The Drones Above Gaza: War, Profit, and the Companies Behind It

From a rooftop in Gaza, the night air fills with a soft, insistent thrum—an unseen metronome that never resets. The sound belongs to surveillance and strike drones that residents report hovering over the territory for hours on end, turning streets, clinics, and schools into theatre for a modern war economy. Elbit Systems war crimes accusations are not abstract chatter here; they ride the same wind as the drones themselves. Elbit Systems Ltd, listed on NASDAQ as ESLT, is an Israeli defense contractor based in Tel Aviv, a company whose market capitalisation sits around $31.39 billion and is led by CEO Bezalel Machlis. The firm exports Hermes and Skylark unmanned systems, electro‑optical surveillance gear, and battlefield networks to dozens of countries, and it maintains a heavy footprint in Israel’s Ministry of Defense ecosystem. Source: Nasdaq — ESLT market data Source: Elbit Systems — corporate profile Source: WhoProfits — Elbit as a major Israeli weapons maker

In Gaza, hospitals, refugee camps, and residential blocks have been repeatedly struck in what UN monitors describe as a humanitarian catastrophe unfolding under intensive air and ground operations. The United Nations OCHA reports that more than 37,000 Palestinians were killed in Gaza by mid‑2024, with thousands of children among the dead. Source: United Nations OCHA — Gaza death toll The same period saw profound shifts in Israel’s war economy, including a rapid expansion of defense spending and a spike in orders for domestic weapons and surveillance systems. A UN Special Rapporteur report attributes a roughly 65% surge in Elbit profits to that wartime spending pattern. Source: United Nations Special Rapporteur — A/HRc-59-23

Elbit Systems: Israel’s Largest Private Arms Manufacturer

Elbit Systems Ltd is an NASDAQ‑listed defense contractor headquartered in Tel Aviv, Israel. It operates in the arms manufacturing sector, with a market capitalisation around $31.39 billion and CEO Bezalel Machlis at the helm. The company designs and exports Hermes and Skylark UAVs, electro‑optical targeting and surveillance systems, command‑and‑control networks, and autonomous platforms to militaries and security agencies around the world. Source: Nasdaq ESLT market data Source: Elbit Systems — corporate information

Key Statistics at a Glance

Company	Detail
Company	Elbit Systems Ltd
Stock symbol	ESLT
Exchange	NASDAQ
Headquarters	Tel Aviv, Israel
CEO	Bezalel Machlis
Market capitalisation	≈$31.39B
Core business segments	Drones, UAVs, surveillance, C2, weapons systems
Primary government clients	Israeli Ministry of Defense; foreign militaries
Flagship weapons systems	Hermes UAVs; Skylark drones
Ethical Investor status	NOT Halal

– 🛰 Hermes unmanned aerial systems (UAVs)
– 🚁 Skylark tactical surveillance drones
– 🎯 Precision‑guided weapons systems
– 👁 Electro‑optical targeting and surveillance technology
– 🧠 Military command‑and‑control systems
– 🤖 Autonomous and robotic battlefield systems

Elbit’s global reach is framed by export licences, multi‑national supply chains, and a presence in air forces and border security programs across dozens of countries. The company’s public materials and independent critiques alike describe a pervasive role in national defense ecosystems, with a particular emphasis on Israel’s security architecture. Source: Elbit Systems — product portfolio Source: WhoProfits — global reach and export profile

The Numbers Don’t Lie

Elbit Systems’ profits surged approximately 49% during the 2023–2024 period, coinciding with increased Israeli military spending amid the Gaza conflict.

Revenue Timeline

Year	Revenue (approx.)	Key Context	Source
2021	$5.28 billion	13.21% increase from 2020	macrotrends.net
2022	$5.51 billion	4.41% increase from 2021	macrotrends.net
2023	$5.97 billion	8.4% increase from 2022	macrotrends.net
2024	$6.83 billion	14.28% increase from 2023	macrotrends.net

Financial Performance Analysis

Elbit Systems’ financial performance has shown significant growth over recent years, particularly during periods of heightened military activity. Key financial highlights include:

