Frequency Electronics reported fiscal 2026 revenue of $63.2 million and fourth-quarter revenue of $15.4 million, with a net loss of $0.9 million for the year and a fourth-quarter net loss of $4.9 million. The company ended the fiscal year with a funded backlog of $111 million and reiterated a minimum three-year revenue target of $150 million. Management announced multi-year margin targets (50% gross margin and 30% operating margin by fiscal 2029) and described strategic restructuring and front-loaded investments to support the planned growth and margin expansion.

Financial Highlights

  • Revenue: $15.4 million for the three months ended April 30, 2026; $63.2 million for the twelve months ended April 30, 2026.
  • Gross profit: $0.152 million (1.0% gross margin) for the quarter; $18.396 million (29.1% gross margin) for the fiscal year.
  • Operating (loss) income: $(6.349) million for the quarter; $(3.001) million for the fiscal year.
  • Net (loss) income: $(4.905) million, or $(0.50) per diluted share for the quarter; $(0.903) million, or $(0.09) per diluted share for the fiscal year.
  • Adjusted (non-GAAP) margins (company disclosures): quarter adjusted gross margin ~29.4% and operating margin ~-7.8%; fiscal year adjusted gross margin ~36.0% and operating margin ~4.3% (adjustments per company reconciliation tables).

Business Highlights

  • Funded backlog expanded to $111 million at April 30, 2026, up 34% sequentially and 59% year-over-year, providing visibility into near-term growth.
  • Company is shifting from bespoke, episodic production toward higher-rate, repeatable production to improve overhead absorption and reduce non-recurring engineering as a percentage of sales.
  • Completed restructuring of the FEI-Elcom manufacturing business, including an inventory write-down and severance, to refocus resources on higher-growth, higher-margin markets such as ALT-PNT, quantum sensing (magnetometers), space defense/exploration and proliferated satellite programs.
  • Front-loaded investments in engineering talent (including expansion into Colorado) and a major manufacturing efficiency project intended to shorten turnaround times and support anticipated production ramps.

Original SEC Filing:

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