What is the market's earnings forecast for M-tron Industries next quarter?

What factors drove the changes in M-tron Industries's revenue and profit?

What guidance did M-tron Industries's management provide for the next earnings period?

What were the key takeaways from M-tron Industries’s earnings call?

What does M-tron Industries do and what are its main business segments?

What is the revenue and EPS growth rate for M-tron Industries year over year?

What were the key takeaways from M-tron Industries's earnings call?

What is M-tron Industries's latest dividend and current dividend yield?

- **Revenue Growth**: 7.2% YoY to $14.2M, driven by defense and industrial segments.
- **Backlog Expansion**: +48% YoY to $58.8M, reflecting strong program demand.
- **Strategic Wins**: EW/radar systems expected to double revenue next year.
- **Tariff Mitigation**: 1-1.5% margin impact, with pricing adjustments and FAR exemptions in place.
- **Partnership Potential**: Indiana Microelectronics tunable filters partnership targets large-scale defense programs.

**【CEO Opening Remarks】**
- Reported Q3 2025 revenue of $14.2 million, up 7.2% YoY, driven by avionics, space, and industrial shipments.
- Gross margin declined to 44.3% (from 47.8% YoY) due to product mix and tariffs.
- Net income $1.8 million ($0.63 EPS), down 25% YoY due to tax law changes and higher OpEx.
- Backlog surged 48% YoY to $58.8 million, fueled by defense programs and new orders.

**【CFO Financial Commentary】**
- Adjusted EBITDA $3.2 million (flat YoY) as lower gross margins offset SG&A investments.
- Tariffs impacting gross margin by 1-1.5%, with efforts to mitigate via FAR exemptions and pricing.
- Dividend warrants exercisable at $47.50/share through Dec 11, 2025.

**【Q&A Highlights】**
- **R&D Focus**: Hiring design engineers to support program wins in EW/radar systems (expected to double revenue next year).
- **Industrial Growth**: Test & measurement, oil/gas, telecom driving non-defense sales.
- **Avionics Outlook**: Boeing/Airbus production ramp-up supporting Q4 order flow.
- **Tariff Strategy**: Passing costs to new contracts; FAR exemptions now in effect for defense products.
- **Partnership Update**: Indiana Microelectronics tunable filters partnership yields early sales wins, potential for large-scale programs.

M-tron Industries, Inc. (MPTI) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 12.5% YoY to $13.28M, driven by defense programs and 35% backlog increase to $61.2M.
- **Gross Margin Challenge**: 43.6% (down 3.4pts YoY) due to tariffs (~1.25% of revenue) and product mix.
- **Strategic Investments**: 4% CapEx increase for automation, M&A pipeline of $5-15M RF companies.
- **Tariff Resilience**: No demand impact despite 1-1.5% margin drag; 42-45% gross margin range for FY25.
- **Leadership Update**: Interim CEO title expected to be removed following board approval.

**【Management Opening Remarks】**
- Linda Biles provided standard disclaimers and introduced Cameron Pforr, Interim CEO, who highlighted Q2 performance: 12.5% YoY revenue growth to $13.28M, 35% backlog increase to $61.2M, and 3 consecutive quarters of strong book-to-bill ratios.
- Cameron emphasized defense program shipments, R&D investments, and strategic focus on program business with over 40 programs of record, including sole-source contracts.

**【CEO Commentary】**
- Q2 gross margin declined to 43.6% (from 47% YoY) due to product mix, tariffs on foreign-sourced materials, and India-based finishing costs.
- Net income was $1.6M ($0.53 EPS), down 5% YoY due to higher R&D, sales commissions, and administrative expenses.
- Backlog growth driven by avionics, space, and defense orders, with a $10M+ reorder expected in Q4.
- Tariffs added ~1.25% of revenue costs, but no impact on demand observed.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $2.4M (-4% YoY) reflected lower gross margins and increased SG&A expenses (30% of revenue vs. 27% prior year).
- Capital expenditures increased 4% to support automation and manufacturing scale.
- $15M cash balance expected to grow to $20M by year-end, with potential for M&A or buybacks.

**【Q&A Key Highlights】**
- **Gross Margin Outlook**: 42-45% range for FY25, with potential sequential improvement in Q3/Q4.
- **Tariff Impact**: ~1-1.5% margin drag expected, but no demand elasticity observed.
- **M&A Strategy**: Targeting $5-15M revenue, $1M+ EBITDA RF companies at 8-12x EBITDA multiples.
- **CEO Title Update**: Board finalizing transition to permanent CEO role.
- **Operating Margin**: 14% baseline, with potential expansion as scale benefits offset tariffs.


