Core Viewpoint - Gilat Satellite Networks Ltd. has received $39 million in orders for its Sidewinder electronically steered antenna (ESA) terminals, indicating a significant rise in global demand for advanced in-flight connectivity solutions [1][2]. Group 1: Company Overview - Gilat Satellite Networks Ltd. is a leading global provider of satellite-based broadband communications with over 35 years of experience [4]. - The company develops and delivers technology solutions for satellite, ground, and new space connectivity, focusing on critical connectivity across commercial and defense applications [4]. Group 2: Product and Market Demand - The new orders for Sidewinder ESA terminals reflect an accelerating global shift towards ESA solutions as airlines and service providers aim to meet the growing demand for high-quality in-flight broadband [2][3]. - The Sidewinder ESA terminal is designed for both linefit and retrofit installations, providing a high-quality connectivity experience across various aircraft types and flight paths [2][3]. Group 3: Strategic Positioning - Demand for high-performance ESA terminals is increasing as airlines seek seamless broadband connectivity across different geographies and satellite constellations [3]. - The Sidewinder ESA terminal offers efficiency, flexibility, and reliability, reinforcing Gilat's leadership in the expanding market for advanced in-flight connectivity across LEO, MEO, and GEO orbits [3].

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $137 million, up 75% year-over-year, while full year revenue rose to $451.7 million, up 48% with 6% year-over-year organic growth [5][16] - Adjusted EBITDA for the fourth quarter was $18.2 million, a 50% increase compared to the same quarter last year, and full year adjusted EBITDA hit $53.2 million, a 26% growth year-over-year [6][23] - GAAP net income for the fourth quarter was $8.8 million, or diluted income per share of $0.13, compared to $11.8 million, or diluted income per share of $0.21 in Q4 2024 [21] Business Line Data and Key Metrics Changes - Commercial segment revenues for Q4 2025 were $75.1 million, a 103% increase from $37 million in Q4 2024, driven by in-flight connectivity (IFC) [17] - Defense segment revenues for Q4 2025 were $33.3 million, a 14% increase from $29.4 million in the same quarter last year [17] - Peru segment revenues for Q4 2025 were $28.5 million, compared to $11.8 million in Q4 2024, driven by new upgrade projects [18] Market Data and Key Metrics Changes - The defense business saw strong year-over-year growth in new order bookings and customer engagement, with a record year for sales driven by U.S. and allied defense customers [8] - The commercial business experienced increased demand for advanced IFC, with significant orders from leading satellite operators [9][10] - Gilat Peru closed over $85 million in agreements for upgrading regional networks, reinforcing its role in national connectivity initiatives [12] Company Strategy and Development Direction - The company plans to focus on driving revenue growth in defense through business development, R&D investment, and portfolio expansion, while pursuing opportunities in government communication programs [13][14] - In the commercial sector, the strategy includes expanding the IFC product portfolio and customer base, particularly for next-generation aircraft connectivity [14] - Mergers and acquisitions will focus on defense-related capabilities to complement existing strengths, with an emphasis on companies with significant revenue potential [14][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the defense market, noting good visibility into revenues with 50%-60% already in backlog [29] - The company expects 2026 revenues to be between $500-$520 million, representing a 13% growth year-over-year, with adjusted EBITDA expected between $61-$66 million [26] - Management highlighted the importance of maintaining momentum and addressing the growing demand for secure satellite connectivity [14][30] Other Important Information - The company raised $166 million in capital during 2025, enhancing its ability to pursue strategic opportunities [14][24] - The gross margin for Q4 2025 was 28%, down from 40% in Q4 2024, primarily due to lower margins at Stellar Blu [18] Q&A Session Summary Question: Update on defense market visibility - Management indicated that 50%-60% of revenues are already in backlog, with large projects expected to secure revenue in the first half of the year [29][30] Question: Roadmap for LineFit in IFC - Progress is being made with Boeing LineFit certification expected in the first half of the year, while Airbus is in initial phases [31] Question: Cadence of Peru business - Discussions are ongoing for upgrading remaining networks, with expectations for RFPs to be issued before the election [33] Question: Earth observation contracts and margins - Earth observation contracts are expected to have a margin profile similar to the average of Gilat, between 30%-40% [39] Question: M&A focus areas - The primary focus is on defense-related capabilities, with an interest in expanding market presence in the U.S. and Europe [45]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $137 million, up 75% year-over-year, while full year revenue rose to $451.7 million, up 48% with 6% year-over-year organic growth [5][23] - Adjusted EBITDA for the fourth quarter was $18.2 million, a 50% increase compared to the same quarter last year, and full year Adjusted EBITDA hit $53.2 million, a 26% growth year-over-year [6][30] - GAAP net income for Q4 was $8.8 million, or diluted income per share of $0.13, compared to $11.8 million, or diluted income per share of $0.21 in Q4 2024 [28] Business Line Data and Key Metrics Changes - Commercial segment revenues for Q4 2025 were $75.1 million, a 103% increase from $37 million in Q4 2024, driven by in-flight connectivity (IFC) [24] - Defense segment revenues for Q4 2025 were $33.3 million, a 14% increase from $29.4 million in the same quarter last year [25] - Peru segment revenues for Q4 2025 were $28.5 million, compared to $11.8 million in Q4 2024, driven by new upgrade projects [26] Market Data and Key Metrics Changes - The defense business saw strong year-over-year growth in new order bookings and customer engagement, with a record year for sales driven by U.S. and allied defense customers [9] - The commercial business experienced increased demand for advanced IFC, with significant orders received from global satellite operators [12][13] - Gilat Peru secured over $85 million in