Richardson Electronics (RELL) Q3 2026 earnings summary

Executive summary

• Achieved seven consecutive quarters of year-over-year sales growth, with Q3 FY26 net sales up 3.1% to $55.5 million compared to the prior year.

• Net income for Q3 FY26 was $0.9 million, reversing a $2.1 million loss in Q3 FY25; EPS was $0.07 per diluted share.

• Gross margin improved to 31.9% in Q3 FY26 from 31.0% in Q3 FY25, attributed to favorable product mix and lower manufacturing under absorption.

• Backlog at February 28, 2026, reached $151.2 million, up 11.4% sequentially and highest since FY2023.

• Board declared a $0.06 per share quarterly cash dividend, payable May 27, 2026.

Financial highlights

• Q3 FY26 net sales: $55.5 million, up 3.1% year-over-year; excluding Healthcare, net sales rose 6.0%.

• Q3 FY26 net income: $0.9 million; EPS: $0.07 per diluted share; EBITDA for Q3 was $2.2 million, up from negative $2.1 million.

• Cash and cash equivalents at quarter-end were $29.5 million, with no outstanding debt.

• Operating income for Q3 FY26 was $1.5 million, compared to a $2.7 million loss in Q3 FY25.

• Backlog at Q3 FY26: $151.2 million, highest since FY2023 and up over 150% since FY2019.

Outlook and guidance

• Backlog and order activity remain strong, supporting confidence for Q4 and FY27, with expectations for double-digit revenue growth in GES.

• Sustained demand expected in power management, energy transition, and semiconductor applications.

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

• Made in America strategy and AI-driven efficiency initiatives expected to support future growth and profitability.