Elbit Systems Secures $235 Million Contract with Azerbaijan for Rockets and Launchers

Elbit Systems has announced a $235 million contract to supply artillery launchers and rockets to Azerbaijan. The deal, which was initially reported as being with an undisclosed European country, was confirmed by sources to be with Azerbaijan, a major buyer of Israeli arms. The agreement is structured as a government-to-government arrangement between Israel’s Ministry of Defense and the Azerbaijani Ministry of Defense.

Contract Details and Capabilities

The three-year contract covers the supply of Elbit’s EXTRA-MR (Medium Range) rockets and PULS rocket artillery launchers. According to the company, the EXTRA-MR is a precision-guided rocket designed to strike targets at distances of up to 80 kilometers. The system is fully compatible with Elbit’s PULS platform and existing C4I architectures.

In addition to the launchers and rockets, the contract includes additional rocket artillery platforms and integrated logistical support. Elbit Systems CEO Bezhalel (Butzi) Machlis stated, "This contract award further strengthens Elbit Systems’ position as a global leader in rocket artillery systems and reflects the growing international demand for our advanced rocket and launcher capabilities."

Machlis added, "The PULS systems and precision rocket solutions are recognized among the leading systems in their category and have been selected by a growing number of customers worldwide, including European and NATO member states. We remain committed to delivering advanced operational capabilities that support our customers’ evolving defense requirements."

Broader Defense Ties

This agreement adds to a significant history of defense procurement between Israel and Azerbaijan. Over the past decade, ties between Israeli companies and Azerbaijan have generated billions of dollars in business, often facilitated by Israel’s Ministry of Defense. Previous acquisitions by Azerbaijan include the Barak MX air defense system and LORA ballistic missiles from Israel Aerospace Industries (IAI), as well as Spike anti-tank missiles from Rafael.

Elbit Systems has previously supplied Azerbaijan with unmanned aerial vehicles (UAVs), including the Hermes 900, and self-propelled guns. Azerbaijan has made operational use of these systems in recent conflicts with Armenia.

The deal also coincides with broader industrial cooperation efforts. Recently, Israeli company Ari Arms inaugurated a rifle manufacturing plant in Azerbaijan, attended by President Ilham Aliyev and First Vice President Mehriban Aliyeva. The facility, owned by the Azerbaijani government, is expanding to produce Western-style M4 rifles through a joint venture with Ari Arms, Azerbaijan’s Ministry of Defense Industry, and the Azerbaijani firm Iglim Scientific Production Enterprise.

Market Context

Israel’s defense exports reached $19.2 billion in 2025. Data from the Ministry of Defense indicates that government-to-government agreements accounted for 52% of the total value of defense export deals. Expanding this export base is a key objective for the Ministry, intended to generate business for Israeli defense companies while strengthening diplomatic ties through industrial partnerships.

Unlike other recent European deals, such as the partnership with German firm KNDS (EuroPuls), the Azerbaijan agreement is described as a 100% Elbit Systems project. Following the announcement, Elbit Systems' share price rose by more than 3% on the Tel Aviv Stock Exchange.

Why it matters

This contract highlights the continued strength of Israel's defense export sector, particularly in the Caucasus region. It demonstrates the strategic importance of government-to-government deals in facilitating large-scale arms transfers and underscores Azerbaijan's ongoing modernization of its military capabilities through Israeli technology. The deal also reflects a broader trend of Israeli defense firms expanding their footprint in Europe and neighboring regions through both direct sales and local production partnerships.

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Sources

• calcalistech.com: Israel’s Elbit to supply Azerbaijan with $235 million in rockets and launchers | Ctech
• en.globes.co.il: Elbit Systems wins $235m rocket contract in Europe - Globes

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.