Gilat Satellite Networks Ltd.

Ladies and gentlemen, thank you for standing by. The conference will begin shortly. Ladies and gentlemen, thank you for standing by. Welcome to GILAT's first quarter 2026 results conference call. All participants are at present in listen-only mode. Following the management formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded May 13, 2026. By now, you should have all received the company's press release. If you have not received it, please view it in the new section of the company's website, www.gilott.com. I would now like to hand over the call to Mr. Sanjay Hari of Alliance Advisors IR. Mr. Hari, would you like to begin, please?

Thank you, Hila. Good morning, everyone. Thank you for joining us for Gilott Satellite Network's earnings conference call for the first quarter of 2026. With us on the call today are Mr. Adi Svadia, Gillette's CEO, and Mr. Gail Beniamini, Gillette's Chief Financial Officer. Before turning the call over to management, I'd like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainty that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of the company's new products on a global basis, and disruptions or delays in its supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under the company's control. The company cautions investors to not place undue reliance on forward-looking statements, which reflect the company's analysis as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Gillette's financial results is included in the company's filings with the Securities and Exchange Commission, including its latest quarterly report. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I'd like to turn the call now to Gilad's CEO, Adi Satya. Please go ahead, Adi.

Thank you, Sanjay, and good day, everyone. Thank you for joining us today to discuss Gilad's first quarter results. I am pleased to report that we opened the year with solid execution across the business, reflecting strong performance. Our results underscore the competitiveness of our portfolio across the satellite communication landscape and strong year-over-year revenue growth and profitability. As satellite operators and government customers advance next-generation programs, From VHDS satellites to NGSO constellations, we are seeing our capabilities translate into new orders, expanding customer engagement, and growing opportunities. This momentum is closely tied to the progress we continue to make in technology development as we invest in advanced and interoperable systems designed to support the evolving requirements of next-generation satellite communication networks. During the quarter, Gilad Defense conducted a live demonstration of its virtualized Satcom Gateway modem architecture at Satellite 2026 in Washington, D.C., in collaboration with Amazon AWS, SCS Space and Defense, and the Wave Consortium. The demonstration showcased a flexible cloud-based and software-defined gateway architecture designed to improve scalability, resiliency, and agility for defense and government networks, and represent a significant step forward in how future SATCOM gateways will be deployed and operated. In parallel, we successfully conducted a 5G non-terrestrial network demonstration, highlighting how satellite systems can integrate with future 5G-based architectures. Together, this milestone reflects our continued investment in technology solutions that will support next-generation satellite and hybrid networks across both commercial and defense markets. First quarter revenues reached $110.5 million, 20% year-over-year revenue growth, and first quarter adjusted EBITDA reached $15.1 million, almost double the same quarter last year. Overall, the first quarter reflects continued traction and position as well for the remainder of the year. Now on to the business review. I will start with the defense business. we are seeing significant increase in interest for transportable and portable Satcom solutions driven by the growing importance of mobility, rapid deployment, and operational flexibility. As militaries and government users increasingly operate in dynamic and contested environments, the value proposition of highly mobile, resilient Satcom solutions continue to strengthen. This demand translates into meaningful order during the quarter. In February, we announced a $16 million order from the European Ministry of Defense for our DK transportable solutions, reinforcing our leadership in high-performance, rapidly deployed systems. These orders also reflect increased penetration into the European market, driven in part by the evolving geopolitical environment and higher defense readiness requirements across the region. In Israel, we continue to strengthen our relationship with the Ministry of Defense. During the quarter, we announced an order of $9 million, further expanding the deployment of our solution and reinforcing our long-term strategic partnerships. The order includes next-generation defense modems built for mission-critical operations to ensure reliable connectivity across a wide range of operational scenarios. During the quarter, we received an order for over $7 million for our new EnduroStream solid-state power amplifiers, to support the U.S. defense program. EndureStream delivers reliability and operational resilience required for mission-critical environments as defense customers transition away from legacy technologies. Also in the United States, we continue our longstanding support of the U.S. Army. During the quarter, we received an order of approximately $6 million for field and technical services, reflecting the continued reliance on Gilad Defense to support mission-critical SATCOM operations and ensure system availability in the field. Our defense pipeline remains strong, supported by sustained global demand, and our continuing investment in R&D, advanced system architectures, and customer engagement. Turning