Viasat Records Defense Backlog Growth Amid Slight Revenue Decline
The satellite communications provider reported a net loss of $52 million for the first quarter of fiscal 2027.
Viasat (VSAT), the satellite communications provider, reported first-quarter fiscal 2027 revenue of $1.2 billion, a 1% decline year-over-year.
The results reflected a divergence between immediate financial performance and long-term contract momentum. While top-line revenue and earnings dipped, the company reached record levels in its defense-related awards and backlog, signaling a shift toward government and mission-critical systems.
Net loss for the quarter was $52 million, an improvement from the $56 million loss reported in the same period last year. The narrowing loss resulted primarily from reduced interest expenses resulting from deleveraging efforts. Adjusted EBITDA decreased 7% year-over-year to $381 million.
The Defense and Advanced Technology (DAT) segment saw revenue fall 4% to $331 million. However, DAT awards reached a record $524 million, a 22% increase year-over-year, driven by a 248% increase in space and mission systems and a 70% increase in tactical networking. This pushed the DAT segment backlog to a record $1.4 billion, up 32% year-over-year and 16% sequentially.
In the Communication Services segment, awards rose 3% to $774 million, supported by 13% growth in aviation and 5% growth in maritime. Commercial aviation aircraft in service grew 10% to approximately 4,530, while business aviation grew 1% to 2,080. These gains were offset by a 27% decrease in Fixed Services and Other service revenues. U.S. fixed broadband ended the quarter with approximately 115,000 subscribers and an average revenue per user of $111.
Free cash flow, excluding non-recurring items, increased 19% year-over-year to $72 million. The company's net leverage ratio declined 0.4x to 3.2x, aided by the sale of the Navarino equity investment and a lump sum payment from Ligado. Capital expenditures for the quarter rose 11% to $219 million.
Viasat expects full-year fiscal 2027 revenue to grow in the mid-single digits, with Adjusted EBITDA remaining flat or increasing slightly. The company projects capital expenditures between $950 million and $1.0 billion and expects free cash flow to be approximately $180 million.