Richardson Electronics (RELL) RELL Q4 Financial Results Summary
QuoteReporter
Richardson Electronics (RELL) Q4 2026: Impressive Growth and Profitability — Strongly Positive
Richardson Electronics, Ltd. (NASDAQ: RELL) reported a robust fourth quarter for fiscal 2026, with net sales reaching $66.2 million, reflecting a significant increase of $14.3 million or +27.6% compared to $51.9 million in the same quarter last year. This marks the company's eighth consecutive quarter of year-over-year sales growth, showcasing a strong demand across all business units.
Key Financial Metrics
- Fourth Quarter Net Sales: $66.2 million, up $14.3 million or +27.6% YoY from $51.9 million.
- GAAP Net Income: $3.7 million, an increase of $2.6 million or +244.4% from $1.1 million in Q4 2025.
- Earnings Per Share (EPS): $0.25 per diluted share, compared to $0.08 in Q4 2025.
- Gross Margin: 31.2% of net sales, slightly down from 31.6% in Q4 2025.
- Operating Expenses: $17.6 million, up from $15.6 million in Q4 2025, but improved as a percentage of net sales to 26.6% from 30.0%.
- Backlog: Increased to $164.4 million, up 8.7% from the previous quarter.
Analyst View
This quarter is undoubtedly a positive outcome for shareholders. The substantial increase in both revenue and net income indicates that Richardson Electronics is effectively capitalizing on market demand, particularly in its Power and Microwave Technologies (PMT) and Green Energy Solutions segments. The company’s ability to achieve a gross margin of 31.2% while managing operating expenses effectively demonstrates operational efficiency and cost control.
The declared quarterly cash dividend of $0.06 per share, payable on August 26, 2026, to stockholders of record as of August 7, 2026, further underscores the company's commitment to returning value to its shareholders. This is a clear signal of confidence in the company's ongoing profitability and cash flow generation.
Notable Highlights
- Sales Growth by Segment:
- PMT sales increased by $10.4 million, or +28.1%.
- Green Energy Solutions (GES) sales rose by $1.1 million, or +20.4%.
- Canvys sales grew by $2.8 million, or +29.5%.
- Operating Income: Increased to $3.9 million from $0.6 million in Q4 2025, indicating improved operational performance.
- EBITDA: Reached $5.0 million, compared to $2.9 million in the prior year.
Forward-Looking Catalysts
Investors should keep an eye on the company’s backlog, which has reached its highest level in three years at $164.4 million. This suggests a strong pipeline of future business, particularly in key markets such as semiconductor manufacturing and green energy solutions. Additionally, the upcoming conference call on July 23, 2026, will provide further insights into management's strategic outlook and operational plans for fiscal 2027.
In conclusion, Richardson Electronics has delivered an impressive quarter, marked by significant revenue growth and profitability improvements. The company’s strategic focus on high-demand sectors positions it well for continued success, making it an attractive prospect for investors looking for growth in the technology and energy sectors.
Here are the extracted tables from the press release:
Note: All amounts in the following tables are in thousands.
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Income
| Three Months Ended May 30, 2026 | Three Months Ended May 31, 2025 | Twelve Months Ended May 30, 2026 | Twelve Months Ended May 31, 2025 | |
|---|---|---|---|---|
| Net sales | $66,117 | $51,889 | $228,533 | $208,497 |
| Cost of sales | 45,544 | 35,514 | 157,203 | 144,007 |
| Gross profit | 20,573 | 16,375 | 71,347 | 64,822 |
| Selling, general, and administrative expenses | 17,613 | 15,566 | 65,717 | 62,105 |
| Loss on disposal of property, plant and equipment (Gain) loss | (847) | 158 | (847) | 5,074 |
| Operating income | 3,867 | 631 | 6,464 | (2,477) |
| Other income (expense) | ||||
| Interest income | (108) | (205) | (544) | (392) |
| Foreign exchange | (175) | (1,112) | 452 | (496) |
| Other net | 1 | (16) | (922) | (44) |
| Total other expense | (282) | (1,333) | (1,014) | (932) |
| Income (loss) before income tax | 4,149 | 1,964 | 7,478 | (1,533) |
| Income tax provision | 447 | 889 | 1,095 | (388) |
| Net income (loss) | 3,702 | 1,075 | 6,383 | (1,143) |
| Net income attributable to common stock | $3,549 | $4,279 | $7,965 | $247 |
| Net income (loss) per share | ||||
| Common stock - Basic | $0.26 | $0.08 | $0.45 | $(0.08) |
| Class B common stock - Basic | 0.23 | 0.07 | 0.40 | (0.07) |
| Common stock - Diluted | 0.25 | 0.08 | 0.44 | (0.08) |
| Class B common stock - Diluted | 0.23 | 0.07 | 0.40 | (0.07) |
| Weighted-average shares used to compute net income per share, basic | 12,561 | 12,341 | 12,492 | 12,285 |
| Class B common stock total | 2,037 | 2,049 | 2,042 | 2,049 |
| Weighted-average shares used to compute net income per share, diluted | 12,715 | 12,515 | 12,690 | 12,285 |
Richardson Electronics, Ltd. Unaudited Consolidated Balance Sheets
| Assets | May 30, 2026 | May 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $31,779 | $35,901 |
| Accounts receivable, less allowance for credit losses of $350 and $250, respectively | $33,162 | $24,117 |
| Inventories, net | $103,020 | $102,799 |
| Prepaid expenses and other assets | $4,770 | $3,070 |
| Total current assets | $172,731 | $165,887 |
| Non-current assets: | ||
| Property, plant and equipment, net | $19,003 | $18,355 |
| Intangible assets, net | $285 | $345 |
| Right of use lease assets, net | $1,389 | $2,276 |
| Deferred income tax assets | $8,346 | $8,744 |
| Other non-current assets | $263 | $228 |
| Total non-current assets | $29,286 | $29,948 |
| Total assets | $202,017 | $195,835 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $19,593 | $21,339 |
| Accrued liabilities | $15,989 | $14,276 |
| Lease liabilities current | $787 | $1,171 |
| Total current liabilities | $36,369 | $36,786 |
| Non-current liabilities: | ||
| Deferred income tax liabilities | $177 | $81 |
| Lease liabilities non-current | $602 | $1,105 |
| Other non-current liabilities | $1,168 | $1,204 |
| Total non-current liabilities | $1,947 | $2,390 |
| Total liabilities | $38,316 | $39,176 |
| Commitments and contingencies | ||
| Stockholders’ Equity | ||
| Common stock, $0.05 par value; 12,588 and 12,362 shares issued and outstanding on May 30, 2026 and May 31, 2025, respectively | $629 | $618 |
| Class B common stock, convertible, $0.05 par value; 2,036 and 2,049 shares issued and outstanding on May 30, 2026 and May 31, 2025, respectively | $102 | $102 |
| Additional paid-in-capital | $76,950 | $74,445 |
| Retained earnings | $82,284 | $79,340 |
| Accumulated other comprehensive income | $3,736 | $2,154 |
| Total stockholders’ equity | $163,701 | $156,659 |
| Total liabilities and stockholders’ equity |
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