Record Awards and Backlog Growth
Q4 awards of ~$1.3B, up 9% year-over-year; record backlog of ~ $4.1B, up ~15% YoY (company also noted backlog up ~23% YoY for fiscal year wins).
ViaSat
· VSAT
May 28th, 2026
Summary
- Earnings Call Date:
- 2026-05-28
- Change Since:
- -30.79%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call conveyed a cautiously positive outlook: strong strategic milestones (ViaSat-3 deployments), record awards/backlog, robust cash generation and material deleveraging were emphasized as major accomplishments. These positives are balanced by meaningful near-term operational challenges—notably steep declines in fixed residential broadband, maritime installation lags, elevated CapEx, and modest pressure on adjusted EBITDA. Management expects mid-single-digit revenue growth and meaningful DAT mid-teens growth in FY27 while guiding to continued heavy investment and a backloaded EBITDA profile. Overall, achievements (cash, backlog, satellite milestones, DAT wins) materially outweigh the current headwinds, but the company faces execution and timing risks in legacy segments until new capacity enters service.
Company Guidance
Viasat guided FY‑27 revenue to grow mid‑single‑digits (Communication Services low‑single‑digits, DAT mid‑teens) with adjusted EBITDA flat to slightly up (backloaded), noting an approximate 2‑percentage‑point FY‑27 EBITDA headwind from the decline in a prior IP settlement and the removal of Navarino; reported CapEx $950M–$1.0B (cash CapEx ≈ $850M vs $760M in FY‑26) with capitalized interest falling to $125M–$150M (from >$200M), maintenance CapEx ≈ $400M, ViaSat‑3 spend ≈ $50M (down ~$150M), success‑based CapEx ≈ $150M (from $50M), growth CapEx $225M–$250M and Inmarsat CapEx ≈ $325M; management expects free cash flow of roughly $180M and has reduced net debt to about $4.8B with net leverage of 3.1x while targeting below 3.0x.
Positive Revenue and Adjusted EBITDA at Record Levels
Q4 revenue of ~$1.2B, up ~2% YoY; full-year fiscal '26 revenue $4.6B. Adjusted EBITDA for fiscal '26 was $1.55B (Q4 adjusted EBITDA $370M, down 1% YoY but still near record levels).
Strong Cash Generation and Free Cash Flow
Generated nearly $600M free cash flow for fiscal '26 ($597M reported) and ~$177–180M excluding a lump-sum Ligado payment; positive free cash flow in each of the last 5 quarters; Q4 positive free cash flow of $24M despite highest-quarter CapEx.
Improved Leverage and Balance Sheet Actions
Net debt reduced to ~$4.8B; net leverage improved to ~3.1x trailing adjusted EBITDA (sequential improvement); paid down ~$743M of debt during the year; completed sale of Navarino for ~$203M gross proceeds.
ViaSat-3 Program Milestones
Post-quarter achievements: Flight 2 deployments completed (surface entry pending FCC authorization) and Flight 3 successfully deployed (radiator and solar array deployments complete); Flight 3 expected to reach station soon with surface entry expected Aug/Sept; fleet expansion expected to roughly triple bandwidth inventory.
DAT Segment Outperformance
Q4 DAT awards $403M (+2% YoY) and revenue $361M (+12% YoY); Infosec & cyber product revenues +24% YoY; Space & mission systems +16% YoY; DAT adjusted EBITDA $83M, up 20% YoY—driving mid-teens growth expectation for DAT in FY27.
Aviation and Government SATCOM Strength
Aviation revenue +11% in Q4 with ~4,450 commercial aircraft in service (10% YoY increase) and a commercial aircraft backlog of ~1,000 units; Government SATCOM revenue +5% in Q4 with awards/backlog up ~18% YoY.
Strategic Wins and Partnerships
Selected as one of two IDIQ awardees by U.S. Space Force for the Protected Tactical Satellite Global (PTSG) program; cooperation agreement announced with Carronade; Board strengthened with two new directors and Strategic Review Committee appointments.
Operator
My name is Jericho, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to the Viasat Fourth Quarter and Fiscal Year 2026 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Ms. Lisa Curran, Chief Enterprise and Strategy Officer. Ms. Curran, you may begin the conference.
Lisa Curran
Thank you, Jericho. We will present certain non-GAAP financial measures on today's call. Information required by the SEC relating to these non-GAAP financial measures is available in our Q4 fiscal year '26 shareholder letter on the Investor Relations section of our website. During the presentation, we will describe certain of the more significant factors that impacted year-over-year performance. We will also make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings and annual report on Form 10-K. These forward-looking statements speak only as of the date they are made, and we do not assume any obligation to update any forward-looking statements.
With that, I'll turn it over to Mark Dankberg, Chairman and CEO.
Mark Dankberg
Good afternoon, and thanks ...
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