Core Insights - Gilat Satellite Networks Ltd. has secured over $60 million in orders for its Stellar Blu ESA Sidewinder in-flight connectivity terminals from a leading satellite operator, with deliveries expected within the next 12 months [1][2] Group 1: Orders and Deliveries - The orders include hundreds of additional Sidewinder ESA terminals, supporting new airline fleet awards for retrofit and the first production run for Boeing's OEM linefit terminal [2] - Deliveries of the ordered terminals are anticipated to occur within the next year [1] Group 2: Product and Market Strategy - The Stellar Blu Sidewinder ESA is positioned to redefine airborne connectivity, catering to the performance and flexibility demands of modern aviation customers [3] - The current momentum is expected to open significant opportunities in high-value markets, including VVIP and special mission aircraft, by providing advanced connectivity solutions [3] Group 3: Company Overview - Gilat Satellite Networks is a global leader in satellite-based broadband communications, with over 35 years of experience in developing technology solutions for satellite and ground connectivity [4] - The company offers a comprehensive portfolio that includes cloud-based platforms, high-performance satellite terminals, and integrated ground systems for both commercial and defense markets [4][5] - Gilat's products support various applications, including government and defense, in-flight connectivity, broadband access, and critical infrastructure, while adhering to stringent service level requirements [5]

Core Insights - Gilat Satellite Networks Ltd. (GILT) has secured a multimillion-dollar contract from Israel's Ministry of Defense for the delivery and integration of advanced satellite communication (SATCOM) systems, with completion expected by the end of 2025 [1][10]. Group 1: Contract and Deliverables - The contract entails the rapid deployment of advanced SATCOM systems tailored to the operational needs of Israel's defense forces, designed to operate in challenging conditions [2]. - The company expressed pride in delivering a customized solution for the Israeli Ministry of Defense, highlighting its capability to meet complex operational requirements with speed and precision [3]. Group 2: Market Position and Demand - Gilat is positioned to capitalize on the rising global demand for defense SATCOM, driven by geopolitical tensions and the growth of Non-Geostationary Satellite Orbits (NGSO) [4]. - The Defense unit is experiencing growth due to increased global investment in secure communication technologies, with nations expanding their communication infrastructure for security and operational agility [5]. Group 3: Financial Performance - In Q2 2025, Gilat's revenues reached $105 million, a 37% increase year-over-year, with commercial revenues rising by 59.1% due to the Stellar Blu acquisition [9]. - The company has raised its 2025 revenue outlook to between $435 million and $455 million, up from a previous forecast of $415 million to $455 million, with adjusted EBITDA projected between $50 million and $53 million [10][11]. Group 4: Strategic Initiatives - Gilat Defense is enhancing its sales initiatives to raise awareness of its technological expertise and its role in supporting satellite connectivity for U.S. and allied defense agencies [8]. - The company secured orders exceeding $8 million from the Israeli Ministry of Defense and an initial order of over $7 million from the U.S. Army, with a potential total value of approximately $70 million [7].

Group 1 - Astera Labs, Inc. (ALAB) is outperforming its peers in the Computer and Technology sector with a year-to-date return of approximately 45% compared to the sector average of 14.6% [4] - The Zacks Rank for Astera Labs is 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a consensus estimate for full-year earnings increasing by 72.5% in the past quarter [3] - The Internet - Software industry, to which Astera Labs belongs, has an average gain of 23.7% this year, further highlighting ALAB's strong performance relative to its industry [5] Group 2 - The Computer and Technology group consists of 605 companies and is currently ranked 5 within the Zacks Sector Rank, which includes 16 different groups [2] - Another notable performer in the sector is Gilat Satellite (GILT), which has returned 48% year-to-date and also holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Satellite and Communication industry, to which Gilat Satellite belongs, is ranked 28 and has seen a gain of 9.3% this year [6]

