RF Industries Q4 Earnings Call Highlights

Core Insights - RF Industries reported a strong fourth quarter with net sales increasing by 23% year-over-year to $22.7 million, contributing to a breakout year in fiscal 2025 with total net sales of $80.6 million, up 24% from fiscal 2024 [3][4][7][8] Financial Performance - Fourth-quarter gross margin improved to 37% from 31% a year earlier, driven by higher sales and a favorable product mix [2][3] - Operating income for the fourth quarter was $903,000 compared to $96,000 in the prior-year period, while net income was $174,000, or $0.02 per diluted share [2][9] - Adjusted EBITDA for the fourth quarter was $2.6 million, representing 11.5% of net sales, exceeding the management's target of 10% [2][3][7] Strategic Shift - The company is transitioning from a component supplier to a technology solutions provider, diversifying its end markets with wireless and telecom share decreasing from approximately 70% to 50% [4][6][11] - RF Industries is focusing on new applications and partnerships, particularly in aerospace and infrastructure projects, while forecasting continued sales growth in fiscal 2026 [6][10][12] Operational Improvements - Liquidity remains strong with a $4.6 million reduction in net debt and $5.1 million in cash as of October 31, 2025 [5][16] - The company has improved its revolving credit facility terms, expecting at least $250,000 in interest savings over the next year [17] Market Outlook - Management anticipates another year of sales growth in fiscal 2026, with the first quarter expected to be the lowest due to seasonality [19] - The company aims to maintain profitability above 10% adjusted EBITDA despite ongoing cost pressures [20]