Richardson Electronics Q1 FY2027 Sales Rise 18.9% as Backlog Grows

Richardson Electronics reported a sharp increase in fiscal first-quarter sales and profit as all three business units expanded, while backlog reached its highest level since the end of fiscal 2022. Net sales for the three months ended August 29, 2026, rose 18.9% year over year to $64.9 million, marking the company’s ninth consecutive quarter of year-over-year sales growth.

Net income increased to $4.1 million from $1.9 million a year earlier. Consolidated gross margin widened to 34.6% from 31.0%, although the company said the margin would have been 32.9% excluding an IEEPA tariff refund.

Growth across all business units

Power & Microwave Technologies, Richardson’s largest business, generated $46.8 million in sales, up 19.7% from the prior-year quarter. The company said semiconductor wafer-fabrication sales remained strong, with key customers forecasting growth for the remainder of calendar 2026 and through calendar 2027.

Green Energy Solutions sales climbed 27.1% to $9.2 million. Richardson expects steady to increasing demand for wind-turbine modules, supported by shipments from existing inventory and potential orders from existing and new customers. The company is also pursuing further adoption of its UltraPEM products and expansion into Europe.

Canvys, which supplies custom display and all-in-one computer solutions, recorded sales of $8.9 million, an increase of 7.9%.

Total backlog ended the quarter at $184.4 million, up $50 million, or 36.9%, from a year earlier and 12.2% from the fourth quarter of fiscal 2026. Green Energy Solutions contributed to the increase, reflecting demand for both new products and existing programs. Richardson cautioned that the timing of new orders can vary by quarter, with its sales cycle generally ranging from 12 to 18 months.

Cash generation and investment priorities

Richardson generated $4.2 million of free cash flow during the quarter and ended the period with $36.9 million in cash and cash equivalents, up from $31.8 million at the end of fiscal 2026. The company had no debt and no outstanding borrowings under its $20 million revolving credit facility.

Capital expenditures totaled $1.7 million, primarily for manufacturing operations, facilities and information-technology systems. Richardson also allocated $0.9 million to its regular cash dividend. Net inventory stood at $103.3 million, broadly unchanged from the fiscal year-end, as the company continued to invest in working capital while focusing on converting inventory into cash during fiscal 2027. It said a multi-year inventory investment tied to a critical supplier provides coverage through 2030.

Energy storage remains a strategic focus

Management is expanding Richardson’s energy-storage activities through its Richardson Energy Storage System platform, targeting commercial and industrial as well as utility-scale projects through technology partnerships and U.S.-based integration capabilities. The company said its RESS pipeline is growing, supported by interest in flexible system designs, domestic manufacturing and its engineering expertise in specialized power-management markets.

Richardson plans to establish a 2-megawatt, 8-megawatt-hour demonstration site at its LaFox, Illinois, headquarters. The two-container system is intended to serve as a working reference site for prospective commercial and industrial customers, demonstrating uses including peak shaving, demand-charge management, backup power and energy resilience. A kickoff event is scheduled for October, with the unit expected on site in the first half of calendar 2027.

For fiscal 2027, Richardson plans to use its LaFox manufacturing capabilities to support technology partners and customers expanding U.S. production and to pursue opportunities related to reshoring policies and domestic-content requirements. The company said it will continue monitoring geopolitical developments and tariffs while maintaining discipline in sourcing, pricing, inventory, customer commitments and operating expenses. Forward-looking plans remain subject to execution risks, variable order timing and broader global trade uncertainty.