Business brief
Defense Backlogs and Commercial Credit Drive Israeli Corporate Growth
Record earnings across defense and banking anchor corporate results as Israeli firms drive cross-border renewable energy and AI deals.
Business
Nvidia is weighing a $5B buyout of Decart to integrate software optimization tools directly into its enterprise AI hardware platform.
BackgroundDecart develops software optimization platforms that reduce computing costs and memory overhead required to train and run large language models on graphics hardware. The startup recently established cloud distribution agreements with Amazon Web Services.
- Nvidia previously acquired a minority stake in Decart to integrate its software acceleration tools directly into CUDA software workflows.
- Decart's software allows frontier AI models to execute on fewer GPUs without degrading output accuracy or latency.
- Acquisition discussions remain early, with rival cloud computing giants evaluating competing proposals to secure model optimization tech.
Business
Elbit's record $32B backlog demonstrates how global military rearmament is driving long-term earnings growth for Israeli defense exporters.
BackgroundElbit Systems (TASE: ESLT) is Israel's largest defense exporter, producing uncrewed aerial systems, artillery, laser defenses, and military avionics. Global defense spending increases across NATO and Asia-Pacific allies have expanded international order books for Israeli defense firms.
- International buyers outside Israel account for 73% of Elbit's record $32 billion order backlog, highlighting structural reliance on foreign military budgets.
- Growth was led by land systems revenue (+32%) due to artillery munition demand, alongside ISTAR electronic warfare equipment sales (+22%).
- Management highlighted capital expenditures to expand manufacturing capacity while actively managing shipping delays across Red Sea transit routes.
Business
Bank Hapoalim's $830M quarter demonstrates how commercial credit growth continues to support bank earnings despite tax headwinds.
BackgroundBank Hapoalim (TASE: POLI) is one of Israel's two largest commercial banking institutions. Israeli banks have maintained high profitability due to elevated interest rates, though a special bank profit tax enacted by the Knesset has moderated net capital returns.
- Credit expansion was driven by large corporate lending (+10%) and commercial middle-market business loans (+9.6%), offsetting slower retail borrowing.
- The approved NIS 1.24 billion shareholder payout combines direct cash dividends with ongoing open-market share repurchases.
- Non-performing loan ratios remained low at 0.50%, indicating sustained credit quality across commercial loan portfolios despite macro uncertainty.
Business
Doral Group's $738M bet gives it majority control over a $4.1B U.S. renewable energy developer, deferring a U.S. IPO to fund solar builds internally.
BackgroundDoral Group (TASE: DORL) develops, builds, and operates solar energy and battery storage installations across Europe, Israel, and North America. Doral LLC manages a pipeline of 17 gigawatts of solar and energy storage projects across 16 U.S. states.
- The capital injection defers plans for an initial public offering of Doral LLC on U.S. stock exchanges, keeping financing within parent balance sheets.
- Proceeds will fund immediate equipment procurement and grid connection costs across Doral LLC's multi-gigawatt utility-scale solar and energy storage pipeline.
- Securing majority control allows Doral Group to fully consolidate the U.S. energy subsidiary onto its corporate financial statements.
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