Richardson Electronics (RELL) Q1 2026 Earnings Report

Richardson Electronics reported QQ1 2026 net sales of $54.6 million, up 1.6% year over year, with pro forma growth excluding Healthcare of 6.8%. The PMT and Canvas segments drove solid year-over-year growth, while GES posted a modest decline due to a large EV locomotive order that did not recur this year. PMT grew 2.8% on a reported basis, with PMT excluding healthcare up 10.5% YoY, reflecting stronger demand from semiconductor wafer fab customers and legacy power grid tube lines. Canvas increased 8.3% YoY, aided by Europe, while GES declined 10.2% YoY due to the nonrecurrence of a prior-year EV locomotive order, though wind-related products posted a substantial upturn (wind segment up 86.1% YoY).

Consolidated gross margin rose to 31.0% from 30.6% in the prior year, driven by PMT and GES mix improvements, partially offset by Canvas. Operating income improved to $0.97 million (versus $0.3 million prior year), and EBITDA reached $3.3 million, reflecting portfolio discipline and favorable product mix. Net income of $1.91 million and diluted EPS of $0.13 mark a meaningful uplift from the prior-year quarter. Cash flow remained constructive, with operating cash flow of $1.37 million and free cash flow of $0.34 million. The balance sheet remains net cash positive (cash and equivalents of approximately $35.7 million; total debt of about $2.0 million; net debt around -$33.6 million), underscoring financial flexibility to fund strategic initiatives.

Management signaled a constructive multi-year growth trajectory for PMT and GES, anchored by ongoing product introductions, stronger design-to-production cycles, and international expansion. Notable catalysts include investments in wind energy modules, energy storage solutions (ESS), a Sweetwater design center ramp in Texas, REV Illinois subsidies, and broader Europe/Asia market penetration. The company maintained a modest capex plan (~$4–$5 million) and a continued focus on operating expense discipline and cash generation, including a quarterly dividend of $0.06 per share. Taken together, RELL’s QQ1 2026 results reflect a resilient, diversified engineered-solutions platform with improving margins and a prudent balance sheet that supports strategic growth.