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M-tron Industries, Inc. Reports Continued Strength in Second Quarter 2025 Results

1. MPTI revenues rose 12.5% to $13.3 million in Q2 2025. 2. Net income per share decreased 15.9% to $0.53. 3. Backlog increased 35% to $61.2 million, indicating strong future demand. 4. Gross margin declined to 43.6% from 46.6% due to costs. 5. Management expresses confidence in ongoing demand and future performance.

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$41.9608/13 11:57 PM EDTLatest Updated
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FAQ

Why Bullish?

Despite declining net income, significant revenue growth and backlog increase indicate strong market demand. Historical patterns show that backlogs often lead to future revenue growth, supporting positive price movement.

How important is it?

The strong revenue growth and backlog increase are critical indicators of MPTI's market position and future income stability. Investors may react positively to these metrics, influencing stock price.

Why Long Term?

The backlog growth suggests sustained demand that can drive future revenues well beyond the immediate reporting period. Historically, companies in aerospace and defense sectors have benefitted from multi-year contracts that contribute to long-term growth.

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Revenues increased 12.5%, or $1.5 million, to $13.3 million for the three months ended June 30, 2025 from $11.8 million for the three months ended June 30, 2024 Net income per diluted share decreased 15.9%, or $0.10, to $0.53 for the three months ended June 30, 2025 from $0.63 for the three months ended June 30, 2024 Backlog increased 35.0%, or $15.9 million, to $61.2 million as of June 30, 2025 from $45.3 million as of June 30, 2024 , /PRNewswire/ -- M-tron Industries, Inc. (NYSE American: MPTI, MPTI WS) ("Mtron" or the "Company"), a U.S.-based designer and manufacturer of highly-engineered electronic components and solutions for the aerospace and defense, avionics, and space industries, announced strong financial results for the three and six months ended June 30, 2025. "We're pleased to report strong revenue growth, an indicator of the value our products and solutions are delivering to our customers," said Cameron Pforr, Interim Chief Executive Officer. "Even more encouraging is the significant increase in our backlog, which reflects the strength of our pipeline and growing demand across our markets. This momentum positions us well for sustained performance in the second half of 2025 and beyond." Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change U.S. GAAP Financial Measures Revenues $ 13,282 $ 11,808 12.5 % $ 26,014 $ 22,993 13.1 % Gross margin 43.6 % 46.6 % -6.4 % 43.0 % 44.7 % -3.7 % Net income $ 1,560 $ 1,744 -10.6 % $ 3,190 $ 3,230 -1.2 % Net income per diluted share $ 0.53 $ 0.63 -15.9 % $ 1.09 $ 1.16 -6.2 % ‌ Non-GAAP Financial Measures (a) Adjusted EBITDA $ 2,419 $ 2,523 -4.1 % $ 4,921 $ 4,785 2.8 % (a) A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this press release. Results from Operations Second Quarter 2025 Revenue was $13.3 million for the three months ended June 30, 2025 compared with $11.8 million for the three months ended June 30, 2024. The increase was primarily due to continued strong defense program product and solution shipments. Gross margin was 43.6% for the three months ended June 30, 2025 compared with 46.6% for the three months ended June 30, 2024. The decrease was primarily due to product mix and the impact of tariffs partially offset by higher revenues. Net income was $1.6 million, or $0.53 per diluted share, for the three months ended June 30, 2025 compared with $1.7 million, or $0.63 per diluted share, for the three months ended June 30, 2024. The decrease was primarily due to lower gross margins discussed above as well as higher Engineering, selling and administrative expenses from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business. Adjusted EBITDA was $2.4 million for the three months ended June 30, 2025 compared with $2.5 million for the three months ended June 30, 2024. The decrease was primarily due to lower gross margins as well as the increase in Engineering, selling and administrative discussed above. Fiscal Year to Date 2025 Revenue was $26.0 million for the six months ended June 30, 2025 compared with $23.0 million for the six months ended June 30, 2024. The increase was primarily due to continued strong defense program product and solution