Elbit Systems supports Israel’s military operations to an extent few defense contractors globally can match. When we look at the numbers, the scale becomes clear – this single company produces 85% of the Israel Defense Force’s land-based equipment and 85% of the drones used by the Israeli Air Force. With 18,407 employees, most based in Israel, Elbit has established itself as the primary provider of the country’s military land equipment and unmanned aerial vehicles.
While Israeli drones have played a significant role in Israel’s military planning since the early 1970s, we’ve seen Elbit Systems Israel emerge as the dominant force behind this technology. For those wondering who supplies Israel with weapons, the answer is predominantly Elbit, which provides 80% of the weapons and equipment for Israel’s land forces. Additionally, Israel exports approximately $500 million worth of UAV-related products annually, with projected growth of 5-10% over the next five years.
However, despite reporting revenue of US$6.83 billion in 2024, Elbit’s international contracts face challenges, such as the $246 million deal for six Starliner drones to Switzerland now delayed until 2029. In this article, we’ll examine how Elbit’s technology shapes Israel’s military strategy and the complex global reactions to its Surveillance Exports to Israel.
How Elbit Systems Supports Israel & Powers Its Drone Strategy
Israeli drone warfare began in earnest during the 1982 Lebanon War, marking a turning point in military technology. Elbit Systems has emerged as the backbone of this strategy, becoming Israel’s dominant supplier of unmanned aerial vehicles (UAVs).
Rise of Israeli drones in modern warfare
The evolution of Israeli drones represents one of the most significant military developments in recent decades. Israel pioneered UAV technology after experiencing the effectiveness of these systems during reconnaissance missions over Syria in the 1970s. Subsequently, the country developed expertise in manufacturing sophisticated drones with advanced capabilities.
Elbit’s drone fleet now includes everything from the tactical Skylark to the medium-altitude, long-endurance Hermes series. These platforms have seen extensive combat use, primarily in Gaza and Lebanon, where they provide crucial intelligence and strike capabilities without risking pilot lives.
Why drones are preferred over manned aircraft
Drones offer several decisive advantages over traditional aircraft. First, they eliminate pilot risk in dangerous environments. Second, they can loiter over target areas for extended periods—some Elbit models maintain continuous surveillance for over 24 hours. Third, they’re significantly more cost-effective than maintaining manned aircraft fleets.
Furthermore, modern warfare increasingly demands precision strikes in densely populated areas. Elbit’s drones excel in this environment, equipped with high-resolution cameras and precision munitions that theoretically reduce civilian casualties while maximizing military effectiveness.
Elbit’s role in Israel’s drone development
Elbit doesn’t merely manufacture drones—it creates integrated systems that form the backbone of Israel’s surveillance and targeting infrastructure. The company produces both the airframes and the sophisticated electronics that guide them.
Notable among Elbit’s innovations is the Universal Ground Control Station (UGCS), which allows operators to control multiple drone types from a single interface. This system integration represents the cornerstone of Elbit’s contribution to Israel’s military strategy.
Elbit also specializes in developing autonomous capabilities that reduce human workload. Their systems can independently identify targets, follow predetermined flight paths, and even return home if communications are lost—capabilities that have made Israeli drones highly sought after internationally.
Weaponry and Surveillance: Tactical Advantages
At the heart of Elbit’s military offerings lie combat-proven systems that provide Israel with decisive battlefield advantages. These systems seamlessly combine offensive capabilities with defensive technologies to create a comprehensive tactical ecosystem.
Combat-tested drones and their capabilities
The Hermes 450 stands as a cornerstone of Israel’s counter-terrorism operations, accumulating over 300,000 operational flight hours with an exceptional safety record. This multi-role tactical drone incorporates cutting-edge payloads including electro-optical/infrared sensors, synthetic aperture radar, and electronic intelligence systems. Moreover, its versatility allows for dual-payload configurations, maximizing mission effectiveness without requiring specialized piloting skills.
