Gilat Satellite Networks (NASDAQ:GILT) reported a stronger first quarter of 2026, with management citing broad-based revenue growth, margin expansion and increased demand across defense, commercial satellite communications and Peru connectivity programs.
Chief Executive Officer Adi Sfadia said the company opened the year with “solid execution across the business,” as satellite operators and government customers advance next-generation programs, including very high throughput satellites, non-geostationary orbit constellations and multi-orbit networks.
Revenue for the quarter rose 20% to $110.5 million from $92 million in the first quarter of 2025. Adjusted EBITDA reached $15.1 million, nearly double the year-earlier period, while GAAP net income was $5.2 million, or $0.07 per diluted share, compared with a GAAP net loss of $6 million, or $0.11 per diluted share, a year earlier.
Commercial Growth Driven by In-Flight Connectivity
Chief Financial Officer Gil Benyamini said commercial segment revenue increased 13% year over year to $72.8 million, primarily driven by the in-flight connectivity vertical.
Sfadia said in-flight connectivity remains one of Gilat’s key growth engines, supported by airline demand for consistent high-performance connectivity, passenger usage growth and the industry’s move toward NGSO and multi-orbit networks.
The company has delivered approximately 750 Sidewinder electronically steered array terminals, with more than 570 installed and in service. Sfadia said Boeing and Gilat reached an “important” in-cabin milestone during the quarter to offer the Sidewinder ESA terminal as a line-fit solution for airlines and IFC service providers. Certification remains on track, and first deliveries are expected in the fourth quarter.
Gilat also said it has begun the process to achieve line-fit availability with Airbus. In response to an analyst question, management said the Airbus process is expected to be faster than Boeing’s because of experience gained during the Boeing certification process, with certification expected in early 2027 and first units in the second half of 2027.
The company announced $39 million in orders for Sidewinder ESA terminals during the quarter. Sfadia said those awards reinforced market confidence in the product’s performance, low-profile design and multi-orbit capability.
Gilat also highlighted the commercial availability of its ESR 2030 terminal, designed to support commercial and defense applications over the OneWeb LEO constellation.
Defense Demand Strengthens Across Key Markets
Defense segment revenue rose 10% year over year to $25.4 million. Sfadia said Gilat is seeing “significant” increased interest in transportable and portable satellite communications solutions, driven by mobility, rapid deployment and operational flexibility requirements.
During the quarter, the company announced several defense-related orders, including:
- A $16 million order from a European Ministry of Defense for DK transportable solutions.
- A $9 million order from Israel’s Ministry of Defense for next-generation defense modems.
- An order of more than $7 million for EnduroStream solid-state power amplifiers to support a U.S. defense program.
- An approximately $6 million order for field and technical services supporting U.S. Army SATCOM operations.
Sfadia said the company’s defense pipeline remains strong, supported by global demand and continued investment in research and development, advanced system architectures and customer engagement.
In the question-and-answer session, management said portable and transportable solutions are mainly from the DataPath product portfolio, while Gilat also sees opportunity for its modem solutions, including SkyEdge IV modems and defense-focused resilient modems. Management also said defense programs typically take six to nine months from order to product delivery, though larger projects can take longer.
Technology Investments Focus on Virtualization and 5G NTN
Gilat highlighted technology demonstrations conducted during the quarter, including a live demonstration of a virtualized SATCOM gateway modem architecture at SATELLITE 2026 in Washington, D.C., in collaboration with Amazon AWS, SES Space & Defense and the WAVE Consortium.
Sfadia said the demonstration showcased a cloud-based and software-defined gateway architecture designed to improve scalability, resiliency and agility for defense and government networks. In response to analyst questions, management said the demonstration involved running Gilat’s gateway modem on the AWS platform connected to a standard modem at the end-user site.
The company also conducted a 5G Non-Terrestrial Network demonstration. Management said it is seeing market traction around 5G NTN, including discussions tied to OneWeb Gen 2 and Gen 1.5, IRIS², LEO startups and some GEO players, but said market requirements are not yet mature. Management described full 5G NTN deployment as likely several years away, with IRIS² described as among the most advanced efforts.
Peru Programs and Financial Position
Revenue from Gilat’s Peru segment rose to $12.3 million from $4.8 million in the prior-year quarter. Benyamini said the increase was mainly related to upgrade projects in four of the six regions in which the company operates.
Sfadia said Gilat expects to complete previously announced upgrade projects ahead of schedule in the second quarter of 2026. He added that the company expects additional large requests for proposals and follow-on orders during the year. Management said Peru revenue can be volatile because of the implementation-based nature of projects, but noted the base level of recurring revenue is higher than in prior years.
Gilat ended the quarter with liquidity of $171 million, including cash equivalents, restricted cash and short-term deposits. The company used approximately $12.2 million in operating cash during the quarter, primarily due to working capital timing, while generating about $15 million over the trailing 12 months.
Benyamini also discussed an agreement with former DataPath shareholders related to the share-linked component of the earn-out from Gilat’s 2023 acquisition. Under the agreement, Gilat issued 2.5 million shares at an average price of $15.45 per share in full satisfaction of that portion of the earn-out. A remaining bonus earn-out component capped at $9 million remains unchanged.
Gilat reiterated its full-year 2026 outlook, forecasting revenue of $500 million to $520 million and adjusted EBITDA of $61 million to $66 million. Benyamini said the guidance reflects the company’s backlog and visibility, while Sfadia said demand across core markets continues to develop favorably.
About Gilat Satellite Networks (NASDAQ:GILT)
Gilat Satellite Networks is a leading provider of satellite-based broadband connectivity solutions, specializing in the design, development and deployment of ground segment equipment and network services. The company's core offerings include Very Small Aperture Terminal (VSAT) modems and hub systems, network management software, and end-to-end satellite communication platforms. These technologies enable broadband Internet access, enterprise networking, and cellular backhaul in regions where terrestrial infrastructure is limited or non-existent.
Founded in 1987 and headquartered in Petah Tikva, Israel, Gilat has established a track record of innovation in satellite communications.
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