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, driven by strong GES (up 39%) and Canvys (up 28.1%) segments, while PMT declined 4% but was flat excluding Healthcare.

• 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 YoY; net loss narrowed to $0.1M from $0.8M; EBITDA for Q2 was $0.7M, up from breakeven last year.

• Strong cash position of $33.1M and no outstanding debt support ongoing operations and strategic growth initiatives.

• 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 from 32.3% YoY.

• Net loss for Q2 was $0.1M ($0.01/share), improved from $0.8M loss ($0.05/share) last year; six-month net income was $1.8M ($0.12/share) versus a $0.2M loss.

• EBITDA for Q2 was $0.7M; six-month EBITDA was $4.0M, up from $1.7M YoY.

• Cash and cash equivalents stood at $33.1M as of November 29, 2025; no outstanding borrowings under the $20M revolving credit facility.

• Backlog at Q2 FY26 end was $135.7M, up over 125% since FY2019.

Outlook and guidance

• Anticipates continued growth in green energy and semiconductor wafer fab equipment markets through FY26 and beyond, with steady/increasing wind turbine module sales and new significant orders for UltraPEM® and EU expansion.

• Expects improved bottom-line contribution from Healthcare segment starting FY27 as ALTA tube production concludes and Siemens repair ramps up.

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

• Ongoing investments in design centers, demo sites, and R&D to support new product development and global expansion.

• Management expects existing liquidity and cash flows to meet capital and working capital needs for the next twelve months.