Stellar Blu's Q2 2025: Navigating Contradictions in Production, Revenue, and Defense Expansion

Revenue and Earnings Performance:
- Gilat Satellite Networks reported second quarter revenues of $105 million, marking a 37% increase year-over-year, with adjusted EBITDA reaching $11.8 million, up 17% from the same quarter last year.
- The growth was driven by the acquisition of Stellar Blu, which contributed $36 million, and increased engagement in the defense sector.

Defense Segment Momentum:
- Gilat's Defense division continued its growth trajectory, with over $8 million in orders from the Israeli Ministry of Defense and a contract for field services from the U.S. Army, with an estimated potential of up to $70 million.
- This momentum is attributed to increased geopolitical tensions, which are driving governments to increase defense spending and allocate more resources to secure satellite communications.

Commercial Business Expansion:
- Gilat's commercial segment reported Q2 revenues of $69.1 million, showing a 59% increase, due primarily to Stellar Blu's contribution.
- The expansion was driven by strategic wins, including a $40 million contract for a virtualized SkyEdge IV platform and increased demand for multi-orbit ground segment technologies.

Peru Segment and Digital Inclusion:
- Gilat Peru received over $60 million in new orders, highlighting the company's commitment to digital inclusion and infrastructure development.
- This is in line with ongoing government partnerships in Peru, aiming to bring high-speed internet to remote communities.