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.

−1,8 %

29,1 %

−1,4 %

−9,4 %

2.29

1.21

— Frequency Electronics, Inc
%
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.

The company sells to both commercial and governmental customers, but its revenue base is heavily tied to U.S...

  • U.S. Government and government-end-use programsprimary

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

  • Prime contractors and subcontractorsprimary

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

  • Commercial communication satellite customerssecondary

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

  • Non-space DOD and defense electronics customerssecondary

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

  • Commercial and industrial customersemerging

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

The company is headquartered in the United States and its revenue is overwhelmingly tied to U.S...

  • United States is the core market and procurement base
  • U.S. Government end-use drives most revenue concentration
  • Foreign government and foreign-company sales add some geographic reach
  • Program timing and customer location can shift quarterly revenue mix
  • Government contracting makes geography more about procurement entity than end market

Management is focused on keeping products at the leading edge of time and frequency technology through ongoing R&D and...

01
Sustain R&D investment in time and frequency technologymedium-term

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

02
Grow space and defense program contentshort-term

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

03
Increase customer-funded development and selective acquisitionsmedium-term

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

The business is highly concentrated in a small number of government-linked customers and programs, so the loss or delay...

high

Customer concentration and program dependence

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

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

Cybersecurity and intellectual property loss

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

Scope
Government contractor information security requirements and proprietary product designs.
Materiality
high
high

Supply chain and space-qualified component availability

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

Scope
Space-qualified parts and circuit boards with limited vendor alternatives.
Materiality
high
medium

Program delays and schedule slippage

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

Scope
Management disclosed customer-imposed delays in satellite and government programs.
Materiality
high
medium

Contract estimation and margin volatility

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

Scope
Production contracts and long-duration programs.
Materiality
high
Percentage-of-completion revenue recognition
Can materially affect quarterly revenue and gross margin
Contract estimates and loss provisions
Can accelerate or reduce profit on long-duration programs
Inventory valuation
Can affect gross margin and working capital
Deferred tax assets and valuation allowance
Can materially affect tax expense and net income

: 28/04/2026