M-tron Industries, Inc. Stock Price: Quote, Forecast, Splits & News (MPTI)

Perplexity Finance

MPTI

M-tron Industries, Inc.

MPTI

Overview

Financials

Historical Data

$46.01

+$0.42

0.92%

At close: Jun 12, 4:00:00 PM EDT

$46.01

$0.00

After hours: 4:04:17 PM EDT

Change

+$0.42

0.92%

Financial Profile

Prev Close

$45.59

Market Cap

$134.23M

Day Range

$44.91 - $47.13

Open

$45.40

P/E Ratio

17.2

52W Range

$28.72 - $71.10

24H Volume

$2.36M

Dividend Yield

0.00%

EPS

2.68

Key Issues

Recent Transcripts

Q1 revenue rose 13.8%, driven by defense orders and strong backlog growth.

Q4 revenue up 18.9%, FY24 revenue up 19.1%, with strong margin expansion.

Q4 revenue grew nearly 20%, with strong margins and robust defense sector demand.

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $134M
IPO Date: 10/3/22
CEO: Mr. Cameron Pforr
Fulltime Employees: 226
Sector: Technology
Industry: Hardware, Equipment & Parts
Country: US
Exchange: New York Stock Exchange Arca

Peers

$0.00

Watchlist

$0.00

M-tron Industries, Inc. Stock Price: Quote, Forecast, Splits & News (MPTI)

Perplexity Finance

MPTI

M-tron Industries, Inc.

MPTI

Overview

Financials

Historical Data

$46.01

+$0.42

0.92%

At close: Jun 12, 4:00:00 PM EDT

$46.01

$0.00

After hours: 4:04:17 PM EDT

Change

+$0.42

0.92%

Financial Profile

Prev Close

$45.59

Market Cap

$134.23M

Day Range

$44.91 - $47.13

Open

$45.40

P/E Ratio

17.2

52W Range

$28.72 - $71.10

24H Volume

$2.36M

Dividend Yield

0.00%

EPS

2.68

Key Issues

Earnings

Report Date

May 13, 2025

Reported Revenue

12.7M

Miss -3.55%

Avg 1d Change

8.7%

Report Period

Q1 2025

Reported EPS

0.56

Miss -15.15%

Implied Move 1d

—

Transcript

11m 40s

The company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned that any forward looking statements are not guarantees of future performance. With that, I will now turn the call over to our Interim CEO, Cameron Forr.

12m 2s

Yes. Good morning, everyone, and thank you, Linda.

12m 5s

First of all, I want to thank all of our shareholders and interested parties for attending our first quarter FY twenty twenty five earnings call. Your interest in the company. We're pleased to discuss our strong start to the fiscal 2025 fiscal year and our outlook going forward As a reminder, M Tron designs and manufactures highly engineered RF solutions.

12m 26s

Including electronic components and subassemblies used to control the frequency and timing of signals in electronic circuits. We're a global company with three manufacturing sites in The United States and India. Company's primary markets include defense and aerospace, commercial avionics, industrials, and space. We are pleased to report that the company continued to perform well, with continued strength in M Tron sales and good financial performance for Q1 fiscal year twenty twenty five. Our revenues continue to be driven by defense related orders, and we also saw some growth in the commercial avionics market. Something we believe bodes well for the future recovery of that market. We are pleased to see Boeing resolve its labor dispute early in the year. And expect orders from the major airframe manufacturers to pick up throughout the year. With consistent operating performance, we have been able to continue to make strategic investments research and development, and continue to increase the market profile of the company. Part of that effort was the recent rebranding of the company as M Tron, Updates to our logo, our website, sales materials. As well as the initiation of advertising in some of the leading publications for our sector And also enhanced lead generation activity.

13m 56s

We also continue to make investments in our production facilities. And we've seen good initial results a program that I mentioned, I think, on the last call, to deploy greater automation on the factory floor. To improve yields. Looks like we have gotten through some of the choppiness in the defense market caused by some of the conflicting messaging from the administration. On the defense budget. We have, at M-tron, have seen no disruption to our business. And expect to continue the company's revenue growth throughout the year. The continuing resolution passed and signed in mid March twenty twenty five. Extended government funding through the end of the federal fiscal year. And largely preserved the defense spending as it was. Actually increasing the defense budget by, I guess, a relatively small amount, 6,000,000,000. The administration is now proposing increasing the defense budget for this fiscal year by 150,000,000,000 through a reconciliation process. And also substantially increasing procurement spending in federal f y 2026 budget. Many of the areas targeted for investment such as next gen aircraft, shipbuilding, loitering, and precision guided munitions. Border security, and the Golden Dome antiaircraft, anti missile defense. All require a significant amount of RF subsystems and components.

