Gilat Logs 103% Commercial Growth and $18.2M Q4 EBITDA; Stellar Blu Backlog Miss
Gilat’s Q4 Commercial segment revenue jumped 103% year-over-year, lifting adjusted EBITDA 50% to $18.2 million. Stellar Blu secured just over half of its $120 million backlog milestone and the Peru unit forecasts an 11% revenue decline in 2026.
1. Q4 2025 Financial Results
Gilat reported adjusted EBITDA of $18.2 million for Q4 2025, a 50% increase year-over-year, driven by a 103% surge in Commercial segment revenue, largely fueled by in-flight connectivity deployments.
2. Segment Performance
The Commercial segment’s growth was bolstered by Stellar Blu contributions, though Stellar Blu achieved just over half of its $120 million earnout backlog target. Meanwhile, the Peru division expects an 11% revenue decline in 2026 due to reduced construction activity and a shift toward operations.
3. Defense and Connectivity Outlook
Defense contracts now cover 50–60% of expected revenues with strong traction in the US, Israel and Europe. Earth Observation orders rose 35% year-over-year at 30–40% margins, and in-flight connectivity is set for Boeing linefit certification in H1 2026 with deliveries in Q3.
4. Strategic Priorities and M&A
Post-private placement, management is targeting M&A in radar solutions and electronic warfare to leverage rising defense budgets. A large Stellar Blu order booked in backlog will deliver mainly in 2027, but its revenue impact lies beyond 2026.