Frequency Electronics Posts Record Revenue, Backlog

Frequency Electronics reported record fiscal first-quarter 2027 revenue of $23.5 million, up 70% from a year earlier and 52% sequentially, while net income climbed to $4.2 million, or 41 cents per share. Operating income reached $5.2 million, and gross margin rose to 45.8% as higher production volumes, improved efficiency and product mix drove stronger profitability. The company’s funded backlog hit a record $129 million, up 82% year over year, with about 65% expected to convert to revenue within 12 months and quarterly book-to-bill of roughly 1.76. Growth was led by commercial and government satellite business and non-space Defense Department customers, which together accounted for nearly all revenue. Management reiterated fiscal 2029 goals of at least $150 million in annual revenue, 50% gross margin and 30% operating margin, while saying capacity expansion could accelerate growth; the company also raised approximately $73 million through a stock offering and remained debt-free. Shares surged after the results, adding to a roughly 90% gain over the prior year.