[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for M-tron Industries, Inc. [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for M-tron Industries, Inc., including the statements of operations, balance sheets, statements of equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, segment information, related party transactions, income taxes, debt, stock-based compensation, equity, EPS, commitments, inventory, property, and revenue breakdown. [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides the company's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,282 | $11,808 | $26,014 | $22,993 | | Total costs and expenses | $11,438 | $9,701 | $22,157 | $19,097 | | Operating income | $1,844 | $2,107 | $3,857 | $3,896 | | Net income | $1,560 | $1,744 | $3,190 | $3,230 | | Basic EPS | $0.55 | $0.64 | $1.12 | $1.19 | | Diluted EPS | $0.53 | $0.63 | $1.09 | $1.16 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024. Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | $39,692 | $36,488 | | Total liabilities | $4,879 | $5,216 | | Total stockholders' equity | $34,813 | $31,272 | | Cash and cash equivalents | $15,529 | $12,641 | [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section details the changes in the company's stockholders' equity for the three and six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Equity (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | March 31, 2024 | | :-------------------- | :------------ | :------------- | :------------ | :------------- | | Total Equity | $34,813 | $33,151 | $23,660 | $21,715 | | Net income (Q2) | $1,560 | - | $1,744 | - | | Stock-based compensation expense (Q2) | $278 | - | $201 | - | | Warrant-related costs (Q2) | $(297) | - | $0 | - | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $4,462 | $3,456 | | Net cash used in investing activities | $(1,398) | $(995) | | Net cash (used in) provided by financing activities | $(176) | $127 | | Increase in cash and cash equivalents | $2,888 | $2,588 | | Cash and cash equivalents at end of period | $15,529 | $6,501 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering various accounting policies and financial details. [1. Background and Description of Business](index=10&type=section&id=1.%20Background%20and%20Description%20of%20Business) This note describes M-tron Industries, Inc.'s core business, products, primary markets, and manufacturing capabilities. - M-tron Industries, Inc. designs, manufactures, and markets highly engineered, high-reliability frequency and spectrum control products for electronic circuits[26](index=26&type=chunk) - Primary markets include aerospace & defense, avionics, industrials, and space[26](index=26&type=chunk) - Products include radio frequency, microwave and millimeter wave filters, various oscillators (OCXO, TCXO, VCXO), crystal resonators, Integrated Microwave Assemblies (IMA), and solid-state power amplifiers[28](index=28&type=chunk) - Manufacturing facilities are located in Orlando, Florida; Yankton, South Dakota; and Noida, India, all ISO 9001:2015 and RoHS compliant. U.S. facilities are also ITAR registered and AS9100 Rev D certified, with Yankton also MIL-STD-790 certified[29](index=29&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's key accounting policies and recent accounting pronouncements. - No material changes to significant accounting policies occurred during the three and six months ended June 30, 2025, compared to the 2024 Annual Report[31](index=31&type=chunk) R&D Costs (in thousands) | R&D Costs | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development costs | $784 | $682 | $1,506 | $1,315 | - The Company adopted ASU 2023-07 (Segment Reporting) in December 2024, requiring enhanced segment disclosures retrospectively[41](index=41&type=chunk) - Future accounting standards include ASU 2024-03 (Expense Disaggregation Disclosures) effective after December 15, 2026, and ASU 2023-09 (Income Tax Disclosures) effective after December 15, 2024, both currently being assessed for impact[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [3. Segment Information](index=13&type=section&id=3.%20Segment%20Information) This note provides details on the company's operating segments and how performance is assessed by the Chief Operating Decision Maker. - The Chief Executive Officer is the Chief Operating Decision Maker (CODM)[45](index=45&type=chunk) - The Company operates as a single reporting segment: Electronic Components, which includes filters, oscillators, crystal resonators, and integrated microwave assemblies[46](index=46&type=chunk)[49](index=49&type=chunk) - The CODM assesses segment performance and allocates resources based on Segment gross profit and Net income, using these metrics to evaluate manufacturing costs, pricing, reinvestment decisions, budget adherence, and competitive analysis[47](index=47&type=chunk) Segment Financials (in thousands) | Segment Financials | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,282 | $11,808 | $26,014 | $22,993 | | Segment gross profit | $5,792 | $5,501 | $11,198 | $10,280 | | Segment net income | $1,560 | $1,744 | $3,190 | $3,230 | | Total assets (as of period end) | $39,692 (June 30, 2025) | - | $36,488 (Dec 31, 2024) | - | [4. Related Party Transactions](index=15&type=section&id=4.