Is This the Defense Stock That Redefined Modern Warfare?Elbit Systems Ltd.BATS:ESLTUDIS_ViewElbit Systems has positioned itself at the epicenter of a global defense transformation, capitalizing on the shift from counterinsurgency to high-intensity peer conflict. With a record-breaking $25.2 billion backlog and Q3 2025 revenue reaching $1.92 billion (up 12% year-over-year), the company has demonstrated exceptional execution amid European rearmament and Asia-Pacific maritime modernization. Its Land Systems segment surged 41%, driven by artillery and vehicle upgrades that address the munitions-intensive nature of modern warfare. The company's technological moat centers on breakthrough systems that fundamentally alter combat economics. The Iron Beam laser defense system delivers interceptions at approximately $3.50 per shot versus $50,000 for traditional interceptors, while the Iron Fist active protection system achieved the unprecedented feat of intercepting hypersonic tank rounds in NATO demonstrations. These innovations, combined with advanced electronic warfare suites and cyber-hardened C4I systems, have secured massive multi-year contracts, including a $2.3 billion strategic agreement and a $1.635 billion European "Digital Army" modernization program. Operating margins expanded to 9.7% despite inflationary pressures, while operating cash flow surged 458% to $461 million in the first nine months of 2025. The company's strategy of localized European manufacturing and technology transfer partnerships has overcome political barriers, positioning it as a domestic supplier across NATO markets. With 38% of its backlog scheduled for execution before end-2026, Elbit offers rare revenue visibility in an industrial sector, justifying its premium valuation as investors price it more like a high-margin technology firm than a traditional defense manufacturer.