Frequency Electronics(NASDAQ) FEIM

Frequency Electronics makes high-tech clocks for space and defense. These tools help satellites and military systems stay synchronized. The company serves government agencies and communication businesses.

Clocks for Extreme Environments

• Satellite Systems: Precision timing tools for space missions; accounted for 25% of revenues in Q3 2026.
• Government Non-Space: Timing systems for military radar and defense communications; accounted for 74% of revenues in Q3 2026.
• FEI-Zyfer: Navigation tools using Global Positioning System technology for secure Department of Defense systems.
• Commercial and Industrial: Frequency control parts for cellular towers and power networks; accounted for 1% of revenues in Q3 2026.

Growing Through Quantum Tech

• Frequency Electronics opened a Colorado facility for Quantum sensing, which uses subatomic particles for measurements.
• The company stopped all commercial ties with Morion on October 30, 2024, following government sanctions.
• Production of crystal blanks moved in-house to protect the company from supply chain disruptions.

Why Technical Precision Matters

Frequency Electronics builds timing tools tested for the extreme conditions of outer space and combat. The company manages a funded backlog of $83 million as of January 31, 2026.

Key Numbers from Q3 2026

• Revenue reached $16.9 million in Q3 2026, down 10.8% from $18.9 million in Q3 2025.
• Operating income hit $1.3 million in Q3 2026, down 63.4% from $3.5 million in Q3 2025.
• Free cash flow hit -$2.3 million in Q3 2026, an improvement from -$4 million in Q3 2025.
• Funded backlog hit $83 million by January 2026, up from $70 million in April 2025.

How the Business Evolved

Frequency Electronics has shifted its focus from commercial space projects toward United States military contracts and quantum sensors. Moving manufacturing in-house has helped the company manage its supply chain and adapt to new regulations.