M-tron Industries, Inc. (MPTI) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 13.8% YoY to $12.7M, driven by defense and avionics.
- **Margin Recovery**: Gross margin to improve H2 as high-margin missile programs ramp.
- **Tariff Mitigation**: 90%+ contracts allow cost pass-through; seeking DoD exemptions.
- **Backlog Strength**: $55.5M (+17.6% QoQ) reflects strong defense and avionics demand.
- **Warrant Highlights**: $47.50 strike, $52 VWAP trigger, 3-year maturity.

**【CEO Business Overview】**
- Q1 2025 revenue: $12.7M (+13.8% YoY), driven by defense orders and commercial avionics growth.
- Defense programs dominate, with 40+ programs of record in aerospace/defense.
- New product launches (space subsystems, EW oscillators) show early success but impact margins.
- Automation initiatives improving yields, offsetting $100K+ tariff costs in Q1.
- Expecting margin recovery as high-margin missile programs ramp up in H2.

**【CFO Financial Highlights】**
- Gross margin: 42.5% (-20bps YoY) due to new product costs and tariffs.
- Net income: $1.6M ($0.56 EPS) vs. $1.5M ($0.53 EPS) YoY.
- Adjusted EBITDA: $2.5M (+$0.2M YoY), backed by $55.5M backlog (+17.6% QoQ).
- Tariffs added $100K+ costs in Q1; seeking customer reimbursement via FAR clauses.

**【Q&A Key Points】**
- Margins: New products expected to reach full efficiency by H2, reversing 200bps YoY decline.
- Tariffs: 90%+ contracts allow cost pass-through; working with DoD to exempt defense parts.
- Pipeline: Multiple large avionics and drone programs in final stages of Q2/Q3 announcements.
- Warrants: $47.50 strike price with $52 VWAP trigger; 3-year maturity with 30-day exercise window.

M-tron Industries, Inc. (MPTI) Q1 2025 Earnings Call Transcript

- **Revenue Surge**: Q4 2024 revenue up 17.9%-20.7% YoY, annual growth of 18.8%-19.5%, driven by defense contracts and telecom demand.
- **Profitability Boost**: Gross margin expanded to 46%-48.5%, up 200 basis points YoY, fueled by raw material efficiency and production scale.
- **Deal Pipeline**: Two $10M+ contracts signed in 2024, with additional pipeline opportunities in aerospace and defense.
- **Shareholder Value**: Introduced warrant dividend to distribute value, offering shares at $47.50 with upside potential through 2028.
- **Acquisition Focus**: Targeting $2-5M EBITDA companies in RF components, avionics, and subsystems to expand product portfolio and margins.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q4 2024 revenue increased 17.9%-20.7% YoY, with annual growth of 18.8%-19.5%, marking the third consecutive year of near-20% growth.
- **Gross Margins**: Q4 gross margin reached 46%-48.5%, up 200 basis points YoY, driven by improved production efficiencies and raw material utilization.
- **New Contracts**: Secured two $10M+ contracts in late 2024, with additional pipeline opportunities expected in Q1 2025.
- **M&A Strategy**: Targeting accretive acquisitions with $2-5M EBITDA, focusing on RF components, subsystems, and avionics technologies.
- **Warrant Dividend**: Replaced rights offering with a warrant dividend, offering shareholders the right to purchase shares at $47.50 with a 3-year expiration or early trigger at $52+ VWAP.

**【CFO Financial Highlights】**
- **Annual Results**: 2024 revenue of $48.9-$49.2M, up 18.8%-19.5% YoY. Gross margin exceeded 46% for the year, up 1,000 basis points over three years.
- **Balance Sheet**: Strong cash position with potential $3.6M from employee option exercises. No material changes expected in audited 10-K.
- **Margin Leverage**: Operating income and net income percentages remain stable, reflecting disciplined cost management.

**【Q&A Key Takeaways】**
- **M&A Market**: Actively pursuing accretive deals, with a focus on RF components and subsystems. Connectivity Partnership may provide deal flow and market insights.
- **Customer Mix**: New contracts with two different large customers, with pipeline diversification across aerospace, defense, and telecom.
- **Growth Outlook**: Guiding for 10%+ revenue growth, though 20%+ growth possible if contracts materialize. Gross margins expected to remain in high 40s.
- **Management Incentives**: Senior team incentivized through cash bonuses tied to company performance, with restricted stock vesting over three years.

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