%20Related%20Party%20Transactions) This note discloses financial transactions and balances with related parties, including GAMCO Investors, Inc. and The LGL Group, Inc. Related Party Transactions (in thousands) | Related Party Transactions | Three Months Ended June 30, 2025 (Income/Expense) | Three Months Ended June 30, 2024 (Income/Expense) | Six Months Ended June 30, 2025 (Income/Expense) | Six Months Ended June 30, 2024 (Income/Expense) | | :---------------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | GAMCO Investors, Inc. | $127 / $0 | $45 / $0 | $241 / $0 | $79 / $0 | | The LGL Group, Inc. | $12 / $(10) | $12 / $27 | $24 / $16 | $24 / $53 | | Total | $139 / $(10) | $57 / $27 | $265 / $16 | $103 / $53 | Related Party Balances (in thousands) | Related Party Balances | June 30, 2025 (Assets/Liabilities) | December 31, 2024 (Assets/Liabilities) | | :------------------------------------ | :--------------------------------- | :------------------------------------- | | GAMCO Investors, Inc. | $13,356 / $0 | $10,415 / $0 | | The LGL Group, Inc. | $128 / $0 | $59 / $0 | | Total | $13,484 / $0 | $10,474 / $0 | - The Company earned **$127 thousand** and **$241 thousand** in interest income from investments with GAMCO Investors, Inc. for the three and six months ended June 30, 2025, respectively, an increase from $45 thousand and $79 thousand in the prior year periods[55](index=55&type=chunk) - Mtron receives a net monthly payment of **$4 thousand** from LGL Group under the Amended and Restated Transitional Administrative and Management Services Agreement (Mtron TSA)[57](index=57&type=chunk)[58](index=58&type=chunk) [5. Income Taxes](index=17&type=section&id=5.%20Income%20Taxes) This note details the company's effective tax rates and the impact of recent tax legislation. Effective Tax Rate | Effective Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Effective Tax Rate | 21.8% | 18.7% | 22.4% | 19.4% | - Differences from the U.S. federal statutory rate of **21.0%** are primarily due to research and development credits, permanent differences, and state taxes[64](index=64&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) introduces significant changes to the U.S. federal tax system, including restoration of **100% accelerated tax depreciation**, immediate expensing of domestic R&E, and modifications to GILTI, FDII, and BEAT rates. The Company is assessing its potential impact[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [6. Revolving Credit Agreement](index=19&type=section&id=6.%20Revolving%20Credit%20Agreement) This note describes the company's revolving line of credit with Fifth Third Bank. - Mtron has a revolving line of credit with Fifth Third Bank for up to **$5,000 thousand**, bearing interest at SOFR plus **2.25%**, maturing June 15, 2026[69](index=69&type=chunk) - As of June 30, 2025, and December 31, 2024, there were **no outstanding borrowings** under this credit line[70](index=70&type=chunk) [7. Stock-Based Compensation](index=19&type=section&id=7.%20Stock-Based%20Compensation) This note provides information on stock-based compensation expense, unrecognized costs, and stock option grants. Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Restricted stock awards | $181 | $201 | $430 | $408 | | Stock options | $97 | $0 | $97 | $0 | | Total | $278 | $201 | $527 | $408 | - As of June 30, 2025, **193,916 shares** remained available for future issuance under the 2022 Incentive Plan[71](index=71&type=chunk) - Unrecognized compensation cost for unvested restricted shares was **$1,440 thousand** as of June 30, 2025, expected to be recognized over a weighted-average period of **1.7 years**[72](index=72&type=chunk) - Stock options granted in the six months ended June 30, 2025, had a weighted-average grant date fair value of **$23.31**, with an expected volatility of **74.5%** and an expected term of **4.0 years**[74](index=74&type=chunk)[76](index=76&type=chunk) [8. Stockholders' Equity](index=21&type=section&id=8.%20Stockholders'%20Equity) This note details changes in the number of common shares outstanding. Shares Outstanding | Shares Outstanding | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | | :----------------- | :----------------------------- | :--------------------------- | | Beginning of period | 2,911,165 | 2,786,321 | | Stock-based compensation | 13,814 | 32,548 | | Exercise of stock options | 3,350 | 92,296 | | Restricted shares forfeited | (4,424) | 0 | | End of period | 2,923,905 | 2,911,165 | [9. Earnings per Share ("EPS")](index=21&type=section&id=9.%20Earnings%20per%20Share%20(%22EPS%22)) This note presents the basic and diluted earnings per share calculations. EPS (in thousands, except share data) | EPS | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $1,560 | $1,744 | $3,190 | $3,230 | | Basic EPS | $0.55 | $0.64 | $1.12 | $1.19 | | Diluted EPS | $0.53 | $0.63 | $1.09 | $1.16 | | Weighted average shares outstanding - basic | 2,853,383 | 2,728,599 | 2,848,419 | 2,723,293 | | Weighted average shares outstanding - diluted | 2,934,594 | 2,779,802 | 2,931,053 | 2,783,739 | - Warrants to purchase **582,233 shares** of common stock were excluded from diluted EPS calculations for the three and six months ended June 30, 2025, as their inclusion would be antidilutive[78](index=78&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20Commitments%20and%20Contingencies) This note addresses potential liabilities from litigation and other commitments. - The Company records a liability for probable and estimable losses from litigation. As of June 30, 2025, there is **no legal accrual** for contingencies[79](index=79&type=chunk) [11. Other Financial Statement Information](index=23&type=section&id=11.%20Other%20Financial%20Statement%20Information) This note provides supplementary details on inventories and property, plant, and equipment. Inventories, Net (in thousands) | Inventories, Net | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Raw materials | $4,365 | $4,349 | | Work in process | $4,599 | $4,876 | | Finished goods | $1,737 | $1,720 | | Total gross inventory | $10,701 | $10,945 | | Reserve for excess and obsolete inventory | $(1,585) | $(1,436) | | Inventories, net | $9,116 | $9,509 | Property, Plant and Equipment, Net (in thousands) | Property, Plant and Equipment, Net | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Gross property, plant and equipment | $29,094 | $27,696 | | Less: Accumulated depreciation | $(23,155) | $(22,635) | | Property, plant and equipment, net | $5,939 | $5,061 | [12. Domestic and Foreign Revenues](index=23&type=section&id=12.