• Net Income Growth: In 2024, net income reached $321 million, marking a 49.28% increase from $215 million in 2023. macrotrends.net
• Operating Income: The company reported an operating income of $489 million in 2024, a 32.5% increase from $369 million in 2023. macrotrends.net
• Gross Profit: Gross profit for 2024 was $1.642 billion, up 10.71% from $1.483 billion in 2023. macrotrends.net
• Order Backlog: By the end of 2024, Elbit Systems’ order backlog stood at $22.6 billion, indicating strong future revenue potential. elbitsystems.com
• Revenue per Employee: With approximately 19,712 employees in 2024, the revenue per employee was about $346,381, reflecting efficient operations. tipranks.com

War Contracts and Military Escalation

Date	Event	Value	Source
Oct 2023	Surge in Israeli defense procurement following Gaza war escalation	Multi-billion spending increase	elbitsystems.com
2024	Additional military sales to Israeli Ministry of Defense	$2 billion	elbitsystems.com
Jan 2025	New domestic bomb production contract for Israeli military	Undisclosed value	elbitsystems.com

Stock Market Correlation & Institutional Exposure

Elbit Systems Ltd. (NASDAQ: ESLT) has experienced stock price fluctuations correlating with periods of military escalation. The stock is accessible to retail investors via the NASDAQ exchange. Notably, during the 2023–2024 period, ESLT’s stock price increased in tandem with the company’s revenue and profit growth, reflecting investor confidence in its performance during times of conflict.

It’s important to note that investors holding index funds or ETFs may have indirect exposure to ESLT stock, often without explicit awareness. This underscores the need for investors to review their portfolios for holdings in defense contractors, especially those involved in controversial military engagements.

Major asset managers, including 1832 Asset Management LP and Clal Pension & Provident Funds Ltd., hold significant positions in Elbit Systems through various investment vehicles. Investors can verify institutional holdings by consulting the SEC’s EDGAR database or equivalent financial disclosure platforms.

Weapons of War

Hermes Unmanned Aerial Vehicles (UAVs)

The Hermes series, developed by Elbit Systems, comprises advanced unmanned aerial vehicles designed for long-endurance surveillance and precision strikes. These UAVs are equipped with high-resolution cameras and sensors, enabling real-time intelligence gathering and target acquisition.

Documented reports indicate that Hermes UAVs have been utilized by the Israeli military in operations over Gaza, conducting both reconnaissance missions and targeted strikes. WhoProfits — Elbit Systems Profile

Skylark Tactical Surveillance Drones

The Skylark is a small, portable UAV system intended for tactical surveillance and reconnaissance missions. It provides real-time video and thermal imaging, supporting ground forces with immediate situational awareness.

Evidence suggests that Skylark drones have been deployed in Gaza to monitor and gather intelligence on specific areas, aiding in the planning and execution of military operations. WhoProfits — Elbit Systems Profile

Electro-Optical Targeting Systems

Elbit Systems produces advanced electro-optical targeting systems that integrate laser designators and high-resolution imaging to enhance the accuracy of weapon systems. These technologies are designed to identify and track targets with precision.

Reports have documented the integration of Elbit’s targeting systems into the Israeli military’s operations in Gaza, facilitating precise targeting in densely populated areas. WhoProfits — Elbit Systems Profile

Command and Control Systems

Elbit’s command and control systems are designed to integrate various battlefield components, providing a comprehensive operational picture and enabling coordinated military actions. These systems facilitate communication and data sharing among different units.

Documentation indicates that such systems have been employed by the Israeli military to coordinate operations in Gaza, enhancing the effectiveness of their military campaigns. WhoProfits — Elbit Systems Profile

The Legal Case

Yes — there are substantial allegations that Elbit Systems’ weapons and surveillance technologies are linked to violations of international humanitarian law, though no international court has convicted the company of war crimes.

International law recognises that supplying weapons or intelligence systems that facilitate indiscriminate or disproportionate harm can raise serious complicity concerns. The question is not merely whether a product exists, but how it is deployed, by whom, and with what intention or knowledge of likely consequences. The International Court of Justice’s January 2024 proceedings in the South Africa v. Israel case clarified that state responsibility in arms transfers and assistance can bear on obligations under humanitarian law, even as the Court did not adjudicate corporate liability in the abstract. The UN has repeatedly warned that profit from occupation and violence can amount to aiding and abetting violations when the goods sold are designed for or directly used in wrongdoing. In this frame, corporate supply chains and risk management become material to legal risk assessments, particularly for companies selling high‑end weapons, surveillance systems, and command‑and‑control networks to governments engaged in armed conflict.

