M-tron Industries(US:MPTI)2025-11-12 22:03Revenue and Income - Total revenues increased by $956, or 7.2%, from $13,214 for the three months ended September 30, 2024, to $14,170 for the three months ended September 30, 2025, primarily due to strong growth in avionics, space, and industrials product shipments[92]. - Total revenues for the nine months ended September 30, 2025, increased by $3,977, or 11.0%, from $36,207 for the nine months ended September 30, 2024, to $40,184, primarily due to continued strong defense program product shipments[98]. - Net income decreased by $435, or 19.2%, from $2,267 for the three months ended September 30, 2024, to $1,832 for the three months ended September 30, 2025[91]. Costs and Expenses - Total costs and expenses increased by $1,327, or 12.9%, from $10,293 for the three months ended September 30, 2024, to $11,620 for the three months ended September 30, 2025, driven by higher manufacturing costs and increased engineering, selling, and administrative expenses[93]. - Total costs and expenses for the nine months ended September 30, 2025, increased by $4,387, or 14.9%, from $29,390 for the nine months ended September 30, 2024, to $33,777[99]. - Engineering, selling, and administrative expenses increased by $1,297, or 13.3%, from $9,773 for the nine months ended September 30, 2024, to $11,070 for the nine months ended September 30, 2025, driven by higher research and development investment and sales commissions[101]. Gross Margin - Gross margin decreased by 350 basis points from 47.8% for the three months ended September 30, 2024, to 44.3% for the three months ended September 30, 2025, reflecting product mix and higher tariff-related costs[93]. - Gross margin for the nine months ended September 30, 2025, decreased by 230 basis points from 45.8% to 43.5%, reflecting product mix and higher tariff-related costs[99]. Cash Flow and Liquidity - Cash provided by operating activities increased by $2,272 to $7,979 for the nine months ended September 30, 2025, compared to $5,707 for the same period in 2024[113]. - Cash and cash equivalents at the end of the period were $18,329 as of September 30, 2025, up from $12,641 at the end of 2024[111]. - Current ratio improved to 6.9 as of September 30, 2025, compared to 5.7 at the end of 2024, indicating better liquidity management[114]. Investments and Compensation - Cash used in investing activities rose by $732 to $2,205 for the nine months ended September 30, 2025, primarily due to equipment purchases for growth and product development[115]. - Stock-based compensation increased by $318 to $803 for the nine months ended September 30, 2025, compared to $485 for the same period in 2024[117]. Order Backlog and Interest Income - As of September 30, 2025, the order backlog was $58,798, an increase of $11,559, or 24.5%, from $47,239 as of December 31, 2024[101]. - Interest income, net increased by $80, or 127.0%, from $63 for the three months ended September 30, 2024, to $143 for the three months ended September 30, 2025, due to higher interest income earned on investments[96]. Debt and Dividend Policy - There were no outstanding borrowings under the revolving line of credit with Fifth Third Bank as of September 30, 2025[121]. - The company adheres to a policy of not paying cash dividends to support long-term growth objectives and potential acquisitions[119]. - The company has not experienced any losses related to deposits held in excess of federally insured limits as of September 30, 2025[118].