Richardson CEO cites strong backlog as stock rallies 18%

Richardson Electronics (RELL) shares jumped 18% premarket on Thursday after delivering a healthy Q4 beat and reporting a three-year backlog peak of $164.4 million, up 8.7% sequentially.

Fiscal 2026 net sales increased 9.4%, marking the company’s second consecutive year of annual sales growth, Richardson Electronics (RELL) said.

“Our backlog ended the year at its highest level in three years, reflecting continued customer activity across several of our key markets. We are encouraged by the opportunities we see in power management, semiconductor manufacturing, defense, energy storage, and customized display solutions," CEO Edward J. Richardson said.

PMT sales increased $10.4 million, or 28.1% due to strong growth in semiconductor wafer fab and RF and microwave products. GES sales increased by $1.1 million, or 20.4%, as a result of higher sales of Wind products, while Canvys’ sales increased by $2.8 million, or 29.5%, reflecting higher sales in North America.

Gross margin for the fourth quarter was 31.2% of net sales, compared to 31.6% during the fourth quarter of fiscal 2025.

Richardson Electronics (RELL) maintained its solid financial position with cash and cash equivalents of $31.8 million as of May 30, 2026, versus $29.5 million as of February 28, 2026.  

Additionally, RELL declared a $0.06 quarterly cash dividend per share to holders of common stock and a $0.054 cash dividend per share to holders of Class B common stock.

The stock has surged 65% YTD, even as Seeking Alpha's Quant system maintains a Hold rating.