Gilat Satellite Networks Ltd. (NASDAQ:GILT) stock fell Tuesday after the company reported mixed third-quarter results and cut its full-year revenue forecast.
The satellite communications company beat earnings estimates but missed Wall Street’s revenue expectations.
Gilat Earnings Beat Estimates, Revenue Falls Short
Gilat reported adjusted earnings of 18 cents per share, beating the analyst estimate of 14 cents.
Revenue reached $116.23 million, missing the $126.65 million estimate.
Adjusted EBITDA rose 13% to $17.6 million. Cash and short-term deposits totaled $260 million as of Sept. 30.
Gilat CEO Adi Sfadia said cost controls and pricing discipline helped the company improve profitability despite currency headwinds and bad debt write-offs tied to Hughes Network Systems’ Chapter 11 filing.
However, delayed in-flight connectivity terminal deliveries, satellite development and launch setbacks, and slower-than-expected agreements in Peru prompted the company to slash its revenue outlook. Some expected revenue has shifted into 2027.
Sfadia also warned of growing competitive pressure as vertically integrated low-Earth-orbit satellite operators gain market share from traditional geostationary satellite providers.
To counter these challenges, Gilat is expanding its defense business, which posted 53% revenue growth during the quarter.
The planned Comtech acquisition, expected to close by year-end, could more than double Gilat’s defense revenue in 2027 and strengthen its U.S. presence.
Meanwhile, the company continues to pursue opportunities in next-generation ground infrastructure, in-flight connectivity and sovereign satellite constellations.
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Defense Revenue Jumps 53% As Gilat Eyes Comtech Deal
Gilat’s defense revenue surged 53% year over year.
The company expects its planned Comtech acquisition to more than double defense revenue in 2027 and strengthen its U.S. market presence.
Meanwhile, Gilat secured several major contracts, including a deal worth more than $32 million for multi-band DKET systems supporting U.S. defense network resilience.
Other wins included more than $8 million in additional U.S. Department of Defense orders and over $10 million in SkyEdge IV orders.
The company also secured a $14 million broadband expansion agreement in Peru.
Gilat Cuts 2026 Revenue Forecast
Gilat lowered its 2026 revenue forecast to $455 million-$475 million from $500 million-$520 million.
The revised outlook fell below the analyst estimate of $507.06 million.
Management now expects full-year adjusted EBITDA of $61 million-$63 million.
Despite the weaker outlook, Gilat expects to complete its Comtech acquisition by year-end.
GILT Price Action: Gilat Satellite Networks shares were down 23.94% at $5.76 at the time of publication on Tuesday, according to Benzinga Pro data.
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