with command-and-control platforms, intelligence systems, vehicle upgrades and night-vision equipment. The company did not reveal the customer’s identity or the full product list.
The announcement came shortly before Elbit released its second-quarter financial results, reporting revenues of $2.0 billion for the quarter ended June 30, 2025, a 21 percent increase compared to the same period last year. GAAP net income reached $125.7 million, or $2.69 per share, while non-GAAP net income was $151 million, or $3.23 per share. The company’s order backlog stood at $23.8 billion. Earlier in the week, Elbit also announced a $244 million order from Israel’s Ministry of Defense for the production of various munitions, including Rampage precision air-to-ground missiles.
The deal comes against a backdrop of mounting international restrictions on Israeli defense imports and exports amid the ongoing war in Gaza. Over the weekend, Germany announced it would halt the supply of security equipment that could be used by the Israel Defense Forces in Gaza operations. Chancellor Friedrich Merz’s decision marked a significant shift, as Germany is Israel’s second-largest arms supplier after the United States and one of its closest allies.
From the start of the Gaza conflict until mid-2025, Germany supplied Israel with nearly €500 million worth of weapons and security equipment, accounting for around 30 percent of Israel’s security imports. Deliveries included four Saar 6 corvettes built at TKMS shipyards, valued at roughly €430 million, and ongoing construction of three submarines ordered in 2023 from ThyssenKrupp for about €3 billion.
Defense analysts warn that Berlin’s move could trigger a broader domino effect of arms embargoes against Israel, adding further pressure on its defense industry and complicating its ability to maintain and expand international partnerships.