Israeli defence electronics specialist Elbit Systems reported an increased quarterly profit on Tuesday and said it predicts higher growth from its night-vision business and other acquired operations as global defence demands continue to rise.
The company won a US Army contract for enhanced night-vision systems that use thermal imaging and increased reality, with the deal worth up to $442 million.
Elbit Systems of America in 2019 bought the night-vision business of L3 Harris Technologies for $350 million and has also won German and Dutch military deals.
“It has been a big success. We expect hundreds of millions of dollars in additional contracts in this area,” Elbit Chief Executive Bezhalel Machlis told Reuters after reporting increased first-quarter profit and revenue. He said that defence spending is growing but Elbit is still suffering from the pandemic because there are no air shows to showcase its equipment, increasing its reliance on dialogue through its global subsidiaries.
Elbit in April bought Florida-based Sparton Corp for $380 million to expand its foothold in the naval sector. Finance chief Joseph Gaspar said Sparton should provide $60 million in quarterly revenue and contribute to profits in 2022.