Richardson Electronics Reports 9.4% Sales Increase and Net Income Turnaround for Fiscal Year Ending May 30, 2026

Richardson Electronics, Ltd. reported a net sales increase of 9.4% for the fiscal year ending May 30, 2026, reaching $228.6 million, compared to $208.9 million in the previous fiscal year. The company achieved a gross margin of 31.2%, slightly up from 31.0% in fiscal 2025. Operating income improved significantly to $6.5 million from an operating loss of $2.5 million in the prior year, while net income was reported at $6.4 million, a turnaround from a net loss of $1.1 million in fiscal 2025. This financial performance reflects a recovery in demand across various segments, particularly in Power and Microwave Technologies (PMT), which saw a 9.1% increase in sales.

The company underwent a strategic realignment of its operating segments, consolidating its Healthcare segment into PMT, resulting in three reportable segments: PMT, Green Energy Solutions (GES), and Canvys. This change was influenced by the sale of a substantial portion of the Healthcare business to DirectMed Imaging, LLC, which occurred on January 24, 2025. The transaction included a 10-year global supply agreement for CT X-ray tubes, which will continue to generate revenue for Richardson. The company also reported a gain of $0.8 million from the sale of remaining Healthcare assets in fiscal 2026.

Operationally, Richardson Electronics expanded its customer base, particularly in the GES segment, which reported a 7.3% increase in sales due to new customers and products. The company’s international sales accounted for 60% of total sales, with significant contributions from North America, Asia/Pacific, and Europe. The PMT segment's growth was driven by strong demand in RF and Wireless Components and the Semiconductor Wafer Fab market. The company maintained a workforce of 429 employees as of May 30, 2026, with a focus on retaining skilled personnel to support its growth initiatives.

Looking ahead, Richardson Electronics expressed optimism about its growth trajectory, particularly in the green energy sector and power management applications. The company aims to leverage its engineering capabilities and strategic partnerships to enhance its market position. However, it acknowledged potential risks, including supply chain disruptions, competitive pressures, and economic uncertainties that could impact future performance. The management remains committed to executing its growth strategies while navigating these challenges.