SODI · Solitron Devices, Inc.

Solitron Devices reported strong preliminary unaudited results for the fiscal 2026 fourth quarter ended February 28, 2026, with net sales surging approximately 70% to $5.3 million from $3.1 million in the prior year quarter, driven by robust demand in military and aerospace markets. Full-year fiscal 2026 net sales grew 21% to $17.0 million from $14.0 million, reflecting sustained operational momentum post the September 2023 acquisition of Micro Engineering Inc. (MEI), which bolstered capabilities in low to mid-volume projects. However, Q4 net bookings declined 43% to $5.1 million from $8.9 million, attributed to timing shifts such as receiving the AMRAAM Lot 39 order from RTX in Q3 FY2026 versus Lot 38 in Q4 FY2025. Despite softer bookings, backlog expanded significantly by 51% to $27.3 million from $18.1 million year-end, signaling strong future revenue visibility. Management anticipates Q4 gross profit of $2.1 to $2.2 million, operating income of $1.3 to $1.4 million, and pre-tax income of $0.9 to $1.0 million after a one-time $0.3 to $0.4 million charge tied to increased MEI backlog affecting contingent consideration. CEO Tim Eriksen highlighted encouragement around potential multi-year orders for AMRAAM and Standard Missiles components, though defense procurement moves slowly. Concurrently, the Board announced on February 3, 2026, an ongoing review of strategic alternatives including sale, acquisition, or capital return, with a data room active for NDA-signing parties but no investment banker yet engaged. These results underscore Solitron's positioning in defense semiconductors amid government contract reliance, with backlog growth mitigating near-term booking softness for investors.