Skip to content
    AVNW
    Earnings call· Jun 2026(Q4 FY26)

    AVIAT NETWORKS Q4 FY26 earnings call AVNW

    Aug 27, 2026 Source

    Executive summary

    Aviat Networks Q4 FY26 — Strong Revenue Growth and Record Backlog Driven by MDU Opportunity

    Aviat Networks concluded FY26 with robust revenue growth and record backlog, driven by strategic diversification into mission-critical access and a significant MDU order. While component shortages impacted gross margins, the company is implementing price increases and expects sequential improvement. The focus remains on leveraging private network opportunities and the MDU ramp-up to drive strong FY27 performance.

    Highlights

    5

    • Quarterly revenues of $120.9 million, up 4.8% year-over-year, marking the first time in over a decade with all four quarters above $100 million.

    • Year-end backlog of $367 million, up 14% versus the end of fiscal year 2025, setting the stage for FY27.

    • Non-microwave (mission-critical access) product sales grew significantly versus FY25, diversifying the business.

    • Adjusted EBITDA of $11.9 million (9.8% of revenues) and non-GAAP EPS of $0.64 for the quarter.

    • Net debt position reduced to $24.2 million, with cash and marketable securities at $72.8 million and $13.6 million cash from operations for the full year.

    Concerns

    2

    • Gross margins negatively affected by component shortages and associated price inflation, with Q4 GAAP gross margin at 30.8% (down from 34.2% YoY).

    • Q1 FY27 is expected to be the lowest revenue quarter due to supply chain ramp-up and timing of wins, before building throughout the fiscal year.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year Revenue
    $455 million to $470 million
    high materiality
    High
    Full-year Adjusted EBITDA
    $50 million to $55 million
    high materiality
    High
    Q1 Revenue Seasonality
    Lowest revenue quarter
    medium materiality
    High
    H2 Revenue Seasonality
    Higher overall revenues versus H1 FY27
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    North America
    Comprised 56.5% of total revenues for the quarter. This was up $10.3 million versus the year ago period. Growth complemented by limited MDU project deployments. Full year FY26 revenue was $220 million, up 6% versus FY25. Approximately 45% private networks, 55% service providers.
    		$68.3 million17.8%——
    International
    Comprised 43.5% of total revenues for the quarter. Full year FY26 revenue was $219.6 million, compared to $227 million in FY25. Poised for growth in fiscal '27.
    		$52.6 million———
    EMEA
    Growth in Q4 FY26. Full year FY26 growth was 33%. Driven by recent international private network wins, including defense customers and energy firms. Expected to be a growing portion of international business.
    		—53%——

    Operational metrics

    33
    Non-GAAP EPS
    $0.64
    Q4 FY26

    on a fully diluted basis

    Adjusted EBITDA
    $11.9 million
    Q4 FY26
    Adjusted EBITDA
    $36.7 million
    FY26
    Cash and investments balance
    $72.8 million
    Q4 FY26
    Net debt position
    $24.2 million
    Q4 FY26

    Outstanding debt was $97 million.

    Revenue
    $120.9 millionup 4.8% versus $115.3 million in Q4 FY25
    Q4 FY26
    Revenue
    $439.7 millionup 1.2% versus $434.6 million in FY25
    FY26

    Sixth consecutive year of revenue growth.

    Non-microwave product sales growth
    significantlyversus FY25
    FY26

    mission-critical access products

    GAAP Gross Margin
    30.8%down from 34.2% in Q4 FY25
    Q4 FY26
    Non-GAAP Gross Margin
    30.9%down from 34.7% in Q4 FY25
    Q4 FY26
    GAAP Gross Margin
    31.5%down from 32.1% in FY25
    FY26
    Non-GAAP Gross Margin
    31.8%down from 32.8% in FY25
    FY26
    GAAP Operating Expenses
    $31.4 million
    Q4 FY26
    Non-GAAP Operating Expenses
    $27.3 million
    Q4 FY26
    GAAP Operating Expenses
    $119.1 milliondown from $128.9 million in FY25
    FY26
    Non-GAAP Operating Expenses
    $109.2 milliondown $4.3 million from $113.5 million in FY25
    FY26

    result of diligently managing costs and driving process efficiency

    Operating income
    $5.8 milliondown from $8.9 million in Q4 FY25
    Q4 FY26

    GAAP basis

    Operating income
    $10 milliondown from $12.9 million in Q4 FY25
    Q4 FY26

    Non-GAAP basis

    Operating income
    $19.2 millionup $8.7 million versus FY25
    FY26

    GAAP basis

    Operating income
    $30.6 millionup $1.5 million or 5.2% versus FY25
    FY26

    Non-GAAP basis

    Non-GAAP Tax Benefit
    $0.5 million
    Q4 FY26
    Net Operating Losses (NOLs)
    $420 million
    FY26 year-end

    will continue to generate shareholder value via minimal cash tax payments for the foreseeable future

    Net income
    $1.3 million
    Q4 FY26

    GAAP net loss

    EPS
    $0.10
    Q4 FY26

    GAAP loss per share on a fully diluted basis

    Unbilled Receivables
    $82.1 millionlower by $3.1 million compared to Q3 FY26
    Q4 FY26

    third consecutive quarter of reduction

    Inventory
    $69 millionlower sequentially by $3.6 million
    Q4 FY26
    Share buyback
    $2.2 million
    Q4 FY26
    MDU opportunity size
    $100 million
    annual

    total annual opportunity, predicated on customer achieving subscriber growth metrics and Aviat's share versus competition

    Private Networks revenue mix
    45%
    FY26
    Service Providers revenue mix
    55%
    FY26
    City government budget growth
    6.4%
    future

    according to industry research

    State government budget growth
    4.2%
    future

    according to industry research

    MDU markets
    25
    current

    slated or currently operating in

    Industry KPIs

    11
    MetricValueDetails
    Capital return$2.2 millionUSD
    Backlog order book$367 millionUSD
    Book to bill ratio—
    Orders backlog qualityRecord
    Product orders order growth—
    Segment growth margin targets—
    Ai cloud infrastructure orders—
    Recurring software service revenue—
    Revenue mix by product customer type56.5% North America, 43.5% International%
    Design wins product cycle transitions—
    Front end vs back end scale up vs scale across m—

    Orderbook & backlog

    1
    Year-end backlog$367 millionFY26 year-end

    up 14% versus FY25 year-end

    Record backlog.

    Deals & partnerships

    1
    existing customer (U.S. Tier 1 with 39 GHz spectrum)Order for multi-dwelling unit (MDU) opportunity$25 million to $30 million

    Customer is a U.S. Tier 1 with access to 39 gigahertz spectrum, serving apartment dwellers. Aviat is established as the preferred vendor.

    Risks & headwinds

    2
    Component shortages and associated price inflation for memory, PCBs, capacitors, and FPGAs.Current, impacting Q4 FY26; expected to continue into Q1 FY27.

    Negatively affected Q4 gross margins (GAAP 30.8% vs 34.2% YoY).

    Mitigation: Opening playbook used during COVID supply chain crisis to secure favorable placement and allocations; plan to pass along price increases to customers, expecting improvement from Q2 FY27.

    Q1 FY27 expected to be the lowest revenue quarter.Q1 FY27

    Q1 FY27 revenue will be the foundation on which Aviat's revenue builds throughout fiscal 2027.

    Mitigation: Revenue expected to build throughout fiscal 2027, with H2 FY27 having higher overall revenues than H1 FY27, based on backlog and current outlook.

    What to watch in Q1 FY27

    5

    MDU Revenue Contribution

    Q1 FY27 / Q2 FY27
    CurrentLimited deployments in Q4 FY26
    TargetRamp-up in Q2 FY27, potential for some in Q1 FY27

    Why it matters

    The MDU opportunity represents a significant growth vector for FY27, with a $25M-$30M order already secured, and its successful ramp-up is key to achieving guidance.

    So we think the ramp-up is going to occur in the second quarter. There is a chance that we get some in the September quarter.

    Q&A highlights

    6

    Asked for a breakdown of North America revenue between carrier and private networks, and the expected flow of MDU revenue into FY27, specifically for the September quarter.

    Pete Smith stated North America is approximately 45% private networks and 55% service providers. For MDU, the ramp-up is expected in Q2 FY27, with a chance of some contribution in Q1 FY27, following successful proof of concepts and becoming the preferred vendor.

    “So what we really need to do is get that site readiness over the hump in the September quarter, get all of our components on order and enjoy the win in the December quarter.”

    asked by Scott Searle · answered by Peter Smith

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Diversification and Growth Vectors

    Aviat Networks has successfully expanded beyond its core microwave business into mission-critical access, resulting in significant growth in non-microwave product sales in FY26. Key growth vectors include a multi-dwelling unit (MDU) opportunity with a $25 million to $30 million order expected in FY27, continued leadership in state and local public safety networks, and emerging opportunities in utility private networks driven by AI infrastructure build-out. City and state government budgets are expected to grow 6.4% and 4.2% respectively, fueling demand for private networks.

    02

    LEO Satellite Integration

    The company views Low Earth Orbit (LEO) networks as complementary, not competitive, to its core business, particularly for providing redundant communications in nomadic or remote locations. Aviat is integrating LEO with microwave and cellular router solutions to enhance resilience and simplify deployment for private network customers, with trials currently underway. This integration aims to deliver an integrated solution that improves resilience while simplifying deployment, management and operations for customers.

    03

    International Expansion and Supply Chain

    International business, especially in EMEA, showed strong growth (up 53% in Q4, 33% for FY26) driven by private network wins with defense and energy firms. Despite component shortages in memory, PCBs, capacitors, and FPGAs, Aviat is applying COVID-era supply chain strategies and plans to pass along price increases to customers to offset cost inflation. These price increases are expected to be realized from Q2 FY27 onwards.

    04

    Balance Sheet and Operational Efficiency

    Aviat demonstrated continued balance sheet improvements, reducing unbilled receivables for the third consecutive quarter by $3.1 million to $82.1 million and inventory by $3.6 million sequentially to $69 million. The company also fully remediated its five material weaknesses, reflecting a focus on continuous improvement and strengthening its foundation. Cash and marketable securities stood at $72.8 million, with a net debt position of $24.2 million.

    05

    BEAD Program Outlook

    While the BEAD (Broadband Equity, Access, and Deployment) program is expected to be a multi-year impact, Aviat anticipates a small, conservative amount to factor into its FY27 revenue guidance. The first real impact to revenue from BEAD is expected in the December quarter (Q2 FY27). The company has quotes out to customers and is actively working to convert them into business, believing it will be a 3-year impact.

    AI-generated summary of the company’s earnings call. Not investment advice.