%20Domestic%20and%20Foreign%20Revenues) This note breaks down the company's revenues by domestic and foreign geographical regions. Revenues (in thousands) | Revenues | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Malaysia | $1,471 | $1,426 | $2,730 | $2,308 | | Australia | $1,140 | $645 | $1,203 | $1,419 | | Greece | $292 | $0 | $537 | $388 | | All other foreign countries | $846 | $712 | $1,668 | $1,338 | | Total foreign revenues | $3,749 | $2,783 | $6,138 | $5,453 | | Total domestic revenues | $9,533 | $9,025 | $19,876 | $17,540 | - Total foreign revenues increased by **34.7%** for the three months ended June 30, 2025, and by **12.6%** for the six months ended June 30, 2025, compared to the prior year periods[83](index=83&type=chunk) [13. Subsequent Events](index=23&type=section&id=13.%20Subsequent%20Events) This note discloses any significant events occurring after the balance sheet date. - The Company did not identify any subsequent events requiring adjustment or disclosure in the consolidated financial statements after the balance sheet date through the issuance date[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operational results for the three and six months ended June 30, 2025, compared to the prior year. It covers revenue drivers, cost changes, profitability, backlog growth, non-GAAP measures like Adjusted EBITDA, and an analysis of liquidity and capital resources, including cash flow activities and the revolving credit facility. [Overview](index=24&type=section&id=Overview) This section provides a brief overview of M-tron Industries, Inc.'s business and market focus. - Mtron designs, manufactures, and markets highly-engineered, high reliability frequency and spectrum control products for aerospace & defense, avionics, industrials, and space markets[88](index=88&type=chunk) [Trends and Uncertainties](index=24&type=section&id=Trends%20and%20Uncertainties) This section discusses key trends and uncertainties, including the impact of tariffs on the company's operations. - Tariffs imposed by the U.S. federal administration and retaliatory tariffs from foreign governments have caused an increase in Manufacturing cost of sales, but are not anticipated to have a material impact on operations[90](index=90&type=chunk) - The Company is seeking exemptions and evaluating alternative material sources to mitigate tariff impacts[90](index=90&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenues, costs, operating income, and net income for the periods presented. Results of Operations (in thousands) - Three Months Ended June 30 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :------- | :------- | | Revenues | $13,282 | $11,808 | $1,474 | 12.5% | | Manufacturing cost of sales | $7,490 | $6,307 | $1,183 | 18.8% | | Engineering, selling and administrative | $3,948 | $3,394 | $554 | 16.3% | | Total costs and expenses | $11,438 | $9,701 | $1,737 | 17.9% | | Operating income | $1,844 | $2,107 | $(263) | -12.5% | | Net income | $1,560 | $1,744 | $(184) | -10.6% | | Gross margin | 43.6% | 46.6% | -298 bps | | Results of Operations (in thousands) - Six Months Ended June 30 | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :------- | :------- | | Revenues | $26,014 | $22,993 | $3,021 | 13.1% | | Manufacturing cost of sales | $14,816 | $12,713 | $2,103 | 16.5% | | Engineering, selling and administrative | $7,341 | $6,384 | $957 | 15.0% | | Total costs and expenses | $22,157 | $19,097 | $3,060 | 16.0% | | Operating income | $3,857 | $3,896 | $(39) | -1.0% | | Net income | $3,190 | $3,230 | $(40) | -1.2% | | Gross margin | 43.0% | 44.7% | -166 bps | | - Revenue increases for both periods were primarily driven by strong defense program product and solution shipments[92](index=92&type=chunk)[98](index=98&type=chunk) - Gross margin decreased due to product mix and the impact of tariffs[93](index=93&type=chunk)[99](index=99&type=chunk) - Total other income, net, increased significantly for both periods, primarily due to higher interest income from investments in money market mutual funds[94](index=94&type=chunk)[103](index=103&type=chunk) [Backlog](index=26&type=section&id=Backlog) This section reports on the company's order backlog and its changes over time. Backlog (in thousands) | Backlog | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------- | :------------ | :---------------- | :------------ | | Order backlog | $61,199 | $47,239 | $45,322 | - Backlog increased by **$13,960 thousand (29.6%)** from December 31, 2024, and by **$15,877 thousand (35.0%)** from June 30, 2024, reflecting continued strength in aerospace & defense and avionics customer orders[101](index=101&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) This section presents and reconciles non-GAAP financial measures, specifically Adjusted EBITDA, used by management to assess performance. - Adjusted EBITDA is a non-GAAP measure used to understand operational results, excluding interest income/expense, depreciation, amortization, non-cash stock-based compensation, and other discrete items[105](index=105&type=chunk)[107](index=107&type=chunk) Adjusted EBITDA (in thousands) | Adjusted EBITDA | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income before income taxes | $1,995 | $2,146 | $4,109 | $4,009 | | EBITDA | $2,141 | $2,322 | $4,394 | $4,377 | | Adjusted EBITDA | $2,419 | $2,523 | $4,921 | $4,785 | - Adjusted EBITDA decreased by **$104 thousand** for the three months ended June 30, 2025, primarily due to lower gross margins and higher interest income, partially offset by higher depreciation and stock-based compensation[105](index=105&type=chunk) - Adjusted EBITDA increased by **$136 thousand** for the six months ended June 30, 2025, driven by higher revenues, depreciation, and stock-based compensation, partially offset by higher interest income[106](index=106&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, and ability to meet its financial obligations. - Cash and cash equivalents increased to **$15,529 thousand** as of June 30, 2025, from **$12,641 thousand** as of December 31, 