Gilat Wins Multimillion Defense Deal for Antenna Technology

Core Viewpoint - Gilat Satellite Networks Ltd. (GILT) has secured multiple significant contracts in its defense division, indicating strong demand for its advanced satellite communication technologies and a robust growth trajectory in the defense SATCOM market. Group 1: Recent Contracts and Orders - Gilat Defense has received a multimillion-dollar order from a leading global defense organization for cutting-edge antenna technology, with deliveries expected to start in late 2025 [1] - The company has been awarded a contract valued at up to $23 million for sustainment and support services for Satellite Transportable Terminal (STT) units used by the U.S. Department of Defense, with options for extension up to five years [4] - A new $6 million contract for the SkyEdge II-c satellite communications platform was awarded by a military organization in the Asia-Pacific region, further solidifying Gilat's market position [6] Group 2: Market Position and Strategy - The global defense SATCOM market is anticipated to grow as military forces transition to next-generation satellite communication technologies, positioning Gilat to capitalize on these opportunities [5] - Gilat has formed a new Defense Division to meet the increasing demand for secure government and military SATCOM solutions, unifying expertise from various subsidiaries [7] - The company has restructured its organization to enhance focus on key markets, presenting financial results under three categories: Gilat Defense, Gilat Commercial, and Gilat Peru [9] Group 3: Financial Performance and Projections - In the last reported quarter, Gilat's net sales increased by 3% year over year, driven by growth in the defense and IFC sectors [8] - Management projects 2025 revenues to be between $415 million and $455 million, with adjusted EBITDA expected to range from $47 million to $53 million [8] - Shares of Gilat have increased by 23.7% over the past six months, outperforming the Zacks Satellite and Communication industry's decline of 6.6% [10]