Frequency Electronics Swings to FY2026 Loss, Restructures FEI-Elcom, and Backlog Hits Record $111M
FEIM has more than doubled off its 52-week low of $18.73 on elevated volume (5.5× avg).
Summary
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.
Key Events · Earnings and Guidance · FEIM
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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.
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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.
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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.
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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.
Analysis · 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.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 35.8% of the 1864 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FEIM was trading at $56.08 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $552.4M. The 52-week trading range was $18.73 to $80.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.