Israeli Defense Company Secures Major Contract with Germany

Israeli defense contractor Elbit Systems Ltd. announced on Monday that it has signed a $260 million contract with the German government to supply advanced Directional Infrared Counter Measures (DIRCM) self-protection systems for Germany’s A400M aircraft fleet. The deal, which will span six years, marks another milestone in the growing defense partnership between Israel and Europe.

The DIRCM system, designed to counter infrared-guided missile threats, provides real-time tracking of incoming missiles and automatic protective responses without requiring human intervention. The system is already in use by several nations, including Israel, the Netherlands, Italy, and Brazil.

“This contract further strengthens Elbit Systems’ position as a leading global provider of DIRCM solutions,” said Elbit president and CEO Bezhalel Machlis. “We are proud to support Germany in enhancing the protection of their strategic air assets. Our successful collaboration with Airbus DS on this important program is highly valued, and we are pleased that our advanced self-protection systems will contribute to the safety and operational readiness of the German A400M fleet.”

The announcement caused Elbit’s stock to rise 1% on the Tel Aviv Stock Exchange, reflecting investor confidence in Israel’s thriving defense sector. Over the past year, Israeli defense exports to Europe surged to 54% of total defense exports up sharply from just over 33% in 2023, according to Israeli business media outlet Globes.

Elbit Systems has recently secured multiple international contracts. In February, Morocco announced the purchase of 36 Atmos 2000 self-propelled artillery systems from Elbit, making Israel the country’s third-largest weapons supplier.

Israel’s financial markets have also been buoyed by foreign investment and strong defense industry performance since the country’s 12-day war with Iran. The Tel Aviv Stock Exchange (TASE) has repeatedly reached record highs despite ongoing security challenges.

The deal comes just days after Germany reiterated its unwavering support for Israel. On Friday, Berlin announced that it would not join France in recognizing a Palestinian state, stressing that Israel’s security remains “of paramount importance” to the German government.

German Chancellor Friedrich Merz reaffirmed this stance on Monday, stating that Germany has no plans to sanction Israel. “For now, we want to await the foreign minister’s trip and the talks that will be held with the Israeli government in the coming days,” he said.

This contract not only reinforces Israel’s growing role as a defense leader in Europe but also highlights the deepening strategic relationship between Jerusalem and Berlin.

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