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

Rhea-AI Summary

M-tron Industries (NYSE: MPTI) reported third quarter 2025 results: revenue $14.2M (+7.2% YoY), gross margin 44.3% (down from 47.8% YoY), net income $1.8M and EPS $0.63 (diluted). Fiscal YTD revenue was $40.2M (+11.0% YoY) and Adjusted EBITDA was $8.1M YTD. Backlog grew to $58.8M (+47.9% YoY). Management cited product mix, higher tariff costs, and increased R&D, sales commissions, and stock-based compensation as drivers of margin and EPS pressure. A conference call is scheduled for Nov 13, 2025 at 10:30 AM ET, and warrants are exercisable through Dec 11, 2025.

Positive

• Revenue +7.2% year-over-year in Q3 2025
• Fiscal YTD revenue +11.0% through Sept 30, 2025
• Backlog $58.8M, up 47.9% year-over-year
• Adjusted EBITDA stable at $8.1M YTD

Negative

• Gross margin declined to 44.3% from 47.8% YoY
• Q3 net income down 19.2% year-over-year
• Diluted EPS fell to $0.63 from $0.81 YoY
• Higher R&D, sales commissions, and stock-based comp

Insights

Corporate Finance Analyst

M-tron shows revenue and backlog growth but compressed margins and lower net income signal mixed near-term profitability.

M-tron delivered $14.2 million in third-quarter revenue, a 7.2% year‑over‑year increase, and backlog rose to $58.8 million, up 47.9% from last year, indicating stronger order intake across aerospace, defense, avionics, and space.

Gross margin declined to 44.3% from 47.8% a year earlier, and net income per diluted share fell to $0.63 from $0.81, driven by product mix, higher tariff costs, increased R&D and SG&A, stock‑based compensation, and a tax-related one‑time adjustment.

Watch whether sequential margin improvement continues and if backlog converts to revenue without further tariff or mix pressure; near-term focus is on sustaining adjusted EBITDA (about $3.2 million for the quarter) and monitoring warrant exercises through December 11, 2025 as a potential cash event.

• Revenues were $14.2 million for the three months ended September 30, 2025
• Gross margin was 44.3% for the three months ended September 30, 2025
• Net income per diluted share was $0.63 for the three months ended September 30, 2025
• Backlog was $58.8 million as of September 30, 2025

ORLANDO, Fla., Nov. 12, 2025 /PRNewswire/ -- M-tron Industries, Inc. (NYSE American: MPTI) ("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 nine months ended September 30, 2025.

"The third quarter delivered 7.2% revenue growth year-over-year," said Cameron Pforr, Interim Chief Executive Officer. "While gross margin remains below last year's peak, this marks two consecutive quarters of sequential improvement. These gains validate our operational initiatives with our partners, customers, and product teams, positioning us to strengthen profitability amid a dynamic market."

		Three Months Ended September 30,												Nine Months Ended September 30,
(in thousands, except share data)		2025				2024				% Change				2025				2024				% Change
U.S. GAAP Financial Measures
Revenues		$	14,170			$	13,214				7.2	%		$	40,184			$	36,207				11.0	%
Gross margin			44.3	%			47.8	%			-7.2	%			43.5	%			45.8	%			-5.1	%
Net income		$	1,832			$	2,267				-19.2	%		$	5,022			$	5,497				-8.6	%
Net income per diluted share		$	0.63			$	0.81				-22.2	%		$	1.72			$	1.97				-12.7	%
Non-GAAP Financial Measures (a)
Adjusted EBITDA		$	3,176			$	3,300				-3.8	%		$	8,097			$	8,085				0.1	%

(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

Third  Quarter 2025

Revenue was $14.2 million for the three months ended September 30, 2025 compared with $13.2 million for the three months ended September 30, 2024. The increase was primarily due to strong growth in avionics, space, and industrials product shipments.

Gross margin was 44.3% for the three months ended September 30, 2025 compared with 47.8% for the three months ended September 30, 2024. The decrease was primarily due to product mix and higher tariff-related costs.

Net income was $1.8 million, or $0.63 per diluted share, for the three months ended September 30, 2025 compared with $2.3 million, or $0.81 per diluted share, for the three months ended September 30, 2024. The decrease was primarily due to the following:

• the decrease in gross margin discussed above;
  
  
• higher engineering, selling and administrative expenses driven by higher research and development investment, higher sales commissions consistent with the increase in revenues, higher stock-based compensation, and an increase in administrative and corporate expenses consistent with the overall growth in the business; and
  
  
• higher income taxes driven by a one-time adjustment to reverse a deferred tax asset associated with capitalized research and development costs to reflect recent charges in the U.S. tax code.