to our commercial business. In the first quarter, our commercial business continued to show solid performance, supported by ongoing customer engagement and steady execution across our programs. As satellite operators and service providers move forward with next-generation network, they are increasingly focused on platforms that offer scalability, flexibility, and multi-orbit support for our mobility applications. Gilad remains well positioned within this evolving landscape. In-flight connectivity remains one of our key growth engines. Demand for IFC continues to increase, driven by our airline expectations for consistent, high-performance connectivity growing passenger usage, and the industry's transition towards NGSO and multi-orbit networks. These environments strongly align with Gilad's technology roadmap and product portfolio. As of today, we have delivered approximately 750 Sidewinder ISA terminals, of which more than 570 are already installed and in service. During the quarter, Boeing and Gilad reached an important key in-cabin milestone to offer Sidewind ERISA Terminal as a line-fit solution available to airlines and IFC service providers. Certification is on track and deliveries of the first units are expected in Q4 this year. In addition, we are starting a process to achieve a line-fit availability with Airbus. During the quarter, we announced $39 million in orders for our Sidewind ERISA Terminal. reinforce the market's confidence in its performance, low-profile design, and multi-orbit capability. We have also expanded our ISA portfolio with the ESR 2030, which is now commercially available. ESR 2030 is designed to support commercial and defense applications over the OneWeb LEO constellation, complementing our side-window offering and broadening our addressable market. With growing interest in LEO services, We believe INSTAR 2030 position as well to support new programs as operators move from network deployment towards commercial service. We also received a multimillion-dollar order from a leading IFC integrator for solid-state power amplifiers to support connectivity solutions on commercial aviation aircrafts. Across the industry, operators are operating grounded infrastructure to support a wider range of services across multiple orbits. SkyH4 is built for this shift, providing a scalable software-defined platform that enables efficient management of complex multi-service satellite networks. A recent example is our strategic multi-million dollar partnership with Nelco in India to deploy SkyH4 in support of India's first KA-band service deployment using the JSAT-N2 HDS satellite. India represents an important growth market for Gilad, and a central part of our expectation expansion strategy in the Asia-Pacific region. The deployment will enable scalable, high-performance connectivity across multiple services, including IFC, and enterprise connectivity, delivering the performance and flexibility required for K8 deployments. Overall, the commercial pipeline remains healthy, supported by continued IFC demand alongside longer-term investments in advanced satellite network architectures. Our Peru business continues to execute very well, with strong operational progress across our national connectivity programs. We expect to complete an upgrade project that was announced a few quarters ago ahead of schedule in the second quarter of 2026, demonstrating Gilad Peru's ability to deliver large-scale complex infrastructure projects reliably and on time. These results strengthen our position as a trusted partner for national digital inclusion initiative and provide a solid foundation for continued activity in the region. We expect additional large RFPs and follow-on orders during the year. I am pleased to say that we continue to have a strong backlog and a healthy pipeline. Therefore, we feel comfortable reiterating our 2026 annual guidance. We expect 2026 revenues of between 500 and 520 million dollars and adjusted EBITDA of between $61 to $66 million. Technology development remained a core pillar of our strategy across defense and commercial markets. During the quarter, we advanced software-defined system capabilities that enabled more scalable and resilient satellite networks, while also continuing our work on integrating satellite networks with future 5G NPN frameworks. Together, these efforts support next-generation satellite systems serving defense, mobility, and commercial applications. Demand across our core markets continues to develop favorably, and our strategic focus on mobility, multi-orbit architectures, and next-generation systems is translating into tangible momentum across our business. Gilad Defense continues to see strong customer interest as defense and government organizations extend investment in mobile resilience outcome capabilities. We continue to see growing engagement across the United States, Europe, and Israel, supported by a robust pipeline and ongoing investment in advanced architectures that address evolving defense requirements. ISC remains one of our key growth engines, supported by increasing airline demand and continued adoption of ISA-based solutions. We continue to maintain a strong balance sheet and financial flexibility while remaining disciplined in our capital allocation. Mergers and acquisitions continue to be a key element of our defense and long-term growth strategy, with a focus on opportunities that complement our core technologies, strengthen our defense portfolio, and support sustainable value creation. Overall, we delivered a solid start to 2026, validating the strengths of our diversified portfolio across our business. With growing backlog, a healthy pipeline, and a continued investment in technology leadership, Gilad is well positioned to sustain growth and create long-term value. And with that, I will hand over the call to Gil Biniamini of CFO. Gil, please go ahead.