Clearfield (NASDAQ:CLFD) expects fiscal 2027 revenue to rise as it expands into data center fiber infrastructure and anticipates a gradual recovery in broadband demand, executives said on the company’s fiscal fourth-quarter earnings call.
The company forecast annual net sales of $195 million to $205 million, representing approximately 30% growth at the midpoint from fiscal 2026. It expects earnings of $0.25 to $0.46 per diluted share, compared with $0.16 from continuing operations in fiscal 2026.
President and CEO Cheri Beranek said the outlook reflects mid- to high-single-digit growth in broadband and a ramp-up in data center business. She cautioned that project-based data center orders and shipments could make quarterly revenue uneven and depart from the company’s traditional seasonal patterns.
Data Center Orders and Revenue Outlook
Clearfield began shipping products in its fiscal fourth quarter against an approximately $22 million initial data center purchase order announced in July. Beranek said the order covers one building on a larger campus and that Clearfield sees an opportunity to supply additional buildings for the same customer.
The CEO initially referred to a $50 million to $60 million data center plan for fiscal 2027. In response to an analyst’s question, she clarified that she was discussing expected bookings rather than revenue. She said the company anticipates approximately $40 million in data center revenue and roughly $160 million in broadband revenue, with some room for variation.
Beranek said a significant part of the initial order could reach the customer before the end of the calendar year. The company is also working with engineering teams at several prospective customers on designs for future deployments, though she said the timing and size of future projects remain uncertain.
Most anticipated data center revenue is tied to cable assemblies, Beranek said, while custom development has focused on panels. The company recently introduced its NOVA Velocity Panel, which it designed to simplify installation and management of high fiber counts in limited space.
Sales and Margins Fell in the Fourth Quarter
Fourth-quarter net sales from continuing operations fell 4% to $39.3 million from $41.1 million a year earlier. For fiscal 2026, sales rose 1% to $151.9 million. CFO Daniel Herzog said growth in the Large Regional market was partly offset by softness in the MSO market.
Fourth-quarter gross margin declined to 30.7%, from 34.6% a year earlier and 31.8% in the preceding quarter. Full-year gross margin was 32%, down from 33.7% in fiscal 2025. Herzog attributed the pressure in part to higher material costs, particularly later in the year.
Clearfield reported a fourth-quarter loss from continuing operations of approximately $100,000, or break-even per diluted share, compared with income of $1.8 million, or $0.13 per diluted share, a year earlier. Full-year income from continuing operations fell to $2.1 million from $6.3 million.
All periods discussed by Herzog reflect Clearfield’s continuing operations, following the sale of its Nestor Cables business in November 2025.
Margin Recovery and Broadband Supply
For the first quarter of fiscal 2027, Clearfield expects sales of $48 million to $52 million and a result ranging from a loss of $0.06 to earnings of $0.03 per share. Herzog said first-quarter gross margin could improve slightly from the fourth-quarter level, with more material benefits from the company’s recovery initiatives expected from the second quarter onward.
Those initiatives include pricing adjustments, sourcing improvements and manufacturing efficiencies. Beranek said customer notice periods of 30, 60 or 90 days will delay the impact of price changes. Initial costs associated with increasing data center production may also limit first-quarter margin improvement.
In broadband, Beranek said progress on the federal Broadband Equity, Access, and Deployment program could support investment. She cited Clearfield customer East Central Energy, which is expanding fiber service in rural Minnesota and northwestern Wisconsin, as the first Minnesota broadband provider to secure an executed BEAD agreement.
Even so, Beranek said limited fiber and cable supplies constrain broadband growth. She does not expect a sharp immediate increase in business solely because BEAD funding is becoming available. Herzog added that optical fiber costs, tariffs and potential supply-chain constraints are reflected in the company’s guidance.
CEO Transition
Beranek said her planned retirement is scheduled for the end of March 2027. She will remain in her current role until a successor is appointed and will then continue with the company as President and CEO Emeritus.
About Clearfield (NASDAQ:CLFD)
Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures and sells fiber optic connectivity products used to deploy, manage and protect broadband networks. Its portfolio includes fiber distribution cabinets, panels, terminals, enclosures, splice solutions and other components that support fiber installation from the central office or data center through the outside plant and to end users. The company markets its products under brands including FieldSmart and WaveSmart. Clearfield’s solutions are designed for communications service providers, community broadband operators, utilities, municipalities, government organizations and other network owners building fiber-to-the-home, fiber-to-the-premises and related broadband infrastructure.
