M-tron Industries, Inc. Reports First Quarter 2025 Results

Core Insights - M-tron Industries, Inc. reported a revenue increase of 13.8% year-over-year, reaching $12.7 million for Q1 2025, driven by strong demand for defense products [3][12] - The company’s net income rose to $1.6 million, or $0.56 per diluted share, compared to $1.5 million, or $0.53 per diluted share in Q1 2024 [5][12] - M-tron’s backlog increased significantly to $55.5 million as of March 31, 2025, reflecting a 20.3% increase from $46.1 million a year earlier [7][12] Financial Performance - Revenue for Q1 2025 was $12.7 million, up from $11.2 million in Q1 2024, primarily due to strong defense product shipments [3] - Gross margin slightly decreased to 42.5% in Q1 2025 from 42.7% in Q1 2024, attributed to higher manufacturing costs and the impact of federal tariffs [4] - Adjusted EBITDA for Q1 2025 was $2.5 million, an increase from $2.3 million in Q1 2024, mainly due to higher income before income taxes [6][12] Backlog and Demand - The backlog as of March 31, 2025, was $55.5 million, a significant increase from $47.2 million as of December 31, 2024, and $46.1 million as of March 31, 2024 [7][12] - The increase in backlog indicates strong demand for M-tron’s products and several large orders received during the quarter [7] Impact of Tariffs - M-tron experienced initial impacts from federal tariffs on imports, although no immediate effect on product demand was noted [8] - The company is working with defense customers to potentially exempt materials for defense production from tariffs and is analyzing its supply chain for reliability [8] Warrant Dividend - On April 25, 2025, M-tron distributed a dividend of warrants to stockholders, reflecting its commitment to enhancing stockholder value [9]