Several instruments offer benchmarks. The Geneva Conventions set civilian protection as a core norm and require precautions in attacks and the distinction between military targets and civilians. The Rome Statute defines war crimes and includes aiding and abetting violations, which can extend to corporate actors when their products meaningfully facilitate such crimes. The UN Guiding Principles on Business and Human Rights place duties on corporations to avoid causing or contributing to abuses and to exercise due diligence where there is a foreseeable risk of human rights impacts. While none of these instruments in isolation indict a specific company, taken together they establish a framework in which suppliers of drones, targeting systems, and battlefield networks—like those produced by Elbit Systems—face heightened scrutiny regarding their role in conflict and civilian harm.

Legal Instrument	What It Says	Relevance to Elbit Systems	Source URL
Geneva Conventions	Civilian protection; prohibitions on indiscriminate attacks; precautions in attack.	Frames accountability for weapons and surveillance technologies that enable civilian harm or fail to distinguish between civilian and military targets.	ICRC — Geneva Conventions overview
Rome Statute (corporate complicity)	Defines war crimes; aiding and abetting conduct that constitutes or contributes to war crimes.	Provides a basis for examining whether suppliers of weapons and surveillance systems can be considered complicit in crimes when their products are used unlawfully.	ICC — Rome Statute
UN Guiding Principles on Business and Human Rights	Corporations must avoid causing, or contribute to, human rights abuses and conduct due diligence.	Imposes ongoing due diligence on defense suppliers to mitigate exposure to human rights abuses and reputational risk.	UN Guiding Principles
ICJ ruling in South Africa v. Israel (2024)	Addressed state responsibility for arms transfers and assistance in conflict contexts; informs interpretation of obligations in escalation and warfare scenarios.	Suggests that the legality of state conduct, including arms procurement, bears on international legal risk for companies supplying those states.	ICJ case page
Arms Trade Treaty (ATT)	Transfers should not be authorized if likely to contribute to war crimes or grave abuses.	Operational benchmark for evaluating export controls and due diligence in the sale of drones, targeting systems, and battle‑net infrastructure.	UN Disarmament — ATT

Alleged and plausibility findings circulate in UN and civil society reports. Documented references suggest that Elbit Systems’ components—drones, surveillance gear, and battlefield networks—are used in operations that have drawn international concern and investigations. Analysts emphasise careful distinctions between allegations and proven convictions, underscoring the need for independent investigations and due process before any determinations of criminal liability. The legal landscape therefore places corporate risk on two planes: exposure to investigations and the potential exposure to liability through the complicity pathway, should evidence of intent, knowledge, or substantial assistance be established by competent authorities.

Why Investors Should Care

ESG & Reputational Risk

Global responsible‑investing norms increasingly penalise companies tied to controversial conflicts. Norway’s sovereign fund, NBIM, has explicit exclusion policies for companies involved in grave human rights abuses or questionable conduct in armed conflicts. Such exclusions pressurise fund managers to reassess holdings and reallocate capital away from contested contractors. Institutional divestment pressure has risen as NGOs and activists push for transparency, accountability, and human rights due diligence in defense portfolios. ESG ratings agencies have begun to scrutinise suppliers of military technology for governance and impact risks, complicating access to capital for firms like Elbit Systems. NBIM exclusion policy

Regulatory & Legal Risk

Arms export controls, sanctions regimes, and human‑rights due diligence requirements are tightening in multiple jurisdictions. Regulators are examining supply chains for evidence of assistance that would breach international law or contribute to civilian harm. This can translate into export许可 constraints, increased reporting burdens, and heightened litigation exposure for shareholders. The regulatory environment creates a floor for risk assessment: even if a product is legally sold, ongoing regulatory scrutiny can depress demand, complicate financing, and erode market valuations.

The Stock Price Illusion

A rising defence stock during a genocide is not a success story. It is a receipt.

Defence contractors often experience stock appreciation during periods of heightened conflict, driven by order backlogs and near‑term defense spending. Critics caution that rising prices reflect military escalation rather than durable competitive advantage. Investors should separate price momentum from long‑term value when the social cost is measured in casualties and humanitarian harm. The illusion blurs ethical judgment and financial assessment, inviting skepticism about the sustainability of such gains.

The Institutional Trap

Many retail investors own exposure through broad ETFs and index funds without seeing the defense‑industry footprint beneath the surface. This institutional trap makes individual portfolios vulnerable to hidden war‑related concentration. Active dialogue with asset managers and a push for conflict‑sensitive screening can reveal or reduce exposure. For those seeking practical steps, see the internal guidance on ESG investing for clear screening criteria and action options.

