Comtech reported fiscal year 2026 net sales of $249.6 million from continuing operations as it executes a strategic shift toward public safety communications. The company entered into a definitive agreement to divest most of its Satellite and Space Communications (S&S) segment for $157.5 million, repositioning the business around its Allerium segment and retained cybersecurity services.
Key Highlights
- Divestiture of the majority S&S business to a Gilat affiliate for $157.5 million in cash to reduce debt and focus on emergency communications.
- Full-year gross margin for continuing operations expanded to 38.9% from 31.6% in fiscal 2025, driven by Next Generation 9-1-1 core services and call handling.
- Sixth consecutive quarter of positive operating cash flow, contributing to a full-year total of $25.0 million from continuing operations.
- Funded backlog reached $520.4 million as of July 31, 2026, with total revenue visibility of approximately $862.0 million.