M-tron Industries' 15min chart: KDJ Death Cross, Bearish Marubozu signals bearish trend.

M-tron Industries's 15-minute chart has recently triggered a KDJ Death Cross and a Bearish Marubozu, both occurring on August 18, 2025 at 11:15. This indicates that the momentum of the stock price is shifting towards the downside, potentially leading to further decreases. The sellers are currently in control of the market, and this bearish momentum is likely to continue.

M-tron Industries, Inc. (MPTI) reported its Q2 2025 earnings on August 12, 2025, showcasing strong sales and significant growth in backlog, primarily driven by defense-related orders. The company's interim CEO, Cameron Pforr, highlighted the company's continued performance and the anticipated recovery of gross margins [1].

Total revenues for the quarter were $13.28 million, representing a 12.5% year-over-year increase, driven by robust defense shipments. The company's backlog surged by 35% to $61.2 million, reflecting strong demand across its core markets, including avionics and space industries. Pforr noted that this growth was fueled by several large defense and avionics orders received in the quarter [1].

Despite the positive revenue and backlog growth, gross margins for Q2 2025 were 43.6%, a decrease from the 47% experienced in Q2 2024. This decline was attributed to changes in product mix and the impact of federal tariffs. Pforr emphasized that the company is expecting gross margin recovery in the subsequent quarters, projecting margins to improve to the 43% to 44% range [1].

The company's net income for Q2 2025 was $1.6 million, or $0.53 per diluted share, and adjusted EBITDA was $2.4 million. Pforr also noted that SG&A expenses were slightly higher than normal due to bonus allocations but considered a reasonable baseline for future growth [1].

Looking ahead, Pforr indicated that the company is focused on capital allocation priorities, including increased CapEx for automation programs. He also mentioned that small buybacks and M&A are being considered as uses of capital. The company is actively managing tariff exposure and expects a significant reorder of about $10 million in Q4 [1].

Analysts expressed curiosity about margin recovery, backlog growth, capital allocation, and defense demand, with a slightly positive but cautious tone. Management maintained a confident but measured stance, frequently noting variables and uncertainties [1].

In summary, M-tron Industries delivered strong Q2 2025 results, with a 12.5% year-over-year revenue increase and a 35% backlog jump to $61.2 million, underpinned by robust defense, avionics, and space demand. While gross margin contracted due to product mix and new tariffs, management expects sequential improvement but cautions it remains the key variable. The company is prioritizing automation investments, remains open to buybacks and acquisitions, and is actively managing tariff exposure as it executes on a strategy anchored in program business and large-scale defense contracts [1].

References:
[1] https://www.ainvest.com/news/tron-industries-q2-2025-defense-orders-boost-sales-backlog-growth-2508/
[2] https://www.ainvest.com/news/tron-industries-q2-2025-earnings-call-transcript-2508/