Israeli Defense Firm Elbit Signs Major Contract to Support U.S. Army Aircraft Fleet

The contract supporting U.S. Army's C-26 and UC-35 aircraft is worth up to $25 million in the first year and five single-year options that could boost its value to $176 million

Ground crew walks next to the Israeli Elbit Systems Ltd. Hermes 900 unmanned aerial vehicle (UAV) during a presentation at the airbase in the central Swiss town of Emmen October 16, 2012.
Pascal Launer/Reuters

Israeli defense firm Elbit Systems said Wednesday its U.S. subsidiary won a contract from DynCorp International Inc. to provide support services for the U.S. Army’s C-26 and UC-35 aircraft fleet. The contract is worth up to $25 million in the first year and contains five single-year options that if exercised in their entirety will boost the total contract value to $176 million, Elbit said.

Elbit Systems of America provides contractor logistics support and engineering, maintenance, repair and overhaul services for aircraft and ground platforms. This contract strengthens its role as a major service provider for the U.S. Army’s aircraft and ground platforms. Such services have become an important growth engine for the entire company as the world’s armed forces increasing turn to private sector contractors to provide these services.

Elibit runs a pilots’ training program for Britain’s Royal Air Force together with the U.K. company KBR. Shares of Elbit, which a day earlier won a $46 million equipment contract from NATO for its Airbus A330 tankers, ended 2.1% higher at 475.10 shekels ($136) on Wednesday.