Viasat Raises Free Cash Flow Outlook to More Than $225 Million in 2027
Key Facts
Viasat raised its fiscal 2027 free cash flow outlook to more than $225 million, while lowering its capital expenditure forecast to between $850 million and $900 million. The company announced both projections in its shareholder letter for the second quarter of fiscal 2027. It said the cash flow outlook excludes the impact of one-time, non-recurring Ligado payments in the two comparison periods. The forecast revision comes as the company continues to reduce net debt, which stood at $4.8 billion at quarter-end. The update reflects a path combining lower spending with higher cash generation, while investments related to Inmarsat remain within the capital budget.
The new guidance raises the free cash flow outlook from about $180 million and cuts the previous capital expenditure range of $950 million to $1 billion. The updated capital range includes $250 million to $300 million in Inmarsat-related spending. In the second quarter, Viasat posted free cash flow of $78 million, up 14% year over year. For the 12 months ended September 30, 2026, free cash flow was $198 million, excluding non-recurring items. The company said its fiscal-year outlook also excludes non-recurring Ligado payments, distinguishing its underlying guidance from exceptional cash flows.
Second-quarter revenue was $1.18 billion, up 3% from the year-earlier period, but net loss attributable to the company widened to $128.7 million from $61.4 million in the second quarter of fiscal 2026. Adjusted EBITDA also fell 4% to $369.9 million, compared with $384.7 million a year earlier. Performance varied across the company’s segments: revenue from defense and advanced technologies grew 20%, while communications services revenue declined 3%. Viasat said overall revenue growth reflected performance in defense and advanced technologies, which partly offset weakness in communications services. This divergence puts pressure in communications alongside growth in defense and advanced technologies when assessing the company’s outlook for the rest of the year.
Capital expenditure in the quarter was $207 million, down 3% year over year. The company attributed the decline mainly to lower satellite spending and the timing of some space and ground infrastructure payments. At quarter-end, available liquidity was $2.9 billion, comprising $1.76 billion in cash and equivalents and $1.15 billion in borrowing capacity under two undrawn credit facilities. Net debt fell about $700 million from a year earlier to $4.8 billion, and net leverage improved by 0.3 points. These figures provide context for the announced spending reduction, while the new guidance includes capital funding for Inmarsat projects.
New contract awards totaled $1.14 billion in the second quarter, down 24% from the year-earlier period, while backlog rose 7% to $4.17 billion as of September 30, 2026. For fiscal 2027, Viasat maintained its outlook for annual revenue growth in the mid-single digits and expects adjusted EBITDA to remain roughly flat compared with the prior year. The company said it expects stronger growth in the second half, supported by backlog, new orders and its pipeline of work. In the market, VSAT shares closed at $59.38 on November 5, 2026, after closing at $66.79 on November 4 and $75.24 on November 3. Progress toward second-half targets remains tied to developments in orders and backlog and to performance in communications services.