Financial Performance - Revenues for Q2 2025 reached $105 million, a 37% increase from $76.6 million in Q2 2024[9] - GAAP net income for Q2 2025 was $9.8 million, or $0.17 per diluted share, compared to $1.3 million, or $0.02 per diluted share in Q2 2024[9] - Adjusted EBITDA for Q2 2025 was $11.8 million, up from $10.1 million in Q2 2024, with an adjusted EBITDA excluding losses from Gilat Stellar Blu at $13.3 million[9] - GAAP net income for Q2 2025 was $9,830,000, a significant increase from $1,302,000 in Q2 2024, representing a growth of 655%[26] - Non-GAAP net income for the first half of 2025 reached $13,788,000, compared to $11,569,000 in the same period of 2024, reflecting a year-over-year increase of 19%[28] - Total revenues for the first half of 2025 were $197,007,000, up from $152,709,000 in the first half of 2024, indicating a growth of 29%[30] - Gross profit for Q2 2025 was $31,927,000, compared to $26,573,000 in Q2 2024, marking an increase of 20%[25] - Adjusted EBITDA for the first half of 2025 was $19,428,000, slightly down from $19,430,000 in the first half of 2024[29] - Operating income for Q2 2025 was $5,684,000, compared to $2,791,000 in Q2 2024, showing an increase of 104%[25] - The company reported a total of $133,277,000 in commercial segment revenues for the first half of 2025, up from $84,593,000 in the same period of 2024, a growth of 57%[30] Guidance and Projections - Management raised the 2025 revenue guidance to between $435 million and $455 million, reflecting a growth rate of approximately 46% at the midpoint[10] - Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million, indicating a growth rate of approximately 22% at the midpoint[11] Strategic Wins and Contracts - Gilat's Commercial Division achieved strong bookings and strategic wins, particularly with the next-generation SkyEdge IV platform[12] - The company secured over $8 million from Israel's Ministry of Defense for strategic defense communication solutions[15] - Gilat was awarded approximately $60 million to provide digital inclusion solutions in Peru[15] Assets and Liabilities - Total assets increased to $575,878,000 as of June 30, 2025, compared to $429,748,000 at the end of 2024, reflecting a growth of 34%[31] - The company’s total current liabilities rose to $147,215,000 as of June 30, 2025, compared to $101,436,000 at the end of 2024, an increase of 45%[32] Cash Flow and Investments - Cash and cash equivalents decreased to $64,929,000 as of June 30, 2025, down from $119,384,000 at the end of 2024[31] - Net cash provided by operating activities was $(1,469,000) for the six months ended June 30, 2025, compared to $692,000 in 2024, indicating a significant decline[33] - Net cash used in investing activities totaled $(112,699,000) for the six months ended June 30, 2025, a substantial increase from $(2,650,000) in 2024[33] - The company made an acquisition of a subsidiary, net of cash acquired, costing $104,943,000 during the six months ended June 30, 2025[33] - The net cash provided by financing activities was $58,220,000 for the six months ended June 30, 2025, contrasting with $(7,324,000) in 2024, indicating a positive shift[33] Depreciation and Inventory - Depreciation and amortization increased to $9,942,000 for the six months ended June 30, 2025, compared to $7,333,000 in 2024, reflecting a rise of 36.0%[33] - The increase in trade receivables was $(9,234,000) for the six months ended June 30, 2025, compared to $(17,734,000) in 2024, showing an improvement[33] - The company reported a decrease in inventories of $96,000 for the six months ended June 30, 2025, compared to an increase of $974,000 in 2024[33] Aircraft and Defense Segment - Approximately 225 aircraft are currently flying with Gilat antennas, demonstrating excellent results and throughput[12] - Gilat's defense segment is leveraging synergies with DataPath to enhance its offerings to U.S. defense customers[12]

Core Insights - Gilat Satellite Networks Ltd. has been awarded a multimillion dollar contract by Israel's Ministry of Defense for satellite communication systems and services, with deliveries expected by the end of 2025 [1][2] - The contract involves the rapid deployment of advanced SATCOM systems designed for harsh environments, catering to the operational needs of Israel's defense forces [2][3] - Gilat Defense emphasizes the growing importance of SATCOM as a critical tool for defense forces globally, showcasing its capability to deliver tailored solutions swiftly [3] Company Overview - Gilat Satellite Networks Ltd. is a leading global provider of satellite-based broadband communications, with over 35 years of experience in developing deep technology solutions for various connectivity needs [3][4] - The company offers a comprehensive portfolio that includes cloud-based platforms, high-performance satellite terminals, and integrated ground systems for both commercial and defense markets [4][5] - Gilat's products support multiple applications, including government and defense, broadband access, and critical infrastructure, while adhering to stringent service level requirements [5]

