Gilat Defense secures $23M DoD satellite support contract

Published 07/04/2025, 12:14
© Gilat Satellite Networks PR

PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a global provider of satellite networking technology with annual revenues of $305 million and a market capitalization of approximately $308 million, announced today that its subsidiary, Gilat Defense, has been awarded a contract to support the U.S. Department of Defense (DoD). The agreement, potentially worth up to $23 million, tasks Gilat Defense with the sustainment and support of Satellite Transportable Terminal (STT) units used by the DoD across the globe.

The contract outlines a base period of performance with the option to extend services for up to five years. Gilat Defense will be responsible for essential program management, field services, and technical support, ensuring the operational readiness and reliability of these critical communication systems. According to InvestingPro data, Gilat has demonstrated strong financial health with a current ratio of 2.52, indicating robust operational capability to deliver on such contracts.

Nicole Robinson, President of Gilat DataPath, expressed pride in the company’s recognition through the award, highlighting the quality and capability that Gilat brings to its defense customers. She emphasized the contract’s reinforcement of the critical role that Gilat’s satellite communication (SATCOM) systems play in supporting the DoD’s worldwide operations and the company’s commitment to providing superior performance and service.

Gilat Satellite Networks has over 35 years of experience in the industry and offers a wide range of technology solutions and services for satellite and ground connectivity. Its portfolio caters to commercial and defense applications, including government and defense, in-flight connectivity, broadband access, cellular backhaul, and more. The company has shown impressive growth with revenue increasing by 14.79% in the last twelve months. InvestingPro analysis reveals 12 additional key insights about Gilat’s performance and potential, available to subscribers. The company operates through subsidiaries such as Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, delivering integrated solutions that support multi-orbit constellations and various satellite technologies.

The announcement of this contract underscores Gilat’s ongoing engagement with defense and government sectors, providing advanced technological infrastructure for critical communication needs. As such, the company continues to play a significant role in the satellite communications industry, maintaining a focus on innovation and customer service. Based on InvestingPro’s Fair Value analysis, Gilat’s shares currently appear undervalued, suggesting potential upside for investors. Detailed valuation metrics and comprehensive analysis are available in the Pro Research Report, part of the extensive coverage of over 1,400 US stocks on InvestingPro.

The information for this report is based on a press release statement from Gilat Satellite Networks Ltd.

In other recent news, Gilat Satellite Networks Ltd reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share of $0.15, despite revenue falling short of forecasts at $78.1 million. The company experienced a 3% year-over-year revenue increase, reaching $305.4 million for the full year. Gilat provided financial guidance for fiscal year 2025, projecting revenue growth between 35% to 50%, partly due to its acquisition of Stellar Blu, expected to contribute $120 million to $150 million. In a strategic move, Gilat invested up to $3.5 million in Crosense, a startup specializing in drone detection technology, aligning with its focus on the Homeland Security and Defense sectors. Needham maintained its Buy rating for Gilat, with a price target of $8.50, reflecting confidence in the company’s strategic direction. The firm noted Gilat’s strong gross margins and disciplined operating expenses as factors contributing to its better-than-expected profits. Additionally, Gilat announced a reorganization within its Defense, Commercial, and Peru Business Units to enhance focus on growth areas. These developments underscore Gilat’s ongoing efforts to expand its market presence and leverage strategic acquisitions for future growth.

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