Frequency Electronics Swings to FY2026 Loss, Restructures FEI-Elcom, and Backlog Hits Record $111M

summarizeSummary

Frequency Electronics reported a fiscal 2026 net loss of $0.9 million, restructured its FEI-Elcom subsidiary, and disclosed a record $111 million backlog. The company also secured a new $10 million revolving credit facility.

check_boxKey Events · Earnings and Guidance · FEIM

• FY2026 Net Loss of $0.9M

  Revenue fell 9% to $63.2M, gross margin dropped to 29% from 43%, and operating loss was $3.0M. Net loss of $0.09 per share compares to $2.46 EPS in FY2025.

• FEI-Elcom Restructuring

  The company exited its FEI-Elcom business, recording a $3.8M inventory write-down, $0.4M in severance/legal costs, and a $0.4M goodwill derecognition. The restructuring is expected to be substantially complete.

• Record $111M Backlog

  Backlog surged to $111M as of April 30, 2026, up from $70M a year earlier, with 73% expected to be recognized as revenue in FY2027.

• New $10M Credit Facility

  On June 12, 2026, the company entered a three-year senior secured revolving credit facility with JPMorgan Chase, providing liquidity for working capital and general corporate purposes.

auto_awesomeAnalysis · FEIM · Industrial Applications And Services

A sharp swing to a fiscal 2026 net loss of $0.9 million—from a $23.7 million profit last year—was driven by gross margin compression to 29% and a $3.8 million inventory write-down tied to the FEI-Elcom restructuring. The company is betting on a record $111 million backlog, up from $70 million, to fuel a rebound, but the near-term earnings hit and the exit from a legacy business line raise questions about execution risk. A new $10 million credit facility provides liquidity, yet the operating loss and margin pressure remain the dominant signals.