Comtech Sells Satellite Unit for $157.5M and Narrows Q3 Loss
CMTL•Comtech Telecommunications will sell its Satellite and Space Communications unit to Gilat for $157.5 million, closing in Q4 fiscal 2026. It reported an adjusted Q3 loss of $0.22 per share on $106.0 million revenue and will allocate $143–145 million to debt reduction and its public safety technology segment.
1. Satellite Unit Sale to Gilat
Comtech will divest its Satellite and Space Communications unit to Gilat Satellite Networks for $157.5 million, with closing expected in the fourth quarter of fiscal 2026. The sale covers most assets within its Satellite and Space Communications segment and transitions core operations to Gilat.
2. Fiscal Q3 Financial Results
In fiscal third quarter, Comtech posted an adjusted loss of $0.22 per share on $106.0 million revenue, outperforming the consensus loss estimate of $0.27 per share but missing the $110.2 million revenue forecast. The unadjusted net loss amounted to $3.5 million, or $0.47 per share.
3. Use of Net Proceeds and Strategic Focus
The company plans to deploy $143–145 million of the net sale proceeds to reduce outstanding debt and strengthen its public safety technology operations. This allocation underscores a strategic shift away from satellite services toward mission-critical communications solutions.
