| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 23.45 | 69.8% |
| Total Income | 23.45 | 69.8% |
| Expenditure | 18.25 | 35.7% |
| PBT | 5.24 | 835.7% |
| Net Profit | 4.22 | 569.8% |
| OPM | 22.17% | 19.54pp |
| NPM | 17.98% | 13.39pp |
| EPS | 0.41 | 485.7% |
Frequency Electronics Announces Record Q1 FY27 Revenue of $23.5 Million, Up 70% YoY
11 Sept 2026 · 11 Sept, 1:48 am
Summary
Frequency Electronics, Inc. reported record first quarter fiscal year 2027 revenue of $23.5 million, a significant 70% increase year-over-year, driven by strong growth in its funded backlog which reached $129 million. The company demonstrated strong operating leverage with an operating margin exceeding 22% and gross margin expanding to approximately 46%. Net income from operations was $4.2 million, or $0.41 per diluted share. Management expressed confidence in continued growth and the ability to meet or exceed previous annual revenue guidance.
Key Highlights
- 1
Frequency Electronics announced record quarterly revenue of $23.5 million for the first quarter of fiscal year 2027, representing a 70% increase year-over-year and a 52% increase sequentially.
- 2
The company achieved a record funded backlog of $129 million at the end of the fiscal first quarter, up 82% year-over-year and 16% sequentially.
- 3
Operating margin exceeded 22% in the first quarter, demonstrating strong operating leverage.
- 4
Gross margin expanded to approximately 46% in the first quarter of fiscal year 2027.
- 5
Net income from operations for the three months ended July 31, 2026, was $4.2 million, or $0.41 per diluted share, compared to $0.6 million, or $0.07 per diluted share, in the prior year period.
- 6
The company was cash-generative in the quarter, with net cash provided by operating activities of approximately $3.0 million, and expects to be cash-generative on an annual basis going forward.
Management Comments
Tom McClelland
I am very pleased to report first quarter revenue of $23.5 million, an all-time record for FEI, up 70% year-over-year and up 52% sequentially. As we told you on our fourth quarter 2026 earnings call in July, we expect to return to growth starting in this current fiscal 2027, and this first quarter is a strong proof point of that. Further, this performance gives us increasing confidence in our ability to meet or exceed the $150 million or more in annual revenue that we previously guided to by Fiscal 2029, which ends April 30, 2029. Further growth is supported by our funded backlog, which reached a record $129 million at the end of our fiscal first quarter, up 82% year-over-year and 16% sequentially, as well as by our growing order book and the significantly larger end-markets that we are now selling into, all of which are based on technology that leverages our long-standing market leadership in space and defense applications. I look forward to sharing more color on exciting developments in our end-markets on our earnings call this afternoon. The strong revenue growth this quarter also allowed FEI to demonstrate significant profitability improvement, with gross margin expanding to approximately 46% and operating margin exceeding 22%. Further, we were cash-generative and expect to be so on annual basis going forward. We remain debt-free and our balance sheet was also significantly enhanced by the secondary offering we completed during the quarter, which added approximately $73 million in cash, of which approximately $14 million came in after the quarter ended. We will have more to say about this on the earnings call as well. In short, business is booming for FEI. We have many attractive organic growth opportunities that leverage our core strengths, and we look forward to continuing to demonstrate our ability to generate more profitable, cash-generative revenue growth for years to come.
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