Investor Type	Risk Level (🔴🟠🟡)	Recommended Action	Resource
Retail investor	🔴	Audit holdings; consider divestment or shift to conflict‑sensitive funds	INTERNAL LINK: “ESG investing guide”
Pension funds	🟠	Review due diligence processes; request board oversight on defense exposure	NBIM exclusion policy; UN PRI materials
Institutional funds	🟡	Adopt conflict‑sensitive mandates; publish transparency reports	UN PRI framework; corporate accountability databases

Why Muslim Investors & Consumers Should Care

Is Elbit Systems halal to invest in? Not halal to invest; EI rating: DIVEST; Islamic finance grounds classify the company as haram due to primary revenue from weapons manufacturing used in war.

Islamic finance grounds for exclusion rest on core principles: harb (harmful activities), dharar (prevention of harm to others), and zulm (oppression). Weapons production and dual‑use surveillance technologies that enable civilian harm fall squarely within prohibitions when they contribute to unjust oppression or violence. Jurisprudence from Islamic authorities emphasizes avoiding engagement with industries that profit from conflict and oppression. In the Gaza context, the Muslim community is profoundly affected, with civilian populations bearing the brunt of military operations. UNRWA and related humanitarian agencies document effects on education, healthcare, and livelihoods, reinforcing ethical concerns about financial ties to combat operations. The ukhuwwah principle—brotherhood among Muslims—offers a normative framework urging believers to avoid investments that support collective suffering and violation of rights.

Gaza and the broader occupation have drawn attention from Islamic finance screeners who advocate exclusion of weapons manufacturers and entities connected to ongoing human rights abuses. Many Muslims unknowingly hold such securities through pension funds or index trackers; screening at the point of investment becomes not only prudent but a religious obligation for many scholars and institutions. Consumers can take action through ethical platforms, and supporters can pursue advocacy campaigns that align with the values of accountability and justice. BDS campaigns and related nonviolent advocacy offer avenues for expressing conscience and urging policymakers and financial institutions to reassess ties to war economies.

Internal link: halal investment screening. Palestinians and other affected communities deserve protection from financial complicity in harm; ethical fund managers and faith‑based institutions increasingly reject holdings that contribute to violence. UNRWA, AAOIFI standards, and scholarly consensus guide these exclusions, while investors are urged to align portfolios with principles of justice and stewardship. Consumer choices matter: when a Muslim investor screens holdings and divests from weapons suppliers, the collective effect reinforces a quiet but powerful social discipline in global markets.

Related sources include the BDS movement for advocacy and parliamentary accountability: BDS Movement and UNRWA/AAOIFI materials: UNRWA AAOIFI standards

Global Scale, Domestic Demand, and Human Cost

Elbit Systems exports to dozens of countries and maintains a diversified product suite that underpins air forces, border security programs, and military logistics worldwide. This scale helps explain the wartime revenue dynamics observed in 2023–2024, when domestic Israeli demand surged and the company’s order backlog expanded. The Reuters coverage notes that Israeli domestic defense procurement was a primary driver of Elbit’s backlogs during the Gaza conflict, with approximately $2 billion in additional sales to the Israeli Ministry of Defense reported in 2024. Reuters — Elbit’s domestic Israeli demand and backlog UN Special Rapporteur — profit surge linked to defense spending

The Rising Stock Price

The price of a defense contractor’s stock is not merely a reflection of quarterly earnings. It is a barometer of how markets reward or excuse conflict. As Gaza’s civilian toll mounted in late 2023 and into 2024, Elbit Systems’ market value rose in tandem with a surge in defense spending and the sustained demand for high‑tech warfare systems. By mid‑2024, the company’s market capitalization hovered around $31.39 billion, even as hospitals, schools, and crowded refugee camps endured bombardment. This juxtaposition is not incidental. It is a public record of how capital flows can accompany human devastation, and it invites investors to reckon with what their money implies in the real world.

Defence stocks often rise when governments increase spending and order backlogs swell. During the Gaza‑war window, Elbit’s earnings benefited from domestic orders and a global export footprint that kept sales robust. The period saw a roughly 65% jump in Elbit’s profits, driven by intensified Israeli military procurement and expanded orders for drones, surveillance, and command systems. In parallel, Israeli military spending reportedly doubled to about $46.5 billion. The numbers are not a condemnation of every investor’s motive; they are a moral alarm bell that asks whether financial gains are compatible with the protection of civilian life.

