Key Highlights

  • Third-quarter Revenue was USD 116.2 million, down 1% from USD 117.7 million; Defense revenue rose 53% to USD 36.9 million, Commercial fell 4% to USD 69.7 million and Peru fell 54% to USD 9.6 million.
  • GAAP Net Income was USD 8.7 million, or USD 0.11 per diluted share, against USD 8.1 million, or USD 0.14; non-GAAP net income was USD 14.3 million, or USD 0.18, versus USD 11.8 million, or USD 0.19.
  • Adjusted EBITDA rose 13% to USD 17.6 million from USD 15.6 million, a Margin of about 15% against about 13%, while GAAP gross margin widened to 35% from 30% on favorable Defense deal mix.
  • Full-year 2026 revenue guidance was cut to USD 455 million to USD 475 million from USD 500 million to USD 520 million, and adjusted EBITDA guidance was narrowed to USD 61 million to USD 63 million.

Defense Surge Offsets Softer Commercial and Peru Revenue

Gilat Satellite Networks (NASDAQ:GILT) reported third-quarter 2026 results on a call held on November 10, 2026. The company makes satellite ground equipment and runs network projects. Defense growth came mainly from transportable product deliveries at its DataPath unit. Management said lower amplifier deliveries to certain customers, deferred to later periods, hit Commercial, while Peru fell on lower construction revenue from upgrade projects. GAAP operating expenses rose to USD 32.9 million from USD 27.2 million on the shekel-dollar exchange rate, Comtech Transaction Costs and a bad Debt provision for two customers that entered Chapter 11. GAAP Operating Income was USD 7.9 million against USD 7.5 million, and per-share income fell on a higher share count from Equity raises.

Guidance Cut Reflects Launch Delays and In-Flight Connectivity Timing

Revenue guidance for 2026 now stands at USD 455 million to USD 475 million, which management said means 3% growth at the midpoint. Both ends of the range fell USD 45 million from the prior range, a calculation from the published figures. Management attributed the change to delays in satellite launches, rescheduled in-flight connectivity deliveries, ongoing talks on commercial terms and a Peru agreement signed at the end of the quarter, pushing revenue into 2027. The CEO said retrofit units earn close to breakeven margins. Adjusted EBITDA guidance of USD 61 million to USD 63 million implies 17% growth at the midpoint.

Comtech Satellite and Space Deal, Convertible Notes and Liquidity

The outlook excludes the pending Acquisition of Comtech Satellite and Space, which management expects to add more than USD 180 million of revenue and more than USD 80 million of adjusted EBITDA. Closing awaits remaining U.S. regulatory approvals expected before year end. The company issued USD 100 million of five-year convertible notes with about USD 99 million of net proceeds. Liquidity was USD 260 million, net cash was USD 158 million, and Operating Cash Flow was USD 4.3 million as Defense Working Capital built. Risks cited include reduced military spending, customer concentration, Supply disruptions and exchange rates. Defense awards included more than USD 32 million for DKET systems.

Where Things Stand

Not fully in the near term, based on management's own guidance. Gilat Satellite Networks (NASDAQ:GILT) grew Defense revenue 53% and lifted adjusted EBITDA 13%, but total revenue slipped 1% and full-year guidance fell USD 45 million at both ends as Commercial and Peru orders shifted into 2027. Profit held up better than sales because of mix and cost savings. The pending Comtech Satellite and Space purchase is not in the outlook and depends on regulatory approvals. Next markers are those approvals, the first Sidewinder line-fit units before year end and fourth-quarter order intake.