Frequency Electronics Posts Q4 Loss of $0.50/Share, Sets Aggressive Three-Year Margin Targets Amid Record $111M Backlog
FEIM has more than doubled off its 52-week low of $18.73 on elevated volume (2.3× avg).
Summary
Frequency Electronics reported a Q4 loss of $0.50 per share but unveiled a record $111 million backlog and ambitious three-year margin targets, signaling a strategic shift toward high-volume production.
Key Events · Earnings and Guidance · FEIM
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Q4 Loss of $0.50/Share
Net loss of $4.9 million, or $0.50 per diluted share, compared to net income of $3.2 million, or $0.33 per share, a year ago. Revenue fell to $15.4 million from $20.0 million.
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Record $111M Funded Backlog
Backlog reached $111 million, up 34% sequentially and 59% year-over-year, driven by new contract wins in space and defense.
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Three-Year Margin Targets Set
Management established minimum gross margin target of 50% and operating margin target of 30% by fiscal 2029, with a revenue target of at least $150 million (34% CAGR).
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Restructuring and Non-Recurring Charges
FEI-Elcom restructuring resulted in a $3.8 million inventory write-down; additional non-recurring charges from a one-time change in employee sick/paid-time-off policies further depressed reported margins.
Analysis · FEIM · Industrial Applications And Services
Frequency Electronics reported a sharp Q4 loss of $0.50 per share, driven by restructuring charges and investments, but the real story is the future: a record $111 million funded backlog and aggressive three-year targets of 50% gross margin and 30% operating margin on at least $150 million in revenue. The company is pivoting from bespoke manufacturing to high-rate production, front-loading costs now to capture a 34% revenue CAGR. Adjusted numbers show underlying profitability, but the reported loss and cash burn raise near-term concerns. The market will weigh the credibility of these targets against the current $54 stock price and $583 million market cap.
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At the time of this filing, FEIM was trading at $54.12 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $583.3M. The 52-week trading range was $18.73 to $80.00. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.