Financial Performance - Revenues for Q2 2025 reached $105 million, a 37% increase from $76.6 million in Q2 2024[9] - GAAP net income for Q2 2025 was $9.8 million, or $0.17 per diluted share, compared to $1.3 million, or $0.02 per diluted share in Q2 2024[9] - Adjusted EBITDA for Q2 2025 was $11.8 million, up from $10.1 million in Q2 2024, with an adjusted EBITDA excluding losses from Gilat Stellar Blu at $13.3 million[9] - GAAP net income for Q2 2025 was $9,830,000, a significant increase from $1,302,000 in Q2 2024, representing a growth of 655%[26] - Non-GAAP net income for the first half of 2025 reached $13,788,000, compared to $11,569,000 in the same period of 2024, reflecting a year-over-year increase of 19%[28] - Total revenues for the first half of 2025 were $197,007,000, up from $152,709,000 in the first half of 2024, indicating a growth of 29%[30] - Gross profit for Q2 2025 was $31,927,000, compared to $26,573,000 in Q2 2024, marking an increase of 20%[25] - Adjusted EBITDA for the first half of 2025 was $19,428,000, slightly down from $19,430,000 in the first half of 2024[29] - Operating income for Q2 2025 was $5,684,000, compared to $2,791,000 in Q2 2024, showing an increase of 104%[25] - The company reported a total of $133,277,000 in commercial segment revenues for the first half of 2025, up from $84,593,000 in the same period of 2024, a growth of 57%[30] Guidance and Projections - Management raised the 2025 revenue guidance to between $435 million and $455 million, reflecting a growth rate of approximately 46% at the midpoint[10] - Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million, indicating a growth rate of approximately 22% at the midpoint[11] Strategic Wins and Contracts - Gilat's Commercial Division achieved strong bookings and strategic wins, particularly with the next-generation SkyEdge IV platform[12] - The company secured over $8 million from Israel's Ministry of Defense for strategic defense communication solutions[15] - Gilat was awarded approximately $60 million to provide digital inclusion solutions in Peru[15] Assets and Liabilities - Total assets increased to $575,878,000 as of June 30, 2025, compared to $429,748,000 at the end of 2024, reflecting a growth of 34%[31] - The company’s total current liabilities rose to $147,215,000 as of June 30, 2025, compared to $101,436,000 at the end of 2024, an increase of 45%[32] Cash Flow and Investments - Cash and cash equivalents decreased to $64,929,000 as of June 30, 2025, down from $119,384,000 at the end of 2024[31] - Net cash provided by operating activities was $(1,469,000) for the six months ended June 30, 2025, compared to $692,000 in 2024, indicating a significant decline[33] - Net cash used in investing activities totaled $(112,699,000) for the six months ended June 30, 2025, a substantial increase from $(2,650,000) in 2024[33] - The company made an acquisition of a subsidiary, net of cash acquired, costing $104,943,000 during the six months ended June 30, 2025[33] - The net cash provided by financing activities was $58,220,000 for the six months ended June 30, 2025, contrasting with $(7,324,000) in 2024, indicating a positive shift[33] Depreciation and Inventory - Depreciation and amortization increased to $9,942,000 for the six months ended June 30, 2025, compared to $7,333,000 in 2024, reflecting a rise of 36.0%[33] - The increase in trade receivables was $(9,234,000) for the six months ended June 30, 2025, compared to $(17,734,000) in 2024, showing an improvement[33] - The company reported a decrease in inventories of $96,000 for the six months ended June 30, 2025, compared to an increase of $974,000 in 2024[33] Aircraft and Defense Segment - Approximately 225 aircraft are currently flying with Gilat antennas, demonstrating excellent results and throughput[12] - Gilat's defense segment is leveraging synergies with DataPath to enhance its offerings to U.S. defense customers[12]

