Frequency Electronics Inc. Awarded Contract for Geostationary Satellite Constellation
Rhea-AI Summary
Frequency Electronics (NASDAQ:FEIM) announced a contract award valued at approximately $9.2 million to supply precision time and frequency systems for a geostationary environmental satellite program. The scope includes oscillators, frequency distribution units and spares for integration into three satellites with deliveries scheduled through 2028, and four potential additional satellites may be procured later.
The contract underscores FEIM’s heritage in GEO constellations and positions its quartz oscillators for space and defense applications.
Positive
- $9.2M contract award for GEO environmental satellite program
- Deliveries planned through 2028 for three satellites
- Option potential for four additional satellites to augment constellation
- Reinforces FEIM heritage capability in GEO constellations
Negative
- Contract value may be limited relative to company revenue (not quantified)
- Company cites reliance on key customers as a business risk
- Forward-looking risks include supply chain and material cost pressures
News Market Reaction
On the day this news was published, FEIM gained 4.16%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.0% during that session. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $23M to the company's valuation, bringing the market cap to $567M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
FEIM gained 5.16% with peers also positive: AVNW +2.02%, CLFD +5.56%, GILT +4%, TSAT +6.32%, ADTN +0.34%. Scanner data did not flag a coordinated sector momentum move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 11 | Earnings results | Positive | +3.4% | Q2 FY2026 revenue and backlog growth with positive net income. |
| Dec 09 | Earnings call notice | Neutral | -2.5% | Scheduling of Q2 FY2026 conference call and webcast details. |
| Nov 24 | Contract increase | Positive | -1.0% | FEI-Zyfer follow-on change orders totaling about $4.75M through 2027. |
| Sep 11 | Earnings results | Negative | -21.0% | Q1 FY2026 revenue and income declines despite strong backlog and buyback. |
| Sep 09 | Earnings call notice | Neutral | +0.3% | Announcement of Q1 FY2026 results conference call schedule. |
News-driven moves mostly align with tone: earnings and neutral events tracked expectations, while one prior contract increase saw a mild negative divergence.
Over the past several months, Frequency Electronics has reported Q1 and Q2 FY2026 results with revenue of $13.8M and $17.1M, respectively, alongside a growing funded backlog rising toward $82M. The company announced a $20M share repurchase authorization and highlighted participation in key defense programs. It also disclosed a prior contract increase of about $4.75M for airborne timing systems. Today’s $9.2M geostationary satellite contract continues the pattern of backlog-supportive awards following earlier financial updates and program wins.
Market Pulse Summary
This announcement details a $9.2M contract for precision timing and frequency systems in a geostationary environmental satellite constellation, covering three satellites with potential expansion to four more and deliveries through 2028. It builds on earlier awards that helped lift funded backlog toward $82M. Investors may track how this and similar contracts affect future revenue mix, margins, and backlog, alongside execution risks and customer concentration noted in recent regulatory filings.
Key Terms
geostationary technical
C4ISR technical
electronic warfare technical
AI-generated analysis. Not financial advice.
MITCHEL FIELD, N.Y., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products for space and terrestrial applications, is pleased to announce that it has been awarded a significant contract to provide precision time and frequency systems for a geostationary environmental satellite program.
This contract is valued at approximately
This contract highlights FEI’s continued capability to perform in GEO constellations with the trusted reliability from heritage customers and programs. FEI’s quartz oscillators are renowned for their reliability, stability, and precision—critical attributes for applications in space and defense.
FEI President and CEO, Tom McClelland commented, “We are proud to be selected as a trusted supplier for this heritage program. This contract is a testament to the long-standing relationship we have built with our customers and the quality and precision of our products as well as the value we provide to our customers.”
About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in the design, development and manufacture of high precision timing, frequency generation and RF control products for space and terrestrial applications. FEI’s products are used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, energy exploration and wireline and wireless networks. FEI-Zyfer provides GPS and secure timing capabilities for critical military and commercial applications; FEI-Elcom Tech provides Electronic Warfare (“EW”) sub-systems and state-of-the-art RF and microwave products. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development to expand its capabilities and markets.
www.frequencyelectronics.com
FEI’s Mission Statement: “Our mission is to transform discoveries and demonstrations made in research laboratories into practical, real-world products. We are proud of a legacy which has delivered precision time and frequency generation products, for space and other world-changing applications that are unavailable from any other source. We aim to continue that legacy while adapting our products and expertise to the needs of the future. With a relentless emphasis on excellence in everything we do, we aim, in these ways, to create value for our customers, employees, and stockholders.”
Forward-Looking Statements
The statements in this press release regarding future earnings and operations and other statements relating to the future constitute “forward-looking” statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, our inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, reliance on key customers, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, other supply chain related issues, increasing costs for materials, operating related expenses, competitive developments, changes in manufacturing and transportation costs, the availability of capital, the outcome of any litigation and arbitration proceedings, and failure to maintain an effective system of internal controls over financial reporting. The factors listed above are not exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the Securities and Exchange Commission. The Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025, filed on July 18, 2025 with the Securities and Exchange Commission includes additional factors that could materially and adversely impact the Company’s business, financial condition and results of operations, as such factors are updated from time to time in our periodic filings with the Securities and Exchange Commission, which are accessible on the Securities and Exchange Commission’s website at www.sec.gov. Moreover, the Company operates in a very competitive and rapidly changing environment. New factors emerge from time to time and it is not possible for management to predict the impact of all these factors on the Company’s business, financial condition or results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by the Company or its management may turn out to be incorrect. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Contact information: | Dr. Thomas McClelland, President and Chief Executive Officer; |
| Steven Bernstein, Chief Financial Officer; | |
| TELEPHONE: (516) 794-4500 ext.5000 WEBSITE: www.freqelec.com | |
FAQ
How much is the Frequency Electronics (FEIM) GEO satellite contract worth?
What products will FEIM supply under the January 6, 2026 contract?
How many satellites are covered by FEIM’s $9.2M contract and what is the delivery timeline?
Does the FEIM contract include options for more satellites?
What does the FEIM award mean for the company’s GEO business capability?
What risks did FEIM disclose related to this contract?
