Richardson Electronics (RELL) Fiscal Q1 2027 Earnings Call: Sales Rise 18.9%
Source Tradingkey
Key Takeaways
- Fiscal Q1 2027 net sales increased 18.9% year over year to $64.9 million, marking Richardson Electronics’ ninth consecutive quarter of year-over-year sales growth.
- Gross margin expanded to 34.6% from 31.0%. An IEEPA tariff refund contributed 170 basis points to the quarterly margin.
- Operating income rose more than 400% to $5.1 million, or 7.9% of sales. Diluted EPS increased to $0.27 from $0.13.
- Backlog reached $184.4 million, up $20 million from fiscal 2026 year-end. PMT, GES and Canvys backlog totaled $99.4 million, $43.2 million and $41.8 million, respectively.
- Cash from operating activities increased to $5.9 million from $1.4 million, while free cash flow was $4.2 million. The company ended the quarter with $36.9 million in cash and no revolving credit debt.
- Management expects GES to deliver double-digit sales growth in fiscal 2027, supported by wind products, battery energy storage systems and a growing opportunity pipeline.
Core Financial Results
| Metric | Fiscal Q1 2027 | Fiscal Q1 2026 | Change / Commentary |
|---|---|---|---|
| Net sales | $64.9 million | $54.6 million | Up 18.9% |
| Gross margin | 34.6% | 31.0% | Included a 170-basis-point benefit from an IEEPA tariff refund |
| Operating expenses | $17.4 million | $16.0 million | Higher compensation, incentives and travel costs |
| Operating expenses as a percentage of sales | 26.8% | 29.2% | Improved operating leverage |
| Operating income | $5.1 million | $1.0 million | Increased more than 400%; 7.9% of sales |
| Net income | $4.1 million | $1.9 million | More than doubled year over year |
| Diluted EPS | $0.27 | $0.13 | Increased by $0.14 |
| EBITDA | $6.0 million | $3.3 million | Non-GAAP measure |
| Cash from operating activities | $5.9 million | $1.4 million | Supported by earnings and working-capital management |
| Free cash flow | $4.2 million | — | After $1.7 million of capital expenditures |
| Cash and cash equivalents | $36.9 million | $31.8 million at fiscal 2026 year-end | Increased by $5.1 million |
| Total backlog | $184.4 million | — | Up $20 million from fiscal 2026 year-end |
Business and Operating Performance
Power and Microwave Technologies
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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