Solitron Devices, Inc. reported a significant increase in financial performance for the fiscal year ending February 28, 2026, with net sales reaching $16.97 million, a 21% increase from $14.05 million in the previous fiscal year. The company's gross profit also rose to $5.12 million, up from $3.99 million, reflecting a gross profit margin of 30%, compared to 28% in the prior year. Despite the increase in revenue, net income slightly decreased to $807,000 from $815,000, primarily due to adjustments related to contingent consideration from the acquisition of Micro Engineering Inc. (MEI).
The company experienced a notable increase in its backlog, which rose by approximately 51% to $27.28 million as of February 28, 2026, compared to $18.11 million the previous year. This increase was attributed to heightened order activity, including a significant order related to the AMRAAM program. The number of units shipped also increased, with 83,967 units delivered in fiscal 2026, up from 73,319 units in fiscal 2025. The book-to-bill ratio improved to 1.54, indicating a healthy order intake relative to sales.
Strategically, Solitron completed the acquisition of MEI on September 1, 2023, which specializes in electronic component design and manufacturing. This acquisition is expected to enhance Solitron's capabilities in addressing design challenges and expanding its product offerings. The company has also focused on increasing its market presence in non-military sectors, although it continues to rely heavily on government contracts, which accounted for approximately 54% of sales in fiscal 2026.
Operationally, Solitron's workforce comprised 76 employees across its West Palm Beach and Apopka facilities, with a focus on production and technical support. The company has maintained good employee relations and has not experienced any work stoppages. However, it faces challenges related to supplier concentration, as two suppliers accounted for 41% of production materials in fiscal 2026, down from 51% in the previous year. The company is also navigating the impacts of increased tariffs and inflation on its cost structure.
Looking ahead, Solitron plans to continue pursuing growth through strategic partnerships and product diversification, particularly in commercial semiconductors. The company anticipates that its cash reserves, which stood at approximately $3.91 million as of February 28, 2026, will be sufficient to support its operations and capital expenditures in the near term. However, management acknowledges the potential for economic uncertainties and competitive pressures to impact future performance.
About SOLITRON DEVICES INC
Solitron Devices, Inc. designs, manufactures, and markets solid-state semiconductor components primarily for military and aerospace applications. Its products include power transistors, MOSFETs, hybrids, and voltage regulators, serving government, defense, and aerospace markets. The company emphasizes high reliability, custom solutions, and compliance with military standards, competing on quality and performance in a highly regulated, niche industry with significant customer concentration.
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