FREQUENCY ELECTRONICS INC (FEIM) Earnings History

FREQUENCY ELECTRONICS INC - Q2 FY2026 Earnings

Filed at: Dec 11, 2025, 4:15 PM EST|Read from source

EXECUTIVE SUMMARY

Frequency Electronics reported a mixed second quarter for FY2026, with revenue growth driven by sequential improvements, but operating income and net income declined year-over-year due to increased costs and prior year strength.

POSITIVE HIGHLIGHTS

  • •

    Revenue for the three months ended October 31, 2025, increased to $17.1 million, up 8.3% from $15.8 million in the prior year period.

    positive
  • •

    Backlog at October 31, 2025, was approximately $82 million, up from $70 million at April 30, 2025, indicating strong future demand.

    positive
  • •

    CEO noted revenue is up 24% quarter-over-quarter, representing the third highest quarterly revenue in the last decade.

    positive
  • •

    The company is pursuing growth opportunities in quantum sensing and ALT-PNT solutions, expected to contribute significantly in the 3-5 year timeframe.

    neutral

CONCERNS & RISKS

  • •

    Operating income for the three months ended October 31, 2025, decreased to $1.7 million from $2.6 million in the prior year period.

    negative
  • •

    Net income for the three months ended October 31, 2025, decreased to $1.8 million ($0.18 per diluted share) from $2.65 million ($0.28 per diluted share) in the prior year period.

    negative
  • •

    Cost of revenues increased significantly to $10.6 million from $8.2 million year-over-year, leading to lower gross margins.

    attention
  • •

    Net cash provided by operating activities decreased to $0.6 million in the six months of fiscal year 2026, compared to $2.4 million for the same period of fiscal year 2025.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$17.13M
+8.3%
Prior year: $15.82M
Annual (YTD)
$30.94M
N/A
Prior year: $30.90M
Net Income
Quarterly
$1.80M
-32.1%
Prior year: $2.65M
Annual (YTD)
$2.44M
N/A
Prior year: $5.08M
EPS (Diluted)
Quarterly
$0.18
-35.7%
Prior year: $0.28
Annual (YTD)
$0.25
N/A
Prior year: $0.53
Operating Income
Quarterly
$1.71M
-34.5%
Prior year: $2.62M
Annual (YTD)
$2.08M
N/A
Prior year: $4.98M
EPS (Basic)
Quarterly
$0.18
-35.7%
Prior year: $0.28
Annual (YTD)
$0.25
N/A
Prior year: $0.53

MARGIN ANALYSIS

Gross Margin
Current Quarter
38.2%
Prior Year
48.2%
YoY Change
-1000 bps
Operating Margin
Current Quarter
10.0%
Prior Year
16.6%
YoY Change
-654 bps
Net Margin
Current Quarter
10.5%
Prior Year
16.8%
YoY Change
-626 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT COMMENTARY

CEO expressed optimism due to sequential revenue growth and record backlog, indicating past customer delays are resolved.

— FREQUENCY ELECTRONICS INC, Q2 FY2026 2026 Earnings Call

Anticipates multiple large awards in the coming months, confident in executing with high margins based on core technologies.

— FREQUENCY ELECTRONICS INC, Q2 FY2026 2026 Earnings Call

Future growth expected from quantum sensing, ALT-PNT solutions, and satellite applications, seen as additive to the core business.

— FREQUENCY ELECTRONICS INC, Q2 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Backlog
82.0M
+17.1% YoY
Prior year: 70.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.