The LGL Group, Inc. Reports First Quarter 2025 Results

Rhea-AI Summary

LGL Group (NYSE American: LGL) reported its Q1 2025 financial results, showing a slight revenue increase to $918,000 from $888,000 in Q1 2024. The company posted a net loss of $6,000 compared to a profit of $21,000 in the prior year. Gross margin improved to 52.4% from 48.0%, reflecting a higher margin product mix.

The company maintained a strong liquidity position with $42.0 million in cash and marketable securities, including $24.9 million in its Merchant Investment business. Order backlog decreased to $295,000 from $336,000 at year-end 2024. Notable developments include strengthening P3 Logistic Solutions' AI contract development, a 27% increase in Precise Time and Frequency revenues, and planned board changes as directors Ferrantino and Foufas step down to focus on the Connectivity Partnership.

Positive

• Strong liquidity position with $42.0 million in cash and marketable securities
• Gross margin improved to 52.4% from 48.0% year-over-year
• Revenue increased to $918,000, up from $888,000 in Q1 2024
• Precise Time and Frequency revenues increased 27% in Q1 2025

Negative

• Net loss of $6,000 compared to $21,000 profit in Q1 2024
• Order backlog decreased to $295,000 from $336,000
• Higher manufacturing costs and increased operating expenses
• Lower investment income due to reduced yields

Insights

Financial Analyst

LGL's Q1 results show mixed signals: minimal revenue growth, swing to loss, strong gross margins, and healthy cash position amid declining backlog.

LGL Group's Q1 2025 financial results reveal a company in transition with both positive and negative signals. Revenue increased marginally by just 3.4% year-over-year to $918,000, driven by higher shipments in Electronic Instruments. However, this minimal growth coincided with a concerning pivot from a $21,000 profit last year to a $6,000 loss this quarter.

The gross margin improvement to 52.4% (from 48.0%) indicates a strategic shift toward higher-margin products, which could benefit profitability if sustained and paired with volume growth. Yet the declining backlog, now at $295,000 (down 12.2% from December), suggests potential near-term revenue challenges since most orders will ship within 90 days.

The company maintains exceptional financial stability with $42.0 million in cash and marketable securities and strong working capital of $41.8 million. This significant liquidity ($24.9 million specifically allocated to Merchant Investment) provides substantial runway to weather operational fluctuations and pursue strategic initiatives.

The planned Form S-1 filing with amended Warrant Agreement including over-subscription privileges could potentially unlock additional capital. Meanwhile, the strengthening P3 Logistic Solutions' tactical edge AI contract and 27% increase in Precise Time and Frequency revenues represent bright spots in the operational picture. The impending departure of two board members to focus on the Connectivity Partnership signals a strategic pivot that could reshape the company's future direction.

Orlando, Florida--(Newsfile Corp. - May 15, 2025) - The LGL Group, Inc. (NYSE American: LGL) ("LGL," "LGL Group," or the "Company") announced today its financial results for the first quarter ended March 31, 2025.

• Cash and cash equivalents and marketable securities were $42.0 million as of March 31, 2025
• Form S-1 expected to be filed in second quarter with an amended Warrant Agreement that includes over-subscription privilege
• P3 Logistic Solutions' tactical edge artificial intelligence contract development strengthens
• Precise Time and Frequency revenues increased 27% in Q1 2025
• Morgan Group Holding Co. receives GAMCO final agreements and is expected to close within second quarter

Results from Operations

Total revenues increased $30,000 to $918,000 for the three months ended March 31, 2025 from $888,000 for the three months ended March 31, 2024 primarily due to higher shipments in the Electronic Instruments segment.

Net (loss) income available to LGL Group common stockholders was ($6,000) for the three months ended March 31, 2025 compared with $21,000 for the three months ended March 31, 2024. The decrease was primarily due to:

• lower Net investment income on investments in U.S. Treasury money market funds due to lower yields;
• higher Manufacturing costs of sales driven by the increase in Net sales; and
• higher Engineering, selling and administrative costs related to an increase in salaries and wages.

The decrease was partially offset by higher Net sales due to higher backlog as of December 31, 2024.

Gross Margin

Gross margin increased to 52.4% for the three months ended March 31, 2025 compared to 48.0% for the three months ended March 31, 2024. The increase in gross margins reflects a higher margin product mix.

Backlog

As of March 31, 2025, our order backlog was $295,000, a decrease of $41,000 from $336,000 as of December 31, 2024. The backlog of unfilled orders includes amounts based on purchase orders, which we have determined are firm orders likely to be fulfilled primarily in the next 12 months but most of the backlog will ship in the next 90 days.

Liquidity

Our working capital metrics were as follows:

(in thousands)			March 31, 2025					December 31, 2024
Current assets			$	42,820				$			42,642
Less: Current liabilities				1,013							904
Working capital			$	41,807				$			41,738

 

As of March 31, 2025, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of $41.7 million, of which $24.9 million was held within the Merchant Investment business.

Board of Directors Changes

Michael J. Ferrantino, Jr. and Timothy Foufas will not stand for re-election to the Board of Directors of LGL Group at the Company's Annual Meeting of Stockholders on June 2, 2025. The decision reflects their intention to dedicate greater focus to launching the previously announced Connectivity Partnership.

"We remain committed to enhancing stockholder value and are excited to continue supporting LGL Group through the Company's strategic investment in the Connectivity Partnership," said Mr. Ferrantino and Mr. Foufas.

About The LGL Group, Inc.

