Richardson Electronics (NASDAQ:RELL) expects growth in fiscal 2027 as demand strengthens in semiconductor wafer fabrication, wind turbine power-management products and battery energy storage, Chief Operating Officer Wendy Diddell said during a company presentation.
The company, which will mark its 80th anniversary in roughly six months, reported fiscal 2026 revenue of about $228 million, up from $208 million a year earlier. Net income totaled approximately $6.4 million for the year, compared with a loss in fiscal 2025. Fourth-quarter revenue was $66 million and net income was $3.7 million, compared with $1.1 million in the prior-year quarter, Diddell said.
Global operations and business mix
Diddell said Richardson Electronics operates through 24 legal entities, employs about 430 people and has engineers and sales personnel in 60 locations worldwide. More than half of employees are based at its La Fox, Illinois headquarters. The company has more than 20,000 customers in its database and typically ships to 5,000 to 6,000 customers annually.
Management said more than 55% of revenue now comes from products manufactured by the company in Illinois or produced specifically for it by global factories, reflecting a strategy to increase its focus on engineered solutions rather than conventional distribution.
The company’s largest segment is its Power and Microwave Technologies business, which includes its legacy power-grid tube operations, a component distribution operation and semiconductor wafer-fab products.
- The legacy tube business, called EDG, generates about $80 million in revenue and has remained stable, according to Diddell. Unit volumes have declined somewhat annually, but pricing has offset those declines.
- The company’s distribution business sells products from suppliers including Qorvo and MACOM into applications such as military and satellite communications. Diddell said the business grew in fiscal 2026, though it carries distribution-style lower margins.
- Its semiconductor wafer-fab business supplies high-mix, low-volume power subassemblies used exclusively by Lam Research. Major customers in the broader market include MKS and Lam Research.
Richardson Electronics generated about $32 million of semiconductor wafer-fab revenue in fiscal 2026, Diddell said in response to an analyst question. She said management expects fiscal 2027 revenue in that business to exceed the roughly $40 million generated in fiscal 2023.
Green energy and medical displays
The company’s Green Energy Solutions unit includes wind-turbine battery replacement products, electric rail products and a newer battery energy storage initiative. Richardson Electronics holds patents on modules designed to replace lead-acid batteries in certain GE wind turbines. Diddell said the products can extend battery life from roughly 12 to 18 months to as long as 10 years.
Management estimates the company has replaced batteries in about 15% of more than 30,000 applicable GE turbines in the U.S. The company is also expanding products geographically and pursuing opportunities with other turbine manufacturers, including SSB Wind Systems, Alstom, Nordex and Suzlon. Diddell said Suzlon, an Indian turbine manufacturer, has begun receiving modules and represents the company’s first non-GE OEM opportunity for use in new turbine builds.
In electric rail, Richardson Electronics supplies superstructures for electric locomotives and starter modules for hybrid, diesel and electric locomotives. Customers include Progress Rail, Wabtec, Caterpillar and GE, according to Diddell.
The company’s Canvys display unit generated about $38 million in fiscal 2026, supplying custom displays primarily to medical original equipment manufacturers. Customers include Medtronic, Philips, Siemens, KARL STORZ and Stryker, Diddell said. She described the operation as stable, profitable and requiring relatively little capital.
Battery storage investment and outlook
Management is investing in battery energy storage systems aimed at commercial, industrial and data-center customers rather than utility-scale projects. Diddell said the company recently announced an order for 18 small systems for an Alaskan tribal community.
Richardson Electronics initially plans to resell systems with technology partners, then add its own assembly and technology components over time. Diddell said the company expects fiscal 2027 to be focused on building its sales pipeline and completing permitting and project preparations, with meaningful battery storage revenue growth expected in fiscal 2028.
The company ended fiscal 2026 with nearly $32 million in cash and no debt, Diddell said. It has an unused line of credit with PNC Bank and intends to continue paying its dividend. Management also said a multiyear inventory purchase program was completed in March, with inventory expected to decline and become a source of cash generation going forward.
For fiscal 2027, Diddell said Richardson Electronics expects revenue growth, margin improvement and improved operating income. The company is adding second-shift capacity to meet semiconductor demand and said it could add a third shift if needed.
About Richardson Electronics (NASDAQ:RELL)
Richardson Electronics, Ltd. (NASDAQ:RELL) is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.
In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.