Adjusted EBITDA was $3.2 million for the three months ended September 30, 2025 compared with $3.3 million for the three months ended September 30, 2024. The slight decrease was primarily due to lower gross margins, higher engineering, selling and administrative expenses discussed above, and higher interest income partially offset by higher stock-based compensation.

Fiscal Year to Date 2025

Revenue was $40.2 million for the nine months ended September 30, 2025 compared with $36.2 million for the nine months ended September 30, 2024. The 11.0% increase was primarily due to continued strong defense program product and solution shipments and a recent uptick in avionics production, solid improvement in industrials shipments.

Gross margin was 43.5% for the nine months ended September 30, 2025 compared with 45.8% for the nine months ended September 30, 2024. The decrease was primarily due to product mix and higher tariff-related costs partially offset by higher revenues.

Net income was $5.0 million, or $1.72 per diluted share, for the nine months ended September 30, 2025 compared with $5.5 million, or $1.97 per diluted share, for the nine months ended September 30, 2024. The decrease was primarily due to the following:

• the decrease in gross margin discussed above;
  
  
• higher engineering, selling and administrative expenses driven by higher research and development investment, higher sales commissions consistent with the increase in revenues, higher stock-based compensation, and an increase in administrative and corporate expenses to support the growth in revenues; and
  
  
• higher income taxes driven by a one-time adjustment to reverse a deferred tax asset associated with capitalized research and development costs to reflect recent charges in the U.S. tax code.

Adjusted EBITDA was $8.1 million for the nine months ended September 30, 2025 compared with $8.1 million for the nine months ended September 30, 2024.

Backlog

Backlog was $58.8 million as of September 30, 2025, an increase of 47.9% from $39.8 million as of September 30, 2024 and 24.5% from $47.2 million as of December 31, 2024. The increase in backlog from December 31, 2024 reflects robust demand across aerospace and defense programs, new program launches, and a recent surge in avionics and space orders.

Earnings Call

Management, including Mr. Pforr, will host a conference call with the investment community on Thursday November 13, 2025, to discuss the Company's third 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 Thursday November 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:	5302531

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.

Warrants

As announced on October 23, 2025, Mtron's warrants are exercisable through Thursday December 11, 2025 and contain the following terms:

• Five (5) Warrants required to purchase one (1) share of Common Stock;
  
  
• Common Stock can be purchased at an exercise price of $47.50 per share;
  
  
• Over-subscription privilege available to Warrant holders who exercise their Warrants in full, whereby such Warrant holder subscribes for any or all of the shares issuable pursuant to any unexercised Warrants on the terms and subject to the conditions set forth in the Warrant Agreement; and
  
  
• No fractional shares will be issued.

All exercise notices and payments (including with respect to any exercise of a Warrant holder's over-subscription privilege) must be received by Computershare Trust Company, N.A. no later than 5:00 p.m. on Thursday December 11, 2025. Holders in street name should contact their broker, bank, or other intermediary for information on how to exercise warrants (including pursuant to any exercise of the over-subscription privilege).

For further details, Warrant holders are encouraged to review the Warrant Agreement, the FAQ on our website at ir.mtron.com/financials/2025-Warrants/2025-Warrant-FAQ, or contact ir@mtron.com. The information contained on, or that can be accessed through, our website is not part of this press release or any filing with the Securities and Exchange Commission; we have included this website address solely as an inactive textual reference.

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 ("SEC"), 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				Q3
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			$	14,170
Y/Y																			21.8	%			43.5	%			29.4	%			24.2	%			19.4	%			16.4	%			21.4	%			18.9	%			13.8	%			12.5	%			7.2	%
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	%			44.3	%
Y/Y																			-8.6	%			10.9	%			32.1	%			22.1	%			25.2	%			12.0	%			11.6	%			8.3	%			-0.5	%			-6.4	%			-7.2	%
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			$	1,832
Y/Y																			-10.7	%			162.8	%			215.3	%			-61.6	%			168.7	%			36.6	%			42.9	%			2,830.1	%			9.7	%			-10.6	%			-19.2	%
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			$	3,176
Y/Y																			-12.7	%			129.6	%			166.7	%			115.2	%			120.0	%			30.7	%			41.3	%			27.5	%			10.6	%			-4.1	%			-3.8	%

