In This Article:
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Revenue: $12.7 million, a 13.8% increase from $11.2 million in Q1 2024.
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Gross Margin: 42.5%, a 20 basis point decrease from 42.7% in Q1 2024.
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Net Income: $1.6 million or $0.56 per diluted share, compared to $1.5 million or $0.53 per diluted share in Q1 2024.
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Adjusted EBITDA: $2.5 million, up from $2.3 million in Q1 2024.
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Backlog: $55.5 million as of March 31, 2025, compared to $47.2 million as of December 31, 2024, and $46.1 million as of March 31, 2024.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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M-Tron Industries Inc (MPTI) reported a 13.8% increase in total revenues for Q1 2025, reaching $12.7 million compared to $11.2 million in the same period last year.
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The company experienced strong demand in defense-related orders and growth in the commercial avionics market, indicating a positive outlook for future recovery.
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M-Tron Industries Inc (MPTI) has made strategic investments in research and development, enhancing its market profile through rebranding and increased advertising efforts.
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The company's backlog increased to $55.5 million as of March 31, 2025, reflecting large defense and avionics orders and broad demand for its products.
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M-Tron Industries Inc (MPTI) is involved in over 40 programs of record in the defense and aerospace sectors, highlighting its strong market presence and growth potential.
Negative Points
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Gross margins for Q1 2025 decreased slightly to 42.5% from 42.7% in Q1 2024, primarily due to additional manufacturing costs associated with new product production.
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The company faced initial impacts from newly initiated federal tariffs on imports, which could affect financial performance if not mitigated.
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Higher manufacturing costs and increased engineering, selling, and administrative expenses partially offset revenue growth.
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The introduction of new products led to less efficient initial production runs, impacting short-term gross margins.
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The company anticipates potential disruptions in the industry due to tariff-related cost adjustments, despite having contractual capabilities to pass on these costs.
Q & A Highlights
Q: In terms of your gross margins, which were muted due to the ramping of new programs, how will this develop? Will the ramp for new large contract wins be prolonged, or will it pick up quickly? A: Cameron Pforr, Interim CEO: Gross margins were impacted by product mix, with fewer shipments for high-margin missile programs expected to increase in Q2. New product shipments initially have lower yields, but margins should improve over time. Tariffs also impacted margins, but we anticipate improvement throughout the year.