FEIMNasdaqInstruments For Meas & Testing of Electricity & Elec SignalsUS GAAP · USD

Frequency Electronics, Inc

Frequency Electronics designs and manufactures precision time and frequency control products used in satellite, defense, and communications applications. The company sells primarily into U.S. Government and government-related programs, with products embedded in larger systems built by prime contractors and other customers.

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Revenue63.2m USD
−9.4 %y/y
Operating profit (EBIT)-3.0m USD
−125.6 %y/y
EBIT margin-4.7%
−21.6 ppy/y
Net income-0.9m USD
−103.8 %y/y
Free cash flow-1.6m USD
+51.3 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-20020406080m USD2021: 54 m USD2021: EBIT -0.96 m USD20212022: 48 m USD2022: EBIT -8.0 m USD20222023: 41 m USD2023: EBIT -4.7 m USD20232024: 55 m USD2024: EBIT 5.0 m USD20242025: 70 m USD2025: EBIT 12 m USD20252026: 63 m USD2026: EBIT -3.0 m USD202663-3.0
RevenueOperating profit (EBIT)
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Business

Share of revenue
Time and frequency control products55 %

Precision oscillators, clocks, and related timing products used in satellite and defense systems.

Space communications hardware35 %

Products and subsystems used in commercial and U.S. Government communication satellite programs.

Defense and non-space government systems8 %

Electronics and frequency products sold into U.S. Government and DOD programs outside space.

Commercial and industrial products2 %

Smaller commercial and industrial applications outside the core government and space markets.

Products

Reported · share of revenue
60.1%36.6%FY2026100 %
  • Government Non Space Revenue60.1 %
  • Satellite Revenue36.6 %
  • Other Commercial Industrial Revenue3.3 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells to both commercial and governmental customers, but its revenue base is heavily tied to U.S. Government contracts and subcontracts for government end use. Its products are typically purchased by prime contractors and program customers that integrate FEI components into larger satellite, defense, and communications systems.

U.S. Government and government-end-use programs

Buys precision timing and frequency products for space and defense programs; chosen for qualification, reliability, and mission-critical performance.

Prime contractors and subcontractors

Integrate FEI products into larger satellite, guidance, and communications platforms and drive most program volume.

Commercial communication satellite customers

Purchase timing and frequency hardware for satellite communications payloads and related subsystems.

Non-space DOD and defense electronics customers

Buy frequency control products for defense electronics and mission systems outside the satellite market.

Commercial and industrial customers

Purchase smaller volumes of timing and frequency products for specialized industrial applications.

Strategy

Management is focused on keeping products at the leading edge of time and frequency technology through ongoing R&D and modernization. The company is also working to win additional customer-funded development, support space and defense programs, and selectively pursue acquisitions to broaden its product set.

Sustain R&D investment in time and frequency technologyMedium term

Product performance and qualification are central to winning space and defense programs.

Grow space and defense program contentShort term

Most revenue comes from mission-critical government-linked programs with recurring qualification barriers.

Increase customer-funded development and selective acquisitionsMedium term

These can expand the product portfolio while limiting internal capital burden.

Geography

2026

The company is headquartered in the United States and its revenue is overwhelmingly tied to U.S. procurement entities and U.S. Government end-use programs. It also records sales to foreign governments and foreign companies, but the business remains centered on U.S.-linked defense and space demand.

Other countries (US filing)100 %

Risks

The business is highly concentrated in a small number of government-linked customers and programs, so the loss or delay of any major contract can materially affect revenue. Execution risk is elevated because products are built into complex satellite and defense systems, while cybersecurity, supply chain, and contract-estimate risk can all affect delivery, margins, and compliance.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Supply chain and space-qualified component availability1Customer concentration and program dependence2Cybersecurity and intellectual property loss3Program delays and schedule slippage4Contract estimation and margin volatility5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Supply chain and space-qualified component availabilityImpact: HighLikelihood: High

    The company relies on specialized suppliers, and shortages or quality issues can delay projects and increase costs.

    Exposure: Space-qualified parts and circuit boards with limited vendor alternatives.

  2. Customer concentration and program dependenceImpact: HighLikelihood: Medium

    A few large customers and U.S. Government-linked programs account for most sales, so cancellations or recompetition would hit revenue quickly.

    Exposure: Approximately 94% of fiscal 2025 sales were under U.S. Government contracts or subcontracts for government end use.

  3. Cybersecurity and intellectual property lossImpact: HighLikelihood: Medium

    As a defense contractor, the company is a target for attacks that could disrupt operations or compromise sensitive designs.

    Exposure: Government contractor information security requirements and proprietary product designs.

  4. Program delays and schedule slippageImpact: MediumLikelihood: Medium

    Revenue is tied to customer programs and percentage-of-completion accounting, so timing changes can move revenue between quarters.

    Exposure: Management disclosed customer-imposed delays in satellite and government programs.

  5. Contract estimation and margin volatilityImpact: MediumLikelihood: Medium

    Over-time revenue recognition depends on cost-to-complete estimates, so revisions can materially change profitability.

    Exposure: Production contracts and long-duration programs.

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Accounting

Judgemental items
Percentage-of-completion revenue recognition

Revenue is recorded based on estimated costs incurred versus total estimated contract costs, so estimate changes flow through earnings.

Impact: Can materially affect quarterly revenue and gross margin

Contract estimates and loss provisions

Management must estimate cost to complete and recognize anticipated losses when determinable.

Impact: Can accelerate or reduce profit on long-duration programs

Inventory valuation

Specialized and space-qualified inventory may require reserves if realizable value falls below cost.

Impact: Can affect gross margin and working capital

Deferred tax assets and valuation allowance

The company disclosed a valuation allowance release tied to cumulative earnings and backlog evidence.

Impact: Can materially affect tax expense and net income

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Last updated: 24/09/2026