Frequency Electronics, Inc. designs, develops, manufactures, markets, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments: FEI-NY and FEI-Zyfer. The FEI-NY segment provides precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations, and other components and systems for the U.S. military, as well as design and technical support for the satellite business. The FEI-Zyfer segment provides global positioning system technologies for systems and subsystems for secure communications, government and commercial, and other locator applications, and engages in the sale and support of wireline telecommunications products, such as US5G. The company operates in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.
Frequency Electronics Posts Record $23.5 Million Quarterly Revenue
Frequency Electronics reported record revenue of $23.5 million for the first quarter of fiscal 2027, up 70% year-over-year and 52% sequentially, sending the stock more than 24% higher in after-hours trading. The company said the results raised its confidence in meeting or beating its previously stated target of at least $150 million in annual revenue by fiscal 2029, which ends April 30, 2029. Frequency Electronics also ended the quarter with a record funded backlog of $129 million, up 82% year-over-year and 16% sequentially. Gross margin expanded to approximately 46% and operating margin surpassed 22%, and the company said it expects to remain cash-generative on an annual basis. Management said internal research and development expenses are expected to remain below 10% of revenue, though production ramp-up remains a challenge and the company has seen limited traction with new defense technology companies, with most of its success coming from the space market.
Frequency Electronics slumps 10% after pricing $100 million stock offering
Frequency Electronics shares fell about 9.7% in after-hours trading on Tuesday after the company priced its previously announced underwritten public offering of 1.74 million common shares at $57.50 per share. The offering includes 1.09 million shares issued by the company and 652,174 shares sold by existing stockholders Edenbrook Value Fund LP and Edenbrook Long Only Value Fund LP. Underwriters have a 30-day option to purchase up to an additional 15% of the shares. Net proceeds will be used to fund growth opportunities, including capital expenditures, working capital, and other general corporate purposes. The transaction is expected to close on July 30, 2026.
Frequency Electronics Prices Public Offering at $57.50 Per Share
Frequency Electronics has priced its underwritten public offering of 1,739,131 shares of common stock at $57.50 per share, expecting total gross proceeds of approximately $100 million. The company is offering 1,086,957 shares, while selling stockholders Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP, affiliates of board member Jonathan Brolin, are offering 652,174 shares. The offering is expected to close on July 30, 2026, and the underwriters have a 30-day option to purchase up to an additional 260,869 shares from the company. Morgan Stanley is acting as lead book-running manager and Craig-Hallum as book-running manager. Frequency Electronics intends to use its net proceeds for growth opportunities, including capital expenditures and working capital, and will not receive any proceeds from the selling stockholders' shares.
Frequency Electronics wins $8 million follow-on lunar space mission contract
Frequency Electronics has been awarded a follow-on production contract valued at approximately $8 million to supply compact, high-precision atomic clocks for lunar space missions. The contract covers production of atomic clocks designed to support position, navigation and timing capabilities for lunar exploration.
Frequency Electronics Reports Record $111 Million Funded Backlog and Sets $150 Million Revenue Target for Fiscal 2029
Frequency Electronics reported a record funded backlog of $111 million at the end of fiscal 2026, representing 59% annual growth and 34% sequential growth, and reaffirmed a minimum revenue target of $150 million by fiscal 2029. The company posted fourth-quarter revenue of $15.4 million, down from $20.0 million a year earlier, and full-year revenue of $63.2 million, a 9% decline from $69.8 million, citing pulled-forward revenue from fiscal 2025. A near 3-to-1 book-to-bill ratio in the fourth quarter and the highest annual bookings in company history signal strong demand, with management expecting multiple new quarterly revenue records in fiscal 2027. Frequency Electronics also announced three-year margin targets of at least 50% gross margin and 30% operating margin by fiscal 2029, driven by a shift to high-rate production and improved overhead absorption. The quarter included a $3.8 million non-cash inventory write-down from restructuring the FEI-Elcom segment, contributing to a net loss of $4.9 million, or $0.50 per diluted share, compared to net income of $3.2 million in the prior-year period.
Frequency Electronics wins contracts worth about $18 million
Frequency Electronics has been awarded multiple contracts with a combined value of approximately $18 million. The awards include an $11 million contract from a major aerospace prime contractor to supply an on-board precision frequency-generation system for a proliferated satellite program, marking the company's first contract with this customer. An additional $7 million in follow-on production contracts covers space oscillators and non-space U.S. Government programs. CEO Tom McClelland noted that the $11 million award is the company's second significant contract for proliferated satellites in 2026 and expects more wins in this area, while the follow-on awards tend to carry higher-than-average corporate gross margins.
Frequency Electronics Stock Plummets After Disappointing Q4 2026 Revenue
Frequency Electronics shares fell 9.4% after reporting fourth-quarter 2026 revenue of $15.4 million, missing analyst expectations of $18.6 million. The company posted a diluted loss per share of negative $0.50 compared to earnings of $0.33 in the prior-year quarter, while full-year fiscal 2026 revenue declined to $63.2 million from $69.8 million. CEO Tom McClelland described fiscal 2026 as a year of digestion with some revenue pulled forward. Despite the miss, backlog rose 59% year over year to $111 million, and management set targets for a minimum gross margin of 50% and minimum operating margin of 30% by fiscal 2029.
Frequency Electronics Shares Surge 213% in a Year on Record Backlog and Defense Demand
Frequency Electronics shares have surged 213.3% over the past year, far outpacing the industry's 4.4% growth. The company is benefiting from record backlog exceeding $100 million for the first time, rising defense spending, strong satellite contract wins including approximately $45 million in new awards in March 2026, and expanding opportunities in quantum sensing and alternative position, navigation and timing technologies. Management has set a target of at least $150 million in annual revenues by fiscal 2029, implying a compound annual growth rate above 30%. However, near-term pressures include a less favorable program mix, higher operating expenses, and lower initial margins on newly awarded satellite programs, while the stock trades at a premium valuation of 10.57 times trailing 12-month enterprise value to sales compared with the industry average of 3.09 times.
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