Viasat Q1 Earnings Call Centers on DAT Growth & ViaSat-3

Management kept its outlook unchanged despite pressure from fixed broadband, maritime and lower IP licensing revenues. The key issue is whether backlog and new capacity can drive the stronger second half executives expect.

VSAT Leans on DAT Awards

Chairman and CEO Mark Dankberg presented DAT awards as a leading indicator for recurring government services. He highlighted the Protected Tactical SATCOM-Global win as evidence of demand for integrated space technology and operations.

DAT awards rose 22% to a record $524 million, while backlog increased 32% to $1.4 billion. The segment posted a 1.6x book-to-bill ratio despite a 4% revenue decline.

A Morgan Stanley analyst asked how PTS-G could ramp. CFO Garrett Chase said backlog includes the firm base order, not options, and revenues will use percentage-of-completion accounting. Dankberg said later orders could cover more satellites or new generations.

Viasat Holds Its FY27 Outlook

Chase maintained guidance for mid-single-digit revenue growth and adjusted EBITDA that is flat to up slightly, with stronger second-half performance expected. Communication Services should grow in the low single digits, while DAT should rise in the mid-teens.

Capital expenditures remain targeted at $950 million to $1 billion, including $250 million to $300 million for Inmarsat. Free cash flow guidance stays near $180 million, and management expects net leverage to decline slightly.

VSAT Positions ViaSat-3 for Mobility Growth

Dankberg said Flight 2 completed deployments and bus testing, with service expected by September 2026. Flight 3 entered in-orbit testing and is expected to begin Asia-Pacific service in late August or early September.

He said the satellites should improve bandwidth productivity, geographic flexibility, resilience and utilization. Management identified aviation, maritime and government mobility as the main near-term uses.

A Raymond James analyst asked how capacity would serve customers. Dankberg said growth should come from more connected platforms and higher usage per platform, especially in aviation and government, with some capacity directed to fixed markets.

Viasat Addresses Aviation and Maritime Friction

Chase said aviation revenues increased 11%, with 4,530 commercial aircraft in service, up 10%. He expects higher average revenue per aircraft, while unit counts remain near first-quarter levels amid transitions to a competing provider.

Maritime revenues declined 7%. Viasat ended the quarter with more than 1,700 NexusWave vessels in service and an order book above 1,400 vessels, but management acknowledged installation delays and uneven indirect-channel incentives.

Fixed services revenues fell 27% as U.S. broadband subscribers declined to 115,000. Chase expects stabilization after Flight 2 enters service. Government SATCOM offset some pressure, with revenue growth accelerating to 10%.

VSAT Keeps Strategic Options Open

A JPMorgan analyst pressed management on the DAT review. Dankberg said separation remains under evaluation, but called it a one-way decision that should wait until Viasat understands how integrated capabilities affect contract wins.

A Deutsche Bank analyst asked why Equatys was absent from the shareholder letter. Dankberg said the company’s stance was unchanged and the next major disclosure would be tied to funding the initial satellite constellation.

An Oppenheimer analyst questioned S-band and L-band strategy. Dankberg emphasized existing safety missions, rising bandwidth needs and direct-to-device opportunities while making no commitment to sell, lease or retain spectrum.

Viasat Focuses on Cash and Execution

Management’s tone was confident on DAT, government SATCOM and ViaSat-3, but measured on legacy services where fixed broadband, maritime execution and competition remain pressure points.

Dankberg and Chase returned to three priorities: capture higher-growth awards, convert new capacity into recurring services and use cash generation to reduce leverage while lowering capital intensity.

What Zacks Signals Say About VSAT

VSAT currently carries a Zacks Rank #3 (Hold), a neutral near-term earnings-estimate-revision signal. Its B Value Score, B Growth Score and B VGM Score indicate favorable characteristics in those styles, while the F Momentum Score reflects weak price-trend timing.

Style Scores complement the Zacks Rank, with the strongest historical combinations centered on Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks paired with A or B scores. The Zacks Rank can change as analysts revise estimates following the just-reported results.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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