Solitron Devices (SODI) Q4 2026 earnings summary

Executive summary

• Net sales increased 21% year-over-year to $16.97 million, driven by higher backlog and order activity.

• Gross profit rose to $5.12 million (30% margin), up from $3.99 million (28% margin) the prior year.

• Operating income grew to $1.62 million from $998,000, but net income was flat at $807,000 due to contingent consideration expense from the MEI acquisition.

• Backlog surged 51% to $27.28 million, reflecting strong bookings and a significant AMRAAM program order.

• The company completed the acquisition of Micro Engineering Inc. (MEI) in September 2023, expanding capabilities in low-to-mid volume electronic components.

Financial highlights

• Net sales: $16.97 million (+21% YoY); units shipped: 83,967 (+14.5% YoY).

• Gross profit: $5.12 million (30% margin); cost of sales: $11.85 million (70% of sales).

• Operating income: $1.62 million; net income: $807,000 (EPS: $0.38).

• Cash and equivalents: $3.91 million at year-end; working capital: $9.03 million.

• Stock repurchases: 3,850 shares for $63,000; $2 million repurchase program remains active.

Outlook and guidance

• Management expects continued higher material costs due to tariff uncertainty and supply chain pressures.

• Capital expenditures for the next year estimated at $0.3 million, funded from operations.

• Liquidity is expected to be sufficient for the next twelve months, with $5.6 million in cash as of April 30, 2026.

• The company plans to pursue further commercial semiconductor sales, strategic alliances, and potential acquisitions.