Core Insights - Gilat Satellite Networks Ltd. has been awarded a multimillion dollar contract by Israel's Ministry of Defense for satellite communication systems and services, with deliveries expected by the end of 2025 [1][2] - The contract involves the rapid deployment of advanced SATCOM systems designed for harsh environments, catering to the operational needs of Israel's defense forces [2][3] - Gilat Defense emphasizes the growing importance of SATCOM as a critical tool for defense forces globally, showcasing its capability to deliver tailored solutions swiftly [3] Company Overview - Gilat Satellite Networks Ltd. is a leading global provider of satellite-based broadband communications, with over 35 years of experience in developing deep technology solutions for various connectivity needs [3][4] - The company offers a comprehensive portfolio that includes cloud-based platforms, high-performance satellite terminals, and integrated ground systems for both commercial and defense markets [4][5] - Gilat's products support multiple applications, including government and defense, broadband access, and critical infrastructure, while adhering to stringent service level requirements [5]

Core Viewpoint - Gilat Satellite (GILT) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Gilat's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Gilat is projected to earn $0.13 per share, indicating a year-over-year decline of 7.1%. However, the Zacks Consensus Estimate has increased by 8.33% due to one upward revision [5]. - For the full year, the earnings estimate is $0.59 per share, representing an 18.0% increase from the previous year. The consensus estimate has surged by 78.79% over the past month, with one upward revision and no negative revisions [6][7]. Zacks Rank - Gilat currently holds a Zacks Rank 1 (Strong Buy), attributed to favorable estimate revisions. This ranking is part of a system that has historically shown strong performance, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [8]. Stock Performance - The stock has appreciated by 16.7% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [9].

Group 1: Tutor Perini Corporation (TPC) - Tutor Perini Corporation is a construction company with a Zacks Rank 1, and its current year earnings estimate has increased by 55.4% over the last 60 days [1] - The company's shares have gained 60.7% over the last three months, significantly outperforming the S&P 500's advance of 9.4% [1] - Tutor Perini possesses a Momentum Score of A [1] Group 2: Gilat Satellite Networks Ltd. (GILT) - Gilat Satellite Networks Ltd. is a satellite-based broadband communications company with a Zacks Rank 1, and its current year earnings estimate has increased by 78.8% over the last 60 days [2] - The company's shares have gained 33.2% over the last three months, also outperforming the S&P 500's advance of 9.4% [5] - Gilat Satellite possesses a Momentum Score of A [5] Group 3: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. is a leading manufacturer of water quality solutions with a Zacks Rank 1, and its current year earnings estimate has increased by 5.8% over the last 60 days [5] - The company's shares have gained 18.6% over the last six months, compared to the S&P 500's advance of 5.6% [9] - Watts Water possesses a Momentum Score of A [9]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 reached $105 million, a 37% increase year over year from $76.6 million in Q2 2024 [21] - Adjusted EBITDA was $11.8 million, a 17% increase from the same quarter last year, with an organic adjusted EBITDA of approximately $13.3 million, representing a 32% year-over-year increase [8][24] - GAAP net income for Q2 2025 was $9.8 million, or diluted income per share of $0.17, compared to $1.3 million or diluted income per share of $0.02 in Q2 2024 [23] Business Line Data and Key Metrics Changes - Commercial segment revenues were $69.1 million, a 59% increase from $43.4 million in Q2 2024, primarily due to the acquisition of Stellar Blue, which contributed $36 million [21][22] - Defense segment revenues remained stable at $20 million, similar to Q2 2024 [22] - Peru segment revenues increased to $15.9 million from $13.9 million in Q2 2024 [22] Market Data and Key Metrics Changes - The defense division is experiencing increased demand due to geopolitical tensions, with over $8 million in orders from the Israeli Ministry of Defense [9] - Gilat's commercial business saw over $47 million in orders from tier one satellite operators, reflecting strong demand for multi-orbit ground segment technologies [12] - Gilat Peru received over $60 million in new orders for upgrading regional network infrastructure, highlighting the company's commitment to digital inclusion [14][15] Company Strategy and Development Direction - The company is focused on capturing growth opportunities from the acquisition of Stellar Blue and investing in Gilat Defense to drive revenue growth in 2026 [7] - Gilat aims to expand its leadership across key verticals and deepen relationships with strategic partners, leveraging strong customer demand and a differentiated technology portfolio [14] - The company is transitioning to a software-defined infrastructure, enhancing its positioning in the satellite communication market [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet customer demand and improve margins in the second half of 2025, particularly for Stellar Blue [30][32] - The outlook for 2025 has been improved, with revenue guidance narrowed to $435 million to $455 million, representing a year-over-year growth of approximately 46% at the midpoint [26] - Management noted ongoing interest in defense solutions from multiple regions, including North America, Europe, and Asia Pacific, indicating a robust pipeline for future growth [9][62] Other Important Information - The company secured a $100 million credit line to finance the acquisition of Stellar Blue, with total cash and equivalents at $65.4 million as of June 30, 2025 [25][26] - The GAAP gross margin decreased to 30.4% from 34.7% in Q2 2024, primarily due to lower margins in Stellar Blue as it ramps up production [22][23] Q&A Session Summary Question: What is the status of the ramp at Stellar Blue and margin expectations? - Management indicated that production ramp-up is progressing, with expectations for improved margins in the third and fourth quarters [30][32] Question: What is the fulfillment model for the SkyEdge four virtualization win? - The initial order involves operating software on cloud commercial off-the-shelf equipment, with flexible business models including CapEx and subscription options [34][35] Question: Are there any major decisions coming in Peru that could improve top-line growth? - Management expects significant orders in the coming months and participation in large RFPs from the Peruvian government [36] Question: What are the main contributors to the improved guidance? - Improved visibility from Stellar Blue and recent business awards contributed to the increased guidance for the year [42] Question: What is the backlog for Stellar Blue and future shipments? - The backlog includes close to 1,000 aircraft, with expectations for large orders in the coming weeks [45] Question: What is the status of the defense division and demand from the Israeli defense ministry? - There is strong interest from several countries, with ongoing proof of concept and demo sessions, and several large orders announced [62]

