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M-tron Industries, Inc. Reports First Quarter 2025 Results

1. MPTI's Q1 2025 revenue rose 13.8% to $12.7 million, driven by product demand. 2. Net income per share increased to $0.56, reflecting effective cost management. 3. Backlog surged 20.3% to $55.5 million, indicating strong future sales potential. 4. Initial impact from federal tariffs noted; tariffs currently have no demand effect. 5. Warrant dividend distributed to stockholders, enhancing potential long-term shareholder value.

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$4905/14 11:41 PM EDTLatest Updated
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FAQ

Why Bullish?

The revenue growth and backlog increase suggest strong market demand, potentially driving share price. Revenue rises often correlate with stock price appreciation, similar to MPTI's history of positive earnings growth.

How important is it?

The earnings report highlights key growth metrics that interest investors, indicating a strong outlook that may prompt them to adjust holdings in MPTI.

Why Short Term?

Given the recent financial results, immediate price movements may reflect market reactions. Short-term trading dynamics often respond quickly to quarterly results due to investor sentiment.

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Revenues increased 13.8%, or $1.5 million, to $12.7 million for the three months ended March 31, 2025 from $11.2 million for the three months ended March 31, 2024 Net income per diluted share increased $0.03 to $0.56 for the three months ended March 31, 2025 from $0.53 for the three months ended March 31, 2024 Backlog increased $9.4 million, or 20.3%, to $55.5 million as of March 31, 2025 from $46.1 million as of March 31, 2024 , /PRNewswire/ -- M-tron Industries, Inc. (NYSE American: MPTI) ("Mtron" or the "Company"), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced its financial results for the three months ended March 31, 2025. "Mtron delivered another quarter of revenue growth driven by healthy demand across our existing portfolio and the successful introduction of new products," said Cameron Pforr, Mtron Interim Chief Executive Officer. "Our backlog increased significantly during the period and we remain focused on delivering innovative products that strengthen our market position and create sustained value for our stockholders." "We also successfully completed the distribution of the previously announced dividend of warrants on April 25, 2025, reflecting our ongoing commitment to enhancing stockholder value and providing opportunities for long-term participation in Mtron's future growth," continued Mr. Pforr. Results from Operations Revenue was $12.7 million in the first quarter of 2025 compared with $11.2 million in the first quarter of 2024. The increase was primarily due to strong defense product shipments. Gross margin was 42.5% in the first quarter of 2025 compared with 42.7% in the first quarter of 2024. The decrease is primarily due to higher revenues partially offset by the initial higher manufacturing costs associated with the initial production runs of several new products. In addition, we saw the initial impact this quarter of newly initiated federal tariffs on imports of foreign sourced materials and partially finished goods. Net income was $1.6 million, or $0.56 per diluted share, in the first quarter of 2025 compared with $1.5 million, or $0.53 per diluted share, in the first quarter of 2024. The increase in revenues discussed above was partially offset by higher manufacturing cost of sales consistent with the growth in revenues and the introduction of new products as well as higher engineering, selling and administrative expenses related to higher research and development costs, higher sales commissions from an increase in revenues, and an increase in corporate expenses consistent with the overall growth in the business. Adjusted EBITDA was $2.5 million in the first quarter of 2025 compared with $2.3 million in the first quarter of 2024. The increase was primarily due to higher income before income taxes, depreciation, and stock-based compensation partially offset by higher interest income. Backlog Backlog was $55.5 million as of March 31, 2025 compared to $47.2 million as of December 31, 2024 and $46.1 million as of March 31, 2024. The increase in backlog reflects several large orders received during the quarter and the continued broad demand for our products. Impact of Tariffs In March 2025, Mtron saw the initial impact of the recently announced federal tariffs on the import of goods and materials from outside the United States. Mtron, while a United States-based manufacturer with a great degree of vertical integration, does import some materials from Japan, China, and South Korea and performs some finishing work at our facility in Noida, India. It is difficult to predict the long-term impact of this trade policy on our financial performance. We are working with many of our defense customers on enacting parts of the Federal Acquisition Regulation ("FAR"), which potentially exempt materials received for defense production from entry tariffs. In addition, we continue as always to analyze our supply chain in order