(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 September 30,								Nine Months Ended September 30,
(in thousands, except share data)		2025				2024				2025				2024
Revenues		$	14,170			$	13,214			$	40,184			$	36,207
Costs and expenses:
Manufacturing cost of sales			7,891				6,904				22,707				19,617
Engineering, selling and administrative			3,729				3,389				11,070				9,773
Total costs and expenses			11,620				10,293				33,777				29,390
Operating income			2,550				2,921				6,407				6,817
Other income:
Interest income, net			143				63				378				139
Other income, net			70				24				87				61
Total other income, net			213				87				465				200
Income before income taxes			2,763				3,008				6,872				7,017
Income tax expense			931				741				1,850				1,520
Net income		$	1,832			$	2,267			$	5,022			$	5,497
Income per common share:
Basic		$	0.64			$	0.82			$	1.76			$	2.01
Diluted		$	0.63			$	0.81			$	1.72			$	1.97
Weighted average shares outstanding:
Basic			2,860,353				2,751,924				2,850,270				2,729,803
Diluted			2,916,207				2,800,820				2,916,890				2,788,046

 

M-tron Industries, Inc. Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)		September 30, 2025				December 31, 2024
Assets:
Current assets:
Cash and cash equivalents		$	18,329			$	12,641
Accounts receivable, net of reserves of $189 and $182, respectively			6,228				6,842
Inventories, net			9,275				9,509
Prepaid expenses and other current assets			1,081				760
Total current assets			34,913				29,752
Property, plant and equipment, net			6,466				5,061
Right-of-use lease asset			252				9
Intangible assets, net			40				40
Deferred income tax asset			557				1,623
Other assets			4				3
Total assets		$	42,232			$	36,488
Liabilities:
Total current liabilities			5,062				5,216
Non-current liabilities			159				—
Total liabilities			5,221				5,216
Total stockholders' equity			37,011				31,272
Total liabilities and stockholders' equity		$	42,232			$	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 September 30,								Nine Months Ended September 30,
(in thousands, except share data)		2025				2024				2025				2024
Income before income taxes		$	2,763			$	3,008			$	6,872			$	7,017
Adjustments:
Interest income			(143)				(63)				(378)				(139)
Depreciation			280				278				800				717
Amortization			—				—				—				5
Total adjustments			137				215				422				583
EBITDA			2,900				3,223				7,294				7,600
Non-cash stock compensation			276				77				803				485
Adjusted EBITDA		$	3,176			$	3,300			$	8,097			$	8,085

The following table is a reconciliation of Income before income taxes to Adjusted EBITDA:

		2022															2023																	2024																2025
(in thousands)		Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4				Q1				Q2				Q3
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			$	14,170
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			$	2,763
Adjustments:
Interest expense (income)			3				2				1				5				2				5				(1)				(13)				(32)				(44)				(63)				(104)				(111)				(124)				(143)
Depreciation			148				165				173				185				195				190				192				220				219				220				278				251				250				270				280
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				137
EBITDA			958				773				801				799				929				1,791				2,250				273				2,055				2,322				3,223				2,905				2,253				2,141				2,900
Non-cash stock compensation			219				68				75				96				71				140				86				2,124				207				201				77				151				249				278				276
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			$	3,176
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	%			22.4	%

 

 

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SOURCE Mtron

FAQ

What were MPTI Q3 2025 revenues and how did they change year-over-year?

M-tron reported $14.2 million in Q3 2025 revenue, a +7.2% increase versus Q3 2024.

Why did MPTI gross margin fall in Q3 2025 to 44.3%?

Management cited product mix shifts and higher tariff-related costs as primary drivers of the margin decline.

How large is MPTI's backlog and what does it mean for future revenue?

Backlog was $58.8 million as of Sept 30, 2025, up 47.9% year-over-year, indicating stronger near-term demand.

What happened to MPTI's earnings and EPS in Q3 2025?

Q3 net income was $1.8 million and diluted EPS was $0.63, down versus prior year due to lower margins and higher operating expenses.

When is the MPTI Q3 2025 earnings call and how can investors join?

The call is on Nov 13, 2025 at 10:30 AM ET; dial-in and an archived webcast are available via the company's investor relations site.

What are the MPTI warrant exercise terms and deadline?

Warrants require 5 warrants per share at an exercise price of $47.50; exercises must be received by Dec 11, 2025 5:00 PM.