M-tron Industries Q4 Earnings Meet Estimates, Revenues Miss

Core Insights - M-tron Industries, Inc. (MPTI) reported its fourth quarter of 2024 results, with adjusted earnings meeting expectations but revenues falling short, although both metrics showed year-over-year growth [1][4]. Financial Performance - Adjusted earnings for Q4 were 73 cents per share, a significant increase from 3 cents per share in the same quarter last year [4]. - Quarterly revenues reached $12.81 million, missing the consensus estimate of $12.9 million by 1%, but representing an 18.9% increase from $10.77 million in the previous year [4]. - For the full year 2024, total revenues increased by 19.1% to $49 million, with adjusted earnings rising to $2.65 per share from $1.28 in 2023 [7]. Operational Highlights - The gross margin improved to 47.2%, up 360 basis points from 43.6% a year ago, attributed to higher revenues and improved manufacturing efficiencies [6]. - Adjusted EBITDA for Q4 was $3.1 million, a 27.5% increase from $2.4 million in the year-ago quarter, with an adjusted EBITDA margin of 23.9% [6]. Sector Performance - MPTI achieved record revenues for the third consecutive year, driven by over 40% growth in the Aerospace and Defense sector, while the Avionics sector also saw slight growth [3]. - The total backlog as of December 31, 2024, was $47.2 million, slightly down from $47.8 million at the end of 2023, reflecting a focus on securing long-term contracts [5]. Cash Position - As of December 31, 2024, MPTI had cash and cash equivalents of $12.6 million, a significant increase from $3.9 million at the end of 2023, while inventories rose to $9.5 million from $8.9 million [8].