RF Industries' Backlog Continues to Grow: Can it Spark a Comeback?

RF Industries RFIL is benefiting from growing adoption of its integrated solutions, with backlog increasing to $15 million at the end of the second quarter of 2025 on bookings of $18.7 million. The company is winning new customers as well as repeat customers, reflecting a strong adoption rate as well as growing credibility and reputation. Strong backlog is expected to drive top-line and bottom-line results, driving shares that have dropped 19.5% in the past month. 

RF Industries expects third-quarter fiscal 2025 sales to be roughly in line with second-quarter sales ($18.9 million) and a significant increase from $16.8 million reported in the year-ago quarter. The company is gaining its footprint among wireless, aerospace, public safety and industrial OEM customers. RFIL is planning to penetrate industries including energy, transportation, wireline telecom and data centers.

Last month, RF Industries announced that it had received $2.3 million in follow-on orders at the company’s Cables Unlimited division for custom cabling solutions from a leading aerospace company. In June, RFIL received $1.7 million in orders for integrated small cell shrouds and related materials from a Tier 1 wireless carrier customer.

The Zacks Consensus Estimate for RFIL’s third-quarter fiscal 2025 revenues is pegged at $18.5 million, suggesting 10% growth from the year-ago quarter.

RFIL Faces Tough Competition in the Connectivity Space

RF Industries faces stiff competition from the likes of Amphenol APH and TE Connectivity TEL in the connectivity and high-speed interconnect domain.

APH’s strong portfolio is helping drive order growth. Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. A plethora of acquisitions — CIT, Lutze, CommScope’s Andrew business, LifeSync, Narda-MITEQ, XMA and Q Microwave — have been driving Amphenol’s prospects.

TE Connectivity is benefiting from strong demand for AI applications as well as energy applications. The company’s Transportation segment is benefiting from strength in Asia, where increased data connectivity trends and the ongoing growth of the electrified powertrain is driving growth. TE Connectivity expects fourth-quarter fiscal 2025 sales to increase 6% organically on a year-over-year basis to $4.55 billion.

RFIL’s Share Price Performance, Valuation & Estimates

RF Industries shares have appreciated 74.7% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 12.6%.

RFIL Stock’s Performance

The RFIL stock is trading at a premium, with a forward 12-month price/sales of 14.81X compared with the Zacks Semiconductors-Radio Frequency industry’s 7.44X. RF Industries has a Value Score of C.

RFIL Valuation

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at 24 cents per share, unchanged over the past 30 days. The company reported a loss of 9 cents in the year-ago quarter.
 

RF Industries, Ltd. Price and Consensus

RF Industries, Ltd. price-consensus-chart | RF Industries, Ltd. Quote

RF Industries currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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