Frequency Electronics, Inc. FEIM reported earnings per share of 25 cents for the first quarter of fiscal 2025, up from 22 cents in the same quarter of fiscal 2024.

Revenues increased 22% year over year, reaching $15.1 million compared to $12.4 million a year earlier.

Frequency Electronics delivered a strong first quarter for fiscal 2025, characterized by revenue growth, margin expansion, and disciplined financial management. While government revenues showed some relative weakness, the performance in satellite payloads and the overall backlog point to a positive outlook for the remainder of the year.

Frequency Electronics, Inc. Price, Consensus and EPS Surprise

Frequency Electronics, Inc. price-consensus-eps-surprise-chart | Frequency Electronics, Inc. Quote

FEIM’s Quarterly Performance Overview

Operating income rose to $2.4 million, a 15% increase from $2.1 million in the prior-year quarter. Net income similarly improved to $2.4 million, up from $2 million.

Frequency Electronics’ gross margin increased from $4.9 million in the first quarter of fiscal 2024 to $6.7 million in the first quarter of fiscal 2025. This expansion in margin can be attributed to better cost control and increased efficiencies within the production process.

Selling and administrative expenses grew to $2.8 million, up from $2.3 million in the prior-year quarter. However, research and development (R&D) expenses also increased, from $0.5 million to $1.5 million, reflecting greater investment in innovation and product development. This increased R&D spending is likely aimed at maintaining the company’s competitive edge, particularly in space-related technologies and advanced RF control systems.

The company ended the quarter with a backlog of $70 million, down from $78 million at the end of fiscal 2024, yet still significantly higher than previous years. This backlog reflects a historically high level, providing strong visibility into future revenue streams.

Frequency Electronics’ Segment Performance

Satellite Payloads

Revenues from satellite payloads were a major contributor, accounting for $8.3 million, or 55% of total revenues compared with $4.9 million, or 39% in the prior-year period. This significant increase underscores the strong demand for Frequency Electronics’ space-related products.

Non-space U.S. Government/Department of Defense (DOD) Customers

Revenues from non-space government customers, including the DOD, totaled $6.3 million, representing 42% of total revenues. This marks a decline from $6.9 million (55%) in the same quarter of fiscal 2024. While still a key revenue driver, the relative decrease in government business may indicate a shift in product mix.