IEH Corporation Reports 3.9% Revenue Growth for Quarter, Faces Losses in Nine-Month Period

IEH Corporation reported its financial results for the three and nine months ended December 31, 2025, revealing a revenue increase of 3.9% to $7.5 million for the quarter, compared to $7.2 million in the same period last year. However, for the nine-month period, revenue decreased by 3.6% to $20.9 million, down from $21.7 million in the prior year. The company attributed the quarterly revenue growth primarily to a 28% increase in commercial aerospace revenue and a 9% rise in defense revenues, although it noted a significant 58% decline in space revenues due to shifting customer delivery schedules.

The company's cost of products sold for the quarter rose by 16.3% to $6.5 million, driven by tariff charges on European imports and rising gold prices. Total operating expenses for the quarter increased to $8.2 million, leading to an operating loss of $723,444, compared to a loss of $130,086 in the same quarter of 2024. For the nine-month period, the operating loss was $1.6 million, a significant decline from the $376,089 operating income reported in the previous year. The net loss for the quarter was $660,286, compared to a loss of $61,640 in the prior year, while the nine-month net loss totaled $1.3 million, contrasting with a net income of $577,590 in the same period last year.

In terms of operational developments, IEH Corporation's backlog of orders increased to approximately $18.4 million as of December 31, 2025, up from $12.8 million a year earlier, indicating a positive outlook for future revenue. The company continues to serve a diverse customer base across various sectors, including defense, aerospace, and commercial electronics, with defense accounting for 63.7% of revenue in the latest quarter. The company has also expanded its workforce, with an increase in sales personnel dedicated to international markets, contributing to a rise in selling, general, and administrative expenses.

Looking ahead, IEH Corporation remains cautious about the impact of inflation and tariffs on its operations. The company has entered into a revolving line of credit agreement with Chase Bank for up to $1 million and an equipment financing line of credit of $450,000 to support its capital needs. Management believes that existing cash reserves, along with cash generated from operations, will be sufficient to meet anticipated cash requirements for fiscal year 2026 and into fiscal year 2027. However, they acknowledge potential challenges from economic and geopolitical uncertainties that could affect access to capital and overall business performance.