* Elbit supplies systems for Israeli military use in Iran

* Revenue rose 16% to $7.9 billion last year, spurred by

Gaza war

* Elbit shares have gained 51% in 2026

By Steven Scheer

TEL AVIV, March 17 (Reuters) - Elbit Systems,

Israel's largest defence firm, is seeing a new surge in demand

due to the U.S.-Israeli war on Iran after reaping strong

revenues as a result of the 2023-2025 Gaza war.

Elbit chief executive Bezhalel Machlis said on Tuesday the

company was working around the clock to ensure Israel did not

run out of ammunition and other military systems, and to supply

foreign customers - including Gulf countries.

"The success of Israel in Iran creates a lot of interest

and a lot of traction. There is a lot of interest in many

countries who are suffering from the same enemy (Iran)," Machlis

told Reuters, citing countries including the United Arab

Emirates - where Elbit has a subsidiary - and Bahrain.

The U.S. and Israel launched air strikes on Iran on

February 28. Iran has struck Israel, as well as Gulf neighbours,

with drones and missiles.

Machlis said Elbit supplies a host of systems to the

Israeli military for use in Iran such as long-range guided

munitions or equipment used in electronic warfare.

"Customers like to see (systems) tested in battle, so we

are engaged with international customers, and we anticipate

demand," said chief financial officer Yaacov Kagan.

Elbit's order backlog rose to $28.1 billion at the end of

2025 from $22.6 billion in 2024, with 72% attributable to orders

outside Israel and more than half slated to be performed in 2026

and 2027. This, Kagan said, will drive 2026 growth.

Officials pointed out that Elbit had received an order from

the Defence Ministry for an airborne high-powered laser system,

which is still in development.

Elbit earned $12.75 per diluted share, excluding

one-time items, last year, up from $8.76 in 2024. Revenue rose

16% to $7.9 billion.

In the fourth quarter alone, it earned an adjusted $3.56 per

diluted share, versus $2.66 a year earlier, while quarterly

revenue exceeded $2 billion for the first time. Elbit will pay

a quarterly dividend of $1.00 per share.

Elbit's shares rose 4.1%, accumulating a 51% gain so far in

2026.