Frequency Electronics, Inc. is a company that operates in the space and defense markets. On July 15, 2026, Frequency Electronics reported its financial results, which did not meet analyst expectations. The company announced an earnings per share of -$0.50, missing the estimate of $0.27, and revenue of $15.4 million, below the forecast of $18.58 million.
Despite the misses, management describes fiscal 2026 as a "year of digestion," as highlighted by GlobeNewswire. President and CEO Thomas McClelland explains that some revenue was moved into the previous fiscal year, 2025. He states the current quarter "will be the beginning of a multi-year ascent to a much bigger Frequency Electronics.”
This positive outlook is supported by a record funded backlog of $111 million, which is a 59% increase from the previous year. A backlog represents confirmed future orders, providing clear visibility into upcoming revenue. The company also recorded its largest annual bookings ever, with a fourth-quarter book-to-bill ratio of nearly three to one.
Looking ahead, Frequency Electronics is targeting at least $150 million in revenue within the next three years. The company also aims for a minimum gross margin of 50% and an operating margin of 30%. These targets suggest strong confidence in future profitability and growth, as stated during its Q4 earnings call.