2024[110](index=110&type=chunk) Cash Flow Activity (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash provided by operating activities | $4,462 | $3,456 | | Cash used in investing activities | $(1,398) | $(995) | | Cash (used in) provided by financing activities | $(176) | $127 | | Net change in cash and cash equivalents | $2,888 | $2,588 | - Operating cash flow increased by **$1,006 thousand**, primarily due to increased stock-based compensation and a positive net change in operating assets and liabilities[112](index=112&type=chunk)[115](index=115&type=chunk) - Investing cash flow increased by **$403 thousand**, mainly due to higher capital expenditures for growth, product development, and operational efficiencies[113](index=113&type=chunk) - Financing cash flow decreased by **$303 thousand**, primarily due to costs incurred related to warrant issuance in April 2025[114](index=114&type=chunk) - The Company believes existing cash, marketable securities, and cash from operations will provide sufficient liquidity for the next 12 months. The Board of Directors maintains a policy of not paying cash dividends[116](index=116&type=chunk)[117](index=117&type=chunk) [Critical Accounting Estimates](index=29&type=section&id=Critical%20Accounting%20Estimates) This section addresses the company's critical accounting estimates and any material changes. - No material changes to critical accounting estimates were disclosed compared to the Annual Report on Form 10-K filed on March 27, 2025[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the company. - This item is not applicable for the Company[122](index=122&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting. [Evaluation of Disclosure Controls and Procedures](index=29&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures. - As of June 30, 2025, the Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective[124](index=124&type=chunk) [Changes in Internal Control Over Financial Reporting](index=29&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section discusses any changes in the company's internal control over financial reporting during the quarter. - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[126](index=126&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, other information, exhibits, and signatures for the quarterly report. [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is not aware of any material pending legal proceedings beyond ordinary routine litigation incidental to its business. - The Company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to its business[128](index=128&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter. - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[129](index=129&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits included or incorporated by reference in the Quarterly Report on Form 10-Q, including organizational documents, warrant agreements, and certifications. - Exhibits include the Amended and Restated Separation and Distribution Agreement, Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Warrant Agreement, and certifications from the Principal Executive Officer and Principal Financial Officer[130](index=130&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) This section contains the signatures of the authorized officers, confirming the due submission of the report. - The report was signed by Cameron Pforr, Interim Chief Executive Officer and Chief Financial Officer, on August 12, 2025[136](index=136&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Overall Performance and Outlook](index=1&type=section&id=Overall%20Performance%20and%20Outlook) M-tron Industries reported strong Q2 2025 revenue growth and significant backlog increase, indicating robust demand and sustained performance - Interim CEO Cameron Pforr highlighted **strong revenue growth** and a **significant increase in backlog**, reflecting product value, pipeline strength, and growing market demand, positioning the company for sustained performance in H2 2025 and beyond[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q2 2025 saw **12.5% revenue growth** to **$13.3 million** and **35.0% backlog increase** to **$61.2 million**, but diluted EPS decreased **15.9%** Key Financial Highlights (Three and Six Months Ended June 30, in thousands) | U.S. GAAP Financial Measures | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | % Change | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | % Change | | :--------------------------- | :---------------------------------------------- | :---------------------------------------------- | :------- | :-------------------------------------------- | :-------------------------------------------- | :------- | | Revenues | $13,282 | $11,808 | 12.5% | $26,014 | $22,993 | 13.1% | | Gross margin | 43.6% | 46.6% | -6.4% | 43.0% | 44.7% | -3.7% | | Net income | $1,560 | $1,744 | -10.6% | $3,190 | $3,230 | -1.2% | | Net income per diluted share | $0.53 | $0.63 | -15.9% | $1.09 | $1.16 | -6.2% | | **Non-GAAP Financial Measures (a)** | | | | | | | | Adjusted EBITDA | $2,419 | $2,523 | -4.1% | $4,921 | $4,785 | 2.8% | - Revenues increased **12.5%**, or **$1.5 million**, to **$13.3 million** for the three months ended June 30, 2025, from **$11.8 million** in the prior year[4](index=4&type=chunk) - Net income per diluted share decreased **15.9%**, or **$0.10**, to **$0.53** for the three months ended June 30, 2025, from **$0.63** in the prior year[4](index=4&type=chunk) - Backlog increased **35.0%**, or **$15.9 million**, to **$61.2 million** as of June 30, 2025, from **$45.3 million** as of June 30, 2024[4](index=4&type=chunk) [Results from Operations](index=2&type=section&id=Results%20from%20Operations) [Three Months Ended June 30, 2025 (Q2 2025)](index=2&type=section&id=Second%20Quarter%202025) In Q2 2025, M-tron Industries saw revenue growth driven by defense program shipments, but experienced declines in gross margin, net income, and Adjusted EBITDA due to product