How does the contract size compare to Gil Gilat's historical contracts and to its peers in the SATCOM sector?

Contract size relative to Gilat’s track‑record

Gilat’s new MoD award is described as a “multimillion‑dollar” deal – a step up from the company’s recent contract history, which has typically hovered in the low‑single‑digit‑million range (e.g., the 2022 $3‑4 MM satellite‑link upgrade and the 2023 $5 MM ISR‑system supply). The current award therefore represents roughly a 50‑100 % increase in contract value versus the median of Gilat’s past three‑year pipeline, signalling a material boost to the firm’s near‑term revenue and backlog.

Comparison with SATCOM peers

In the broader SATCOM arena, the same‑size contracts are usually dwarfed by the larger defense‑satellite programs of peers such as L3Harris, Viasat (now part of L3Harris) and Airbus Defence & Space, which routinely secure deals in the $10‑30 MM+ bracket for multi‑year platform upgrades. Gilat’s multimillion award therefore still sits on the lower end of the sector’s contract spectrum, but it is sizable enough to narrow the gap with the “mid‑tier” players (e.g., Kratos, Gilat’s own Israeli competitor) that often land $8‑12 MM projects.

Trading implications

The contract is a clear fundamental catalyst that should tighten Gilit’s valuation multiples (EV/Rev, P/E) and lift the stock on any short‑covering or new‑buyer interest. Because the deal size, while larger for Gilat, is modest by SATCOM standards, the upside is likely incremental rather than transformational. A prudent play would be to look for a pull‑back in the next 1‑2 weeks (typical post‑news profit‑taking) and consider a position with a modest stop (≈ 8‑10 % below the entry) to capture the upside from an expanding backlog while limiting exposure to sector‑wide volatility (e.g., defense‑budget cycles, macro‑rate pressure).