Gilat Satellite Networks’ DataPath division announced new orders worth $6 million under the U.S. Army’s Global Tactical Communications System II (GTACS II) contract, with services scheduled for delivery over the next six months.
The win follows a 22.2% year‑over‑year decline in the company’s defense segment revenue, which fell to $24.1 million in Q3 2025 as mature programs wind down and new initiatives are ramping. The $6 million order adds to the defense pipeline and signals continued demand from the Army.
Gilat’s overall Q3 2025 results showed revenue up 58% to $117.7 million, driven largely by growth in the commercial segment. The company raised its full‑year 2025 revenue guidance to $445–$455 million, reflecting confidence in sustained demand across its portfolio.
Management highlighted the significance of the GTACS II contract. Nicole Robinson, President of Gilat DataPath, said, “This next phase of orders reflects the U.S. Army's continued confidence in Gilat to support operational readiness with proven, dependable capabilities.” She added, “Our team remains deeply committed to delivering the responsiveness, expertise, and service quality required to support the Army's demanding global mission.”
The defense segment has faced margin compression, with non‑GAAP gross margin falling to 31.7% from 37.8% in Q3 2024, partly due to integration costs. The new orders are expected to help offset these costs and stabilize margins as the company scales its defense solutions.
Market reaction to the announcement was muted, with investors focusing on broader macro and geopolitical factors rather than the contract win itself. Analysts continue to view Gilat’s defense portfolio as a growth driver, but the $6 million order is a modest addition to a larger backlog.
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