Elbit Systems has secured a $210 million contract to upgrade the Israel Defense Forces’ (IDF) Merkava main battle tanks. This announcement was made during a ceasefire period, specifically relating to Israel’s northern and southern fronts involving Gaza and Lebanon.
The upgrades come amid public criticism from reservists regarding the operational capabilities of various armored vehicles following the Iron Swords war, which took place over a two-year span. During the first year of this conflict, several IDF armored vehicles suffered damage; however, a military statement indicated that approximately 90% of these vehicles were returned to operational status relatively quickly.
According to Elbit Systems, the tank upgrade contract will be executed over a six-year period and aims to provide an extensive renewal of the electronic assemblies within the tanks. The contract also includes enhancements to multiple onboard systems.
Key features of the upgrade will involve high-performance, lightweight, AI-enhanced electro-optical sights designed for panoramic day- and night-time observation. These sights will offer advanced capabilities for target detection, acquisition, and tracking.
The Merkava tank series, currently in its fourth generation, boasts that around 80% of its components are manufactured within Israel. Historically, Israel refrained from selling Merkava tanks until 2010; the first and only export deal was signed in 2014 with a foreign nation that has not been publicly identified.
In 2023, negotiations took place to sell retired Merkava Mark 2 and Mark 3 tanks to both a European and a South American country. However, these talks were halted following the conclusion of the Iron Swords war.
Elbit Systems’ announcement coincides with the release of its third-quarter financial reports, which revealed a record order backlog of $25.2 billion as of the end of the quarter. The company reported substantial growth in its land sector, with sales reaching $594 million, a 41% increase compared to the same quarter in the previous year. This growth was primarily driven by demand from European nations totaling approximately $536 million.
For the quarter, Israel accounted for about one-third of Elbit’s total sales, yielding around $642 million in revenue. Additionally, the company disclosed a confidential transaction valued at $2.3 billion on November 17, although details of the deal remain undisclosed at the request of the customer.
Tzally Greenberg serves as the Israel correspondent for Defense News, bringing extensive experience in covering economic affairs along with defense and cybersecurity companies.
