Gilat Satellite Networks Ltd. Q3 FY2025 earnings call

• Third - quarter revenues reached $117.7 million, a 58% year - over - year increase, and adjusted EBITDA was $15.6 million, 46% higher than the same quarter last year. - Gilat Defense invested in sales, marketing, and R&D resources, received over $14 million in defense orders from the U.S. Army and Department of Defense, and strengthened ties with the Israeli Ministry of Defense. - The commercial business had strong results with $73 million in revenues, driven by the in - flight connectivity vertical, including $42 million orders for SkyEdge IV and a $7 million order for IFC equipment. - In Peru, $25 million in expansion awards were received, with revenues of $20.6 million. - Gilat integrated AI into its network management system, announced a $66 million private placement, and has a strong backlog and pipeline of opportunities.

In the third quarter of 2025, the Commercial segment generated revenues of $73 million, which is a 116% increase compared to $33.8 million in the same quarter of 2024. The Defense segment had revenues of $24 million in Q3 2025, down from $31 million in Q3 2024, primarily due to the transition from mature programs to new ones that are currently in progress. The Peru segment saw revenues of $20.6 million in Q3 2025, more than double the $9.8 million in Q3 2024, driven by higher revenues from new upgrade projects and increased equipment deliveries.

• Gilat is resetting its full - year guidance. The revenue range is narrowed to between $445 million and $455 million, with a midpoint growth rate of approximately 47%. - The adjusted EBITDA guidance range is now $51 million to $53 million, with a midpoint growth rate of approximately 23%, based on strong performance and business momentum.

• Potential risks include global economic conditions. - Reductions in revenues from key customers. - Delays or reductions in U.S. and foreign military spending. - Acceptance of new products on a global basis. - Disruptions or delays in the supply of raw materials and components due to business conditions, global conflicts, weather, or other uncontrollable factors.

Q: How should we think about Stellar Blue's trajectory, gross margins, and next - generation product?

A: Stellar Blue is progressing nicely with production ramping up. They are still behind the targeted gross margin initially, but expect significant improvement in gross margin next year. For the next - generation product, they are working on several new programs and considering Ku, Ka versions, and combinations of Ku and Ka.

Q: What is the impact of Peru orders and the defense shutdown?

A: The $85 million Peru awards are upgrades on top of existing business with Pronatel, not renewals. Regarding the defense shutdown, it has caused a delay in new bookings, but it is not considered a major impact on guidance.

Q: How many Stellar Blue Sidewinder aircraft are online and how is the antenna performance?

A: Slightly more than 350 aircraft are connected. The antenna performance with the OneWeb constellation is very good, with feedback from customers and airlines being positive, and it can provide close to 200 megabits per second on OneWeb.

Q: About SkyEdge IV orders and cellular backhaul?

A: SkyEdge IV orders are for in - flight connectivity applications. Cellular backhaul had a relatively small order, and the main growth engine in the commercial side is the IFC business.

Q: Regarding Stellar Blue earn - outs and CapEx?

A: No strategic deals have been closed yet. CapEx is within the original planning, slightly higher than last year but as expected.