Surveillance systems for real-time targeting
Elbit’s surveillance technologies provide armed forces with comprehensive situational awareness across various operational distances. These systems leverage advanced electro-optical platforms, acoustic sensing, and multispectral imaging to deliver precise target identification. The company’s reconnaissance solutions offer multi-range surveillance options utilizing day/night sensors, laser rangefinders, and on-board mini-drones. Indeed, these technologies enable real-time intelligence dissemination, creating a common operational picture that enhances mission effectiveness.
Integration with Iron Fist and other defense systems
The Iron Fist Active Protection System represents Elbit’s innovation in defensive technology, providing armored vehicles with 360-degree protection against various anti-tank threats. This advanced “Hard Kill” system offers minimal weight and power requirements while defending against anti-tank rockets, guided missiles, unmanned aircraft, and loitering munitions. Notably, it remains effective in both open terrain and complex urban environments. The system’s integration with targeting solutions improves mission effectiveness by enabling faster and more accurate weapons deployment.
International Impact and Export Challenges
Elbit’s global presence extends far beyond Israel’s borders, with foreign sales formerly accounting for 80% of the company’s revenue. In recent years, though, this international footprint has faced mounting challenges.
Export contracts and global clients
Despite ongoing controversies, Elbit continues securing major international deals, including a USD 260 million contract with an international customer, USD 335 million worth of contracts with a European country, and a €20 million agreement with Montenegro. Yet in 2024, Elbit lost over 35% of its contracts in the Global South.
Technical failures and delivery delays
Reliability issues have plagued several high-profile contracts. Switzerland’s USD 246 million order for six Starliner drones, originally due in 2019, remains incomplete, with delivery now projected for 2029. Meanwhile, Denmark faces 3-4 year delays in weaponry deliveries due to GPS vulnerabilities, whereas Swiss officials warned that Elbit’s drones lack “essential technology”.
Security concerns in countries like Australia and Switzerland
In 2021, the Australian Army abruptly removed Elbit’s battle management system amid concerns about potential “backdoor” security vulnerabilities. Military sources revealed fears that “the Elbit technology may compromise sensitive data”, although Elbit “strongly refutes the security rumors”.
Elbit Systems’ shrinking export revenue
Export revenue plummeted from 80% to 58% of total revenue by Q4 2024. Elbit acknowledges “supply chain disruption due in part to limitations on export to Israel”, while reporting a 32% decrease in net income over five years.
Ethical Backlash and Financial Repercussions
The growing Boycott, Divestment, and Sanctions (BDS) movement has increasingly targeted Elbit Systems, resulting in major financial institutions severing ties with the weapons manufacturer.
BDS movement and global divestment
Banking giant Barclays divested all shares in Elbit Systems following a year-long campaign by Palestine Action that included 54 branch protests across the UK. Similarly, HSBC confirmed complete divestment after 24,000 supporters emailed concerns about Elbit investments. French insurer AXA also sold all holdings in Elbit and Israeli banks by June 2024, following sustained activist pressure.
Elbit’s involvement in controversial operations
Elbit’s weaponry has been consistently field-tested during military operations in Gaza. The Hermes 450 and 900 drones were extensively deployed in the 2014 Gaza war, where 37% of fatalities were attributed to drone attacks. Consequently, these “combat-proven” systems became major export products to over 20 countries worldwide.
Impact on brand and investor confidence
Despite increased military demand, Elbit’s shares fell 3% on NASDAQ, adding to a 10% decline in 2024. Scotiabank nearly halved its stake in the company following protest pressure, joining numerous pension funds globally that have already divested.
Elbit Systems’ surveillance exports under scrutiny
Israel’s export of surveillance technologies allegedly tested on Palestinians serves as valuable marketing to potential clients. The European Union has contracted Elbit to supply drones for tracking migrant boats across the Mediterranean, illustrating the global reach regardless of ethical concerns.
Companies like Elbit Systems are complicit in war crimes and humanitarian crises. Learn more about other weapon manufacturers fueling global conflict and why boycotting their shares is a stand for justice and ethical living.
Final Thoughts
The intersection of advanced military technology and ethical responsibility creates complex questions for companies like Elbit Systems. Beyond battlefield effectiveness, these technologies raise fundamental concerns about governance and oversight. Military AI advancements offer unprecedented capabilities but simultaneously create potential risks when hostile actors leverage similar technologies.
