Monday, December 8, 2025

Elbit Secures $260M Deal for Next-Generation Airborne Munitions Amid Growing Foreign Export Curbs

Elbit Systems has signed two contracts with the Israeli Ministry of Defense worth a combined USD 260 million (EUR 224 million) to supply advanced airborne munitions. The announcement comes as Israel faces mounting restrictions on overseas arms procurement, with countries such as Germany suspending or limiting new defense export approvals due to the ongoing conflict in Gaza. These constraints have accelerated the Ministry’s drive to source key weapon systems domestically, ensuring secure supply chains and sustained operational readiness.

Elbit President and CEO Bezhalel (Butzi) Machlis stated that the munitions in the deal are newly developed systems designed to meet the evolving operational needs of the Israel Defense Forces (IDF). He noted their potential appeal to foreign customers seeking cutting-edge air-to-surface strike capabilities. Manufacturing the weapons entirely in Israel will strengthen the country’s defense industrial base, shorten supply chains, and allow for rapid replenishment during high-tempo operations.

While specific models have not been confirmed, the contracts are believed to include upgraded variants of the Delilah cruise missile and Rampage missile, tailored to IDF requirements. The Delilah offers a range of about 250 km, GPS/INS navigation, an electro-optical terminal seeker for pinpoint accuracy, and the ability to loiter before engagement—making it effective against mobile or time-sensitive targets. The Rampage, developed with Israel Aerospace Industries, is a supersonic, stand-off missile optimized for striking high-value strategic targets such as radar installations, command centers, and hardened infrastructure, with speeds exceeding Mach 1.5. Additional systems could include Lizard and REST guidance kits, enabling cost-effective conversion of Mk 80 series bombs into precision-guided munitions, and the GATR precision rocket system, offering an 8 km range for close air support in urban environments.

The deal follows Germany’s 6 August 2025 decision to freeze approvals for all new arms exports to Israel, citing humanitarian concerns over the Gaza conflict. Although previously approved deliveries will proceed, the suspension impacts a broad range of defense categories and could delay modernization programs dependent on German-made components. Germany has long been a significant supplier to Israel, notably providing Dolphin-class submarines and Sa’ar 6 corvettes. Combined with similar scrutiny from other European states, the move highlights Israel’s strategic need to secure homegrown production capacity for critical systems.

While European restrictions tighten, the United States continues to deliver on existing arms agreements with Israel, supplying precision-guided munitions, advanced aircraft systems, and missile defense components through both Foreign Military Financing and direct commercial sales. This support offsets some of the impact from Europe but reinforces Israel’s parallel investment in indigenous weapons programs such as those in the Elbit contract.

The acquisition aligns with the IDF’s strategy to expand precision strike options to address regional threats and bypass advanced enemy air defenses. In recent years, the Ministry has prioritized integrating long-range, stand-off, and multi-role munitions to neutralize fortified and high-value targets. Elbit’s continued innovation in weapons technology fits these goals, offering systems compatible with both manned aircraft and unmanned aerial platforms.

By securing this order, Elbit not only boosts the IDF’s strike readiness but also strengthens its global market position, with several NATO and allied air forces already evaluating the Rampage and Delilah for integration. With a focus on next-generation products, the company appears ready to deliver precision, range, and operational flexibility to both domestic and international customers.

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