shipments. Gross margin was 43.0% for the six months ended June 30, 2025 compared with 44.7% for the six months ended June 30, 2024. The decrease was primarily due to product mix and the impact from tariffs partially offset by higher revenues. Net income was $3.2 million, or $1.09 per diluted share, for the six months ended June 30, 2025 compared with $3.2 million, or $1.16 per diluted share, for the six months ended June 30, 2024. The decrease was primarily due to lower gross margins discussed above as well as higher Engineering, selling and administrative expenses from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business. Adjusted EBITDA was $4.9 million for the six months ended June 30, 2025 compared with $4.8 million, or $1.72 per diluted share, for the six months ended June 30, 2024. The increase was primarily due to a substantial increase in revenue partially offset by reduced gross margins and increase in Engineering, selling and administrative discussed above. Backlog Backlog was $61.2 million as of June 30, 2025 compared to $47.2 million as of December 31, 2024 and $45.3 million as of June 30, 2024. The increase in backlog reflects broad demand for our products including continued purchasing under several large aerospace and defense programs, the initiation of orders for new aerospace and defense programs, and a recent uptick in avionics and space industry orders. Investor Call Management, including Mr. Pforr, will host a conference call with the investment community on Wednesday, August 13, 2025, to discuss the Company's second quarter 2025 results and to respond to investor questions. The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Wednesday August 13, 2025, and can be accessed using the dial-in details below: Toll-Free Dial-in Number: (800) 715-9871 Toll Dial-in Number: +1 (646) 307-1963 Conference ID: 4709075 An archive will be available after the call on the Investor Relations section of Mtron's website at ir.mtron.com, along with Mtron's earnings release. About Mtron M-tron Industries, Inc. (NYSE American: MPTI) designs, manufactures, and markets highly engineered, high reliability frequency and spectrum control products and solutions. As an engineering-centric company, Mtron provides close support to its customers throughout our products' entire life cycle, including product design, prototyping, production, and subsequent product upgrades. Mtron has design and manufacturing facilities in Orlando, Florida, and Yankton, South Dakota, a sales office in Hong Kong, and a manufacturing facility in Noida, India. For more information, visit www.mtron.com. Cautionary Note Concerning Forward Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the uncertain financial impact of COVID-19 and the Company's financial condition, results of operations, business strategy and financial needs. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words "believe," "expect," "anticipate," "should," "plan," "will," "may," "could," "intend," "estimate," "predict," "potential," "continue" or the negative of these terms and similar expressions, as they relate to Mtron, are intended to identify forward-looking statements. These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by Mtron with the Securities and Exchange Commission, including those risks set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the SEC on March 27, 2025. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release. These forward-looking statements speak only as of the date of this press release. Mtron undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. M-tron Industries, Inc. Quarterly Summary (Unaudited) ‌ 2022 2023 2024 2025 (in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenues $ 7,691 $ 7,064 $ 8,417 $ 8,673 $ 9,367 $ 10,140 $ 10,888 $ 10,773 $ 11,185 $ 11,808 $ 13,214 $ 12,805 $ 12,732 $ 13,282 Y/Y 21.8 % 43.5 % 29.4 % 24.2 % 19.4 % 16.4 % 21.4 % 18.9 % 13.8 % 12.5 % ‌ Gross margin 37.3 % 37.5 % 32.4 % 35.7 % 34.1 % 41.6 % 42.8 % 43.6 % 42.7 % 46.6 % 47.8 % 47.2 % 42.5 % 43.6 % Y/Y -8.6 % 10.9 % 32.1 % 22.1 % 25.2 % 12.0 % 11.7 % 8.3 % -0.5 % -6.4 % ‌ Net income (a) $ 619 $ 486 $ 503 $ 190 $ 553 $ 1,277 $ 1,586 $ 73 $ 1,486 $ 1,744 $ 2,267 $ 2,139 $ 1,630 $ 1,560 Y/Y -10.7 % 162.8 % 215.3 % -61.6 % 168.7 % 36.6 % 42.9 % 2830.1 % 9.7 % -10.6 % ‌ Adjusted EBITDA (b) $ 1,177 $ 841 $ 876 $ 1,114 $ 1,028 $ 1,931 $ 2,336 $ 2,397 $ 2,262 $ 2,523 $ 3,300 $ 3,056 $ 2,502 $ 2,419 Y/Y -12.7 % 129.6 % 166.7 % 115.2 % 120.0 % 30.7 % 41.3 % 27.5 % 10.6 % -4.1 % ‌ (a) Q1 2022 - Q3 2022 do not include