agreements for upgrading regional networks, reinforcing its role in national connectivity initiatives [18] Company Strategy and Development Direction - The company plans to focus on driving revenue growth in defense through business development, R&D investment, and portfolio expansion, while pursuing opportunities in government communication programs [20][21] - In the commercial sector, the strategy includes expanding the IFC product portfolio and increasing the customer base for SkyEdge IV [21] - Gilat aims to enhance its competitive advantage through technology leadership in multi-orbit connectivity and advanced 5G NTN capabilities, with a focus on mergers and acquisitions in defense-related areas [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the defense market, noting good visibility into revenues with 50%-60% already in backlog for the year [36] - The company anticipates continued growth in 2026, with expected revenues between $500 million and $520 million, and Adjusted EBITDA between $61 million and $66 million [19][32] - Management highlighted the importance of ongoing projects in Peru and the expectation of additional large RFPs during 2026 [19] Other Important Information - The company raised $166 million in capital during 2025, enhancing its ability to pursue strategic opportunities [22] - The gross margin for Q4 2025 was 28%, down from 40% in Q4 2024, primarily due to lower margins at Stellar Blu [26] Q&A Session Summary Question: Update on defense market visibility - Management indicated that 50%-60% of revenues are already in backlog, with no negative impact from recent U.S. budget issues, and strong demand in the U.S., Israel, and Europe [36] Question: Roadmap for LineFit in IFC - Progress is being made with Boeing for LineFit certification expected in the first half of the year, while Airbus is in initial phases [37] Question: Cadence of Peru business - Management expects to close discussions on upgrading remaining networks before the upcoming election, with significant RFPs anticipated [39] Question: Earth observation contracts and margins - Earth observation contracts are expected to have a margin profile similar to the average of Gilat, between 30%-40% [45] Question: M&A focus areas post-private placement - The company is targeting defense-related capabilities, particularly in the U.S. and Europe, with a focus on companies with significant revenue potential [51] Question: Stellar Blu's revenue and growth projection - Stellar Blu's revenue for 2025 was approximately $127 million, with expectations for double-digit growth in 2026 [56]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $137 million, up 75% year-over-year, while full year revenue rose to $451.7 million, up 48% with 6% year-over-year organic growth [5][16] - Adjusted EBITDA for the fourth quarter was $18.2 million, a 50% increase compared to the same quarter last year, and full year adjusted EBITDA hit $53.2 million, a 26% growth year-over-year [5][19] - Gross margin in Q4 2025 was 28%, down from 40% in Q4 2024, primarily due to lower margins at Stellar Blu and additional amortization expenses [17] Business Line Data and Key Metrics Changes - Commercial segment revenues for Q4 2025 were $75.1 million, a 103% increase from $37 million in Q4 2024, driven by in-flight connectivity (IFC) [17] - Defense segment revenues for Q4 2025 were $33.3 million, a 14% increase from $29.4 million in the same quarter last year [17] - Peru segment revenues for Q4 2025 were $28.5 million, compared to $11.8 million in Q4 2024, driven by new upgrade projects [17] Market Data and Key Metrics Changes - The defense business saw strong year-over-year growth in new order bookings and customer engagement, with a record year for sales driven by U.S. and allied defense customers [6][7] - The commercial business experienced increased demand for advanced IFC, with significant orders received from leading satellite operators [8][9] - Gilat Peru secured over $85 million in agreements for upgrading regional networks, reinforcing its role in national connectivity initiatives [11] Company Strategy and Development Direction - The company plans to focus on driving revenue growth in defense through business development, R&D investment, and portfolio expansion, while pursuing opportunities in government communication programs [13][14] - In the commercial sector, the strategy includes expanding the IFC product portfolio and increasing the customer base for SkyEdge IV [14] - Mergers and acquisitions will focus on defense-related capabilities to complement existing strengths, with an emphasis on companies with significant revenue potential [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the defense market, noting good visibility into revenues with 50%-60% already in backlog [25] - The company expects 2026 revenues to be between $500-$520 million, representing a 13% growth year-over-year, and adjusted EBITDA to be between $61-$66 million [22] - Management highlighted the importance of maintaining momentum and addressing the growing demand for secure satellite connectivity [14][25] Other Important Information - The company raised $166 million in capital in 2025, enhancing its ability to pursue strategic opportunities [20][14] - The backlog is expected to support revenues for 2026 and beyond, with a strong pipeline of opportunities across divisions [12][22] Q&A Session Summary Question: Update on defense market visibility - Management indicated that 50%-60% of revenues are already in backlog, with no expected impact from recent U.S. budget shutdowns, and noted increased traction in the U.S., Israel, and Europe [25] Question: Roadmap for LineFit in IFC - Progress is being made with Boeing for LineFit certification expected in the first half of the year, while Airbus is in initial phases [26] Question: Cadence of Peru business - Discussions are ongoing for upgrading additional networks before the upcoming election, with expectations for large RFPs in internet connectivity [29] Question: Earth observation contracts and margins - Earth observation contracts are expected to have a margin profile similar to the average of Gilat, around 30%-40% [34] Question: M&A focus areas post-private placement - The main focus is on defense-related companies in the U.S. and Europe, with an emphasis on businesses that can contribute significantly to revenues [40] Question: Stellar Blu's revenue and growth projections - Stellar Blu's revenue for 2025 was approximately $127 million, with expectations for double-digit growth in unit deliveries in 2026 [44]