The technological race between world powers like the United States, Russia, and China extends into military AI development, with Elbit positioned at this competitive frontier. These advancements bring legitimate concerns, including over-reliance on technology, potential errors in target identification, and cybersecurity vulnerabilities.
Interestingly, Elbit America was named one of the 2025 World’s Most Ethical Companies by the Ethisphere Institute, highlighting the contradiction between ethical recognition and ongoing controversies surrounding defense contractors. This recognition specifically praised Elbit’s “integrity, sustainability, governance, and community” efforts.
In corporate communications, Elbit acknowledges these challenging times, especially following October 7th, 2023, which “changed life in Israel beyond recognition”. The company lost seven employees during the conflict, underscoring the personal impact of regional instability on defense industry workers.
Essentially, Elbit Systems represents both technological innovation and ethical complexity. The company’s technologies – particularly throughout its Israeli drone development – embody cutting-edge capabilities while raising questions about appropriate use, oversight, and long-term impacts on international humanitarian standards.
FAQs
1. What is Elbit Systems’ connection to the Israeli military?
Elbit Systems supplies approximately 85% of the Israel Defense Forces’ (IDF) land-based equipment and 85% of the drones used by the Israeli Air Force. It is one of the largest defense contractors in Israel, with extensive integration into the country’s military operations.
2. How significant is Elbit Systems in Israeli drone development?
Elbit Systems is Israel’s leading drone manufacturer. Its UAVs—like the Hermes 450 and Hermes 900—play a central role in surveillance, intelligence gathering, and targeted strikes. These drones are widely used in conflict zones, particularly Gaza and Lebanon.
3. What is the Universal Ground Control Station (UGCS) developed by Elbit?
The UGCS is a multi-drone control system that allows operators to manage various types of UAVs from a single interface. It enables real-time targeting, autonomous flight paths, and efficient mission execution.
4. Why do Israel and other nations prefer drones over manned aircraft?
Drones offer lower operational risk, extended surveillance time, and cost-efficiency. Elbit’s drones are equipped with precision-guided munitions and advanced sensors, ideal for urban warfare and high-risk zones.
5. Which international countries use Elbit Systems’ technologies?
Elbit Systems exports to over 30 countries, including Switzerland, Australia, Denmark, the UK, and EU nations. However, several contracts have faced delays or cancellations due to technical failures or political concerns.
6. Why has Elbit faced export issues in recent years?
Elbit has dealt with delivery delays, such as a $246 million Swiss drone contract postponed to 2029. Australia also suspended Elbit’s battle management systems over data security concerns. Export revenue has dropped from 80% to 58% of total revenue.
7. What is the controversy around Elbit’s involvement in Gaza?
Elbit’s drones were widely used in operations like the 2014 Gaza War, where drone strikes contributed to significant casualties. Human rights groups argue that Elbit’s “combat-proven” systems are implicated in alleged war crimes.
8. Why are activists and institutions boycotting Elbit Systems?
The BDS movement and groups like Palestine Action have pressured financial institutions to divest from Elbit. Banks like Barclays and HSBC, and insurers like AXA, have cut ties due to ethical concerns over Elbit’s role in military operations.
9. Has Elbit responded to allegations of unethical practices?
Elbit strongly denies accusations of unethical conduct. Notably, Elbit America was named one of the 2025 World’s Most Ethical Companies by the Ethisphere Institute, despite backlash over its parent company’s defense exports.
10. What technologies does Elbit Systems export globally?
Beyond drones, Elbit exports surveillance systems, AI-based target recognition, and defensive tools like the Iron Fist active protection system, used to shield armored vehicles from missile threats.
11. Is Elbit Systems still profitable despite controversies?
Elbit reported $6.83 billion in revenue in 2024, but net income dropped 32% over five years. Stock value also declined amid increasing divestments and geopolitical scrutiny.
12. What is the future outlook for Elbit Systems?
While Elbit remains a technological leader in defense systems, rising ethical concerns, regulatory scrutiny, and global activism may continue to challenge its export strategy and brand reputation.