RF Industries Q2 returns to profit on strong demand

RF Industries

15/06/2026 21:16

Overview
US interconnect products maker's fiscal Q2 revenue rose 9% yr/yr to $20.7 mln
Company returned to profitability with net income of $879,000, up from a loss last year
Gross margin expanded to 35.1%, up 360 basis points from prior year period

Outlook
Company expects to deliver a solid performance in the second half of fiscal 2026
Company says backlog of $20.1 mln reinforces visibility into the second half of fiscal 2026
Company sees opportunities from expansion into aerospace, data centers, AI infrastructure, and telecommunications

Result Drivers
SOLID DEMAND - Co said revenue growth was driven by solid demand and strong bookings, resulting in a $20 mln backlog at quarter end
PRODUCT MIX & OPERATING LEVERAGE - Improved product mix and operating leverage contributed to higher gross margin and profitability, per CEO Dawson
MARKET DIVERSIFICATION - Expansion into higher-value applications and new end markets such as aerospace, data centers, AI infrastructure, and public safety helped mitigate customer and revenue concentration, according to management

Company press release: ID:nACSdVw4ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
$21 mln
$19.67 mln (1 Analyst)

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the electrical components & equipment peer group is "buy."
Wall Street's median 12-month price target for RF Industries Ltd is $11.25, about 40% below its June 12 closing price of $18.75
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 26 three months ago

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(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.)