Frequency Electronics Reports 26% Revenue Growth to $69.8 Million for Fiscal Year 2025

Frequency Electronics, Inc. reported a significant increase in financial performance for the fiscal year ending April 30, 2025, with consolidated revenues reaching $69.8 million, a 26% increase from $55.3 million in the previous fiscal year. The company’s net income surged to $23.7 million, compared to $5.6 million in fiscal 2024, resulting in a net income per share of $2.46, up from $0.59. This growth was primarily driven by a 76% increase in revenues from U.S. Government and Department of Defense satellite programs, which accounted for 53% of total revenues in 2025, compared to 40% in 2024.

The company experienced notable changes in its operational structure, particularly in its FEI-NY segment, which saw revenues rise to $53.3 million from $40.3 million, while the FEI-Zyfer segment's revenues remained relatively stable at $18.7 million. The overall gross margin improved to 43.1%, up from 33.6% in the prior year, attributed to efficiencies realized in satellite program contracts and favorable cumulative catch-up adjustments. Selling and administrative expenses increased to $12.3 million, reflecting higher payroll-related costs and trade show expenses, but remained consistent as a percentage of revenue.

Strategically, Frequency Electronics has focused on enhancing its research and development efforts, investing $6.1 million in fiscal 2025, a 79.8% increase from $3.4 million in the previous year. This investment aims to improve existing products and develop new technologies, particularly in satellite and secure communication systems. The company also reported a backlog of approximately $70 million as of April 30, 2025, down from $78 million the previous year, with 64% expected to be filled in the upcoming fiscal year.

The company’s workforce remained stable, employing 226 individuals, with no labor unions represented. However, the average age of employees is increasing, raising concerns about potential retirements of key technical staff in the future. Additionally, Frequency Electronics has terminated its investment in Morion, a Russian crystal oscillator manufacturer, due to geopolitical tensions and sanctions, which has led to a complete impairment of the investment.

Looking ahead, Frequency Electronics anticipates continued growth driven by increased demand for satellite payloads and secure communication systems. The company expects to maintain its focus on R&D and may pursue acquisitions to expand its product offerings. However, it remains cautious about potential risks associated with U.S. Government funding cycles and the reliance on a limited number of large customers, which could impact future revenues.