Core Insights - Gilat Satellite Networks reported strong fourth-quarter and full-year 2025 results, highlighting significant year-over-year revenue growth and increased adjusted EBITDA driven by expansion in commercial in-flight connectivity (IFC), defense activities, and network upgrades in Peru [3][6]. Financial Performance - Q4 2025 revenue reached $137 million, a 75% increase from the prior year, while full-year revenue rose to $451.7 million, up 48% compared to 2024, including 6% organic growth [2][6]. - Adjusted EBITDA for Q4 was $18.2 million, reflecting a 50% year-over-year increase, and for the full year, it was $53.2 million, up 26% [2][6]. - GAAP operating income was $13.0 million, slightly up from $12.8 million in Q4 2024, while GAAP net income decreased to $8.8 million, or $0.13 per diluted share, down from $11.8 million, or $0.21 per diluted share, primarily due to higher financing costs and tax expenses [6]. Segment Performance - Commercial revenue in Q4 was $75.1 million, a 103% increase, driven by IFC and contributions from the Stellar Blu acquisition [2][5]. - The defense segment had a record year with new orders, including a ~$10 million Earth observation order, and Peru secured over $85 million in upgrades [4][8]. - Stellar Blu contributed approximately $127 million in revenue for 2025, with expectations for double-digit growth in unit deliveries in 2026 [12][14]. Strategic Initiatives - The company is focusing on M&A, particularly in defense-related capabilities, and is evaluating adjacent areas such as radar solutions and electronic warfare [20]. - Gilat strengthened its liquidity with $166 million in capital raises and repaid a $60 million loan related to the Stellar Blu acquisition [4][18]. Future Guidance - For 2026, the company projects revenue between $500 million and $520 million and adjusted EBITDA of $61 million to $66 million [20]. - The Peru segment is expected to generate revenue of $60 million to $65 million in 2026, reflecting an 11% decrease at the midpoint due to lower construction revenue [17].

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]

Gilat Satellite Networks (NasdaqGS:GILT) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Company ParticipantsAdi Sfadia - CEOGil Benyamini - CFOSanjay Hurry - Investor Relations RepresentativeConference Call ParticipantsChris Quilty - Equity Research AnalystGunther Karger - Equity Research AnalystLouie DiPalma - Equity Research AnalystRyan Koontz - Equity Research AnalystSergey Glinyanov - Equity Research AnalystOperatorLadies and gentlemen, thank you for standing by. Welcome to Gilat's fourth quarter 2 ...

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]

Leading the Multi-Orbit Revolution Investor Presentation February 2026 Gilat Proprietary and Confidential Gilat Proprietary and Confidential 3 Forward Looking Statements Disclaimer Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements. These forward- looking statements involv ...

Core Insights - Gilat Satellite Networks Ltd. (GILT) has secured an $11 million contract from a leading satellite operator in the Asia Pacific region for its SkyEdge platform, indicating its growing capabilities in next-generation satellite infrastructure [2][11] - The SkyEdge IV platform is designed to support various satellite applications, delivering higher capacity and lower costs while enabling a transition to cloud-based networks and 5G NTN [3][4] - Gilat's recent performance shows a 58% increase in quarterly revenues, leading to an upward revision of its 2025 financial outlook, with expected revenues between $445 million and $455 million [7][8] Contract and Product Details - The contract involves the deployment of the SkyEdge IV platform for Very High Throughput Satellites (VHTS), with deliveries anticipated over the next 12 months [2][11] - The SkyEdge IV platform was selected for its high-capacity performance, flexibility, and scalability, which are crucial for VHTS networks that require simultaneous support for multiple applications [4][11] Market Position and Growth Potential - Gilat is addressing a broad range of commercial markets, including in-flight connectivity, maritime, and enterprise networks, with a projected expansion of its addressable equipment market through 2028 [6] - The company has raised its adjusted EBITDA guidance to $51 million to $53 million, reflecting a 23% year-over-year increase at the midpoint [9]

Core Insights - Gilat Satellite Networks Ltd. is set to report its third-quarter 2025 results on November 12, with an earnings per share (EPS) estimate of 13 cents, reflecting a 7.14% decline from the previous year. Revenue is expected to reach $112 million, indicating a 50% increase year-over-year [1]. Financial Performance - Gilat has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 6.25%. The company's shares have increased by 87.8% over the past six months, compared to the Satellite and Communication industry's growth of 153.2% [2]. Key Trends - The company is focusing on leveraging the Stellar Blu acquisition to enhance its ESA technology, investing in R&D and sales to meet defense demands, and progressing towards a cloud-native, software-defined NextGen platform, which is expected to positively impact its Q3 performance [3]. Defense Sector Engagement - Rising geopolitical tensions are driving increased defense spending, positioning Gilat Defense to meet the demand for secure satellite communications. The company is actively engaging customers across North America, Europe, and the Asia-Pacific, and is expanding its global presence through synergies with DataPath and Wavestream [4]. Recent Contracts - In September, Gilat DataPath received over $7 million in orders from a prime contractor for Transportable SATCOM Terminals for the U.S. Army, with deliveries expected by the end of 2025. Additionally, a multimillion-dollar contract was secured from Israel's Ministry of Defense for advanced SATCOM tools, also to be delivered by the end of 2025 [5]. Commercial Segment Growth - The commercial segment is experiencing strong momentum with significant bookings and the adoption of Gilat's next-generation satellite communication platform. The SkyEdge IV virtualization is enabling operators to transition to cloud-native environments, enhancing scalability and margins [6]. Stellar Blu Acquisition Impact - The Stellar Blu acquisition is expected to have positively influenced Gilat's revenue, contributing $36 million in Q2 and projected to reach $120–$150 million in 2025 due to new orders from leading IFC market players [7]. Pipeline Activity - The Gilat Peru division is seeing healthy pipeline activity, with $85 million in orders from Pronatel for upgrading broadband infrastructure in remote areas, contributing to the company's recurring revenue backlog [11]. AI Integration - Gilat announced the AI transformation of its Network Management System (NMS) through the integration of the Model Context Protocol, enabling secure communication with AI agents and enhancing operational capabilities [15].