to make sure we have redundancy of suppliers and can source from reliable suppliers at the best price possible. To date, we have seen no impact from tariffs on demand for our products. Warrant Dividend On April 25, 2025, the Company distributed the dividend of warrants to stockholders of record on March 10, 2025. The warrants are listed on the NYSE American under the ticker "MPTI WS." The warrants may be listed on certain financial websites under the ticker "MPTI WT" or a similar nomenclature. Pursuant to the Warrant Agreement, the warrants contain the following terms: Five (5) warrants exercisable to purchase one (1) share of common stock; Exercise price of $47.50 per share; Exercisable at the earlier of (i) thirty (30) days prior to April 25, 2028 or (ii) the date on which the average volume weighted average price ("VWAP") of Mtron common stock is greater than or equal to $52.00 per share for the prior thirty (30) consecutive trading day period (the "Acceleration Trigger"); Expire at the earlier of (i) April 25, 2028 or (ii) thirty (30) calendar days following Mtron's public announcement of the date of the Acceleration Trigger; and Warrant holders exercising their full allotment of warrants can apply to subscribe for any or all shares of common stock issuable pursuant to any outstanding but unexercised warrants. For further information, refer to the FAQ on Mtron's Investor Relations website at ir.mtron.com/financials/2025-Warrant-FAQ. Earnings Call Management, including Mr. Pforr, will host a conference call with the investment community on Wednesday May 14, 2025, to discuss the Company's first quarter 2025 results and to respond to investor questions. The call will begin at 10:30 a.m. Eastern Time on Wednesday May 14, 2025, and can be accessed using the dial-in details below:  Toll Free Dial-in Number: (888) 672-2415 Toll Dial-in Number: +1 (646) 307-1952 Passcode: 4068751 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 press release. About Mtron M-tron Industries, Inc. (NYSE American: MPTI) was originally founded in 1965 and 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 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 Y/Y 21.8 % 43.5 % 29.4 % 24.2 % 19.4 % 16.4 % 21.4 % 18.9 % 13.8 % 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 % Y/Y -8.6 % 10.9 % 32.1 % 22.1 % 25.2 % 12.0 % 11.7 % 8.3 % -0.6 % Net income (b) $ 619 $ 486 $ 503 $ 190 $ 553 $ 1,277 $ 1,586 $ 73 $ 1,486 $ 1,744 $ 2,267 $ 2,139 $ 1,630 Y/Y -10.7 % 162.8 % 215.3 % -61.6 % 168.7 % 36.6 % 42.9 % 2,830.1 % 9.7 % Adjusted EBITDA (c) $ 1,177 $ 841 $ 876 $ 1,114 $ 1,028 $ 1,931 $ 2,336 $ 2,397 $ 2,262 $ 2,523 $ 3,300 $ 3,056 $ 2,502 Y/Y -12.7 % 129.6 % 166.7 % 115.2 % 120.0 % 30.7 % 41.3 % 27.5 % 10.6 % (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 March 31, (in thousands, except share data) 2025 2024 Revenues $ 12,732 $ 11,185 Costs and expenses: Manufacturing cost of sales 7,326 6,406 Engineering, selling and administrative 3,393 2,990 Total costs and expenses 10,719 9,396 Operating income 2,013 1,789 Other income: Interest income, net 111 32 Other (expense) income, net (10) 42 Total other income, net 101 74 Income before income taxes 2,114 1,863 Income tax expense 484 377 Net income $ 1,630 $ 1,486 Income per common share: Basic $ 0.57 $ 0.55 Diluted $ 0.56 $ 0.53 Weighted average shares outstanding: Basic 2,841,357 2,716,202 Diluted 2,906,144 2,784,960 M-tron Industries, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share data) March 31, 2025 December 31, 2024 Assets: Current assets: Cash and cash equivalents $ 13,662 $ 12,641 Accounts receivable, net of reserves of $201 and $182, respectively 6,718 6,842 Inventories, net 9,365 9,509 Prepaid expenses and other current assets 694 760 Total current assets 30,439 29,752 Property, plant and equipment, net 5,397 5,061 Right-of-use lease asset 238 9 Intangible assets, net 40 40 Deferred income tax asset 1,650 1,623 Other assets 1 3 Total assets $ 37,765 $ 36,488 Liabilities: Total current liabilities 4,573 5,216 Non-current liabilities 41 — Total liabilities 4,614 5,216 Total stockholders' equity 33,151 31,272 Total liabilities and stockholders' equity $ 37,765 $ 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 March 31, (in thousands, except share data) 2025 2024 Income before income taxes $ 2,114 $ 1,863 Adjustments: Interest income (111) (32) Depreciation 250 219 Amortization — 5 Total adjustments 139 192 EBITDA 2,253 2,055 Non-cash stock compensation 249 207 Adjusted EBITDA $ 2,502 $ 2,262 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 Income before income taxes $ 794 $ 592 $ 614 $ 595 $ 719 $ 1,582 $ 2,046 $ 53 $ 1,863 $ 2,146 $ 3,008 $ 2,758 $ 2,114 Adjustments: Interest expense (income) 3 2 1 5 2 5 (1) (13) (32) (44) (63) (104) (111) Depreciation 148 165 173 185 195 190 192 220 219 220 278 251 250 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 EBITDA 958 773 801 799 929 1,791 2,250 273 2,055 2,322 3,223 2,905 2,253 Non-cash stock compensation 219 68 75 96 71 140 86 2,124 207 201 77 151 249 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 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 % 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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