Frequency Electronics saw lower revenue and net income in Q3 2026, but secured $45M in new contracts, raising backlog to $83M.

Frequency Electronics reported fiscal third-quarter revenue of $16.9 million, down from $18.9 million the prior year, due to revenue shifting from 2025. The company secured two new contracts worth $45 million, boosting backlog to a record $83 million as of January 2026, with expectations to exceed $100 million soon. Revenue from defense and non-space government programs rose to 74% of total, while commercial and satellite revenue fell to 25%. Gross margins declined due to a shift toward lower-margin, engineering-heavy projects. Net income dropped to $1.6 million, impacted by lower revenue, reduced margins, higher SG&A, and the absence of a prior-year tax benefit. The company remains debt-free with strong liquidity and is investing in Colorado to support growth in proliferated satellite and defense markets.