Gilat Satellite Networks Ltd. secured a $16 million order to supply its DKET 3421 transportable terminal to a European Ministry of Defense. The order will involve the delivery of multiple units over the next 12 months and marks the company’s first deal with this particular MoD, adding a new high‑value customer to its defense portfolio. The DKET 3421 is a WGS‑certified, 4.2‑meter rugged terminal designed for high‑throughput, resilient connectivity for forward‑deployed forces, and the contract is a material boost to Gilat’s defense division.
In its Q4 2025 earnings release, Gilat reported revenue of $137.0 million, up 75% from $78.1 million in Q4 2024, and a Non‑GAAP diluted EPS of $0.20, beating the consensus estimate of $0.13 by $0.07. GAAP diluted EPS matched the estimate at $0.13, while GAAP net income fell to $8.8 million from $11.8 million year‑over‑year, reflecting margin pressure. Adjusted EBITDA rose 50% to $18.2 million from $12.1 million. The company guided 2026 revenue to $500 million–$520 million and adjusted EBITDA to $61 million–$66 million, signaling confidence in continued double‑digit growth.
"We ended 2025 with a very strong fourth quarter and a solid year, reflecting steady execution across the company, driven primarily by our key growth engines of Defense, IFC and advanced multi‑orbit solutions. Revenue increased both in the fourth quarter and for the full year, through organic growth and through acquisitions. Adjusted EBITDA also improved, underscoring our operational strength and sustained demand for Gilat's technology. Altogether, the results point to durable momentum as our solutions become more integral to global connectivity," said CEO Adi Sfadia. "In the fourth quarter, we recorded several notable achievements." "For 2026, we expect continued double‑digit growth supported by a strong backlog and healthy pipelines."
Investors focused on margin compression and operational cash‑flow challenges, noting that GAAP net income and EPS declined despite revenue growth, and that operating cash flow was negative $6.3 million with Days Sales Outstanding at 88 days. These concerns were tempered by the company’s upbeat guidance and the addition of a sizable defense contract, which provides a new revenue stream and strengthens its position in European sovereign defense programs.
The $16 million contract expands Gilat’s presence in European sovereign defense programs and complements its recent acquisition of Stellar Blu, which has bolstered its commercial and in‑flight connectivity segments. By securing a new high‑value customer, Gilat diversifies its defense revenue base and positions itself to capture further opportunities in the growing market for secure, relocatable satellite communications for military operations.
The contract adds a significant revenue stream to Gilat’s defense division, but margin pressure and cash‑flow challenges remain a focus for management. The company’s guidance for 2026 reflects confidence in continued double‑digit growth, while it remains vigilant about potential headwinds such as Peru volatility and delayed IFC orders. Overall, the defense contract strengthens Gilat’s strategic trajectory, but investors will monitor how the company balances growth with profitability.
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