mix, tariffs, and increased operating expenses [Revenue](index=2&type=section&id=Revenue_Q2_2025) - Revenue for Q2 2025 was **$13.3 million**, an increase from **$11.8 million** in Q2 2024, primarily driven by strong defense program product and solution shipments[5](index=5&type=chunk) [Gross Margin](index=2&type=section&id=Gross_Margin_Q2_2025) - Gross margin decreased to **43.6%** in Q2 2025 from **46.6%** in Q2 2024, mainly due to product mix and tariff impacts, partially offset by higher revenues[6](index=6&type=chunk) [Net Income & EPS](index=2&type=section&id=Net_Income_EPS_Q2_2025) - Net income was **$1.6 million** (**$0.53 per diluted share**) in Q2 2025, down from **$1.7 million** (**$0.63 per diluted share**) in Q2 2024, attributed to lower gross margins and higher operating expenses, including increased R&D, sales commissions, and administrative costs[7](index=7&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted_EBITDA_Q2_2025) - Adjusted EBITDA decreased to **$2.4 million** in Q2 2025 from **$2.5 million** in Q2 2024, primarily due to lower gross margins and increased Engineering, selling, and administrative expenses[8](index=8&type=chunk) [Six Months Ended June 30, 2025 (YTD 2025)](index=2&type=section&id=Fiscal%20Year%20to%20Date%202025) For the first six months of 2025, M-tron Industries achieved revenue growth, but experienced a slight decline in net income and diluted EPS, alongside a modest increase in Adjusted EBITDA, influenced by similar factors as the quarterly results [Revenue](index=2&type=section&id=Revenue_YTD_2025) - Revenue for the six months ended June 30, 2025, was **$26.0 million**, up from **$23.0 million** in the prior year, driven by continued strong defense program product and solution shipments[9](index=9&type=chunk) [Gross Margin](index=2&type=section&id=Gross_Margin_YTD_2025) - Gross margin for the six months ended June 30, 2025, was **43.0%**, a decrease from **44.7%** in the prior year, primarily due to product mix and tariff impacts, partially offset by higher revenues[9](index=9&type=chunk) [Net Income & EPS](index=2&type=section&id=Net_Income_EPS_YTD_2025) - Net income was **$3.2 million** (**$1.09 per diluted share**) for the six months ended June 30, 2025, compared to **$3.2 million** (**$1.16 per diluted share**) in the prior year, due to lower gross margins and higher operating expenses from increased R&D, sales commissions, and administrative costs[10](index=10&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted_EBITDA_YTD_2025) - Adjusted EBITDA increased to **$4.9 million** for the six months ended June 30, 2025, from **$4.8 million** in the prior year, primarily due to a substantial increase in revenue, partially offset by reduced gross margins and higher operating expenses[11](index=11&type=chunk) [Backlog](index=2&type=section&id=Backlog) [Backlog Overview](index=2&type=section&id=Backlog_Overview) M-tron Industries reported a significant increase in backlog to **$61.2 million** as of June 30, 2025, reflecting broad demand across its product lines, including aerospace, defense, avionics, and space industries - Backlog reached **$61.2 million** as of June 30, 2025, a **35.0% increase** from **$45.3 million** as of June 30, 2024, and also up from **$47.2 million** as of December 31, 2024[4](index=4&type=chunk)[12](index=12&type=chunk) - The increase in backlog is attributed to broad demand for products, including continued purchasing under large aerospace and defense programs, new program orders, and a recent uptick in avionics and space industry orders[12](index=12&type=chunk) [Investor Call Details](index=2&type=section&id=Investor%20Call) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) M-tron Industries will host a conference call on August 13, 2025, to discuss Q2 2025 results, with dial-in details provided for participants and an archive available online - Management will host a conference call on Wednesday, August 13, 2025, at 10:30 a.m. Eastern Time to discuss Q2 2025 results[13](index=13&type=chunk) Investor Call Dial-in Details | Detail | Value | | :----------------- | :------------- | | Toll-Free Dial-in | (800) 715-9871 | | Toll Dial-in Number| +1 (646) 307-1963 | | Conference ID | 4709075 | - An archive of the call and the earnings release will be available on the Investor Relations section of Mtron's website at ir.mtron.com[13](index=13&type=chunk) [About M-tron Industries, Inc.](index=3&type=section&id=About%20Mtron) [Company Overview](index=3&type=section&id=Company%20Overview) M-tron Industries is a U.S.-based engineering-centric designer and manufacturer of highly engineered, high-reliability frequency and spectrum control products and solutions for the aerospace, defense, avionics, and space industries, providing comprehensive customer support globally - M-tron Industries, Inc. designs, manufactures, and markets highly engineered, high reliability frequency and spectrum control products and solutions[14](index=14&type=chunk) - The company is engineering-centric, providing close support to customers throughout the entire product life cycle, including design, prototyping, production, and upgrades[14](index=14&type=chunk) - 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[14](index=14&type=chunk) [Cautionary Note Concerning Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Concerning%20Forward%20Looking%20Statements) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section outlines the nature of forward-looking statements within the press release, emphasizing that they are based on current expectations and projections, subject to risks and uncertainties, and Mtron undertakes no obligation to update them - The press release contains forward-looking statements regarding financial impact, condition, results, strategy, and needs, identified by words like 'believe,' 'expect,' 'anticipate,' and similar expressions[15](index=15&type=chunk) - These statements are based on current expectations and projections but are