Richardson Electronics, Ltd.

Consolidated net sales increased 27.6% year over year to $66.2 million in Q4, versus $51.9 million a year ago. Consolidated gross margin was 31.2% in Q4, compared with 31.6% last year. Operating income was $3.9 million, non-GAAP operating income was $3.5 million, net income was $3.7 million, non-GAAP net income was $3.0 million, diluted EPS was $0.25, and non-GAAP diluted EPS was $0.21; EBITDA was $5.0 million and adjusted EBITDA was $4.2 million. For fiscal 2026, net sales were $228.6 million, up 9.4% from $208.9 million; gross margin was 31.2% versus 31.0% in fiscal 2025; operating income was $6.5 million versus an operating loss of $2.5 million; net income was $6.4 million versus a net loss of $1.1 million; diluted EPS was $0.44 versus a loss per share of $0.08. Cash and cash equivalents were $31.8 million at year-end, and the company had no outstanding debt on its revolving line of credit. Management did not issue formal revenue or EPS guidance, but said PMT backlog was up double digits in the quarter, GES backlog is growing, and Canvys entered the year with a $40.8 million backlog and 1.3 book-to-bill.

Ed Richardson framed fiscal 2026 as a year of meaningful execution across all three business units, emphasizing that growth was not dependent on a single customer or end market. His tone was constructive but disciplined: he repeatedly stressed higher-value engineered solutions, repeatable sales, backlog growth, and careful management of inventory, pricing, and spending amid tariff, geopolitical, inflation, and industrial-demand uncertainty. He also highlighted strategic expansion into battery energy storage and said the company is building capabilities deliberately before scaling.

Bob Ben emphasized the improvement in the income statement and balance sheet. He highlighted Q4 sales of $66.2 million, gross margin of 31.2%, operating expenses of $17.6 million, operating income of $3.9 million, diluted EPS of $0.25, and EBITDA of $5.0 million; for the full year, he cited sales of $228.6 million, gross margin of 31.2%, operating income of $6.5 million, net income of $6.4 million, and diluted EPS of $0.44. He also noted cash and equivalents of $31.8 million, $1.0 million of Q4 capex, $4.4 million of full-year capex, $3.4 million of dividends paid in fiscal 2026, and no outstanding revolver debt; the board declared a quarterly dividend of $0.06 per share for Q1 fiscal 2027.

Analysts focused on semi-fab visibility, Canvys momentum, the shift toward higher-value engineered solutions, backlog timing, capital returns, and the emerging BES opportunity. Management said semi-fab visibility is still limited but customer feedback remains very positive and should support fiscal 2027; Canvys’ record quarter was described as project-driven and hard to predict quarter to quarter, though book-to-bill was 1.3. On capital allocation, Ed Richardson said the board continues to prefer investing capital in new opportunities rather than stock buybacks, and he said he has no current visibility that would change that stance.