Defense Department Services Provider Gilat Bags Big Military Contracts, Expands India Footprint

Gilat Satellite Networks Ltd. (NASDAQ:GILT) shares traded lower Wednesday after the satellite communications company reported mixed first-quarter results, as a strong earnings beat was offset by weaker-than-expected revenue. The company serves a global customer base that includes major satellite operators, government agencies and defense organizations. Key customers and partners include SES, Telespazio, the United States Department of Defense and the government of Peru. Gilat Earnings Snapshot Adjusted earnings came in at 18 cents per share, well above the analyst consensus estimate of 4 cents per share, reflecting stronger-than-expected profitability despite softer sales. Revenue totaled $110.47 million, missing Wall Street estimates of $114.56 million. Adjusted EBITDA rose to $15.1 million from $7.6 million in the prior-year quarter. Key Developments Gilat signed a multimillion-dollar partnership with Nelco in India to deploy its SkyEdge IV platform, expanding its presence in emerging markets. The company also secured more than $7 million in orders for its new EnduroStream solution supporting the United States Department of Defense. In addition, Gilat received about $6 million in orders supporting U.S. Army global communications operations and another contract worth more than $16 million to supply SATCOM systems to a European Ministry of Defense. In the mobility and aviation segment, Gilat secured a multimillion-dollar in-flight connectivity order to support commercial aviation connectivity deployments. The company also received $39 million in orders for Sidewinder ESA terminals. Gilat Outlook Gilat affirmed its fiscal 2026 revenue guidance range of $500 million to $520 million, compared with the Street estimate of $509.5 million. The company expects adjusted EBITDA for 2026 to range between $61 million and $66 million, representing growth of about 19% at the midpoint. Executive Commentary Chief Executive Officer Adi Sfadia said the company expanded its defense footprint into additional countries during the quarter while strengthening strategic commercial relationships in India. Sfadia also highlighted increasing interest in Gilat's virtualized, software-based network solutions following a demonstration conducted with Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Web Services and SES Space & Defense. He added that demand for in-flight connectivity remains strong as next-generation aviation connectivity deployments continue to scale, while growing adoption of low Earth orbit and multi-orbit architectures continues to support demand for electronically steered antennas. Gilat Stock Performance GILT Price Action: Gilat Satellite Networks shares were down 22.15% at $15.50 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock