#Israel #Petah Tikva #Gilat Telecom #NIS 119 Million #Israel Communications

Gilat Telecom Reports Impressive Q1 Growth

In its latest financial results for Q1 2026, Gilat Telecom Global Ltd. has demonstrated remarkable growth across all key business metrics, affirming its robust position as a leading communications provider in Israel. The company reported a net profit surge of 93%, climbing to approximately NIS 7.35 million, compared to NIS 3.85 million in the same period last year.

The increased profitability is accompanied by a 45% rise in adjusted EBITDA, which reached approximately NIS 14.2 million. Additionally, revenue for the quarter stood at around NIS 68.5 million, marking a significant increase from the NIS 57.7 million reported in Q1 2025. This reflects a strong upward trend in the company’s financial health, as evidenced by the gross profit, which increased from NIS 16.3 million to NIS 21.2 million, improving the gross margin from 28.2% to 31%. Such improvements can be attributed to several factors, including operational efficiencies within the ISP business and growth in high-margin activities.

Strong Financial Foundation

Gilat Telecom has been actively strengthening its balance sheet, showcasing a significant increase in shareholders' equity, which rose over NIS 41 million within just one quarter, reaching approximately NIS 119 million as of March 31, 2026. This focus on financial fortitude has enabled the company to maintain cash and short-term deposits totaling around NIS 90.5 million, ensuring it has the financial flexibility to pursue future opportunities.

Moreover, the company has a considerable long-term business backlog, with signed contracts amounting to approximately NIS 182.2 million, extending through to 2029. This secured backlog provides a stable foundation for ongoing operations and future growth initiatives.

Satellite and Government Division: The Growth Driver

One of the standout segments of Gilat's operations is its commercial and government satellite division, which continued to act as the primary growth driver for the company. Revenue from this segment hit approximately NIS 58.7 million, significantly up from NIS 48.5 million in Q1 the previous year. Segment profit surged from NIS 11.9 million to NIS 20.2 million, driven by a combination of increased demand from defense and government clients, higher service revenues, and strategic partnerships both domestically and internationally.

As part of its expansion efforts, Gilat Telecom is enhancing its integration and multi-infrastructure activities focused on government and defense sectors, combining satellite frameworks with terrestrial networks and advanced communication solutions.

Continued ISP Growth

In addition to the satellite sector, the company’s Internet Service Provider (ISP) business has also been thriving. It reported consistent profitability for the fifth consecutive quarter, generating a direct profit of around NIS 732 thousand in Q1 2026. Gilat has expanded its fiber-based activities and is capitalizing on conversions from its long-term IRU agreement with Bezeq. Currently, Gilat's internet operations are servicing approximately 24,000 residential customers along with numerous business clients, reinforcing its strong market position.

Management believes that the expanded agreement with Bezeq will provide further advantages for the company, ensuring continued profitable growth in its Internet segment for years to come. Itzik Ben Eliezer, the CEO of Gilat Telecom, highlighted the company’s strong financial standing and significant backlog, reinforcing its ability to enhance operations, profit margins, and shareholder value in upcoming years.

Conclusion

Overall, Gilat Telecom's Q1 2026 results are a testament to its enduring strength in the competitive landscape of Israel's telecommunication sector. The company stands poised for ongoing growth, backed by diverse revenue streams and a solid financial framework, making it a notable player in future developments within the industry.