“If Elbit Systems’s market capitalisation increased by approximately $8.9 billion between December 2023 and mid‑2024, during a period in which the documented death toll reached approximately 37,000 people, this represents approximately $240,000 in new shareholder wealth for every documented death in that period. This is not a dehumanising calculation — it is a moral measurement of what the market has chosen to reward.”

Analysts note that defense stocks and broad market indices diverged during the escalation, with defense-focused exchange‑traded funds often outperforming the S&P 500 in peak conflict months. That dynamic underscores a difficult question: should markets reward profit derived from a climate of war, or should they recalibrate to prioritize human security and basic rights? The stock chart offers a ledger, but the ledger only makes sense when weighed against civilian harm. The stock chart is not just a financial instrument. It is a moral ledger.

What Can You Do? — The Action Plan

For Investors — 5 Numbered Actions:

1. Screen your portfolio at ethicalinvestor.org — identify Elbit Systems and all war profiteering exposure
2. Divest directly from Elbit Systems if held as an individual stock
3. Switch to ESG‑screened or halal‑screened pension and ISA products
4. Write formally to your pension provider demanding Elbit Systems exclusion
5. Attend shareholder meetings — raise human rights resolutions on record

For Consumers — 5 Numbered Actions:

1. Research Elbit Systems subsidiaries in your country Source: Who Profits
2. Support and amplify BDS‑aligned campaigns BDS Movement
3. Pressure universities, councils, and public pension bodies to disclose and divest
4. Check your bank’s exposure via BankTrack.org
5. Share this article — organic reach is economic pressure

For Institutions:

• Challenge arms export licences — UK model via Campaign Against Arms Trade
• Academic boycott of Elbit Systems‑funded research partnerships
• Media: name Elbit Systems in every report on weapons used in this conflict

“If 1 million investors each withdrew £1,000 from funds holding Elbit Systems, that is £1 billion in reduced financial power — comparable to one of their major government contracts. Money is power. Withdrawing it is pressure.”

Action	Organisation	Link
Portfolio screening	Ethical Investor	https://ethicalinvestor.org
Arms export challenge (UK)	CAAT	https://www.caat.org.uk
Divestment campaigns	BDS Movement	https://bdsmovement.net
Ethical bank check	BankTrack	https://www.banktrack.org
Occupation research	Who Profits	https://www.whoprofits.org
UN reports	UN UNISPAL	https://www.un.org/unispal
ICJ case	ICJ	https://www.icj-cij.org/case/192
Halal screening	Ethical Investor	https://ethicalinvestor.org

Internal links: UN80 companies full list • Next: Lockheed Martin — U.S. defense contractor and weapons maker

Conclusion — Complicity Is a Choice

Returning to the opening drone‑soundscape over Gaza, the final act of this investigation asks readers to translate information into action. Elbit Systems is a NASDAQ listed defense contractor whose drones, surveillance, and battlefield networks have become part of the conflict’s operational reality. Its contracts, disclosures, and finance are public, and so is the moral calculus that accompanies them. The company is named in UN and human rights reporting, and Ethical Investor assigns a clear stance that calls for divestment and avoidance.

Elbit Systems is listed on NASDAQ. Its reports are public. Its contracts are disclosed. The information exists. This article does not claim perfect innocence for any party, but it does insist that investors and consumers alike have agency. They can choose to reallocate capital toward peace, human rights protections, and systems that deter violence rather than profit from it.

The choice — to invest, to divest, to act, or to look away — is yours.

This is Volume 5 of 5 in Ethical Investor’s EI War Profiteers series. Next: Lockheed Martin — U.S. defense contractor and weapons maker.

SOURCES & REFERENCES

1. United Nations OCHA — Gaza death toll and civilian impact
2. Reuters — Elbit Systems fourth‑quarter profit and revenue rise amid Israel’s war vs Hamas
3. UN Special Rapporteur Francesca Albanese — From economy of occupation to economy of genocide
4. NASDAQ — Elbit Systems ESLT market activity
5. Reuters — Israeli defense spending and domestic demand notes
6. Who Profits — Elbit Systems company page (Hermes, Skylark, and related products)
7. UN General findings — Geneva conventions and human rights instruments
8. U.S. government and NGO reporting on arms trade and ethics — various primary documents cited in article

EDITORIAL DISCLAIMER