Core Viewpoint - Gilat Satellite (GILT) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Gilat's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Gilat is projected to earn $0.13 per share, indicating a year-over-year decline of 7.1%. However, the Zacks Consensus Estimate has increased by 8.33% due to one upward revision [5]. - For the full year, the earnings estimate is $0.59 per share, representing an 18.0% increase from the previous year. The consensus estimate has surged by 78.79% over the past month, with one upward revision and no negative revisions [6][7]. Zacks Rank - Gilat currently holds a Zacks Rank 1 (Strong Buy), attributed to favorable estimate revisions. This ranking is part of a system that has historically shown strong performance, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [8]. Stock Performance - The stock has appreciated by 16.7% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [9].

Group 1: Tutor Perini Corporation (TPC) - Tutor Perini Corporation is a construction company with a Zacks Rank 1, and its current year earnings estimate has increased by 55.4% over the last 60 days [1] - The company's shares have gained 60.7% over the last three months, significantly outperforming the S&P 500's advance of 9.4% [1] - Tutor Perini possesses a Momentum Score of A [1] Group 2: Gilat Satellite Networks Ltd. (GILT) - Gilat Satellite Networks Ltd. is a satellite-based broadband communications company with a Zacks Rank 1, and its current year earnings estimate has increased by 78.8% over the last 60 days [2] - The company's shares have gained 33.2% over the last three months, also outperforming the S&P 500's advance of 9.4% [5] - Gilat Satellite possesses a Momentum Score of A [5] Group 3: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. is a leading manufacturer of water quality solutions with a Zacks Rank 1, and its current year earnings estimate has increased by 5.8% over the last 60 days [5] - The company's shares have gained 18.6% over the last six months, compared to the S&P 500's advance of 5.6% [9] - Watts Water possesses a Momentum Score of A [9]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 reached $105 million, a 37% increase year over year from $76.6 million in Q2 2024 [21] - Adjusted EBITDA was $11.8 million, a 17% increase from the same quarter last year, with an organic adjusted EBITDA of approximately $13.3 million, representing a 32% year-over-year increase [8][24] - GAAP net income for Q2 2025 was $9.8 million, or diluted income per share of $0.17, compared to $1.3 million or diluted income per share of $0.02 in Q2 2024 [23] Business Line Data and Key Metrics Changes - Commercial segment revenues were $69.1 million, a 59% increase from $43.4 million in Q2 2024, primarily due to the acquisition of Stellar Blue, which contributed $36 million [21][22] - Defense segment revenues remained stable at $20 million, similar to Q2 2024 [22] - Peru segment revenues increased to $15.9 million from $13.9 million in Q2 2024 [22] Market Data and Key Metrics Changes - The defense division is experiencing increased demand due to geopolitical tensions, with over $8 million in orders from the Israeli Ministry of Defense [9] - Gilat's commercial business saw over $47 million in orders from tier one satellite operators, reflecting strong demand for multi-orbit ground segment technologies [12] - Gilat Peru received over $60 million in new orders for upgrading regional network infrastructure, highlighting the company's commitment to digital inclusion [14][15] Company Strategy and Development Direction - The company is focused on capturing growth opportunities from the acquisition of Stellar Blue and investing in Gilat Defense to drive revenue growth in 2026 [7] - Gilat aims to expand its leadership across key verticals and deepen relationships with strategic partners, leveraging strong customer demand and a differentiated technology portfolio [14] - The company is transitioning to a software-defined infrastructure, enhancing its positioning in the satellite communication market [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet customer demand and improve margins in the second half of 2025, particularly for Stellar Blue [30][32] - The outlook for 2025 has been improved, with revenue guidance narrowed to $435 million to $455 million, representing a year-over-year growth of approximately 46% at the midpoint [26] - Management noted ongoing interest in defense solutions from multiple regions, including North America, Europe, and Asia Pacific, indicating a robust pipeline for future growth [9][62] Other Important Information - The company secured a $100 million credit line to finance the acquisition of Stellar Blue, with total cash and equivalents at $65.4 million as of June 30, 2025 [25][26] - The GAAP gross margin decreased to 30.4% from 34.7% in Q2 2024, primarily due to lower margins in Stellar Blue as it ramps up production [22][23] Q&A Session Summary Question: What is the status of the ramp at Stellar Blue and margin expectations? - Management indicated that production ramp-up is progressing, with expectations for improved margins in the third and fourth quarters [30][32] Question: What is the fulfillment model for the SkyEdge four virtualization win? - The initial order involves operating software on cloud commercial off-the-shelf equipment, with flexible business models including CapEx and subscription options [34][35] Question: Are there any major decisions coming in Peru that could improve top-line growth? - Management expects significant orders in the coming months and participation in large RFPs from the Peruvian government [36] Question: What are the main contributors to the improved guidance? - Improved visibility from Stellar Blue and recent business awards contributed to the increased guidance for the year [42] Question: What is the backlog for Stellar Blue and future shipments? - The backlog includes close to 1,000 aircraft, with expectations for large orders in the coming weeks [45] Question: What is the status of the defense division and demand from the Israeli defense ministry? - There is strong interest from several countries, with ongoing proof of concept and demo sessions, and several large orders announced [62]

