Gilat Awarded Over $32 Million US Defense Contract for Satellite Systems
Israeli satellite communications company Gilat announced it has received an order exceeding $32 million from the U.S. Department of Defense. The contract, to be fulfilled over the next 12 months through Gilat's subsidiary Gilat DataPath, involves supplying mobile satellite communication terminals. These DKET systems operate on Ku, Ka, and X frequency bands and are designed for rapid deployment of satellite connectivity in various locations, particularly for restoring communication infrastructure in operational environments.
This significant order expands DataPath's existing work with U.S. government communication programs. The contract's value is notable in the context of Gilat's current defense sector business. In the second quarter of 2026, defense sector revenues were approximately $22.5 million, a 12% increase from the same period last year. For the first half of 2026, defense revenues totaled about $47.9 million. The new order alone represents roughly 67% of the defense sector's revenue for the first half of the year, though the company notes this comparison is for scale as revenue recognition will be spread over 12 months.
The contract aligns with Gilat's strategy to increase the defense segment's contribution to its overall business. The defense sector generated approximately $100.4 million in revenue in 2025, and the company projected 2026 defense revenues between $115 million and $130 million. Nicole Robinson, President of Gilat DataPath, stated that the award highlights the growing importance of mobile ground infrastructure in modern military satellite communications, enabling rapid restoration of capabilities based on operational needs.
Gilat recently reported its second-quarter financial results, showing a 17% increase in total revenue to $122.7 million. Adjusted EBITDA rose 31% to $15.4 million, and adjusted operating profit increased 35% to $12.6 million. However, net profit under GAAP decreased to $8.1 million ($0.10 per share) from $9.8 million ($0.17 per share) in the prior year's quarter. Adjusted net profit, conversely, grew to $15.6 million from $12 million year-over-year. Total revenues for the first half of the year reached approximately $233.1 million, up from $197 million in the same period last year, with the commercial sector remaining the largest contributor.
