Gilat Defense Lands Multimillion-Dollar Israeli SATCOM Contract

Gilat Satellite Networks Ltd. GILT has announced that its defense division, Gilat Defense, secured a multimillion-dollar contract from Israel’s Ministry of Defense. Under the agreement, the company will deliver and integrate advanced satellite communication (SATCOM) systems and related services. The deliveries are scheduled to be completed by the end of 2025.

The contract involves the swift deployment of advanced SATCOM systems designed to meet the specific operational needs of Israel’s defense forces. These systems are well-suited for a broad spectrum of military communication requirements, built and engineered to function in challenging and unpredictable conditions.

Management stated that SATCOM is increasingly proving to be a vital and indispensable tool for defense forces worldwide. As a leading developer and supplier of mission-critical solutions, the company expressed pride in delivering a customized, time-sensitive solution for the Israeli Ministry of Defense. This accomplishment showcases the company’s capability to address complex operational requirements with both speed and precision.

Gilat Strengthens Defense Unit

GILT, a leading provider of satellite-based broadband services, offers advanced solutions across sectors like In-Flight Connectivity (IFC), defense and public safety. With rising global demand for defense SATCOM, driven by NGSO growth and geopolitical tensions, Gilat is well-positioned to capitalize on these trends through its deep expertise and continued investment in secure, high-performance satellite communication technologies.

The company’s Defense unit is gaining healthy momentum, driven by increased global investment in secure, mission-critical communication technologies. In a world increasingly shaped by geopolitical uncertainties, nations and agencies are expanding their communication infrastructure to ensure security, resilience and operational agility. Gilat’s wide-ranging portfolio positions it well to meet this rising demand, making defense a more prominent revenue stream.

In the second quarter of 2025, Gilat’s Defense division strengthened its growth foundation amid rising global defense spending and demand for secure SATCOM solutions. The company engaged customers across North America, Europe and Asia-Pacific, leveraging synergies between Gilat DataPath and Wavestream.

The Israeli Ministry of Defense placed orders exceeding $8 million for Gilat DataPath systems in the second quarter, underscoring the strength and versatility of its technology. In addition, Gilat DataPath secured a contract to provide field and technical services for the U.S. Army, starting with an initial order of more than $7 million. The program includes an option to extend for up to five years, with a potential total value of approximately $70 million.

Gilat Defense also advanced its focused roadmap and broadened sales initiatives to enhance awareness of its technological expertise and its critical role in supporting the satellite connectivity needs of the U.S. and allied defense agencies.

Second-quarter revenues totaled $105 million, marking a 37% increase from the same period last year. Commercial revenues (65.8% of second-quarter net sales) rose 59.1% year over year, fueled by the Stellar Blu acquisition, acquired in early January, adding $36 million in revenues, partly offset by the end of its operations in Russia in 2024. Defense revenues (19%) decreased a marginal 0.9% year over year. Peru revenues (15.2%) increased 21.9% year over year.

Buoyed by strong first-half results, a solid backlog and a healthy pipeline across all major segments, management has raised its 2025 outlook. Revenues are now expected to be in the range of $435 million to $455 million, up from the previous forecast of $415 million to $455 million. Adjusted EBITDA is projected between $50 million and $53 million compared with the earlier range of $47 million to $53 million.

Gilat’s Zacks Rank & Stock Price Performance

GILT currently carries a Zacks Rank #1 (Strong Buy). Shares of the company have soared 98.3% in the past year compared with the Zacks Satellite and Communication industry's growth of 50.9%.

Stocks to Consider From the Computer and Technology Space

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