Jul 29, 2025, 4:45 PM
Jul 29, 2025, 4:45 PM

Elbit systems wins $260 million German defense contract

Highlights
  • Elbit Systems Ltd. has secured a significant contract with Germany worth $260 million to enhance the A400M aircraft's self-protection.
  • This deal represents a larger trend in Israel's defense exports to Europe, which have seen a dramatic increase this past year.
  • The contract underscores Elbit's growing reputation as a trusted provider of advanced defense systems for air forces around the world.
Story

In the context of evolving international defense contracts, Israel has solidified its position as a significant player in the global arms industry. Recently, Elbit Systems Ltd., an Israeli defense contractor, announced that it has signed a $260 million government contract with Germany. This agreement entails a focus on enhancing the self-protection of Germany's A400M aircraft fleet by installing Directional Infrared Counter Measures (DIRCM) systems over the next six years. The contract is a continuation of the strong partnership between Israeli firms and international militaries, reflecting a notable trend in defense exports, particularly to European nations. Following this announcement, Elbit's share price increased by 1 percent on the Tel Aviv Stock Exchange (TASE), indicating investor confidence in the company’s stability and market performance despite ongoing geopolitical challenges. The contract contributes to a broader momentum, as Israeli defense exports to Europe soared to account for 54% of total defense exports last year, a significant increase from approximately 33% the previous year, as reported by Globes, an Israeli media outlet. Elbit's DIRCM systems are designed to counter threats posed by infrared-guided missiles including mobile anti-aircraft weaponry. These systems employ advanced tracking capabilities and automatic response functions, serving as a crucial defense mechanism for air forces in various countries, including Germany, Italy, the Netherlands, and Brazil. In the wake of this contract, Elbit's president and CEO, Bezhalel Machlis, expressed pride in supporting Germany's defense strategies and enhancing the safety of its airborne assets while noting the successful collaboration with Airbus DS involved in this program. This strengthening of defense relations comes at a time when German Chancellor Friedrich Merz recently reaffirmed the country’s stance on Middle East politics by announcing plans not to recognize a Palestinian state, emphasizing the importance of Israel's security to the German government. The ongoing discussions and contracts between Israel and Germany thus illustrate a complex intertwining of military cooperation and political considerations, with significant implications for regional security dynamics and international arms trade.

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