Richardson Electronics (RELL) Q4 2026 earnings summary

Executive summary

• Achieved significant year-over-year revenue growth and improved gross margin for both Q4 and full fiscal year 2026, with all business units contributing and Q4 net sales up 27.6% to $66.2M, the highest since Q3 FY23.

• Full year FY2026 net sales rose 9.4% to $228.6M, with net income reaching $6.4M, reversing a net loss in FY2025.

• Maintained a strong balance sheet with $31.8M in cash and no outstanding debt; backlog at year-end reached $164.4M, the highest in three years.

• Strategic focus on higher value engineered solutions, repeatable sales, and customer programs led to a more profitable business mix and margin progress.

• Entering FY2027 with a stronger operating platform, broader customer engagement, and improved visibility in attractive end markets.

Financial highlights

• Q4 consolidated net sales rose 27.6% year-over-year to $66.2M; full year FY26 net sales were $228.6M, up 9.4% from FY25.

• Q4 operating income was $3.9M (non-GAAP $3.5M); net income was $3.7M (non-GAAP $3.0M); Q4 diluted EPS was $0.25 (non-GAAP $0.21).

• FY26 net income was $6.4M (non-GAAP $5.7M), EBITDA $11.3M, adjusted EBITDA $10.4M.

• Q4 gross margin was 31.2% (down 40 bps YoY); full year gross margin was 31.2% (up from 31.0%).

• Cash and equivalents at FY26 end: $31.8M; no outstanding debt on revolving credit line.

Outlook and guidance

• Management expects continued growth in FY27, supported by a strong backlog, new product launches, and expanding customer base across all business units.

• Positive momentum anticipated in semiconductor wafer fab, RF/microwave, power management, and energy storage markets, with ongoing optimism from customers.

• GES expects to announce a multimillion-dollar BES order in Q1 FY27 and sees a robust pipeline of nearly 50 active opportunities.

• Canvys enters FY27 with record backlog and book-to-bill ratio, providing solid revenue visibility.

• Plans to leverage U.S. reshoring policies and LaFox manufacturing for future growth.