Frequency Electronics (FEIM) Q4 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, July 23, 2026 astatine 8:54 AM CDT 30 min read

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DATE

Wednesday, July 15, 2026, astatine 4:30 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer - Thomas McClelland

• Chief Financial Officer - Steven Bernstein

Full Conference Call Transcript

Operator: As a reminder, this league is being recorded. Any statements made by the companies during this league telephone regarding the aboriginal represent forward-looking statements pursuant to the harmless harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements inherently impact uncertainties that could origin existent results to disagree materially from the forward-looking statements. Factors that would origin oregon lend to specified differences are included successful the company's property releases and are further elaborate successful the company's periodic study filings with the Securities and Exchange Commission. By making these forward-looking statements, the institution undertakes nary work to update these statements for revisions oregon changes aft the day of this league call.

It is present my pleasance to present your host, Thomas McClelland, President and Chief Executive Officer.

Thomas McClelland: Good afternoon, everybody, and acknowledgment for joining Frequency Electronics' Fourth Quarter fiscal twelvemonth 2026 Earnings Call. With maine contiguous is our Chief Financial Officer, Steven Bernstein. I privation to commencement with a precise wide statement. After a twelvemonth of digestion, we're returning to maturation now. This quarter, which ends successful 2 weeks, volition beryllium the opening of a multi-year ascent to a overmuch bigger Frequency Electronics. On this call, we'll supply further colour connected our extremity markets, speech astir our caller borderline targets, and sermon the decisions we made during the twelvemonth to amended presumption the institution to instrumentality vantage of the tremendous maturation opportunities successful beforehand of us.

First, I privation to stock wherefore we consciousness truthful assured successful this pending upturn successful our business. We've described implicit the past twelvemonth however fiscal 2026 was a twelvemonth of digestion for Frequency aft we pulled guardant immoderate gross into the anterior fiscal year. Despite that, our backlog continued to physique passim the year. Two quarters ago, we told you that we believed it was tenable that we could spot a backlog northbound of $100 cardinal successful the not-too-distant future. Today, I'm pleased to study a record-funded backlog of $111 cardinal arsenic of the extremity of our fiscal year. This backlog gives america a batch of visibility into coming revenue, and truthful bash respective different cardinal information points.

We don't usually sermon our book-to-bill ratio, but it was astir 3x successful the 4th quarter. Book-to-bill, similar revenue, tin proceed for america successful a nonlinear fashion, but a fig this precocious is simply a beardown denotation of the benignant of request we're seeing. Further, fiscal 2026 was the azygous biggest twelvemonth of bookings successful institution history. Recall that the backlog we study is our funded backlog, and the full declaration worth of signed deals is multiples of our funded backlog. We had immoderate precise important declaration wins during 2026, particularly successful the 4th quarter, and those wins volition lend to gross successful fiscal 2027.