GILT · Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. delivered strong Q1 2026 results, with revenues surging 20% year-over-year to $110.5 million, driven by balanced growth across segments: Commercial at $72.8 million (up from $64.2 million), Defense at $25.4 million (up from $23.0 million), and Peru at $12.3 million (up significantly from $4.8 million). Gross profit rose to $37.6 million on GAAP basis, reflecting improved margins amid higher volumes. Operating expenses increased modestly to $33.3 million, enabling GAAP operating income of $4.4 million, a sharp turnaround from the prior year's $2.7 million loss. Non-GAAP operating income reached $12.5 million, underscoring underlying profitability excluding stock-based compensation, intangibles amortization, and integration costs. Net income flipped to a $5.2 million profit ($0.07 diluted EPS) from a $6.0 million loss, bolstered by $1.3 million in financial income. Adjusted EBITDA more than doubled to $15.1 million, highlighting robust cash generation potential. CEO Adi Sfadia attributed momentum to defense expansion into new countries, commercial deals in India, in-flight connectivity demand, and innovations like high-power solid-state amplifiers and electronically steered antennas for LEO/multi-orbit. Recent wins include a multimillion partnership with Nelco, $39 million Sidewinder ESA orders, $16 million European MoD SATCOM, and $7 million U.S. Department of War EnduroStream. Balance sheet remains solid with $140.2 million cash and $30.9 million short-term deposits as of March 31, 2026, down from year-end but supportive of growth. Management reaffirmed full-year guidance of $500-520 million revenue (13% growth at midpoint) and $61-66 million Adjusted EBITDA (19% growth), signaling confidence in backlog, pipeline, and strategic opportunities.