IEH Corporation — Cyborg Score 5/10

Mixed
Aerospace and defense connectors and interconnects

Strategic Profile

FY 2026 revenue rose to $29.4 million (up 2.2%), while backlog increased to approximately $27.8 million as of March 31, 2026, driven by higher defense demand and recovering commercial aerospace activity. In January 2026, the SEC dismissed a Section 12(j) administrative proceeding against IEH, removing regulatory overhang. However, cost inflation in materials, tariffs and labor drove a net loss of $1.30 million in fiscal 2026 versus prior-year profit.

Cyborg Score Rationale

Order backlog nearly doubled to $27.78 million, signaling strong demand momentum in defense and commercial aerospace. The company maintains solid liquidity with $9.6 million in cash and $18.9 million in working capital. However, material cost inflation, tariffs and labor costs drove a net loss despite stable defense demand, with cost of sales rising 12% while revenue increased only 2.2%.

Top Insights

  • Backlog doubled to $27.8M as of March 2026, driven by higher defense demand and recovering commercial aerospace activity
  • SEC dismissed administrative proceeding in January 2026, removing regulatory overhang and supporting potential uplisting
  • Company upgraded to OTCQX Best Market in February 2026, improving trading visibility
  • Two customers represented 34% of FY2026 revenue, creating concentration risk

Named Competitors

  • SOURIAU — Aerospace and defense connectors and interconnects
  • Heilind Electronics — Aerospace and defense interconnect distributor
  • Phoenix Contact — Industrial and aerospace connectors and terminal systems

Recent Developments

  • (March 2026) FY 2026 revenue of $29.4M (up 2.2%), but net loss of $1.30M due to material cost inflation and tariffs
  • (March 2026) Order backlog reached $27.8M, nearly double prior year, driven by defense and recovering commercial aerospace
  • (January 2026) SEC dismissed Section 12(j) administrative proceeding
  • (February 2026) Company upgraded to trade on OTCQX Best Market

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