Space continues to be one of my key focus sectors. I’ve discussed the sector and some of the more interesting companies at length. But Gilat Satellite Networks is probably one of the most underrated space companies right now.

Gilat sits right in the middle of several massive long-term trends that are all accelerating at the same time: satellite internet, defense spending, global connectivity, mobility, and remote communication infrastructure.

The world is becoming more connected every year, but huge parts of the planet still lack reliable fiber or cellular infrastructure. In many cases, satellites are the only realistic solution. Gilat provides the systems and equipment that make those satellite networks work, including ground systems, antennas, in-flight connectivity technology, and defense communication solutions.

One of the biggest things that makes the company stand out is the breadth of its business. Gilat is not dependent on one customer or a single niche market. It serves commercial aviation, military and government customers, telecom operators, maritime customers, and enterprise networks. That creates a much more stable business compared to many smaller satellite companies focused on only one theme.

It also benefits from the rise of Low Earth Orbit satellite constellations. As more satellites are launched into space, the industry still needs ground infrastructure to connect those satellites back to users on Earth. Gilat helps build critical parts of that ecosystem.

In many ways, the satellite industry looks very similar to the AI infrastructure boom. Most investors focus on the big launches, but the infrastructure suppliers, the picks-and-shovels businesses behind the scenes, often become some of the biggest winners.

Gilat is more of a picks-and-shovels infrastructure supplier rather than a pure satellite operator. It focuses heavily on the ground systems, antennas, and networking technology that enable satellite connectivity. It is less flashy compared to companies like SpaceX or Rocket Lab, but that often gives it a more diversified and potentially lower-risk business model compared to companies that rely mainly on owning satellites themselves.

And unlike many speculative space or satellite companies, Gilat already generates real revenue and profits, and the business is accelerating rapidly. Revenue grew nearly 50% from $305M in 2024 to around $451M in 2026, while last quarter alone grew 75% year-over-year. Even more impressive, the company is already profitable, which is still very rare across the space and satellite sector.

Despite all of that, the stock still trades at only around 3x sales. For comparison, SpaceX is reportedly valued closer to 100x sales.

The Setup:

• Builds critical satellite communication infrastructure

• Benefits from satellite internet and defense growth

• Picks-and-shovels play on the space economy

• Generates real revenue and profits with accelerating growth

• Setting up for a breakout