subject to inaccurate assumptions, risks, and uncertainties, as detailed in SEC filings, including the 'Risk Factors' in the Company's Form 10-K[16](index=16&type=chunk) - Mtron undertakes no obligation to update or revise any forward-looking statements, and readers are cautioned not to place undue reliance on them, with protection claimed under the Private Securities Litigation Reform Act of 1995[17](index=17&type=chunk) [Contact Information](index=3&type=section&id=Contact) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) For investor inquiries, M-tron Industries provides an email contact for Investor Relations and lists Cameron Pforr as the Interim Chief Executive Officer - Investor Relations can be reached via email at ir@mtron.com[18](index=18&type=chunk) - Cameron Pforr is listed as the Interim Chief Executive Officer[18](index=18&type=chunk) [Supplemental Financial Data](index=4&type=section&id=Supplemental%20Financial%20Data) [Quarterly Summary](index=4&type=section&id=Quarterly%20Summary) This section provides a historical quarterly summary of key financial metrics, including revenues, gross margin, net income, and Adjusted EBITDA, from Q1 2022 through Q2 2025, along with year-over-year percentage changes Quarterly Financial Summary (in thousands) | (in thousands) | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------- | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | 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 | | Y/Y | | | | | 21.8% | 43.5% | 29.4% | 24.2% | 19.4% | 16.4% | 21.4% | 18.9% | 13.8% | 12.5% | | 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% | | Y/Y | | | | | -8.6% | 10.9% | 32.1% | 22.1% | 25.2% | 12.0% | 11.7% | 8.3% | -0.5% | -6.4% | | 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 | | Y/Y | | | | | -10.7% | 162.8% | 215.3% | -61.6% | 168.7% | 36.6% | 42.9% | 2830.1% | 9.7% | -10.6% | | 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 | | Y/Y | | | | | -12.7% | 129.6% | 166.7% | 115.2% | 120.0% | 30.7% | 41.3% | 27.5% | 10.6% | -4.1% | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table presents the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and 2024, detailing revenues, costs and expenses, operating income, other income/expense, income before taxes, net income, and earnings per share Condensed Consolidated Statements of Operations (Unaudited, in thousands, except share data) | (in thousands, except share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,282 | $11,808 | $26,014 | $22,993 | | Costs and expenses: | | | | | | Manufacturing cost of sales | 7,490 | 6,307 | 14,816 | 12,713 | | Engineering, selling and administrative | 3,948 | 3,394 | 7,341 | 6,384 | | Total costs and expenses | 11,438 | 9,701 | 22,157 | 19,097 | | Operating income | 1,844 | 2,107 | 3,857 | 3,896 | | Other income (expense): | | | | | | Interest income, net | 124 | 44 | 235 | 76 | | Other income (expense), net | 27 | (5) | 17 | 37 | | Total other income, net | 151 | 39 | 252 | 113 | | Income before income taxes | 1,995 | 2,146 | 4,109 | 4,009 | | Income tax expense | 435 | 402 | 919 | 779 | | Net income | $1,560 | $1,744 | $3,190 | $3,230 | | Income per common share: | | | | | | Basic | $0.55 | $0.64 | $1.12 | $1.19 | | Diluted | $0.53 | $0.63 | $1.09 | $1.16 | | Weighted average shares outstanding: | | | | | | Basic | 2,853,383 | 2,728,599 | 2,848,419 | 2,723,293 | | Diluted | 2,934,594 | 2,779,802 | 2,931,053 | 2,783,739 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited, in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Assets: | | | | Current assets: | | | | Cash and cash equivalents | $15,529 | $12,641 | | Accounts receivable, net | 6,261 | 6,842 | | Inventories, net | 9,116 | 9,509 | | Prepaid expenses and other current assets | 874 | 760 | | Total current assets | 31,780 | 29,752 | | Property, plant and equipment, net | 5,939 | 5,061 | | Right-of-use lease asset | 242 | 9 | | Intangible assets, net | 40 | 40 | | Deferred income tax asset | 1,691 | 1,623 | | Other assets | — | 3 | | Total assets | $39,692 | $36,488 | | Liabilities: | | | | Total current liabilities | 4,689 | 5,216 | | Non-current liabilities | 190 | — | | Total liabilities | 4,879 | 5,216 | | Total stockholders' equity | 34,813 | 31,272 | | Total liabilities and stockholders' equity | $39,692 | $36,488 | [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section defines M-tron Industries' non-GAAP financial measures, specifically Adjusted EBITDA, and provides reconciliations to the most comparable GAAP measures for both quarterly and year-to-date periods, highlighting adjustments made for a clearer operational understanding - The Company uses non-GAAP financial measures, such as Adjusted EBITDA, to provide a more complete understanding of underlying operational results and trends, noting they may not be comparable to similarly-named measures from other companies[26](index=26&type=chunk)[27](index=27&type=chunk) - Adjusted EBITDA is derived by excluding interest income/expense, depreciation, amortization, non-cash stock-based compensation, and other discrete items from Income before income taxes[27](index=27&type=chunk)[28](index=28&type=chunk) Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA (in thousands) | (in thousands, except share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income before income taxes | $1,995 | $2,146 | $4,109 | $4,009 | | Adjustments: | | | | | | Interest income | (124) | (44) | (235) | (76) | | Depreciation | 270 | 220 | 520 | 439 | | Amortization | — | — | — | 5 | | Total adjustments | 146 | 176 | 285 | 368 | | EBITDA | 2,141 | 2,322 | 4,394 | 4,377 | | Non-cash stock compensation | 278 | 201 | 527 | 408 | | Adjusted EBITDA | $2,419 | $2,523 | $4,921 | $4,785 | Quarterly Reconciliation of Adjusted EBITDA to Income before income taxes (in thousands) | (in thousands) | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------------- | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | 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 | | 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 | | Adjustments: | | | | | | | | | | | | | | | | Interest expense (income) | 3 | 2 | 1 | 5 | 2 | 5 | (1) | (13) | (32) | (44) | (63) | (104) | (111) | (124) | | Depreciation | 148 | 165 | 173 | 185 | 195 | 190 | 192 | 220 | 219 | 220 | 278 | 251 | 250 | 270 | | 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 | | EBITDA | 958 | 773 | 801 | 799 | 929 | 1,791 | 2,250 | 273 | 2,055 | 2,322 | 3,223 | 2,905 | 2,253 | 2,141 | | Non-cash stock compensation | 219 | 68 | 75 | 96 | 71 | 140 | 86 | 2,124 | 207 | 201 | 77 | 151 | 249 | 278 | | 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 | | 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% |

