Aviat Networks, Inc.

Fourth-quarter revenue was $120.9 million, up 4.8% from $115.3 million a year ago. Q4 gross margin was 30.8% GAAP and 30.9% non-GAAP, versus 34.2% and 34.7% last year; Q4 GAAP EPS was a loss of $0.10 and non-GAAP EPS was $0.64. Adjusted EBITDA was $11.9 million, or 9.8% of revenue. Full-year revenue was $439.7 million versus $434.6 million, gross margin was 31.5% GAAP and 31.8% non-GAAP versus 32.1% and 32.8%, and adjusted EBITDA was $36.7 million. FY27 guidance is for full-year revenue of $455 million to $470 million and adjusted EBITDA of $50 million to $55 million. Management said Q1 FY27 will be the foundation/lowest quarter, with Q2 and Q4 peaks and a stronger second half.

Pete Smith framed the quarter as a strong finish to FY26 and emphasized that Aviat is diversifying beyond core microwave into mission-critical access, where non-microwave sales grew significantly year over year. He highlighted several growth drivers for FY27, especially the U.S. MDU opportunity, private networks, utilities, and international private-network wins, while also saying the company sees LEO as complementary rather than a threat. His tone was optimistic but measured, repeatedly tying upside to subscriber growth, share gains, and market timing rather than assuming a straight-line ramp.

Andy Schmidt focused on the financial cleanup and balance-sheet progress. He noted Q4 cash and marketable securities of $72.8 million, debt of $97 million, net debt of $24.2 million, $82.1 million of unbilled receivables, $69 million of inventory, and $13.6 million of cash from operations for the full year. He also said Aviat repurchased about 131,000 shares for $2.2 million at an average price of $16.55, and that the company has fully remediated its past 5 material weaknesses. On margins, he said Q4 gross margin was pressured by component shortages and inflation, but expects some upward pressure in Q2 through Q4 FY27 as pricing actions and mix improvements take hold.

Analysts pressed on the MDU ramp, asking when revenue would start and how large the opportunity could become. Management said the ramp should begin in Q2 FY27, there is a chance of some September-quarter contribution, and the total annual MDU opportunity could be around $100 million if subscriber growth and share gains materialize, though Aviat does not expect to be sole sourced. Questions also focused on gross margin recovery, where management said component inflation is the main headwind and mid-30% margins are aspirational rather than a base case. On BEAD, Aviat said only a small amount is in guidance and that the first real revenue impact should come in the December quarter, with guidance to be revisited if BEAD accelerates.