15m 33s

Highlighting the continued growing need for M-tron's products. The importance of filters and oscillators has only increased as the electromagnetic spectrum has become a more contested part of the battle space. And communications between systems and commanders combatants remain subject to electronic countermeasures, such as jamming and interference. We believe that we are well positioned to continue to perform well with the anticipated changes in military procurement focus. Now, Linda, would you mind giving our audience the the the highlights of our fiscal year Q1 performance.

16m 12s

Yes. Total revenues for first quarter were 12,700,000.0 a 13.8% increase over the $11,200,000 of revenue in the same period last year. The revenue increased in the period primarily due to strong defense program product and solution shipments. Gross margins for the first quarter of twenty twenty five were 42.5%, a 20 basis point decrease over the 42.7% gross margins in Q1 of 'twenty four. The decrease is primarily due to additional manufacturing costs with the initial production runs of several new products, In addition, we saw the initial impact this quarter of duly initiated federal tariffs on imports of foreign sourced materials and partially finished goods. Net income was $1,600,000 or $0.56 per diluted share in the first quarter of twenty twenty five. Compared with $1,500,000 or $0.53 per diluted share in the first quarter of twenty twenty four. 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 continued research and development investments, higher sales commissions from an increase in revenues and an increase in administrative expenses consistent with the overall growth of the business.

17m 41s

Adjusted EBITDA was $2,500,000 in the first quarter twenty twenty five compared with $2,300,000 in the first quarter of twenty twenty four. The increase was primarily due to higher revenues resulting in higher income. Backlog was $55,500,000 as of 03/31/2025, compared to 47,200,000.0 as of 12/31/2024 and $46,100,000 as of 03/31/2024. The increase in backlog reflects several large defense and avionics orders received during the quarter and the continued broad demand for our products. In early February twenty twenty five, for example, we publicly announced one large order supporting shipboard systems for over $10,000,000 that was expected to have been received in the fiscal year twenty twenty four. I'd now like to turn the call back over to Cameron.

18m 40s

Yep.

18m 41s

Thank you, Linda. So in March 2025, M Tron saw the initial impact of the recently announced federal tariffs. On the import of goods and materials from outside The United States. And while M Tron is a United States based manufacturer, with a great degree of vertical integration, we kinda we pride ourselves on. We do import some materials from Japan, China, South Korea, and a very small amount from Europe. And we also performed some finishing work at our facility in Nudia, India. It's difficult to predict the long term impact of this trade policy. On our financial performance as it changes regularly. We are working with many of our defense customers on acting parts of the federal acquisition regulations, 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 that we have redundancy of suppliers where possible and can source from reliable suppliers at the best prices possible. To date, we have seen no impact from tariffs. On demand for our products. Also, I wanted to highlight the recent distribution of warrants. On 04/25/2025, the company distributed the dividend of warrants to stockholders of record as of 03/10/2025.

20m 7s

The warrants are listed on the New York Stock NYSA American Exchange. Under the ticker MPTI WS. The warrants may be listed on certain financial websites under the ticker MPTIWT, or a similar nomenclature. Pursuant to the warrant agreement, the warrants contain the following terms, which I'll summarize. And we're happy to answer questions about this later. But five warrants are exercisable to purchase one share of common stock the exercise price is $47.5 per share. The warrants are exercisable at the earlier of thirty days prior to the maturity date of 04/25/2028 And or on the date when the average volume weighted average price or the VWAP of M Tron's common stock is greater than or equal to $52 per share for the prior thirty consecutive trading days. And we call this the accelerated trigger or early trigger. The warrants expire at the earlier of 04/25/2028. But they run to full maturity. For thirty calendar days following M-tron's public announcement of the date of the accelerated trigger being triggered. And warrant holders exercising their full allotment of warrants. Can apply to subscribe for any and all shares of common stock issuable pursuant to any outstanding but unexercised warrant. This is called the oversubscription.

21m 42s

Feature. And it's included on your warrant agreement. Further information on the warrants is available in effect. Found on our M Tron investor website which is ir.emtron.com. Just to highlight some of the strategic activity, we do continue to execute on our strategy of continually moving into more program business. Which now makes up the vast majority of our aerospace and defense revenues. We are involved, for example, in over 40 programs of record, a very significant amount. Defense and aerospace has been an amazing market for the past several years. And it does remain one with plenty of room for us to grow. We seek to maintain close relationships with our customers, be the first line resource for them. As they plan upgrades to current systems or compete for the design of new systems to meet government program needs. And the same can be said in our other sectors like avionics and industrials. We have also ramped up our pursuit of complementary acquisitions and strategic partnership opportunities. In both the RF component and subsystem space as well as some tangential subsystem and solution companies that focus on the same markets. We are focused on finding deals that would be accretive for shareholders and help both companies strengthen their financial performance and customer base.

