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EarningsQ1 2027 Earnings Report
RELL Q1 2027 EPS Results
Actual EPS$0.27
Consensus EPS$0.09
Beat/MissBeat by +$0.18
One Year Ago EPS$0.13
RELL Q1 2027 Revenue Results
Actual Revenue$64.92M
Expected Revenue$58.98M
Beat/MissBeat by +$5.94M
YoY Revenue Growth+18.89%
Earnings Announcement Details
QuarterQ1 2027
Date10/07/2026
TimeAfter Close
Conference CallWednesday, October 7, 2026
RELL Upcoming Earnings
Richardson Electronics's next earnings date is estimated for January 6, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
RELL Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by 18.9% consolidated sales growth, expanded gross margin, a more than 400% increase in operating income, improved cash generation, backlog growth, and momentum in semiconductor, wind, power-management, and battery energy-storage programs. Management also cited macroeconomic, tariff, supply-chain, regional, and project-timing uncertainties, but these challenges did not outweigh the reported financial performance and strategic progress.Company Guidance
Strong First-Quarter Financial Performance
Fiscal 2027 first-quarter net sales increased 18.9% year over year to $64.9 million from $54.6 million, marking the ninth consecutive quarterly year-over-year increase in sales. Operating income increased over 400% to $5.1 million, or 7.9% of sales, compared with $1.0 million in the prior-year quarter.
Improved Profitability and Earnings
Consolidated gross margin increased to 34.6% from 31.0%. Net income rose to $4.1 million from $1.9 million, diluted earnings per share increased to $0.27 from $0.13, and EBITDA increased to $6.0 million from $3.3 million.
Gross-Margin Expansion Across Business Groups
PMT gross margin increased to 35.4% from 31.3% due to product mix and the IEEPA Tariff Refund. GES gross margin increased to 32.6% from 29.6% due to product mix that included new products. Canvys gross margin increased to 33.0% from 30.9%, primarily due to the IEEPA Tariff Refund. The refund benefited consolidated gross margin by 170 basis points.
Operating-Leverage Improvement
Operating expenses increased to $17.4 million from $16.0 million, primarily due to higher employee compensation expenses, including incentives driven by strong sales growth, and higher travel expenses. As a percentage of net sales, operating expenses improved to 26.8% from 29.2%.
Strong Cash Generation and Debt-Free Balance Sheet
Cash from operating activities was $5.9 million compared with $1.4 million in the prior-year first quarter. Cash and cash equivalents increased to $36.9 million from $31.8 million at fiscal 2026 year-end, free cash flow was $4.2 million, and the company had no outstanding debt on its revolving line of credit.
Capital Returns and Strategic Capital Spending
The company paid $0.9 million in cash dividends during the quarter, and the Board declared a quarterly cash dividend of $0.06 per common share payable in the second quarter of fiscal 2027. Capital expenditures were $1.7 million, primarily for facilities improvements and IT systems, compared with $1.0 million in the prior-year quarter.
Backlog Growth and Revenue Visibility
Total backlog grew to $184.4 million, up $20 million from fiscal 2026 year-end. PMT and GES backlog increased meaningfully, with GES backlog of $43.2 million and PMT backlog of $99.4 million. Management said approximately 75% of PMT and GES backlog is scheduled to ship during fiscal 2027.
PMT Sales Growth Led by Semiconductor and RF Products
PMT sales increased 19.7% year over year, driven by strong growth in semiconductor wafer fabrication equipment and RF and microwave products. Excluding the legacy healthcare business, PMT sales were $46.6 million, up 23.1%, with growth in semiconductor wafer fabrication, SATCOM, radar, and defense communications.
Positive Semiconductor Demand Outlook
Semiconductor wafer fabrication customers expressed ongoing optimism and continued growth well into calendar year 2027. Richardson is expanding capacity through additional shifts to support higher demand.
