The defense and security contracts just keep piling up at Elbit Systems (NASDAQ: ESLT). Yesterday, the Israeli defense contractor announced its second big contract win in as many months, a $133 million contract to perform “Homeland Security (HLS) applications” to be run out of “dedicated control centers intended to play a major role in fighting crime, preventing violence and improving citizens’ safety and security.”
Commenting on the news, Elbit CEO Bezhalel (Butzi) Machlis boasted that “we are witnessing a growing demand worldwide. Our technological edge and vast operational experience in command and control missions for defense applications position us as market leaders for HLS projects.” But as far as specifics of Elbit’s work go, Elbit kept a tight rein on the details divulged about its new contract. What we do know is this:
The customer in question is from “the Latin American region.”
This customer will pay Elbit for the HLS work in question over the course of one year.
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Counting the $133 million from this contract, Elbit has now booked in excess of $396 million in international defense and security contracts over the past two months. These include:
- a contract to sell Brazil a Hermes 900 unmanned aerial vehicle (for an unspecified price) for use in security operations in the country during the 2014 FIFA World Cup Games.
- a $163 million award to supply “defense electronic systems for ground applications” to an unnamed European customer.
- a $100 million contract to supply a “new innovative intelligence gathering system” to a Latin American customer (which may or may not be the same customer announced this week).
- and now, the $133 million HLS contract.
With Elbit generating about $2.9 billion in annual revenues, the sum of these contract wins, combined, amounts to at least 13.5% of the company’s annual revenue stream.
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