Company Overview - M-tron Industries, Inc. is a U.S.-based supplier of radio frequency components and solutions, primarily serving the aerospace & defense, avionics, and space industries [1][3] - The company designs, manufactures, and markets high-reliability frequency and spectrum control products, providing support throughout the product life cycle, including design, prototyping, production, and upgrades [3] Financial Reporting - Mtron will report its financial results for the second quarter ended June 30, 2025, after market close on August 12, 2025 [1] - A conference call to review these results is scheduled for August 13, 2025, at 10:30 a.m. ET, with dial-in information provided for participants [2]

Company Performance - M-tron Industries, Inc. (MPTI) closed at $41.13, reflecting a +1.23% change from the previous day, outperforming the S&P 500's gain of 0.54% [1] - The stock has increased by 1.37% over the past month, which is below the Construction sector's gain of 4.35% and the S&P 500's gain of 4.2% [1] Upcoming Earnings - M-tron Industries is expected to report an EPS of $0.6, indicating a 4.76% decrease from the same quarter last year [2] - The consensus estimate for revenue is $13.2 million, representing an 11.77% increase from the previous year [2] Full-Year Estimates - The Zacks Consensus Estimates predict earnings of $2.45 per share and revenue of $53.4 million for the full year, reflecting year-over-year changes of -7.55% for earnings and +8.95% for revenue [3] - Recent changes in analyst estimates may indicate the business outlook, with positive revisions suggesting optimism [3] Valuation Metrics - M-tron Industries has a Forward P/E ratio of 16.58, which is lower than the industry average Forward P/E of 20.03 [6] - The company has a PEG ratio of 0.59, compared to the industry average PEG ratio of 1.8 [6] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 166, placing it in the bottom 33% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - M-tron Industries, Inc. closed at $39.25, reflecting a -2.73% change from the previous day, underperforming the S&P 500's loss of 0.33% [1] - Prior to the latest trading session, M-tron Industries' shares had decreased by 12.3%, contrasting with the Construction sector's gain of 5.56% and the S&P 500's gain of 4.07% [1] Earnings Expectations - Analysts anticipate M-tron Industries to report earnings of $0.6 per share, indicating a year-over-year decline of 4.76% [2] - The consensus estimate for quarterly revenue is $13.2 million, which represents an 11.77% increase from the same period last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.45 per share, reflecting a -7.55% change from the prior year, while revenue is expected to be $53.4 million, showing an 8.95% increase [3] - Recent changes to analyst estimates for M-tron Industries may indicate shifting business dynamics, with positive revisions suggesting a favorable business outlook [3] Valuation Metrics - M-tron Industries is currently trading at a Forward P/E ratio of 16.47, which is lower than its industry's Forward P/E of 20.1, indicating a potential discount [6] - The company has a PEG ratio of 0.59, compared to the average PEG ratio of 1.83 for Engineering - R and D Services stocks [6] Industry Context - The Engineering - R and D Services industry is part of the Construction sector, holding a Zacks Industry Rank of 189, placing it in the bottom 24% of over 250 industries [7] - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - M-tron Industries, Inc. has secured a $5.5 million production contract from a leading U.S. Department of Defense prime contractor for high-performance RF components [1][2] - The contract includes rugged crystal filters and lumped element filters designed for durability and precision in critical mission environments, continuing Mtron's support for the program for nearly a decade [2][3] - The manufacturing work will take place at Mtron's facility in Orlando, Florida, with production expected to continue through at least 2035 [3] Company Overview - M-tron Industries, Inc. specializes in designing, manufacturing, and marketing high-reliability frequency and spectrum control products, with a focus on engineering support throughout the product lifecycle [4] - The company has facilities in Orlando, Florida, Yankton, South Dakota, a sales office in Hong Kong, and a manufacturing site in Noida, India [4]

