Richardson Electronics (RELL) Q2 2026 earnings summary

Executive summary

• Q2 FY26 net sales rose 5.7% year-over-year to $52.3M, marking the sixth consecutive quarter of YoY growth, led by 39% growth in GES and 28.1% in Canvys, while PMT sales declined 4%.

• Excluding Healthcare, which was divested in January 2025, net sales increased 9% YoY; Healthcare results now consolidated into PMT.

• Operating income improved to $0.1M from a $0.7M loss, and net loss narrowed to $0.1M from $0.8M; EBITDA for Q2 was $0.7M, up from breakeven.

• First six months: net sales $106.9M (+3.6%), net income $1.8M vs. $0.2M loss, EBITDA $4.0M vs. $1.7M.

• A quarterly cash dividend of $0.06 per share was declared.

Financial highlights

• Q2 FY26 gross margin was 30.8%, slightly down from 31.0% YoY; operating expenses improved to 30.5% of sales.

• Net loss per diluted share was $0.01, compared to $0.05 loss YoY; Q2 operating margin improved to 0.3% from -1.3%.

• Cash and cash equivalents at quarter-end: $33.1M; no outstanding debt.

• Backlog at quarter-end: $135.7M, up over 125% since FY2019.

• Capital expenditures of $1.6M in Q2, focused on manufacturing, facilities, and IT.

Outlook and guidance

• Anticipates continued growth in green energy and semiconductor wafer fab equipment markets through 2026 and beyond.

• Expects bottom-line improvement in healthcare segment starting FY27 as ALTA tube production concludes and Siemens repair ramps up.

• Ongoing investments in design centers, R&D, and new product development to support future growth.

• Management expects continued earnings improvement and value creation for shareholders, citing a strong balance sheet and durable customer relationships.

• Near-term volatility expected from global trade and U.S. policy impacts, but minimal exposure to China limits tariff risk.