Aviat Networks Q2 2025: Discrepancies in U.S. Market Demand, European Growth, and Pasolink Performance

These are the key contradictions discussed in Aviat Networks' latest 2025Q2 earnings call, specifically including: U.S. Tier 1 market expectations, Europe's growth potential, North America Tier 1 customer demand, and Pasolink's financial impact:



Strong Financial Performance:
- Aviat Networks reported total revenue of $118 million for Q2 fiscal year 2025, up 26% year-over-year.
- This growth was driven by strong results from the Pasolink products and services, improved margins in the India business, and increasing business in EMEA and Latin America regions.

Pasolink Integration and Impact:
- Pasolink contributed approximately $35 million in revenue, reaching the expected annual contribution rate, indicating meaningful earnings contribution from the acquisition.
- The first Pasolink radio was produced from a contract manufacturer in Thailand, aiming to improve product lead times and margins.

Increased Bookings and Backlog:
- Aviat's trailing 12-month book-to-bill ratio was over 1, with bookings exceeding revenues for the third consecutive quarter.
- This trend suggests a strong pipeline of future orders, particularly with Pasolink's strong performance and contributions from the recently acquired 4RF business.

Private Networks Growth:
- Revenue from private networks was robust, driven by both public safety and rural broadband segments.
- The spending environment in public safety remains healthy, while rural broadband demand is supported by Aviat's leadership in microwave backhaul for wireless Internet service providers.