Richardson Electronics Q1 2025 Earnings: Revenue Up 6.3% YoY, EPS Beats Expectations

Richardson Electronics reported FY 2025 revenue of $208.9m, up 6.3% YoY, and a net loss of $1.14m, compared to a profit of $61.0k in FY 2024. EPS beat expectations by 24%. The company forecasts 7.5% revenue growth on average over the next 2 years, lower than the 8.2% growth forecast for the US Electronic industry.

Title: Richardson Electronics Reports FY 2025 Financials; Focuses on Green Energy Solutions

Richardson Electronics, Ltd. (RELL) reported its fiscal year 2025 (FY25) financial results, revealing a 6.3% year-over-year (YoY) increase in revenue to $208.9 million, a net loss of $1.14 million, and an earnings per share (EPS) that beat market expectations by 24%. The company's forecast for an average 7.5% revenue growth over the next two years is slightly lower than the 8.2% growth forecast for the U.S. electronic industry [1].

Key financial highlights include a 6.3% YoY increase in net sales, driven primarily by the Power and Microwave Technologies (PMT) and Green Energy Solutions (GES) segments. Gross profit improved to 31.0% of net sales, up from 30.5% in FY2024, reflecting a favorable product mix [2]. However, operating income was a loss of $2.5 million, largely due to the $5.1 million loss on the disposal of healthcare assets.

The company's cash position remains robust, with $35.9 million in cash and cash equivalents as of May 31, 2025. This strong cash position provides flexibility for ongoing operations and strategic growth opportunities, particularly in the Green Energy Solutions segment [2]. Richardson Electronics plans to leverage the proceeds from the sale of healthcare assets to support growth initiatives in this segment.

Richardson Electronics is focused on expanding its green energy products and programs. The TransAlta agreement has contributed to a strong pipeline of future growth, and the company is exploring strategic opportunities and acquisitions to drive growth [1]. The company's strategic initiatives include the sale of a substantial portion of its healthcare business assets to DirectMed Imaging, LLC, which included an exclusive 10-year global supply agreement.

Despite the challenges posed by elevated inflation, ongoing supply chain pressures, and global instability, particularly in Europe and Asia, Richardson Electronics is well-positioned to continue its strategic growth initiatives. The company's management is working to mitigate the impact of these challenges and maintain a strong financial position.

References:
[1] https://www.ainvest.com/news/richardson-electronics-q4-earnings-call-strong-sales-growth-improved-metrics-robust-cash-position-2507/
[2] https://www.tradingview.com/news/tradingview:f65d05f4ac7fe:0-richardson-electronics-ltd-sec-10-k-report/