Richardson Electronics Reports Q3 FY26 Results: Strong Sales Growth, Dividend Declared, and Robust Backlog

LaFox, IL, April 8, 2026 – Richardson Electronics, Ltd. (NASDAQ: RELL) announced its financial results for the third quarter ended February 28, 2026, delivering a continuation of its positive momentum, key financial improvements, and strategic updates likely to interest shareholders and investors. The company also declared a quarterly cash dividend, underscoring its confidence in ongoing performance and cash flow stability.

Key Highlights from the Q3 FY26 Report

• Net Income: \$0.9 million, or \$0.07 per diluted share, compared to a net loss of \$2.1 million (\$0.15 loss per diluted share) in Q3 FY25.
• Net Sales: \$55.5 million, up 3.1% year-over-year. When excluding the Healthcare segment (sold in January 2025), net sales increased 6.0% year-over-year.
• PMT Segment Growth: Power and Microwave Technologies (PMT) net sales grew by 9.7% YoY to \$38.7 million, driven by strong demand in semiconductor wafer fab and RF/Microwave products.
• Backlog: Total order backlog as of February 28, 2026, increased by 11.4% from the previous quarter, reaching its highest level in nearly three years.
• Dividend Declared: \$0.06 per share for common stock and \$0.054 per share for Class B common stock, payable May 27, 2026, to shareholders of record as of May 8, 2026.
• Gross Margin: Improved to 31.9% this quarter (from 31.0% in Q3 FY25). For the nine months YTD, gross margin was 31.2% (vs. 30.8% in the prior year).
• Cash Position: Cash and cash equivalents of \$29.5 million as of February 28, 2026, with no outstanding debt on the revolving credit line.
• EBITDA: \$2.2 million in Q3 FY26 compared to negative \$2.1 million in Q3 FY25. For the first nine months, EBITDA was \$6.2 million, up from negative \$0.5 million in the prior year.
• Ongoing Investments: \$0.8 million in Q3 capital expenditures, primarily for manufacturing, facilities, and IT upgrades.

Segment Performance Details

• Power and Microwave Technologies (PMT):
  • Q3 net sales: \$38.7 million (up 9.7% YoY).
  • Primary growth drivers: Semiconductor wafer fabrication, RF and microwave products, as well as the consolidation of the Healthcare segment into PMT.
• Green Energy Solutions (GES):
  • Q3 net sales: \$8.8 million (down 5.4% YoY).
• Canvys (customized display solutions):
  • Q3 net sales: \$8.0 million (down 13.5% YoY).

Financial Position and Cash Flow

Despite using cash for strategic inventory purchases and dividend payments, Richardson Electronics maintained a robust cash position at \$29.5 million. The company reported no outstanding debt on its revolving credit facility, reflecting prudent balance sheet management. Capital expenditures were \$0.8 million for the quarter (vs. \$0.5 million in Q3 FY25), demonstrating ongoing investment in operational capabilities.

For the nine months ended February 28, 2026:

• Net sales: \$162.4 million (up 3.4% YoY; up 7.2% YoY excluding Healthcare).
• Gross profit: \$50.7 million (up from \$48.4 million YoY).
• Net income: \$2.7 million (vs. net loss of \$2.2 million in the prior year).
• Earnings per diluted share: \$0.19 (vs. net loss of \$0.16).

Non-GAAP Financial Metrics

Management emphasized the usefulness of non-GAAP measures (excluding one-time losses from the Healthcare segment sale in fiscal 2025) in evaluating ongoing performance:

• Q3 FY26 Non-GAAP net income: \$0.9 million (vs. \$1.6 million in Q3 FY25).
• Q3 FY26 Non-GAAP earnings per diluted share: \$0.07 (vs. \$0.11 prior year).
• Q3 FY26 Adjusted EBITDA: \$2.2 million (vs. \$2.8 million prior year).

Management Commentary and Outlook

“Richardson Electronics has delivered seven consecutive quarters of year-over-year sales growth, reflecting progress in our multi-year strategy. This quarter’s performance was led by PMT, especially in EDG and the semifab equipment market. The backlog is at its highest in nearly three years, supporting a strong growth outlook. We see sustained demand in power management, energy transition, and semiconductor applications. Our investments in engineering, product development, and customer engagement position us to capitalize on these opportunities. With a strengthened pipeline, strong balance sheet, and improving order trends, we remain confident in driving continued growth and long-term value for shareholders.”
– Edward J. Richardson, Chairman, CEO, and President

Upcoming Event

Richardson Electronics will host a conference call and Q&A session on Thursday, April 9, 2026, at 9:00 a.m. Central Time to discuss the third quarter results. A replay will be available for seven days.

Strategic Developments and Shareholder Considerations

• Backlog at Highest Level in Three Years: The significant increase in backlog signals strong future demand and visibility, potentially supporting further sales and profit growth.
• Dividend Policy: The continued quarterly dividend underscores management’s confidence in cash generation and ongoing commitment to shareholder returns.
• No Debt, Strong Cash Position: The company’s lack of debt and healthy cash position enhances financial flexibility and lowers risk, which may be viewed positively by investors.
• Non-GAAP Improvements: Adjusted metrics highlight ongoing improvement in underlying profitability, excluding one-off items.
• Segment Focus: PMT segment’s outperformance, especially in semiconductor-related markets, aligns with broader industry growth trends.
• Potential Risks: Investors should monitor sector cyclicality, customer concentration, and ongoing integration of the Healthcare segment into PMT.

Company Profile

Richardson Electronics, Ltd. is a global manufacturer specializing in engineered solutions, green energy products, power grid and microwave tubes, RF and microwave components, diagnostic imaging equipment tubes, and customized display solutions. Over 55% of products are manufactured in the US and Germany, serving a diversified customer base in alternative energy, healthcare, aviation, broadcast, and semiconductor industries.

Conclusion

The Q3 FY26 report from Richardson Electronics presents a compelling combination of sales growth, margin expansion, improved profitability, and a strong order backlog, all while maintaining a robust balance sheet and rewarding shareholders via dividends. These developments are likely to be well received by investors and could have a positive impact on the share price, especially given the momentum in the PMT segment and the company’s financial stability.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions. The article reflects the latest available data as of April 8, 2026, and is subject to change without notice.

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