Equatys Enthusiasm Grows, but Core Satcom Business Stalling
 
Weak close to FY26.  Q4 revenues grew 2%, and AEBITDA declined 1% as double-digit DATS growth was more than offset by revenue/AEBITDA declines in Comms Services.  Overall results were modestly below consensus.
Orders rebound. Following a weak Q3 order book (0.8x), orders rallied in Q4, up 32% sequentially and 9% y/y, yielding a book-to-bill of 1.1x.  DATS achieved a full year B2B of 1.2x and Comms Services 1.0x.
DATS revenues grew 12% in Q4 and 10% in FY26 vs. management’s guide of “mid-teens.”  AEBITDA grew 20% in Q4 but was flat full-year, hampered by y/y royalty comparisons.  Segment backlog increased 23% y/y to a record $1.2B.