Executive Summary

Q4 FY2025 delivered ~flat revenue sequentially at $7.12M* and swung to profitability with $0.17 EPS*, helped by price actions and operating expense discipline; however, margins remained subpar versus history due to input cost inflation and tariffs .
Management reiterated a cautious top-line outlook first flagged with the 10-K, noting it is “possible that revenue in Fiscal Year 2026 will be slightly lower than 2025,” while also pointing to price adjustments to bolster gross margins going forward .
Near-term demand signals strengthened post-Q4: Q1–Q2 FY2026 updates cited “over $2.5M” and “over $7M” in missile-defense orders, driving a nearly five-year high backlog and improved visibility; cash balances also rose year-over-year and sequentially .
No formal numeric guidance and no Q4 earnings call transcript available; key stock catalysts center on defense order conversion/backlog monetization, Boeing 737 MAX production normalization, and gross margin expansion as pricing catches up to materials inflation (notably gold) and tariffs .

What Went Well and What Went Wrong

What Went Well

Strong FY momentum into Q4: FY2025 revenue +33.7% YoY to $28.78M with a swing to positive operating and net income; management expects pricing actions to “bolster our gross margins going forward” .
Backlog and bookings acceleration post-Q4: “Over $2.5M” of orders in recent weeks (Q1 FY2026) and “over $7M” in Q2 FY2026 (missile defense and other military programs), yielding the highest backlog since December 2020 and a “very positive” outlook .
Commercial aerospace recovery signs: Management highlighted increasing business tied to Boeing 737 MAX following FAA output decisions, and improving activity across supported platforms .

What Went Wrong

Margin pressure from input costs and tariffs: Management cited “steep rise in gold, along with tariffs and other rising costs” pressuring margins despite price increases; Q3 FY2025 margins were also hit by product mix and higher overhead .
Uneven quarterly cadence: Q1 FY2026 revenue fell 11% YoY on customer schedule delays and the slow commercial aerospace recovery; management continues to caution quarter-to-quarter variability .
Control/process overhangs and regulatory uncertainty: The 10-K disclosed a material weakness in ITGC and reiterated uncertainties around the SEC’s 12(j) administrative proceeding timing/outcome (though the company remains current on filings) .

Financial Results

Note: IEH does not typically issue a standalone Q4 press release; Q4 figures are sourced from S&P Global. Where company press releases provide figures (e.g., Q3), we cite them directly.

Metric (USD)	Q4 2024 (oldest)	Q3 2025	Q4 2025 (newest)
Revenue	$6.93M*	$7.22M	$7.12M*
Gross Profit	$0.86M*	$1.79M*	$1.46M*
Gross Margin %	12.4%*	24.8%*	20.5%*
EBITDA	-$0.11M*	$0.05M*	$0.39M*
EBITDA Margin %	-1.6%*	0.7%*	5.4%*
EBIT	-$0.34M*	-$0.13M	$0.20M*
EBIT Margin %	-4.9%*	-1.8%*	2.8%*
Net Income	$0.43M*	-$0.06M	$0.42M*
Diluted EPS	$0.18*	-$0.03	$0.17*
Total Operating Expenses	$7.26M*	$7.35M*	$6.92M*

Q3 FY2025 figures (revenue, operating loss, net loss, EPS) from company’s 8-K: revenue $7.22M; operating loss $130k; net loss $62k; basic loss per share $0.03 .
Asterisked values are from S&P Global. Values retrieved from S&P Global.

Recent quarterly trend (reported + post-Q4 updates):

Metric (USD)	Q4 2025	Q1 2026	Q2 2026
Revenue	$7.12M*	$6.31M	$7.08M
Operating Income (Loss)	$0.20M*	-$0.76M	-$0.10M
Net Income (Loss)	$0.42M*	-$0.65M	-$0.03M
Basic EPS	$0.17*	-$0.27	-$0.01

Asterisked values are from S&P Global. Values retrieved from S&P Global.

Context KPIs and liquidity:

Cash at 3/31/25: $10.54M (up sharply YoY); working capital $19.78M .
Backlog at 3/31/25: $12.45M (down YoY as defense contracts awaited execution; later rebuilt to a nearly five-year high by Q2 FY2026) .
Q1 FY2026: cash 43% higher YoY; backlog +25% since FY2026 start .
Q2 FY2026: cash +9% YoY; >$7M orders booked; highest backlog since Dec 2020 .

Guidance Changes

IEH provides qualitative outlook rather than formal numerical guidance.

