Solitron Devices (SODI) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 net sales rose 42% YoY to $5.657M; net income was $1.298M versus a $234K loss, with EPS of $0.60 versus a loss of $0.11.

• H1 net sales increased 66% to $11.093M and net income was $2.288M versus a $570K loss.

• Record backlog reached $24.112M at August 31, up 29% YoY and from $23.34M at Q1 end.

Financial highlights

• Q2 gross profit was $2.748M versus $835K; operating income was $1.715M versus an operating loss of $291K.

• H1 gross profit increased to $5.213M from $1.225M; operating income was $3.250M versus an operating loss of $669K.

• H1 basic and diluted EPS was $1.06 versus a loss of $0.27; weighted-average shares were 2,152,703 for Q2 and 2,152,377 for H1.

• Q2 bookings rose 48% to $6.416M; H1 bookings increased 11% to $7.870M. H1 shipments were 48,588 units versus 35,840, though unit volume may not reliably indicate performance.

Outlook and guidance

• Sales are expected to remain at Q2 levels or higher through the rest of FY2027, supported by backlog.

• The next AMRAAM order is expected in fiscal Q4; potential multi-year AMRAAM and Standard Missile 2, 3 and 6 orders depend on Congressional funding.

• Capital expenditures to sustain operations are expected to be ~$250K over the next 12 months; September 30 cash of ~$7.6M and operating cash flow are expected to fund needs.

• Potential priorities include acquisitions, additional product lines, higher-yielding debt instruments and further share repurchases, subject to liquidity needs and market conditions.