Gilat Satellite Networks / Wikimedia Commons / CC BY-SA 2.5
PETAH TIKVA, Israel – Gilat Satellite Networks cut its full-year revenue forecast Tuesday as delayed equipment deliveries, satellite launch schedules and revenue timing in Peru weighed on its outlook. Its Tel Aviv-listed shares fell nearly 12% in a delayed exchange quote.
The satellite communications company now expects 2026 revenue of $455 million to $475 million, down from $500 million to $520 million. It narrowed its adjusted EBITDA forecast to $61 million to $63 million from $61 million to $66 million.
The new ranges were set out in Gilat’s third-quarter results. The previous ranges had been reaffirmed in its August second-quarter release.
On the Tel Aviv Stock Exchange’s quote page, Gilat was shown at NIS 20.90, down 11.96%, as of 2:28 p.m. Israel time on November 10. The exchange labels its data as delayed by 15 minutes.
Based in Petah Tikva, Gilat makes technology that connects users through satellites, including ground systems, modems and antennas used in commercial and defense communications. Its equipment supports services such as internet connections on aircraft and communications for military users.
Chief Executive Adi Sfadia said some in-flight-connectivity terminal deliveries were rescheduled while the company worked through commercial terms important to profitability. Delays in developing and launching satellites also pushed back equipment orders. Agreements reached later than expected in Peru shifted some revenue into 2027, he said.
Sfadia also pointed to tougher competition from low-Earth-orbit providers that control more of their own service and equipment, as they gain share from traditional geostationary satellite providers.
Third-quarter revenue was $116.2 million, compared with $117.7 million a year earlier. Net income under U.S. accounting rules rose to $8.7 million from $8.1 million, but diluted earnings per share fell to $0.11 from $0.14 as the share count increased.
Non-GAAP net income, which excludes certain costs, rose to $14.3 million from $11.8 million. Non-GAAP diluted earnings per share were $0.18, compared with $0.19. Adjusted EBITDA rose to $17.6 million from $15.6 million, with a margin of about 15%, up from 13%. The adjusted figures are company-defined measures, not replacements for its results under U.S. accounting rules.
Defense revenue increased 53% from a year earlier, Gilat said. The company expects its planned acquisition of Comtech’s Satellite and Space Communications business to close by year-end, subject to closing conditions. The deal is not completed. Gilat expects it to more than double defense revenue in 2027 once completed.
The results show a split: defense activity and adjusted profit improved, while the lower revenue forecast reflects delays and pressure in other parts of the business. For investors, the immediate issue is when delayed deliveries and orders become recognized sales.
JBizNews Desk | Israel Business
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