A New York-based technology firm has emerged as a critical supplier for one of America’s most vital defense platforms. Frequency Electronics, through its subsidiary FEI-Zyfer, has captured a multimillion-dollar agreement to support the Patriot Missile Program, highlighting its strategic role in national security infrastructure.
Contract Value and Technical Specifications
The defense logistics contract carries a base value of $3.14 million, with potential expansion to $6.65 million if all options are exercised over its three-year term. Through October 2028, the company will provide advanced synchronization and reference systems essential for the missile defense network. These systems rely on acceleration-compensated quartz crystal oscillators and rubidium atomic clock technology, engineered to maintain precision in demanding mobile defense environments. This agreement is projected to contribute between 5% and 10% to Frequency Electronics’ annual revenue, establishing a predictable income stream through 2028.
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Strong Financial Foundation
This significant contract award follows an exceptional financial performance period. The company recently reported robust fiscal 2025 results, with revenue climbing to $69.8 million from $55.3 million—a substantial increase that accompanied a nearly fourfold surge in net income to $23.7 million. With a debt-free balance sheet and healthy working capital position, Frequency Electronics possesses the financial stability to efficiently execute major government contracts.
Market Performance and Future Outlook
Investors have recognized the company’s strengthening position, driving shares to impressive gains. The stock has advanced 136% over the past twelve months and currently trades well above its key 200-day moving averages. While defense contracts remain a core business, Frequency Electronics is simultaneously investing in next-generation technologies. The company is directing research and development resources toward quantum sensing and advanced navigation systems, positioning itself for sustained growth in emerging technology sectors. Market observers will be watching to see if this recent contract win provides additional momentum for the company’s upward trajectory.
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