Shares of Gilat Satellite Networks Ltd. jumped 16.4% after the company reported much stronger-than-expected earnings for the second quarter of 2025. Gilat, a global provider of satellite networking technology, not only beat analyst estimates by a wide margin but also raised its financial guidance for the rest of the year, exciting investors and analysts alike.
For the second quarter, Gilat posted adjusted earnings per share (EPS) of $0.21, which was a significant beat compared to analyst forecasts of just $0.04. This marks a major improvement in the company’s profitability. In terms of revenue, Gilat reported $105 million, which represents a 37% increase compared to the same quarter last year. This result also came in above the market’s estimate of $101 million, showing that the company’s business is growing faster than expected.
The strong revenue growth was driven by solid momentum across various segments of Gilat’s business. According to CEO Adi Sfadia, the company’s core strategy is paying off, and its growth engines are performing well. He also highlighted progress in the defense sector, noting that Gilat Defense is expanding its presence by combining capabilities with DataPath, which allows the company to offer a wider range of solutions to military clients in the U.S. and among allied nations.
The company also raised its full-year revenue outlook, which added to the bullish investor sentiment. Gilat now expects 2025 revenue to fall between $435 million and $455 million, up from its previous projection of $415 million to $455 million. At the midpoint, this would represent about 46% year-over-year growth, which is a strong sign of confidence in future performance. Additionally, Gilat lifted its forecast for adjusted EBITDA, now expecting between $50 million and $53 million, reflecting around 22% growth at the midpoint.
In Q2, Gilat reported adjusted EBITDA of $11.8 million, up from $10.1 million a year earlier. The company achieved this growth even while absorbing a $1.5 million loss related to the ramp-up of its Gilat Stellar Blu business. This indicates that despite some short-term costs associated with expanding operations, the company’s overall profit engine remains healthy.
Gilat also highlighted several recent contract wins, which are expected to support its growth in upcoming quarters. These include a $60 million deal for digital inclusion solutions in Peru, a $40 million contract for its SkyEdge IV virtualised platform, and $27 million in orders related to its Stellar Blu product line.