Richardson Electronics (RELL) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales rose 18.9% YoY to $64.9M, the ninth consecutive quarterly increase and highest quarterly sales since Q3 FY2023.

• Operating income increased to $5.1M from $1.0M; net income rose to $4.1M from $1.9M, and diluted EPS was $0.27 versus $0.13.

• Backlog reached $184.4M, up 36.9% YoY and 12.2% from FY26 year-end, its highest level since FY2022 year-end.

Financial highlights

• Net sales were $64.9M versus $54.6M; gross profit increased to $22.5M from $16.9M.

• Reported gross margin rose to 34.6% from 31.0%; excluding the IEEPA tariff refund, it was 32.9%.

• Operating expenses increased to $17.4M from $16.0M, but fell to 26.8% of sales from 29.2%.

• Operating cash flow was $5.9M versus $1.4M; free cash flow was $4.2M.

• EBITDA, a non-GAAP measure, was $6.0M versus $3.3M.

Outlook and guidance

• FY27 expectations include another year of profitable growth, supported by backlog and customer demand across end markets.

• PMT and GES expect strong FY27 sales and profit growth; roughly 75% of their backlog was scheduled to ship in FY27.

• Semiconductor customers forecast demand growth through FY27 and into CY2027; wafer-fab sales remain strong.

• Wind-module demand is expected to remain steady or increase; Canvys engagement, RFQ activity, and opportunity pipeline remain encouraging.