Metric	Period	Previous Guidance	Current Guidance (Q4 context)	Change
Revenue	FY2026	“Possible that revenue in FY2026 will be slightly lower than 2025” (10-K press release)	Outlook “very positive” supported by defense orders/backlog; no numeric ranges (Q1–Q2 updates)	Maintained qualitative caution on FY26 revenue; improved demand visibility post-Q4
Gross Margin	Forward	Price adjustments “will bolster our gross margins going forward”	Continuing price actions; mix improving with sole-source defense; inflation/tariffs still headwinds	Maintaining path to expansion, timing dependent on costs/mix
End-market color	Near-term	Commercial aerospace below targets; uneven quarterly cadence	Boeing 737 MAX output increase supportive; growing commercial space applications	Modestly improved outlook in aero/space
Capital allocation/M&A	Ongoing	N/A	Active pursuit of acquisitions to diversify products/markets	New qualitative disclosure

Earnings Call Themes & Trends

(No Q4 FY2025 earnings call transcript was available; themes synthesized from press releases and the 10-K.)

Topic	Previous Mentions (Q-2: Q1 FY2026; Q-1: Q2 FY2026)	Current Period (Q4 FY2025 context)	Trend
Defense demand/backlog	Q1: “Over $2.5M” in missile-defense orders; backlog +25% since FY26 start . Q2: “Over $7M” booked; highest backlog since Dec 2020; many sole-source and “highly profitable” .	FY: defense mix 65.7%; visibility improving; pipeline strong .	Strengthening; backlog rebuild supports sequential recovery
Input costs/tariffs	Q1: Headwinds from costs; slow aero recovery . Q2: “Steep rise in gold… tariffs… rising costs” pressuring margins .	FY: pricing actions implemented to bolster gross margins .	Still headwind; offset by price actions and mix
Commercial aerospace	Q1: Slow recovery; weighing on quarterly variability . Q2: FAA enabling higher 737 MAX output; expecting growth to accelerate .	FY: may remain uneven quarter-to-quarter .	Improving sequentially; still lumpy
Product/mix and space	Q1: Commercial space launch growth . Q2: More designs in commercial space; international expansion .	FY: broadened product efforts; targeted new industries .	Positive mix shift potential
Controls/SEC process	—	Material weakness in ITGC; SEC 12(j) proceeding timing unknown; company current in filings .	Overhang persists; remediation in progress

Management Commentary

“Our margins continue to be lower than desired due to the rise in our material costs, but price adjustments implemented over the last several months will bolster our gross margins going forward and be reflected in future financial statements.”
“In this quarter alone we booked over $7 million in new orders in support of missile defense and other military programs. This has led to our highest backlog since December 2020… much of this business is sole-source and thus highly profitable.”
“As forecasted… our results from one quarter to the next may be uneven… due primarily to customer schedule delays, along with the still slow recovery of the commercial aircraft sector.”
“It’s possible that revenue in Fiscal Year 2026 will be slightly lower than 2025… the overall strength of our sales pipeline… should lead to considerable long-term growth.”
“We also continue to actively pursue acquisition opportunities, for the purpose of diversifying both our product offerings, as well as our markets served.”

Q&A Highlights

No Q4 FY2025 earnings call transcript was found in our document system; management disclosures are based on 8-K press releases and the FY2025 10-K .

Estimates Context

Wall Street consensus (S&P Global) for Q4 FY2025 EPS and revenue was not available; consequently, no beat/miss assessment versus consensus can be provided at this time. Values retrieved from S&P Global.

Key Takeaways for Investors

Backlog rebuild and defense order momentum post-Q4 should underpin revenue stability and eventual growth; watch conversion pace and program timing into 2H FY2026+ .
Margin recovery hinges on price realization catching up to input cost inflation (notably gold) and tariffs; management expects pricing to bolster gross margins, aided by higher-margin sole-source defense mix .
Commercial aerospace is a call option: Boeing 737 MAX production increases and broader platform normalization would provide incremental uplift over the next few quarters .
Execution risks include ongoing ITGC remediation and the unresolved SEC 12(j) proceeding; both remain non-fundamental overhangs to monitor .
Liquidity is solid (cash $10.5M; strong working capital), providing flexibility to navigate volatility and pursue bolt-on M&A opportunities to diversify end-markets .
Expect continued quarter-to-quarter lumpiness; the medium-term setup is favorable if defense-driven backlog converts and gross margin expansion materializes.

Footnotes:

Asterisked values are from S&P Global. Values retrieved from S&P Global.
Company-sourced figures and statements are cited from IEH’s press releases and FY2025 10-K: Q3 FY2025 results ; Q1 FY2026 ; Q2 FY2026 ; FY2025 commentary, mix, backlog and liquidity ; controls/SEC disclosure .

IEH Corp (IEHC)·Q4 2025 Earnings Summary