Richardson Electronics Q4 EPS beats estimates, sales rise
Richardson Electronics reported a 244.4% increase in Q4 net income to $3.7 million, with sales of $66.2 million beating analyst estimates. The company returned to annual profitability with FY26 net income of $6.4 million and declared a $0.06 per share dividend.
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Richardson Electronics reported a 244.4% increase in fourth quarter net income to $3.7 million, driven by a 27.6% rise in net sales to $66.2 million. The company reported quarterly adjusted earnings per share of $0.21, beating the analyst consensus estimate of $0.07 by 200 percent. Quarterly sales of $66.200 million surpassed the analyst consensus estimate of $56.270 million by 17.65 percent. For the fiscal year ended May 30, 2026, the company achieved its second consecutive year of annual sales growth, with net sales increasing 9.4% to $228.6 million, and returned to profitability with a net income of $6.4 million. The Board of Directors declared a $0.06 per share quarterly cash dividend, payable on August 26, 2026.
Edward J. Richardson, Chairman, Chief Executive Officer, and President, attributed the strong performance to robust demand in Power and Microwave Technologies, particularly for engineered solutions serving the semiconductor wafer fabrication equipment market. He also noted growth in Green Energy Solutions and a record quarter for Canvys. The company's backlog reached $164.4 million, its highest level in three years, reflecting continued customer activity across key markets.
Fourth Quarter Performance
Net sales for the fourth quarter of fiscal 2026 were $66.2 million, a 27.6% increase from $51.9 million in the prior year's fourth quarter. All three business units experienced year-over-year sales growth. Power and Microwave Technologies (PMT) sales increased $10.4 million, or 28.1%, Green Energy Solutions (GES) sales increased $1.1 million, or 20.4%, and Canvys’ sales increased $2.8 million, or 29.5%.
Gross margin for the fourth quarter was 31.2% of net sales, compared to 31.6% during the fourth quarter of fiscal 2025. Operating income was $3.9 million, compared to $0.6 million in the prior year's fourth quarter. Earnings per common share (diluted) were $0.25, compared to $0.08 in the fourth quarter of fiscal 2025.
Fiscal Year 2026 Results
For the fiscal year ended May 30, 2026, net sales were $228.6 million, an increase of 9.4% compared to net sales of $208.9 million during fiscal 2025. The company reported a net income of $6.4 million, compared to a net loss of $1.1 million in fiscal 2025. Earnings per common share (diluted) was $0.44, compared to a net loss per common share (diluted) of $0.08 in fiscal 2025.
| Metric | Q4 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|
| Net Sales | $66.2 million | $51.9 million | $228.6 million | $208.9 million |
| Net Income | $3.7 million | $1.1 million | $6.4 million | $(1.1) million |
| Diluted EPS | $0.25 | $0.08 | $0.44 | $(0.08) |
| Gross Margin | 31.2% | 31.6% | 31.2% | 31.0% |
Financial Position and Dividend
The company maintained a solid financial position with cash and cash equivalents of $31.8 million as of May 30, 2026. As of the end of the fourth quarter, the company had no outstanding debt on its revolving line of credit with PNC Bank.
The Board of Directors declared a $0.06 per share quarterly cash dividend to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock. The dividend will be payable on August 26, 2026, to common stockholders of record as of August 7, 2026.
How does the company plan to convert the record $164.4 million backlog into revenue over the next fiscal year?
Will the strong demand in semiconductor wafer fabrication equipment be sustained given current global chip manufacturing cycles?
Does the Board intend to maintain or increase the quarterly dividend given the return to profitability and strong cash position?
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