Frequency Electronics FEIM Q4 2026 Annual earnings

“The fiscal fourth quarter in 2025 was the highest quarterly revenue in 25 years for FEI, which made for a difficult year-over-year comparison as we digested some of that pulled forward revenue in Fiscal 2026; however, we expect to start hitting new quarterly revenue records for the Company in the near future, based on the strength in our backlog and order book. We took a number of actions in the fiscal fourth quarter and in Fiscal 2026, including significant cash investments, that adversely impacted our as-reported margins. We provide tables at the end of this release that show the impact of these charges and investments and what they would have been without the charges. We are not adjusting for foregone revenue from the restructuring of FEI-Elcom, though certainly higher revenue would have made for an improved comparison. In sum, as the tables show below, our gross margins and operating margins were approximately 1% and (41)%, respectively, for the quarter, and approximately 29% and (5)%, respectively, for the fiscal year. Whereas, adjusted for the charges and investments, our gross margins and operating margins would have been approximately 36% and 1%, respectively, for the quarter, and approximately 41% and 11%, respectively, for the fiscal year. These are levels we anticipate growing meaningfully in the years to come, as stated earlier. The Company made significant cash investments during Fiscal 2026, but expects to return to normal cash generation in Fiscal 2027, beginning in our current fiscal first quarter.”