M-tron Industries, Inc. Reports First Quarter 2025 Results
Rhea-AI Summary
Positive
- Revenue increased 13.8% YoY to $12.7 million in Q1 2025
- Net income per diluted share grew to $0.56 from $0.53 YoY
- Backlog increased significantly by 20.3% to $55.5 million
- Strong defense product shipments drove revenue growth
- Maintained healthy gross margin of 42.5%
Negative
- New federal tariffs impacting imports from Japan, China, and South Korea
- Higher manufacturing costs due to initial production runs of new products
- Slight decrease in gross margin from 42.7% to 42.5%
- Increased engineering, selling and administrative expenses
News Market Reaction – MPTI
On the day this news was published, MPTI declined 17.84%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenues increased
13.8% , or$1.5 million $12.7 million $11.2 million - Net income per diluted share increased
$0.03 $0.56 $0.53 - Backlog increased
$9.4 million 20.3% , to$55.5 million $46.1 million
"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
Gross margin was
Net income was
Adjusted EBITDA was
Backlog
Backlog was
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
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 - 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 - 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
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 | 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 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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SOURCE Mtron
FAQ
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