Aviat Networks Q4 2025 slides: Adjusted EBITDA jumps 26.7% despite revenue dip

Introduction & Market Context

Aviat Networks, Inc. (NASDAQ:AVNW) released its fiscal fourth quarter 2025 presentation, highlighting the company’s financial performance and strategic positioning in the wireless transport and access solutions market. The Austin, TX-based company serves over 3,000 customers worldwide with an end-to-end portfolio spanning wireless transport, access, routers, software, and services.

The company’s stock has shown strong momentum, with shares trading at $22.69, up 9.59% on September 11, 2025. According to the latest data, the stock has demonstrated significant upward movement, having risen from its 52-week low of $12.96 toward its high of $26.83.

Quarterly Performance Highlights

For the fourth quarter of fiscal 2025, Aviat Networks reported revenue of $115.3 million, representing a slight decrease of 1.1% compared to the same period last year. However, the company’s trailing twelve months (TTM) revenue reached $434.6 million, up 6.5% year-over-year, demonstrating longer-term growth momentum.

Despite the modest revenue decline in Q4, Aviat delivered strong profitability metrics. The company reported GAAP operating income of $8.9 million and non-GAAP operating income of $12.9 million. Most notably, adjusted EBITDA increased by 26.7% year-over-year to $15.1 million, reflecting improved operational efficiency.

As shown in the following quarterly financial highlights:

The company’s gross margins remained healthy at 34.2% (GAAP) and 34.7% (non-GAAP). Earnings per share came in at $0.40 on a GAAP basis and $0.83 on a non-GAAP basis. The TTM book-to-bill ratio remained above 1.0, indicating a healthy demand environment.

Aviat’s balance sheet position as of Q4 2025 shows $59.7 million in cash and marketable securities against $87.6 million in third-party debt, resulting in a net debt position of approximately 0.8x TTM adjusted EBITDA. The company reported accounts receivable of $180.3 million with DSOs (Days Sales Outstanding) at 141 days and inventory turns at 3.4x.

Strategic Initiatives

Aviat Networks has been actively pursuing strategic acquisitions to expand its market presence and technological capabilities. Over the past few years, the company has completed several significant acquisitions, including Redline Communications in 2022, NEC’s microwave business (Pasolink) in 2023, and 4RF in 2024. These acquisitions have strengthened Aviat’s product portfolio and expanded its global reach.

The company’s comprehensive product portfolio spans wireless transport and wireless access solutions, designed to lower the total cost of ownership for customers. Key product lines include split-mount systems, all-outdoor systems, trunking systems, indoor radios, microwave routers, and various software solutions.

Aviat’s strategy focuses on providing value through reduced tower footprint, capacity scalability, integrated routing, spectrum fee savings, higher network reliability, and simplified logistics. The company emphasizes that its solutions deliver the lowest total cost of ownership in the industry.

Competitive Industry Position

Aviat Networks operates in an attractive global market with an estimated $11 billion total addressable market (TAM). The company serves private networks (59% of revenue) and mobile networks (41% of revenue), with a geographic footprint spanning North America (48%), Latin America and Asia-Pacific (34%), Middle East and Africa (11%), and Europe (7%).

The company’s investment opportunity is built on several key pillars:

In the wireless transport market, microwave technology remains crucial, accounting for 60% of cellular transport links globally. Aviat competes effectively against both microwave specialists and wireless generalists through its modular radio platform, end-to-end offering, better RF performance, turnkey services portfolio, and innovative software solutions.

The company sees significant growth opportunities in three key markets:

1. Private Networks: An upgrade cycle in public safety, utilities, and other private networks, with the Private LTE/5G market expected to reach $8 billion by 2027

2. Mobile Networks & 5G: Early stages of the global 5G upgrade cycle, with mobile network data traffic projected to grow at 26% CAGR through 2028

3. Rural Broadband: Over $70 billion in U.S. government funding programs dedicated to building out rural broadband networks

Forward-Looking Statements

Looking ahead to fiscal 2026, Aviat Networks provided guidance for revenue between $440.0 million and $460.0 million, with adjusted EBITDA projected to range from $45.0 million to $55.0 million. This outlook suggests continued revenue growth and improved profitability compared to fiscal 2025.

The company’s historical performance shows a strong upward trajectory in both revenue and adjusted EBITDA:

Aviat also highlighted its significant tax advantage from over $460 million in gross Net Operating Losses (NOLs). These NOLs reduce the company’s statutory federal and state blended tax rate of approximately 25% to an effective cash tax rate of around 5%, providing substantial cash flow benefits for the foreseeable future.

This financial outlook aligns with the company’s Q1 2025 performance, where Aviat reported an EPS of $0.88, significantly exceeding analyst expectations of $0.29. The company’s focus on operational efficiency and strategic market positioning appears to be yielding positive results, as evidenced by the strong stock performance and improving financial metrics.

As Aviat Networks continues to execute its growth strategy through both organic initiatives and strategic acquisitions, the company appears well-positioned to capitalize on expanding opportunities in wireless transport and access markets globally.

Full presentation:

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