any public company costs as these periods were pre-IPO. ‌ (b) A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this press release. M-tron Industries, Inc. Condensed Consolidated Statements of Operations (Unaudited) ‌ Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share data) 2025 2024 2025 2024 Revenues $ 13,282 $ 11,808 $ 26,014 $ 22,993 Costs and expenses: Manufacturing cost of sales 7,490 6,307 14,816 12,713 Engineering, selling and administrative 3,948 3,394 7,341 6,384 Total costs and expenses 11,438 9,701 22,157 19,097 Operating income 1,844 2,107 3,857 3,896 Other income (expense): Interest income, net 124 44 235 76 Other income (expense), net 27 (5) 17 37 Total other income, net 151 39 252 113 Income before income taxes 1,995 2,146 4,109 4,009 Income tax expense 435 402 919 779 Net income $ 1,560 $ 1,744 $ 3,190 $ 3,230 ‌ Income per common share: Basic $ 0.55 $ 0.64 $ 1.12 $ 1.19 Diluted $ 0.53 $ 0.63 $ 1.09 $ 1.16 ‌ Weighted average shares outstanding: Basic 2,853,383 2,728,599 2,848,419 2,723,293 Diluted 2,934,594 2,779,802 2,931,053 2,783,739 M-tron Industries, Inc. Condensed Consolidated Balance Sheets (Unaudited) ‌ (in thousands) June 30, 2025 December 31, 2024 Assets: Current assets: Cash and cash equivalents $ 15,529 $ 12,641 Accounts receivable, net of reserves of $218 and $182, respectively 6,261 6,842 Inventories, net 9,116 9,509 Prepaid expenses and other current assets 874 760 Total current assets 31,780 29,752 Property, plant and equipment, net 5,939 5,061 Right-of-use lease asset 242 9 Intangible assets, net 40 40 Deferred income tax asset 1,691 1,623 Other assets — 3 Total assets $ 39,692 $ 36,488 ‌ Liabilities: Total current liabilities 4,689 5,216 Non-current liabilities 190 — Total liabilities 4,879 5,216 ‌ Total stockholders' equity 34,813 31,272 Total liabilities and stockholders' equity $ 39,692 $ 36,488 Non-GAAP Financial Measures Throughout this press release, including the results from operations, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company presents are listed below and may not be comparable to similarly-named measures reported by other companies. the reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this press release. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP. The Company uses the following operating performance measure because the Company believes it provides both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance Adjusted EBITDA is derived by excluding the items set forth below from Income before income taxes. Excluded items include the following: Interest income Interest expense Depreciation Amortization Non-cash stock-based compensation Other discrete items that might have a significant impact on comparable GAAP measures and could distort the evaluation of our normal operating performance Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA ‌ Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share data) 2025 2024 2025 2024 Income before income taxes $ 1,995 $ 2,146 $ 4,109 $ 4,009 Adjustments: Interest income (124) (44) (235) (76) Depreciation 270 220 520 439 Amortization — — — 5 Total adjustments 146 176 285 368 EBITDA 2,141 2,322 4,394 4,377 Non-cash stock compensation 278 201 527 408 Adjusted EBITDA $ 2,419 $ 2,523 $ 4,921 $ 4,785 The following table is a reconciliation of Adjusted EBITDA to Income before income taxes: 2022 2023 2024 2025 (in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenues $ 7,691 $ 7,064 $ 8,417 $ 8,673 $ 9,367 $ 10,140 $ 10,888 $ 10,773 $ 11,185 $ 11,808 $ 13,214 $ 12,805 $ 12,732 $ 13,282 ‌ Income before income taxes $ 794 $ 592 $ 614 $ 595 $ 719 $ 1,582 $ 2,046 $ 53 $ 1,863 $ 2,146 $ 3,008 $ 2,758 $ 2,114 $ 1,995 Adjustments: Interest expense (income) 3 2 1 5 2 5 (1) (13) (32) (44) (63) (104) (111) (124) Depreciation 148 165 173 185 195 190 192 220 219 220 278 251 250 270 Amortization 13 14 13 14 13 14 13 13 5 — — — — — Total adjustments 164 181 187 204 210 209 204 220 192 176 215 147 139 146 EBITDA 958 773 801 799 929 1,791 2,250 273 2,055 2,322 3,223 2,905 2,253 2,141 Non-cash stock compensation 219 68 75 96 71 140 86 2,124 207 201 77 151 249 278 Excess Spin-off costs — — — 219 28 — — — — — — — — — Adjusted EBITDA $ 1,177 $ 841 $ 876 $ 1,114 $ 1,028 $ 1,931 $ 2,336 $ 2,397 $ 2,262 $ 2,523 $ 3,300 $ 3,056 $ 2,502 $ 2,419 ‌ Adjusted EBITDA margin 15.3 % 11.9 % 10.4 % 12.8 % 11.0 % 19.0 % 21.5 % 22.3 % 20.2 % 21.4 % 25.0 % 23.9 % 19.7 % 18.2 % SOURCE Mtron WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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