RF Industries Sprints into Fiscal 2026 with Record-Breaking Momentum
RF Industries has kicked off its fiscal year 2026 with a bang, posting net sales of $19 million in the first quarter. While this figure may seem shy of last year's record-breaking numbers, CEO Robert Dawson emphasizes that it reflects a far greater diversity of products, customers, and end markets.
What's more impressive is the company's significant expansion and profitability. Compared to the first quarter last year with similar net sales, RF Industries saw a 250-basis-point improvement in gross margin, reaching 32.3%. Operating income tripled to $177,000, and adjusted EBITDA increased by 22% to nearly $1.1 million.
Dawson attributes this success to the company's strategic efforts over the past few years, which have led to a clear line of sight for scaling both business and profitability. One key factor is RF Industries' ability to work its way up the food chain with the largest communications companies in the country.
As a solutions provider with a portfolio of technology-forward products and solutions, RF Industries has expanded access to new opportunities that fall squarely into operating budgets versus CapEx spend. This makes the company far less reliant on cyclical tier-one wireless capital spending, allowing it to participate more consistently in year-round maintenance and replacement schedules.
RF Industries' state-of-the-art systems, such as Direct Air Cooling and small cell, are also gaining traction, providing a strong foundation for future growth. The company's backlog currently stands at $18.6 million, an increase of over $6 million since the last earnings report in mid-January.
CEO Robert Dawson is optimistic about RF Industries' prospects, citing momentum as a result of strategy and execution moving together in lockstep. As he puts it, "Momentum doesn't just happen; it's earned when strategy and execution move together in lockstep."
