An Elbit Systems Ltd. Hermes 900 unmanned aerial vehicle (UAV) is seen at Elbit’s drone factory in Rehovot, Israel, June 28, 2018. Photo: REUTERS/Orel Cohen

On Monday, Elbit Systems Ltd., a military contractor based in Israel, announced it had received a $260 million government contract from Germany to spend six years installing Directional Infrared Counter Measures (DIRCM) self-protection systems for defending Germany’s A400M aircraft fleet.

The contract is just the latest in a string of blockbuster deals between Israeli defense firms and international militaries. Israeli defense exports to Europe jumped to 54% of overall defense exports last year, up from just over 33% in 2023, according to the Israeli media outlet Globes.

Elbit’s defense system works to counter infrared-guided missiles, with a focus on mobile anti-aircraft weapons. It offers the ability to track missile threats as they happen and also provides automatic protection without needed human action.

Other countries which have deployed the system include Israel, Germany, the Netherlands, Italy and Brazil. In February, Morocco announced plans to purchase 36 Atmos 2000 self-propelled artillery systems from Elbit, making Israel the country’s third largest weapons supplier.

“This contract further strengthens Elbit Systems’ position as a leading global provider of DIRCM solutions,” Elbit president and CEO Bezhalel Machlis said. “Our systems are already trusted by numerous air forces and defense organizations around the world, and 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 prompted Elbit’s share price to jump 1 percent on the Tel Aviv Stock Exchange (TASE).

Since Israel’s 12-day war against Iran, Israel’s financial markets have been buoyed by significant foreign investment and renewed investor confidence. Over the past year, the TASE has repeatedly broken past its all-time highs, despite Israel’s multi-front wars.

On Friday, Germany announced that it would not join France in recognizing a Palestinian state. A government spokesperson said “Israel’s security is of paramount importance to the German government” and that “the German government therefore has no plans to recognize a Palestinian state in the short term.”

On Monday, German Chancellor Friedrich Merz stated that the country had no plans to sanction Israel and that “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.”