Author: Atrium Research Singapore 25, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
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What you need to know:
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IEHC announced that it has signed $3.6M in orders for mobile defibrillator applications. This gives us increased confidence that IEHC’s hyperboloid connectors have strong applications in the healthcare industry.
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The other/medical segment represented only 3.8% of sales in FY26 or ~$1.1M, and as such, is growing off a small base.
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This highlights execution on management’s strategic priority of boosting growth in this sector. Our estimates for the segment increase significantly, now modelling $2.4M in FY28 (+55% YoY) vs. $1.6M prior.
Yesterday, IEH Corporation (IEHC:OTCQX) reported that it has booked $3.6M in orders for defibrillator applications. This represents the first major order for the segment which only generated ~$1.1M in revenue in FY26. We view the order as a strong vote of confidence that IEHC will continue to be able to expand its exposure to the healthcare industry. We are maintaining our BUY rating and our $38.00/share target price on IEHC.
This order comes from a leading manufacturer of mobile defibrillators, resulting in strong diversification outside of the aerospace and defense industries. Defibrillators are a strong application for hyperboloid connectors given that when they are called on to restart a heart, each connection needs to work on the first attempt. These defibrillators are carried in ambulances, mounted in public spaces, and deployed in unpredictable conditions. They experience shock, vibration, and repeated handling, making it a strong fit for IEHC’s hyperboloid connectors which can resist these factors and maintain low electrical resistance through a high number of mating cycles.
We remind investors that management has earmarked the medical segment as a strategic growth priority for both organic growth and M&A opportunities. We view yesterday’s announcement as a strong proof point for the applications in this industry and look forward to continued penetration. This belongs with IEHC’s “Other” segment, which was 3.8% of revenue in FY26, or ~$1.1M. We originally expected the segment to grow to $1.3M in FY27 (+16% YoY) and accelerate to $1.6M in FY28 (+20% YoY). As such, this order is highly influential and depending on its term, could be larger than the entire segment on an annual basis.
Therefore, we are increasing our expectations for Q4 onward, where we now expect the segment to generate $1.6M in FY27 (+39% YoY) and $2.4M in FY28 (+55% YoY). Please refer to our estimate revisions in Figure 3. Our estimated backlog for Q2 moves up to $48.6M, not accounting for any work completed (Figure 1).
APKWS Orders On September 2ⁿᵈ, IEHC announced that it had received $6.5M in new orders over the prior two weeks in support of the APKWS program, bringing its backlog to over $45M, nearly triple the level seen a year prior. As a reminder, IEHC has been a critical supplier to APKWS since inception, which converts unguided rockets into laser-guided precision munitions and has since been adapted for use against drones and other aerial threats. The program is expected to grow ~33% annually as per BAE’s 2025 $1.7B contract. Read our note on the release here.
Catalysts
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Quarterly Financial Results & Backlog Announcements – Ongoing
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Acquisitions & Strategic Partnerships – Ongoing
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