Company Performance - M-tron Industries, Inc. (MPTI) closed at $39.56, reflecting a -1.3% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.22% [1] - Over the past month, MPTI shares have decreased by 11.01%, underperforming the Construction sector's loss of 3.49% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - M-tron Industries, Inc. is expected to report earnings of $0.6 per share, indicating a year-over-year decline of 4.76%, while revenue is projected to be $13.2 million, showing an 11.77% increase compared to the same quarter last year [2] - For the entire fiscal year, earnings are estimated at $2.45 per share and revenue at $53.4 million, reflecting changes of -7.55% and +8.95% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for M-tron Industries, Inc. can indicate shifting business dynamics, with positive adjustments suggesting a favorable outlook on business health and profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks M-tron Industries, Inc. at 4 (Sell), with the consensus EPS projection remaining stagnant over the past 30 days [6] Valuation Metrics - M-tron Industries, Inc. has a Forward P/E ratio of 16.36, which is lower than the industry average Forward P/E of 19.89 [7] - The company also has a PEG ratio of 0.58, compared to the Engineering - R and D Services industry's average PEG ratio of 1.74 [7] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Summary of M-tron Industries Inc (MPTI) FY Conference Call Company Overview - **Company Name**: M-tron Industries Inc (MPTI) - **Industry**: Defense Electronics, Specialty RF Components and Subsystems - **Ticker Symbol**: MPTI - **Recent Rebranding**: Formerly known as Emtron, celebrating 60 years in business [4][3] Core Business and Market Focus - **Primary Focus**: Defense electronics sector, specializing in RF components and subsystems [3] - **Manufacturing Locations**: Orlando, Florida, and Yankton, South Dakota, with some finishing in India [8][50] - **Customer Base**: Over 70 customers, many with long-term relationships exceeding ten years, including major players in aerospace and defense [9][51] Financial Performance - **Sales Performance**: Achieved $50 million in sales for the last year, with a gross margin of 46% and a backlog of $55.5 million [17] - **Growth Rates**: - Revenue CAGR over the past five years: 10% - Last three years: 20% [17][7] - **EBITDA Margins**: Consistently between 19% to 22% [18] - **Stock Performance**: Shares increased from approximately $10 at spin-off in late 2022 to around $45-$46, with a peak of $71 [10] Market Dynamics and Growth Drivers - **Market Segmentation**: - 56% from aerospace and defense - 25% from avionics - 5% from space and industrial sectors [19][20] - **Key Programs**: Engaged in significant missile programs, with annual orders contributing to long-term revenue streams [21][22] - **Emerging Markets**: Notable growth in drone technology and space applications, with increasing design wins [25][36] Competitive Advantages - **Vertical Integration**: Unique capability to manufacture components in-house, enhancing control over quality and costs [8][43] - **Engineering Expertise**: Strong team with extensive experience in RF engineering, allowing for tailored solutions and high customer satisfaction [6][12] - **Long-term Contracts**: Focus on high-margin, non-commodity markets with loyal customers [30] Challenges and Risks - **Tariff Impacts**: Subject to tariffs on imported materials, with ongoing efforts to mitigate costs through negotiations with defense customers [63][65] - **Market Volatility**: Potential impacts from geopolitical tensions and military budget discussions affecting defense spending [34] Future Outlook - **Growth Strategy**: Plans to achieve consistent 10% revenue growth through organic and inorganic means, including potential acquisitions [67] - **Investment in Technology**: Continuous upgrades and automation in manufacturing processes to enhance capacity and efficiency [32][33] - **Market Trends**: Anticipated growth in defense spending due to replenishment needs and modernization of military capabilities [34][35] Conclusion M-tron Industries Inc is well-positioned in the defense electronics sector with a strong financial performance, a loyal customer base, and significant growth opportunities in emerging markets. The company’s focus on vertical integration and engineering expertise provides a competitive edge, although it must navigate challenges related to tariffs and market volatility.

Core Viewpoint - M-tron Industries, Inc. has secured a $3 million order from a top U.S. Department of Defense contractor for high-performance RF components, reinforcing its long-standing relationship with a major air defense program [1][2][3] Company Overview - M-tron Industries, Inc. specializes in designing, manufacturing, and marketing high-reliability frequency and spectrum control products, with a focus on engineering support throughout the product lifecycle [5] - The company has been operational since 1965 and has facilities in Orlando, Florida, Yankton, South Dakota, Hong Kong, and Noida, India [5] Contract Details - The recent contract includes rugged crystal and cavity RF filters specifically engineered for durability and reliability in mission-critical environments [2] - This order is a follow-on to components that M-tron has supplied for over 20 years, indicating a strong track record in the defense sector [2][3] Strategic Importance - The air defense system supported by this contract is crucial to the U.S. military's air defense architecture and is also utilized by allied nations globally [4] - Production under this contract is expected to continue through 2026, with the system anticipated to remain in production past 2029 [4]

Company Overview - M-tron Industries, Inc. is a U.S.-based manufacturer specializing in highly-engineered, high reliability frequency and spectrum control products and solutions, founded in 1965 [5] - The company has design and manufacturing facilities in Orlando, Florida, and Yankton, South Dakota, along with a sales office in Hong Kong and a manufacturing facility in Noida, India [5] Industry Position - M-tron plays a significant role in the defense and aerospace sectors, providing products for precision guided munitions, radar, electronic warfare, and drone/UAV systems [2] - The company supports U.S. national security by supplying radio frequency components and solutions to the U.S. Department of Defense and allied nations [2] Upcoming Events - M-tron will present at the East Coast IDEAS Investor Conference on June 11, 2025, at The Westin Times Square in New York, with a scheduled presentation time of 3:30 p.m. ET [1] - The presentation will be webcast and accessible through the conference host's website and M-tron's investor relations section [1]