GES Revenue and Wind-Product Expansion
GES sales increased $2.0 million, or 27.1%, due to higher wind-product sales and new products, including Battery Energy Storage Systems. The majority of GES growth came from wind and associated products. The company has more than 23 wind customers and more than 10 products being sold across wind turbine platforms.
International Expansion of Wind Solutions
Pitch Energy Module adoption continued across multiple wind turbine platforms, with orders outside North America from customers in Brazil, Australia, India, France, and Italy. Richardson is expanding into Europe and Asia with products for Suzlon, Senvion, Nordex, and SSB platforms.
Suzlon Program Progress
Suzlon replacement-business shipments were approximately $1.5 million in the quarter. Richardson said its product has been confirmed for installation as standard equipment on Suzlon's new S9X turbine platform, in addition to pursuing worldwide maintenance, repair, and overhaul business.
Battery Energy Storage Momentum
GES booked a $2 million Battery Energy Storage Systems program in the first quarter and had a pipeline of nearly 50 active opportunities. Management expects multiple opportunities to close in fiscal 2027 and expects GES to deliver double-digit growth in fiscal 2027.
Commercialization of Energy-Storage Products
The company began shipments for its first Alaska order, a multi-million-dollar project involving 18 customized Battery Energy Storage Systems serving seven remote communities. Richardson also expanded its RESS product family with the RESS 211 and RESS 422 systems, alongside the RESS 760 and RESS 1505 platforms.
Additional Microgrid Opportunity
Management discussed an expected approximately $10 million opportunity over the next two years supporting about 10 to 20 microgrid projects for a large California energy company. Richardson said its engineering and value-added capabilities are enabling customized solutions for applications ranging from 200 kilowatts to 5 megawatts.
Investment in Energy-Storage and Engineering Infrastructure
Richardson continued building its LaFox-based Battery Energy Storage Systems demonstration center, expanding design and field engineering teams, and enhancing manufacturing capabilities. The company is also developing ultracapacitor racks as a standard offering for smaller battery energy storage installations and data-center backup applications.
Canvys Revenue and Backlog Growth
Canvys revenue increased 7.9% to $8.9 million from $8.3 million. Gross margin increased to 33.0% from 30.9%. Canvys ended the quarter with $41.8 million of backlog and a 1.1 book-to-bill ratio.
Canvys Customer and Design-Win Pipeline
Canvys continued pursuing repeat and new medical OEM opportunities in robotic-assisted surgery, navigation, endoscopy, and human-machine interface applications, as well as commercial and industrial applications including passenger information systems and HMI technologies. Customer engagement, request-for-quote activity, and the opportunity pipeline remained encouraging.
Made in America Strategy Gaining Traction
The company reported increased customer interest in its U.S.-based engineering, manufacturing, testing, and quality capabilities for aerospace, defense, industrial, semiconductor, and power-management applications. Richardson said customers are evaluating localization, supply-chain continuity, tariff exposure, and speed to market.
AI Readiness Program Moving to Implementation
After completing an initial AI readiness and opportunity assessment in the fourth quarter, the company shifted in the first quarter toward implementing practical use cases and measuring results across sales, supply chain, manufacturing and engineering, finance, and administrative workflows, with governance and security controls included.
Wind Product Scale and Margin Contribution
Richardson has shipped more than 90,000 wind-related units since launching its first product. Management stated that margins on these products are accretive to the company's overall margin and that the Suzlon rollout and new customer testing in Europe are continuing.
Strong Cost and Inventory Discipline
Management said it remains disciplined in managing inventory, pricing, operating expenses, and capital allocation. Inventory was approximately $103.3 million, essentially flat to fiscal 2026 year-end, while the company focused on converting inventory and backlog into revenue and cash.
Long-Term Growth Expectations
Management said it expects continued sales growth and backlog growth for PMT and GES, believes fiscal 2027 will be another strong year for growth in sales and profits for both groups, and remains focused on higher-value engineered solutions, improved profitability, and long-term shareholder value.
RELL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed