The sharp decline in earnings is concerning, but the $45M in new contracts and record backlog suggest a potential turnaround in the next quarter. Traders should monitor the Q4 results for signs of margin recovery and cash flow improvement. The company's exposure to proliferated LEO satellite constellations could become a multi-year growth driver.
Price Chart
Executive Summary
Frequency Electronics (FEIM) reported mixed Q3 FY2026 financial results with declining revenue and earnings but announced two new satellite contracts worth $45 million, boosting its funded backlog to a record $83 million. While near-term fundamentals weakened year-over-year, the company highlighted strong future growth potential in proliferated satellites and quantum sensing, supported by a debt-free balance sheet and recent cash collections.
Key Financial Metrics
Key Facts
- Awarded two satellite contracts totaling $45 million, with work expected to begin in Q4 FY2026
- Q3 FY2026 revenue was $16.9 million, down from $18.9 million in the same quarter last year
- Net income dropped to $1.6 million ($0.16/share) from $15.4 million ($1.60/share) in the prior-year quarter
- Backlog increased to $83 million from $70 million as of April 30, 2025
- Company collected over $11 million in cash since February 1, 2026, reversing prior cash burn
Financial Impact
Revenue down 10.6% YoY, net income down 89.6% YoY; $45M in new contract awards represent ~94% of prior nine-month revenue
Risk Factors
- Sustained margin compression and operating loss trend
- Reliance on future contract awards that may not materialize
- High customer concentration risk in defense and space sectors
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 press releases from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3254115 |
| PRESS-RELEASE Data (Synthetic) | press-3254116 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Oct 21, 2026 5d ago | Press Release | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Sep 10, 2026 6w ago | Press Release | $88.38 $85.50 | ▼ −3.25% | ▼ −2.81% | $67.28 (−23.87%) |
Sep 3, 2026 7w ago | Press Release | $60.67 | awaiting T+1 | — | $67.28 (+10.90%) |
Jul 28, 2026 12w ago | Press Release | $57.69 $59.89 | ▼ −3.81% | ▼ −2.14% | $67.28 (−16.62%) |
Jul 22, 2026 13w ago | EFFECT | $72.39 $73.24 | ▲ +1.17% | ▲ +2.41% | $67.28 (−7.06%) |
Jul 17, 2026 14w ago | S-3 | $66.72 $79.85 | ▲ +19.67% | ▲ +18.84% | $67.28 (+0.84%) |
Jun 12, 2026 19w ago | 8-K | $74.31 $70.15 | ▼ −5.60% | ▼ −5.00% | $67.28 (−9.46%) |
May 27, 2026 21w ago | Press Release | $75.60 $75.88 | ▲ +0.37% | ▲ +0.13% | $67.28 (−11.01%) |
Mar 11, 2026 32w ago | Press Release | $46.66 $48.11 | ▲ +3.11% | ▲ +3.71% | $67.28 (+44.19%) |
US Market Status
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