The rating upgrade to ilAAA is a clear credit-positive catalyst that should tighten credit spreads on Elbit's Series B, C, and D bonds and support the equity via improved sentiment. Monitor upcoming quarterly results for continued revenue growth and margin expansion toward the 12% EBITDA margin target. The stable outlook suggests no near-term downgrade risk, but watch for any backlog erosion or margin compression below 9% as downside triggers.
Price Chart
Executive Summary
S&P Global Ratings Maalot raised Elbit Systems' long-term issuer rating to ilAAA (local scale) from ilAA+, with a stable outlook, citing continued improvement in financial ratios, record backlog of $28.1 billion, and strong operating performance. The upgrade reflects a sharp decline in adjusted debt-to-EBITDA leverage to 1.8x in 2025 from 3.0x in 2024, and an increase in FFO-to-debt to about 50% from 28%. This is a credit-positive signal for bondholders and supports the company's strong liquidity profile.
Key Facts
- S&P Maalot raised long-term issuer rating to ilAAA from ilAA+ on May 20, 2026
- Adjusted debt-to-EBITDA fell to ~1.8x in 2025 from ~3.0x in 2024
- FFO-to-debt ratio increased to ~50% in 2025 from ~28% in 2024
- Backlog reached a record $28.1 billion as of December 31, 2025
- Revenues grew 16% in 2025 to about $7.9 billion
- Adjusted debt decreased about 24% to ~$1.7 billion
- EBITDA grew ~28.5% to about $1 billion
- S&P expects backlog to exceed $30 billion in 2026 and revenues to exceed $9 billion
- S&P expects adjusted EBITDA margin of at least 12% in next two years
- S&P expects adjusted FFO to debt to exceed 60% and adjusted debt to EBITDA to be about 1.5x in next 24 months
- Liquidity assessed as strong with sources-to-uses ratio exceeding 1.5x
- Stable outlook reflects expectation of maintained strong business position
Financial Impact
Credit rating upgrade to highest local scale level (ilAAA) reflects materially improved leverage and coverage ratios; debt-to-EBITDA halved from 3.0x to 1.8x, FFO-to-debt nearly doubled to 50%
Risk Factors
- Geopolitical escalation could disrupt operations or supply chains
- Cost overruns on fixed-price contracts could compress margins below 9%
- Dependence on defense budgets which may shift with political changes
- High R&D and capital expenditure requirements may pressure cash flows
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001027664-26-000009 |
| Exhibit: exhibit_1-20260520.htm | 0001027664-26-000009 |
| Document: cover6k202605.htm | 0001027664-26-000009 |
| Document: 0001027664-26-000009-index-headers.html | 0001027664-26-000009 |
| Document: 0001027664-26-000009-index.html | 0001027664-26-000009 |
| Document: 0001027664-26-000009.txt | 0001027664-26-000009 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 7w ago | 6-K | $776.08 $714.40 | ▼ −7.95% | ▼ −6.89% | $696.23 (−10.29%) |
Aug 11, 2026 7w ago | Press Release | $776.08 $714.40 | ▼ −7.95% | ▼ −6.89% | $696.23 (−10.29%) |
Aug 6, 2026 8w ago | Press Release | $857.00 $701.22 | ▼ −18.18% | ▼ −18.78% | $696.23 (−18.76%) |
Jul 20, 2026 10w ago | 6-K | $754.85 $782.84 | ▲ +3.71% | ▼ −0.41% | $696.23 (−7.77%) |
Jul 20, 2026 10w ago | Press Release | $754.85 $782.84 | ▲ +3.71% | ▼ −0.41% | $696.23 (−7.77%) |
Jul 13, 2026 11w ago | 6-K | $735.40 $846.04 | ▲ +15.04% | ▲ +11.86% | $696.23 (−5.33%) |
Jul 13, 2026 11w ago | Press Release | $735.40 $846.04 | ▲ +15.04% | ▲ +11.86% | $696.23 (−5.33%) |
Jul 1, 2026 13w ago | 6-K | $759.98 $769.10 | ▲ +1.20% | ▲ +3.39% | $696.23 (−8.39%) |
May 28, 2026 18w ago | 6-K | $892.63 $715.72 | ▼ −19.82% | ▼ −16.67% | $696.23 (−22.00%) |
May 27, 2026 18w ago | GOVT-CONTRACT | $828.81 $732.71 | ▼ −11.59% | ▼ −9.69% | $696.23 (−16.00%) |
US Market Status
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