Gilat secures $40 million deal for satellite platform

PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE:GILT), a key player in satellite networking technology with a market capitalization of $322 million, has landed a $40 million contract for its cutting-edge SkyEdge IV platform, with delivery slated over the next 24 months. The contract represents about 12% of the company’s annual revenue, which grew 13.5% in the last twelve months. The platform is a significant leap in satellite ground network transformation, aligning with upcoming 5G-NTN standards and offering cloud-native architecture.

The SkyEdge IV platform is designed to enable satellite operators and service providers to adapt to the changing landscape of connectivity needs. It’s a fully virtualized, multi-service software solution that boasts adaptability, scalability, and efficiency, allowing for deployment on standard cloud infrastructure. This positions operators to swiftly introduce multi-orbit, next-generation services. According to InvestingPro analysis, Gilat’s technological advancement is backed by solid financials, with analysts anticipating sales growth in the current year.

Gilat’s recent contract underscores the successful implementation of its virtualized platform, which now incorporates the DIFI digital interface open standard. The move towards a virtualized architecture is a strategic part of Gilat’s plan for 5G NTN and is aimed at integrating terrestrial and non-terrestrial networks, fostering a multi-vendor open ecosystem, and unlocking new revenue opportunities.

Ron Levin, President Commercial Division at Gilat, expressed excitement about the company’s support for software-defined satellites and the delivery of a next-generation virtualized ground segment architecture. He highlighted that this development accelerates Gilat’s R&D and evolution towards a 5G-NTN standard platform and the introduction of new services.

Gilat Satellite Networks has over three decades of experience in the field of satellite-based broadband communications. It offers a comprehensive range of products and solutions for both commercial and defense applications, including cloud-based platforms, modems, satellite terminals, and an array of ground systems. The company maintains a healthy financial position with a moderate debt level and has been profitable over the last twelve months, achieving a gross profit margin of 35.4%. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers. Gilat’s subsidiaries—Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu—contribute to its integrated, high-value solutions supporting various satellite constellations and applications.

This announcement is based on a press release statement from Gilat Satellite Networks Ltd.

In other recent news, Gilat Satellite Networks reported first quarter 2025 results that did not meet analyst expectations. The company posted adjusted earnings per share of $0.03, falling short of the consensus estimate of $0.07. Revenue for the quarter was $92 million, which was below the analyst projection of $94.47 million, although it marked a 21% increase from the previous year’s $76.1 million. Gilat’s GAAP results showed a net loss of $6.0 million, or -$0.11 per share, primarily due to ramp-up costs for its Gilat Stellar Blu business and other expenses. Despite the earnings miss, the company reaffirmed its full-year 2025 revenue guidance of $415 million to $455 million, aligning with the analyst consensus.

Additionally, Gilat announced receiving orders exceeding $25 million from global satellite operators, to be fulfilled through 2025 and 2026. These orders highlight the growing demand for Gilat’s In-Flight Connectivity technologies and the company’s capabilities in delivering satellite communication solutions. The company continues to experience significant momentum in its defense segment due to increased demand for secure communications. CEO Adi Sfadia noted that Gilat’s in-flight connectivity business is expanding, with its Sidewinder ESA system now operational on over 150 aircraft. The company anticipates further orders as it broadens modem compatibility.

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