23m 5s

Strengthening The U. S. Defense industrial base is one of the goals of administration's trade policy and current budget focus. They've actually dedicated, budget dollars to the strengthening of the defense industrial base. And the the anticipated increase in this year's defense budget. Having a US based advanced manufacturing case capability to support our joint forces is more important than ever before, and we thank our employees for their dedication to their jobs. And the mission. We also thank our dedicated customers for their continued business and the trust they place in Entron and our people. M Tron plays a critical role in defense of our nation by providing US sourced, highly engineered components for many US and allied military programs. Before I open the floor to questions, I wanted to mention that we will be holding our annual meeting on 06/10/2025 at 10AM in the morning at the Harvard Club in New York City. The meeting will be open to all shareholders of the company's common stock.

24m 6s

In addition, we will hold an investor presentation and question and answer session before the annual meeting. And information for both of these events will be posted on our investor website. For those interested in attending in person, you'll need to get a QR code from our IR site to pass through the Harvard Club security. Operator, can you please open the lines and allow the first question?

24m 42s

Your first question comes from the line of Anna Soderstrom with Sidoti. Please go ahead.

24m 51s

Hi, thank you for taking my questions. So in terms of the gross margins, is that was a bit muted due to the ramping of new programs? How how do how is that gonna sort of develop? And and with those new large contract wins, we going to see that being a ramp for a longer period of time, or will it pick up pretty quickly?

25m 16s

Yeah. Good question, Anya, and thank you for joining. So the gross margins were impacted by a and really three factors. One one was just product mix, We had less products being shipped for two of our long term missile programs, have very, you know, relatively high margins. And that that is expected to, return very shortly. Are those those that part of the mix was going to increase in Q2 throughout the rest of the year? Due to some of the orders we received in Q1. The thing I mentioned earlier was that we did ship some new products And whenever you're working on new products, the first couple runs are a little bit less efficient than than when all the kinks have been worked out in the process. And and you're running at a higher yield. So we shipped some new space products, which require rigorous testing. And they've been successful, but, you know, it first couple of runs of those take more labor than you would hope to do use later. And also, we shipped a new type of oscillator the border that's used in EW and radar, which I think is great for the long term prospects of the company.

26m 22s

And I think that those yields will improve over time. So I do expect the yields to improve and the and the margins to improve throughout the year. We also did see some impact to the tariffs. We had a little bit less than $100,000 of tariff charges in March And it's kind of difficult to predict. How much we should anticipate receiving there for the rest of the year. And we hope that a lot of the progress that's been made over the past weeks reducing the tariffs will will have a positive impact there. So I do anticipate this to go up in in the rest half of the year.

26m 57s

Okay. That's for for those new, programs that you you do shipped in the space and the oscillators, are they higher than the average margins?

27m 8s

Yeah. They'll be you ramp them. They'll be yeah, they'll be very strong margin products, but they're just early to develop.

27m 16s

Okay. And then in terms of the tariffs, you're not the able to pass that on at all? Or Right. Yeah. We we do have the capability on our contracts to pass that on. The reality is that in the market, there's there are a lot of mistakes being made in terms of how the tariffs are applied. And then also, the whole thought of passing on tariffs to vendors is relatively new and do anticipate a fair amount of pushback, although I think that, ultimately, many customers will will pay for their agreements. So we're we're really hoping that we can work through the tariff situation in the short term. But we do have in our contracts the ability to pass on taxes and tariffs and so I I think over time, this will work out. But there'll be some disruption in the industry in terms of cost for the short term.

28m 6s

Okay. Thank you. And then also, these large contracts you've been winning, and congrats on those, are they also higher margin programs then?

28m 18s

They are. And they they were actually some of the programs that I We didn't ship a lot of it in q one, which did impact our margins some. [indiscernible] Return to that, sir, is very And then what does the pipeline look like for other, large deals like that?

28m 34s

We actually have a pretty strong pipeline for the year. So we don't really talk about bookings per se and give numbers on that, but we've had two very strong quarters of bookings and and we do have a lot of large programs that we think we'll be announcing over the next, you know, quarter or two. So, both missile programs as well as some in the avionic space And and then in the back half of the year, working on some really significant drone bookings and programs. I think will be exciting for the company.