Financial Performance - Q2 2025 revenue reached $105 million, a 37% year-over-year increase[4] - Adjusted EBITDA for Q2 2025 was $11.8 million, a 17% increase year-over-year[4] - Gilat Stellar Blu contributed approximately $36 million in revenue during Q2 2025[4, 14] - The company is on track for $120 million to $150 million in Stellar Blu revenues in 2025[4] - The company raised its 2025 revenue guidance to $435 million - $455 million, representing a 46% year-over-year growth at the midpoint[20, 21] - The company raised its 2025 Adjusted EBITDA guidance to $50 million - $53 million, representing a 22% year-over-year growth at the midpoint[20, 21] Business Segment Highlights - Gilat Peru secured a $60 million contract from Pronatel to expand broadband infrastructure[4, 10] - Gilat Commercial received $47 million in orders from Tier-1 satellite operators for multi-orbit use[8] - Gilat Defense received up to $70 million U.S Army Field Services award[6] - Gilat Commercial secured a $40 million NRE project for the virtualized SkyEdge IV platform[4, 8]

Core Insights - Gilat Satellite Networks Ltd. reported a revenue increase of 37% year-over-year, reaching $105 million in Q2 2025, compared to $76.6 million in Q2 2024 [8] - The company achieved a GAAP operating income of $5.7 million, up from $2.8 million in the same quarter last year [8] - Adjusted EBITDA for the quarter was $11.8 million, compared to $10.1 million in Q2 2024, reflecting a strong operational performance [8] Financial Performance - Revenue for the first half of 2025 was $197 million, compared to $152.7 million in the first half of 2024 [19] - GAAP net income for Q2 2025 was $9.8 million, or $0.17 per diluted share, compared to $1.3 million, or $0.02 per diluted share, in Q2 2024 [8][19] - Non-GAAP net income for Q2 2025 was $12 million, or $0.21 per diluted share, compared to $5.6 million, or $0.10 per diluted share, in Q2 2024 [8] Forward-Looking Guidance - The company raised its revenue guidance for 2025 to a range of $435 million to $455 million, indicating a growth rate of approximately 46% at the midpoint, up from the previous expectation of 42% [4] - Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million, reflecting a growth rate of approximately 22% at the midpoint [5] Strategic Developments - Gilat's CEO highlighted the strong performance of the Commercial Division, driven by significant bookings and the adoption of the next-generation SkyEdge IV platform [6] - The company is expanding its Defense segment by leveraging synergies with DataPath to offer a broader range of solutions to defense customers [6] - Recent contracts include over $8 million from Israel's Ministry of Defense and approximately $60 million for digital inclusion solutions in Peru [14]

Company Overview - Gilat Satellite Networks Ltd. is a leading global provider of satellite-based broadband communications with over 35 years of experience [3] - The company develops and delivers technology solutions for satellite, ground, and new space connectivity, focusing on critical connectivity across commercial and defense applications [3] Product and Service Offerings - Gilat offers integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) [4] - The product portfolio includes cloud-based platforms, high-performance satellite terminals, advanced Satellite On-the-Move (SOTM) antennas, Solid State Power Amplifiers (SSPA), Block Upconverters (BUC), and integrated ground systems for various markets [4][5] - Solutions cater to multiple applications such as government and defense, broadband access, cellular backhaul, enterprise, aerospace, and critical infrastructure [5] Upcoming Events - The company will present at the 28th Annual Oppenheimer Technology, Internet & Communications Virtual Conference on August 11, 2025, at 9:55 am Eastern Time [1][2] - CEO Adi Sfadia will be available for one-on-one meetings with investors on August 11 and 12, 2025 [2]

Core Insights - Gilat Satellite Networks Ltd. has secured a contract worth over $8 million from Israel's Ministry of Defense for satellite communication systems and services, with deliveries expected within the next 12 months [1][2]. Company Overview - Gilat Satellite Networks is a leading global provider of satellite-based broadband communications, with over 35 years of experience in developing technology solutions for satellite, ground, and new space connectivity [3][4]. - The company offers a comprehensive portfolio that includes cloud-based platforms, high-performance satellite terminals, and advanced antennas, catering to both commercial and defense markets [4][5]. Defense Division Focus - The contract awarded to Gilat Defense emphasizes the strategic importance of the Israeli defense market for the company, showcasing its unified defense offering that integrates capabilities from Gilat, Gilat Wavestream, and Gilat DataPath [2][3]. - The advanced SATCOM systems provided under this contract are designed for operation in harsh environments, addressing a wide range of military communication needs [2].

Core Insights - Gilat Satellite Networks Ltd. has been awarded approximately $60 million in orders from Pronatel to upgrade broadband infrastructure in Peru, specifically in the regions of Apurímac, Huancavelica, and Ayacucho [1][2] - The project aims to deliver high-speed internet of 200 Mbps to nearly 800 public institutions, including schools and health centers, across 280 localities, thereby addressing the digital divide in rural communities [2][3] - The migration is expected to take place over the next 12 months, with services delivered over a four-year period [1][2] Company Overview - Gilat Satellite Networks is a leading global provider of satellite-based broadband communications, with over 35 years of experience in developing technology solutions for satellite and ground connectivity [5][6] - The company offers a comprehensive portfolio that includes cloud-based platforms, high-performance satellite terminals, and integrated ground systems for both commercial and defense markets [6][7] - Gilat's products support various applications, including government, defense, broadband access, and critical infrastructure, while adhering to stringent service level requirements [7]