FEI‑Zyfer, a subsidiary of Frequency Electronics, secured new defense contracts totaling $6 million, adding to its portfolio of tactical data link and aircraft signal distribution agreements. The award, announced on January 12, 2026, is expected to generate recurring revenue over the life of the programs and will increase the subsidiary’s backlog and cash flow.
The contracts cover Assured‑PNT services for secure communications systems and time‑frequency synchronization for airborne avionics equipment. These capabilities are critical for military platforms that require reliable positioning, navigation, and timing in GPS‑denied environments, underscoring FEI‑Zyfer’s role as a trusted supplier for mission‑critical defense applications.
The new agreements build on a strong financial foundation: Frequency Electronics reported Q2 FY2026 revenue of $17.1 million and a backlog of $82 million. The $6 million contract adds to that backlog and reinforces the company’s ability to secure high‑value defense work, supporting its ongoing investment in quantum sensing and other next‑generation technologies.
Tom McClelland, President and CEO, said the contracts “reflect the growing demand for secure information exchange in military operations and the need for transparent system interoperability between military and agency participants.” He added that the new work will help sustain the company’s momentum in Assured‑PNT and enable further development of quantum‑based timing solutions.
This award follows a series of recent contracts, including a $3.14 million Assured‑PNT contract in August 2025 and an $11 million avionics contract in December 2024, illustrating a steady expansion of FEI‑Zyfer’s presence in the defense and aerospace sectors.
Overall, the $6 million contracts strengthen FEI‑Zyfer’s backlog, enhance its financial position, and position the company to capitalize on growing demand for secure, high‑precision timing solutions in defense and aerospace markets.
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