Financial Performance - Q2 2025 revenue reached $105 million, a 37% year-over-year increase[4] - Adjusted EBITDA for Q2 2025 was $11.8 million, a 17% increase year-over-year[4] - Gilat Stellar Blu contributed approximately $36 million in revenue during Q2 2025[4, 14] - The company is on track for $120 million to $150 million in Stellar Blu revenues in 2025[4] - The company raised its 2025 revenue guidance to $435 million - $455 million, representing a 46% year-over-year growth at the midpoint[20, 21] - The company raised its 2025 Adjusted EBITDA guidance to $50 million - $53 million, representing a 22% year-over-year growth at the midpoint[20, 21] Business Segment Highlights - Gilat Peru secured a $60 million contract from Pronatel to expand broadband infrastructure[4, 10] - Gilat Commercial received $47 million in orders from Tier-1 satellite operators for multi-orbit use[8] - Gilat Defense received up to $70 million U.S Army Field Services award[6] - Gilat Commercial secured a $40 million NRE project for the virtualized SkyEdge IV platform[4, 8]

Core Insights - Gilat Satellite Networks Ltd. reported a revenue increase of 37% year-over-year, reaching $105 million in Q2 2025, compared to $76.6 million in Q2 2024 [8] - The company achieved a GAAP operating income of $5.7 million, up from $2.8 million in the same quarter last year [8] - Adjusted EBITDA for the quarter was $11.8 million, compared to $10.1 million in Q2 2024, reflecting a strong operational performance [8] Financial Performance - Revenue for the first half of 2025 was $197 million, compared to $152.7 million in the first half of 2024 [19] - GAAP net income for Q2 2025 was $9.8 million, or $0.17 per diluted share, compared to $1.3 million, or $0.02 per diluted share, in Q2 2024 [8][19] - Non-GAAP net income for Q2 2025 was $12 million, or $0.21 per diluted share, compared to $5.6 million, or $0.10 per diluted share, in Q2 2024 [8] Forward-Looking Guidance - The company raised its revenue guidance for 2025 to a range of $435 million to $455 million, indicating a growth rate of approximately 46% at the midpoint, up from the previous expectation of 42% [4] - Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million, reflecting a growth rate of approximately 22% at the midpoint [5] Strategic Developments - Gilat's CEO highlighted the strong performance of the Commercial Division, driven by significant bookings and the adoption of the next-generation SkyEdge IV platform [6] - The company is expanding its Defense segment by leveraging synergies with DataPath to offer a broader range of solutions to defense customers [6] - Recent contracts include over $8 million from Israel's Ministry of Defense and approximately $60 million for digital inclusion solutions in Peru [14]