How is Gilat Benefiting From Rising Defense SATCOM Demand?

Gilat Satellite Networks Ltd. GILT is benefiting from growing demand for defense SATCOM solutions as military and government organizations increasingly prioritize mobility, rapid deployment and operational flexibility in communications. On the first-quarter 2026 earnings call, management highlighted a significant rise in interest for transportable and portable SATCOM systems as defense users operate in more dynamic and contested environments. The company stated that highly mobile and resilient satellite communication solutions are becoming increasingly important, translating into meaningful new orders and expanding opportunities.The company’s defense business recorded several notable contract wins during the quarter. In February 2026, Gilat announced a $16 million order from a European Ministry of Defense for its DKET transportable SATCOM solutions. The order also reflects increased penetration into the European market, supported by evolving geopolitical conditions and higher defense readiness requirements across the region.Gilat also continued strengthening its relationship with Israel’s Ministry of Defense. During the first quarter, the company secured a $9 million order that expands deployment of its solutions and supports long-term strategic partnerships. The order includes next-generation defense modems designed for mission-critical operations, providing reliable connectivity across a variety of operational scenarios.In the United States, Gilat received an order exceeding $7 million for its EnduroStream solid-state power amplifiers to support a defense program. The company noted that these amplifiers provide the reliability and operational resilience required for mission-critical environments as defense customers transition away from legacy technologies. Additionally, Gilat secured an approximately $6 million order for field and technical services supporting U.S. Army SATCOM operations and system availability.Alongside these contract wins, Gilat continues investing in advanced SATCOM technologies. During the first quarter, Gilat Defense demonstrated its virtualized SATCOM gateway modem architecture in collaboration with Amazon AWS, FCS Space & Defense and the WAVE Consortium. The company said the cloud-based, software-defined architecture is designed to improve scalability, resiliency and agility for defense and government networks. Supported by ongoing investments in research and development, advanced system architectures and customer engagement, Gilat reported a strong defense pipeline with growing opportunities across the United States, Europe and Israel.For 2026, the company expects revenue in the range of $500 million to $520 million, suggesting 13% year-over-year growth at the midpoint. Adjusted EBITDA is projected between $61 million and $66 million, implying 19% growth at the midpoint.Taking a Look at GILT’s CompetitorsIridium Communications IRDM is gaining from momentum across its recurring service revenue model, rising IoT subscribers and government deals. Its new TriMode 9604 module, set for a June launch, combines satellite IoT, cellular IoT and GPS in a compact, low-cost solution that is driving strong partner interest while streamlining legacy services and reducing long-term sustainment costs. Engineering and support revenue are gaining from rapid SDA work and national security demand. Iridium reiterated its full-year guidance. For 2026, service revenue is expected to be flat to up 2%, reflecting continued IoT growth offset by moderation elsewhere, following 2025 service revenue of $634 million.Viasat, Inc. VSAT is gaining from the completion and rollout of its next-generation ViaSat-3 constellation, which is expected to significantly expand global capacity, improve coverage and enhance service quality across commercial, enterprise and defense markets. The company is also benefiting from rising ARPA in aviation and maritime services, supported by higher-value customers and the adoption of advanced connectivity solutions. Growing multi-orbit capabilities, expanding bandwidth inventory and new terminal deployments are strengthening mobility offerings. Additionally, record contract awards, backlog growth and major defense wins provide strong revenue visibility, while solid free cash flow generation supports debt reduction and improved leverage. For fiscal 2027, management expects mid-single-digit revenue growth and slightly flat to up adjusted EBITDA year over year.GILT Price Performance, Valuation and EstimatesShares of Gilat have gained 99.5% in a year compared with the Zacks Satellite and Communication industry’s growth of 229.8%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, GILT trades at a forward 12-month price-to-sales (P/S) of 1.81X, below the industry’s 3.15X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for GILT earnings for 2026 has been revised significantly upward over the past 60 days.Image Source: Zacks Investment ResearchGILT currently has a Zacks Rank #3 (Hold). 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