29m 4s

Okay. Thank you. I'll get back in queue.

29m 7s

Mhmm. At this time, are no further questions. I would now like to turn the call back over to Cameron Ford for closing remarks. Please go ahead.

29m 20s

Okay. Well, thank you, operator. I appreciate you helping us manage the call. And I'm gonna like to thank everybody for participating today. And if there are no further questions, you know, please have a great day. If you wanna follow-up, after the call, after you've kinda read transcripts or you've had a chance to kinda go through the earnings release in more detail, feel free to contact us at I r emtron dot com. And we will, respond in kind. So thank you again.

29m 51s

Ladies and gentlemen, this concludes today's call. Thank you all for joining, and you may now disconnect.

Key Insights

Q1 FY2025 revenues were $12.7 million, up 13.8% year-over-year, driven primarily by strong defense program shipments and growth in commercial avionics.
Gross margin for Q1 FY2025 was 42.5%, a slight decrease from 42.7% in Q1 FY2024, mainly due to higher manufacturing costs from new product launches and initial impacts of federal tariffs.
Net income for the quarter was $1.6 million ($0.56 per diluted share), up from $1.5 million ($0.53 per diluted share) in the prior year; adjusted EBITDA rose to $2.5 million from $2.3 million.
Backlog increased to $55.5 million as of March 31, 2025, compared to $47.2 million at year-end and $46.1 million a year ago, reflecting large defense and avionics orders.
Management expects gross margins to improve throughout the year as new programs ramp up and production yields increase; the company also has a strong pipeline of large defense and avionics contracts and is pursuing accretive acquisitions and strategic partnerships.

Recent Transcripts

Q1 revenue rose 13.8%, driven by defense orders and strong backlog growth.

Q4 revenue up 18.9%, FY24 revenue up 19.1%, with strong margin expansion.

Q4 revenue grew nearly 20%, with strong margins and robust defense sector demand.

Market Cap: $134M
IPO Date: 10/3/22
CEO: Mr. Cameron Pforr
Fulltime Employees: 226
Sector: Technology
Industry: Hardware, Equipment & Parts
Country: US
Exchange: New York Stock Exchange Arca

Peers

$0.00

Watchlist

$0.00

Earnings

Report Date

May 13, 2025

Reported Revenue

12.7M

Miss -3.55%

Avg 1d Change

8.7%

Report Period

Q1 2025

Reported EPS

0.56

Miss -15.15%

Implied Move 1d

—

Transcript

11m 40s

12m 2s

Yes. Good morning, everyone, and thank you, Linda.

12m 5s

12m 26s

13m 56s

15m 33s

16m 12s

17m 41s

18m 40s

Yep.

18m 41s

20m 7s

21m 42s

23m 5s

24m 6s

24m 42s

Your first question comes from the line of Anna Soderstrom with Sidoti. Please go ahead.

24m 51s

25m 16s

26m 22s

26m 57s

Okay. That's for for those new, programs that you you do shipped in the space and the oscillators, are they higher than the average margins?

27m 8s

Yeah. They'll be you ramp them. They'll be yeah, they'll be very strong margin products, but they're just early to develop.

27m 16s

28m 6s

Okay. Thank you. And then also, these large contracts you've been winning, and congrats on those, are they also higher margin programs then?

28m 18s

28m 34s

29m 4s

Okay. Thank you. I'll get back in queue.

29m 7s

Mhmm. At this time, are no further questions. I would now like to turn the call back over to Cameron Ford for closing remarks. Please go ahead.

29m 20s

29m 51s

Ladies and gentlemen, this concludes today's call. Thank you all for joining, and you may now disconnect.

Key Insights

Q1 FY2025 revenues were $12.7 million, up 13.8% year-over-year, driven primarily by strong defense program shipments and growth in commercial avionics.
Gross margin for Q1 FY2025 was 42.5%, a slight decrease from 42.7% in Q1 FY2024, mainly due to higher manufacturing costs from new product launches and initial impacts of federal tariffs.
Net income for the quarter was $1.6 million ($0.56 per diluted share), up from $1.5 million ($0.53 per diluted share) in the prior year; adjusted EBITDA rose to $2.5 million from $2.3 million.
Backlog increased to $55.5 million as of March 31, 2025, compared to $47.2 million at year-end and $46.1 million a year ago, reflecting large defense and avionics orders.
Management expects gross margins to improve throughout the year as new programs ramp up and production yields increase; the company also has a strong pipeline of large defense and avionics contracts and is pursuing accretive acquisitions and strategic partnerships.