Frequency Electronics Q1 revenue rises 70% to record high on space and defense market expansion

Frequency Electronics

10/09/2026 21:11

Overview
US precision timing tech maker's fiscal Q1 revenue rose 70% yr/yr to record levels
Operating margin exceeded 22% as profitability improved significantly
Company's funded backlog reached $129 mln, up 82% yr/yr, supporting further growth

Outlook
Company expects to be cash-generative on annual basis going forward
Frequency Electronics maintains annual revenue target of $150 mln or more by fiscal 2029

Result Drivers
END-MARKET EXPANSION - Co said growth was supported by sales into larger end-markets, including space and defense applications
OPERATING LEVERAGE - Co said higher sales volumes allowed it to demonstrate significant profitability improvement, with gross margin expanding to approximately 46% and operating margin exceeding 22%

Company press release: ID:nGNXblPFMH

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$23.45 mln
$17.85 mln (2 Analysts)
Q1 EPS
 
$0.41
 
Q1 Net Income
 
$4.22 mln
 
Q1 Pretax Profit
Beat
$5.24 mln
$2.63 mln (1 Analyst)
Q1 Operating Income
 
$5.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Frequency Electronics Inc is $81.00, about 27.3% above its September 9 closing price of $63.64
The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 72 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)