RF Industries Sees 30%+ Margins, 24% Fiscal '25 Revenue Growth and Backlog Surge
RF Industries expects sequential growth in fiscal 2026 after fiscal 2025 revenue rose 24%, supported by a material backlog across integrated systems, custom cabling, small cell and DAC thermal cooling. Q1 gross margins jumped nearly three points year-over-year and management forecasts sustaining 30%+ margins.
1. Fiscal 2025 Recap and Q1 2026 Guidance
RF Industries closed fiscal 2025 with revenue up 24% and expects a similar sequential growth pattern in fiscal 2026 starting from a seasonally challenging Q1. Management highlights that the expanded order backlog underpins this outlook, reflecting materializing pipeline orders across multiple business segments.
2. Gross Margin Gains
Gross margins improved by nearly three percentage points year-over-year, surpassing 30% in Q1 2026. Leadership attributes this durability to effective pricing, a favorable product mix and operational efficiencies augmented by higher sales volumes.
3. Backlog Diversity
The order backlog features a balanced mix of integrated systems, custom cabling, small cell solutions and DAC thermal cooling equipment. This diverse composition helps smooth seasonal and capital-expenditure fluctuations and positions the company for sustained revenue contributions.
4. DAC Thermal Cooling and Supply Chain Measures
DAC thermal cooling has achieved significant installations and trials in edge data center applications, delivering notable cost savings and reliability. Concurrently, RF Industries is bolstering supply chain resilience by diversifying suppliers, strengthening relationships and enhancing process visibility to mitigate risks and support growth.