Aviat Networks Q4 Earnings Call Highlights

Aviat Networks Q4 Earnings Call Highlights

Aviat Networks Q4 Earnings Call Highlights Posted by Defense World Staff on Aug 29th, 2026 Share on Twitter Share on Facebook Share on LinkedIn Share on Stocktwits Get alerts: Aviat Networks (NASDAQ:AVNW) reported fourth-quarter fiscal 2026 revenue growth, a higher year-end backlog and its sixth consecutive year of annual revenue growth, while management outlined fiscal 2027 guidance calling for accelerating revenue and adjusted EBITDA. Fourth-quarter revenue rose 4.8% year over year to $120.9 million, while full-year revenue increased 1.2% to $439.7 million. President and Chief Executive Officer Pete Smith said fiscal 2026 marked the first time in more than a decade that the company generated at least $100 million of revenue in each fiscal quarter. “This marks a strong end to Aviat’s fiscal 2026,” Smith said. The company ended the year with backlog of $367 million, up 14% from the end of fiscal 2025. Fourth-Quarter Results and Margins North American revenue increased 17.8% to $68.3 million in the fourth quarter and represented 56.5% of consolidated sales. The quarter included a limited set of deployments for a North American multi-dwelling-unit, or MDU, project. International revenue totaled $52.6 million. For the full year, North American revenue rose 6% to $220 million, while international revenue declined to $219.6 million from $227 million in fiscal 2025. Smith said revenue in Europe, the Middle East and Africa increased 53% during the fourth quarter and 33% for the full fiscal year, driven in part by international private-network wins involving defense and energy customers. Fourth-quarter GAAP gross margin fell to 30.8% from 34.2% a year earlier, while non-GAAP gross margin declined to 30.9% from 34.7%. Chief Financial Officer Andy Schmidt said component shortages and associated price inflation weighed on the period’s margins. Aviat is particularly focused on securing supplies of memory, printed circuit boards, capacitors and field-programmable gate arrays, Smith said. The company is using approaches developed during the COVID-era supply-chain disruption to obtain supplier allocations and plans to pass component cost increases to customers. Fourth-quarter GAAP operating income was $5.8 million, compared with $8.9 million a year earlier. Non-GAAP operating income was $10 million, compared with $12.9 million in the prior-year quarter. The company reported a GAAP net loss of $1.3 million, or $0.10 per diluted share, alongside non-GAAP net income of $8.3 million, or $0.64 per diluted share. Adjusted EBITDA totaled $11.9 million, or 9.8% of revenue, for the quarter. Full-year adjusted EBITDA was $36.7 million. Balance Sheet and Cost Actions Aviat ended the quarter with $72.8 million in cash and marketable securities and $97 million of outstanding debt, resulting in net debt of $24.2 million. The company generated $13.6 million of operating cash flow during fiscal 2026. Schmidt said unbilled receivables declined for a third consecutive quarter, falling $3.1 million sequentially to $82.1 million. Inventory decreased $3.6 million from the prior quarter to $69 million. During the quarter, Aviat spent $2.2 million to repurchase approximately 131,000 shares at an average price of $16.55 per share. Schmidt also said the company had fully remediated its five previously disclosed material weaknesses in its control environment. For fiscal 2026, GAAP operating expenses declined by $9.8 million to $119.1 million, while non-GAAP operating expenses decreased $4.3 million to $109.2 million. Management attributed the reductions to cost management, reviews of corporate needs and process-efficiency efforts. MDU, Private Networks and Satellite Opportunities Smith said Aviat’s expansion beyond its core microwave business into mission-critical access products has contributed to significant growth in non-microwave sales during fiscal 2026. The company is targeting private-network demand among public-safety and utility customers, including demand c...