The LGL Group, Inc. ("LGL," "LGL Group," or the "Company") is a holding company engaged in services, merchant investment and manufacturing business activities. Precise Time and Frequency, LLC ("PTF") is a globally positioned producer of industrial Electronic Instruments and commercial products and services. Founded in 2002, PTF operates from our design and manufacturing facility in Wakefield, Massachusetts. Lynch Capital International LLC is focused on the development of value through investments.

LGL Group was incorporated in 1928 under the laws of the State of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.lglgroup.com. LGL common stock and warrants are traded on the NYSE American under the symbols "LGL" and "LGL WS," respectively.

LGL Group's business strategy is primarily focused on growth through expanding new and existing operations across diversified industries. The Company's engineering and design origins date back to the early 1900s. In 1917, Lynch Glass Machinery Company ("Lynch Glass"), the predecessor of LGL Group, was formed and emerged in the late 1920s as a successful manufacturer of glass-forming machinery. Lynch Glass was then renamed Lynch Corporation ("Lynch") and was incorporated in 1928 under the laws of the State of Indiana. In 1946, Lynch was listed on the "New York Curb Exchange," the predecessor to the NYSE American. The Company has a had a long history of owning and operating various business in the precision engineering, manufacturing, and services sectors.

Cautionary Note Concerning Forward-Looking Statements

This press release may contain 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 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 LGL Group, 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 LGL Group with the Securities and Exchange Commission ("SEC"), including those risks set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 31, 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. LGL Group 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.

###

Contact:

The LGL Group, Inc.
info@lglgroup.com

The LGL Group, Inc.
Consolidated Statements of Operations
(Unaudited)

				Three Months Ended March 31,
(in thousands, except share data)				2025							2024
Revenues:
Net sales				$		498					$		392
Net investment income						417							499
Net gains (losses)						3							(3)
Total revenues						918							888
Expenses:
Manufacturing cost of sales						237							204
Engineering, selling and administrative						640							605
Total expenses						877							809
Income from operations before income taxes						41							79
Income tax expense						28							36
Net income						13							43
Less: Net income attributable to non-controlling interests						19							22
Net (loss) income attributable to LGL Group common stockholders				$		(6)					$		21
(Loss) income per common share attributable to LGL Group common stockholders:
Basic				$		(0.00)					$		0.00
Diluted				$		(0.00)					$		0.00
Weighted average shares outstanding:
Basic						5,352,937							5,352,937
Diluted						5,352,937							5,604,430

The LGL Group, Inc.
Consolidated Balance Sheets
(Unaudited)

(in thousands)		March 31, 2025							December 31, 2024
Assets:
Current assets:
Cash and cash equivalents		$	41,925					$		41,585
Marketable securities			20							17
Accounts receivable, net of reserves of $52 and $52, respectively			306							493
Inventories, net			241							267
Prepaid expenses and other current assets			328							280
Total current assets			42,820							42,642
Right-of-use lease assets			293							308
Intangible assets, net			30							36
Deferred income tax assets			159							159
Total assets		$	43,302					$		43,145
Liabilities:
Total current liabilities			1,013							904
Non-current liabilities			1,027							1,001
Total liabilities			2,040							1,905
Stockholders' equity:
Total LGL Group stockholders' equity			39,233							39,230
Non-controlling interests			2,029							2,010
Total stockholders' equity			41,262							41,240
Total liabilities and stockholders' equity		$	43,302					$		43,145

The LGL Group, Inc.
Segment Results
(Unaudited)

		Three Months Ended March 31,
(in thousands)		2025					2024						$ Change						% Change
Revenues:
Electronic Instruments		$	498				$	392					$	106							27.0%
Merchant Investment			247					289						(42)							-14.5%
Corporate			173					207						(34)							-16.4%
Total revenues			918					888						30							3.4%
Expenses:
Electronic Instruments			479					390						89							22.8%
Merchant Investment			94					49						45							91.8%
Corporate			304					370						(66)							-17.8%
Total expenses			877					809						68							8.4%
Income (loss) from operations before income taxes
Electronic Instruments			19					2						17							850.0%
Merchant Investment			153					240						(87)							-36.3%
Corporate			(131)					(163)						32							-19.6%
Income from operations before income taxes			41					79						(38)							-48.1%
Income tax expense			28					36						(8)							-22.2%
Net income			13					43						(30)							-69.8%
Less: Net income attributable to non-controlling interests			19					22						(3)							-13.6%
Net (loss) income attributable to LGL Group common stockholders		$	(6)				$	21					$	(27)							-128.6%

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252326

FAQ

What were LGL Group's (LGL) Q1 2025 financial results?

LGL Group reported Q1 2025 revenues of $918,000, up from $888,000 in Q1 2024, with a net loss of $6,000 compared to a profit of $21,000 in the prior year. Gross margin improved to 52.4%.

How much cash and marketable securities does LGL Group have in 2025?

As of March 31, 2025, LGL Group had $42.0 million in cash and marketable securities, with $24.9 million held within the Merchant Investment business.

What changes are happening to LGL Group's Board of Directors in 2025?

Michael J. Ferrantino, Jr. and Timothy Foufas will not stand for re-election at the Annual Meeting on June 2, 2025, to focus on launching the Connectivity Partnership.

What is LGL Group's current order backlog as of Q1 2025?

LGL Group's order backlog was $295,000 as of March 31, 2025, a decrease of $41,000 from $336,000 as of December 31, 2024.

How did LGL Group's Precise Time and Frequency segment perform in Q1 2025?

LGL Group's Precise Time and Frequency revenues increased 27% in Q1 2025 compared to the previous year.