Israeli Defence Giant Sees Profits Surge Amid War, Stock Prices Explode
The outbreak of full-scale conflict between the United States-Israel alliance and Iran, which began on Saturday, 28 February 2026, has dramatically shifted global geopolitical dynamics and global market conditions.
Combined air strikes by the US and Israel targeting Iran’s leadership centres and nuclear facilities triggered massive retaliatory attacks. Thousands of Iranian drones and ballistic missiles directed at Israeli territories, including Tel Aviv and Jerusalem, as well as various US military bases across the Middle East, have created reactive sentiment on stock markets.
At the Tel Aviv Stock Exchange (TASE), companies operating in defence and military technology sectors have recorded exceptionally sharp valuation increases as military conflict intensified in early March.
War Catalyst and Weekly Surges
The past week has been a crucial period for Israeli defence stock markets. A series of ballistic missile attacks has stretched air defence systems and combat logistics to maximum capacity.
In response to these conditions, shares in Elbit Systems Ltd (ESLT), Israel’s largest defence contractor and military electronics firm, surged 16.22 per cent over just one week, moving from 239.890 on Friday 27 February 2026 to 278.800 at the close of 6 March 2026.
Identical strengthening was experienced by other combat hardware providers. Israel Shipyards Industries (ISHI), which manufactures tactical naval fleets, and Bet Shemesh Engines (BSEN) in the aerospace sector, each surged 12.63 per cent and 12.22 per cent weekly.
These increases reflect the certainty of large-scale government contracts entering the market to meet emergency military requirements, with projected earnings from these companies expected to rise significantly.
During the latest daily movements (5-6 March), as mutual attack intensity fluctuated slightly, share prices underwent reasonable consolidation due to profit-taking. ESLT still managed a slight rise of 1.05 per cent, whilst BSEN corrected 3.60 per cent.
Monthly Trends and Annual Growth
When viewed from a broader perspective, this defence sector has actually experienced massive accumulation long before the 28 February conflict erupted. Gradually increasing tensions throughout early 2026 and high regional military budgets formed the basic foundation for company value growth.
Over the past year on a year-on-year basis, the most substantial appreciation has been recorded by Next Vision Stabilised Systems (NXSN). This producer of stabilised camera systems for combat drones has surged fantastically to 352.52 per cent. Meanwhile, Ashot Ashkelon (ASHO), which supplies suspension and transmission components for ground combat vehicles, has recorded a 121.88 per cent year-on-year increase, in line with Elbit Systems’ annual growth of 116.21 per cent.
Prospects Amid Prolonged Uncertainty
With armed confrontation now involving daily air interception and targeting of strategic facilities from both sides, Israeli defence sector valuations have already incorporated this high-level warfare risk.
As long as shipping lanes and Middle Eastern airspace remain under military crisis status, shares in this sector are expected to continue acting as an aggressive hedge instrument.
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