RF Industries reported fourth-quarter net sales of $22.7 million, reflecting a 23 percent increase year over year and a 15 percent rise sequentially from the prior quarter. Sales gains were driven by robust demand in the company’s interconnect products division, where order volumes climbed 18 percent compared to Q4 of the prior fiscal year. Management attributed the uptick to new design wins in the telecommunications and medical device markets, as well as expanded distribution agreements that expanded RF Industries’ market reach in Europe and Asia.

The company posted adjusted earnings per share that exceeded consensus forecasts by approximately 12 percent, marking the third consecutive quarter of upside surprises. Gross margin expanded by 260 basis points year over year to 34.5 percent, while operating margin widened to 10.8 percent on improved production efficiencies and disciplined cost management. CFO Peter Yin highlighted reduced material costs and higher factory utilization rates as key contributors to the margin expansion.

Following the earnings release, RF Industries’ stock surged over 20 percent in after-hours trading, driven by investor enthusiasm for both top-line momentum and margin improvement. CEO Rob Dawson reiterated confidence in sustaining double-digit revenue growth for the full year, pointing to a healthy backlog of contracted orders and ongoing investment in automated assembly lines. The company declined to provide formal guidance but emphasized its commitment to maintaining strong free cash flow generation and pursuing strategic acquisitions to bolster its product portfolio.