Elbit Systems Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Elbit Systems' third quarter 2025 results conference call. All participants are at present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. I would now like to hand over the call to Daniela Finn, Elbit Systems' VP, Investor Relations. Daniela, please go ahead.

Thank you, Karen. Hello, everyone, and welcome to our third quarter 2025 earnings call. On the call with me today are Butsy Machlis, President and CEO of Elbit Systems, and Coby Kagan, Corporate CFO. Before we begin, I would like to point out that the safe harbor statement in the company's press release issued earlier today also refers to the contents of this conference call. As usual, We will provide you with both GAAP financial data as well as certain supplemental non-GAAP information. We believe that this non-GAAP information provides additional detail to help understand the performance of the ongoing business. You can find all the detailed GAAP financial data as well as the non-GAAP information and the reconciliation in today's press release. Kobi will begin by providing a discussion of the financial results, followed by Budsi, who will talk about some of the significant developments during the quarter and beyond. We will then turn the call over to question and answer session. With that, I would like to now turn the call over to Kobi. Kobi, please go ahead.

Thank you, Daniela. Hello, everyone, and thank you for joining us today. We are very pleased to announce another set of quarterly results with double-digit year-over-year growth in revenues, backlog, and EPS. Portally free cash flow was solid at $101 million, underscoring our healthy cash generation. I will now highlight and discuss some of the key figures and trends in our financial results this quarter. Third quarter 2025 revenues were $1,922,000,000 compared to $1,718,000,000 in the third quarter of 2024. A solid 12% growth in quarterly revenues year over year and 18% growth for the nine months ended 30th September. In the third quarter of 2025, Europe contributed 28%, North America 21%, Asia Pacific 14%, and Israel with 33% of revenues. Gap gross margin in the third quarter was 24.9% of revenues compared to 24% in the third quarter of 2024. The non-GAAP gross margin for the third quarter was 25.2% of revenues compared to 24.4% in the third quarter of 2024. GAAP operating income for the third quarter was $171.4 million or 8.9% of revenues versus $125.8 million or 7.3% of revenues in the third quarter of 2024. Non-GAAP operating income was $186.7 million or 9.7% of revenues compared with $140.7 million or 8.2% of revenues in the third quarter of last year. We are very pleased with this margin expansion trajectory. The operating expense breakdown in the third quarter was as follows. Net R&D expense were $129.1 million or 6.7% of revenues compared to $119.9 million or 7% of revenues in the third quarter of 2024. Elbit continues to invest in R&D to secure future profitable growth which will maintain Elbit's position as a market leader in years to come. Marketing and selling expenses were $91 million or 4.7% of revenues versus $91.3 million or 5.3% in the third quarter of 2024. G&A expenses were $86.7 million or 4.5% of revenues compared to $75.7 million or 4.4% of revenues in the third quarter of 2024. Financial expenses were $34.5 million in the third quarter compared to $45 million in the third quarter of 2024. The decrease in financial expenses net in the third quarter of 2025 was mainly due to a reduction in the average net debt. We recorded a tax expense of $11.4 million in the third quarter compared to $12.8 million in the third quarter of 2024. The effective tax rate in the third quarter of 2025 was 8.2% compared to 14.6% in the third quarter of 2024. The decrease in the effective tax rate for the third quarter of 2025 was mainly due to the increase in deferred tax assets. GAAP diluted EPS was $2.80 for the third quarter of 2025 compared to $1.77 in the third quarter of 2024. Our non-GAAP diluted EPS was $3.35 for the third quarter of 2025, compared to $2.21 in the third quarter of 2024. Quarterly segment revenue for the third quarter of 2025, aerospace. Third quarter revenues decreased by 3% year over year, mainly due to decrease in precision guided munitions sales in Asia Pacific, Partially upset by the increase in PGM sales in Israel and an increase in unmanned aerial system sales in Europe. Revenues for the nine months were up 9%. C4I and cyber. Revenues increased by 14% year over year, mainly due to radio systems and command and control system sales in Europe. For the nine months, revenue rose by 15%. I-Star and EW. Revenues increased by 5% in the third quarter of 2025, mainly due to electro-optic systems and electronic warfare system sales in Israel and high-power laser sales in Israel. For the nine months, revenue increased by 8%. Land revenue increased by 41% in the third quarter of 2025 due to ammunition and munition sales in Israel and in Europe. For the nine months, revenue were up 44%. Elbit Systems of America, revenues decreased by 2% due to decrease in electronic systems and medical instrument sales, partially offset by the increase in maritime and warfighter system sales. For the nine months, revenue rose 6%. The order backlog as of September 30th, 2025 was $25.2 billion, $3.1 billion higher than the backlog at the end of the third quarter of 2024 and $1.4 billion higher than the backlog in the second quarter of 2025. The increase in backlog during the quarter came mainly from new European orders. Approximately 69% of the current backlog is derived from order outside of Israel. Approximately 38% of the current backlog is scheduled to be performed during the remainder of 2025 and during 2026, and the rest is scheduled for 2027 and beyond. Cash flow provided by operating activities in the nine months ended September 30th, 2025 was $461 million as compared to $82.5 million in the nine months ended September 30th, 2024. The cash flow in the nine months ended September 30th, 2025 was affected mainly by the strong increase in net income. On the back of the continuous strength of the company's result, the board of directors declared the dividend of 75 cents per share to be paid on January 5th, 2026. I will now turn the call over to Mr. Matlis, Albi CEO. Butzi, please go ahead.