Aviat Networks ended fiscal 2026 with a larger backlog, accelerating North American sales and a fiscal 2027 outlook that points to a potentially significant step-up in adjusted EBITDA.
The wireless transport and access solutions company finished fiscal 2026 with $367 million of backlog, up 14% year-over-year, while maintaining a trailing-12-month book-to-bill ratio above 1.
A book-to-bill ratio above 1 indicates that new orders are arriving faster than revenue is being recognized, providing a potentially favorable setup for future sales.
Aviat also secured a significant U.S. order from an existing customer valued between $25 million and $30 million.
The backlog is particularly important in the context of the company’s fiscal 2027 outlook.
Aviat expects fiscal 2027 revenue between $455 million and $470 million, compared with $439.7 million in fiscal 2026.
At the midpoint of $462.5 million, the guidance implies revenue growth of approximately 5.2%.
The earnings outlook calls for adjusted EBITDA of $50 million to $55 million, compared with $36.7 million in fiscal 2026.
That represents projected growth of approximately 36% to 50%, or about 43% at the midpoint.
The disparity between expected revenue and EBITDA growth suggests Aviat anticipates substantial operating leverage during fiscal 2027 if it delivers on the outlook.
Fiscal 2026 itself marked Aviat’s sixth consecutive year of revenue growth.
Full-year revenue increased 1.2% to $439.7 million from $434.6 million.
GAAP operating income performed substantially better than revenue, rising 81.9% to $19.2 million from $10.6 million.
Non-GAAP operating income increased 5.2% to $30.6 million.
GAAP net income nearly doubled to $2.5 million from $1.3 million, while non-GAAP net income was $21.6 million compared with $21.4 million.
The fourth quarter provided another encouraging top-line indicator.
Revenue increased 4.8% to $120.9 million from $115.3 million.
North America was considerably stronger, with sales jumping 17.8% to $68.3 million from $58 million.
Management attributed the North American growth to mobile service providers and private-network customers.
International revenue declined 8.3% to $52.6 million because of the timing of certain mobile-network projects.
The North American performance is significant because the region accounted for more than half of quarterly revenue and substantially outpaced the company’s overall growth rate.
For the full year, North American revenue increased 6% to $220 million, while international revenue declined 3.2% to $219.7 million.
Aviat’s product business also gained share within the revenue mix.
Fiscal 2026 product sales reached $314.2 million compared with $287.7 million, while services revenue declined to $125.5 million from $146.9 million.
The shift toward products contributed to some margin pressure.
Fourth-quarter GAAP gross margin decreased to 30.8% from 34.2%, while non-GAAP gross margin declined to 30.9% from 34.7%.
Aviat attributed those changes to customer and product mix.
Fourth-quarter GAAP operating income consequently decreased to $5.8 million from $8.9 million, and adjusted EBITDA declined to $11.9 million from $15.1 million.
GAAP Q4 results were also affected by a $6.2 million income-tax expense, contributing to a $1.3 million quarterly GAAP net loss.
On a non-GAAP basis, however, Aviat remained profitable with $8.3 million of net income, or $0.64 per diluted share.
The company ended fiscal 2026 with $72.8 million of cash and equivalents and $24.2 million of net debt.
Cash was also higher than the $59.7 million reported at the end of fiscal 2025.
Aviat repurchased another $2.2 million of shares during Q4 at an average price of $16.55.
The strongest positive earnings angle is therefore forward-looking rather than simply based on Q4 profitability.
Aviat has a 14% larger backlog, a book-to-bill ratio above 1, a new U.S. order worth as much as $30 million and nearly 18% quarterly North American growth.
Against that backdrop, management’s fiscal 2027 adjusted EBITDA guidance implies earnings growth dramatically faster than expected revenue growth.
If Aviat achieves the midpoint of its outlook, adjusted EBITDA would increase from $36.7 million to $52.5 million, or approximately 43%, while revenue would increase only around 5%.
That would represent a meaningful change in the company’s earnings profile following six consecutive years of top-line growth.
