The Elmet Group Co. Reports Third Quarter 2026 Results
Elmet Group Co. (ELMT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 The Elmet Group Co. Reports Third Quarter 2026 Results Continued demand accelerating in Aerospace, Defense & Government markets Revenue increased over 55%, with over 960 basis points of gross profit margin expansion to 31.3% driving adjusted EBITDA increase of approx
How this was made
The 30-second read
Why it matters
The earnings beat and backlog surge indicate strong demand and operational execution, likely supporting a price rally.
Market read
Elmet's robust Q3 results and strategic investments position it for continued growth, making the stock a potential short‑term upside play.
What to watch
Potential regulatory scrutiny on tungsten sourcing and execution risk of the large DoW investment.
Elmet Q3 2026 revenue up 55.6% to $79,560 thousand, gross margin up to 31.3%, record backlog of $347.4 million; GAAP net income $8,291 thousand, operating cash outflow over nine months
Quarterly revenue, gross margin, operating income, adjusted EBITDA and backlog all rose sharply versus Q3 2025 as printed. Offsetting this, nine-month operating cash flow was negative $(60,727) thousand, nine-month GAAP net income fell from $4,007 thousand to $3,465 thousand, and no company guidance is printed.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026 (three months)GAAP | $79.56M | – | 55.6% |
| Cost of goods sold, Q3 2026GAAP | $54.69M | – | – |
| Gross profit, Q3 2026GAAP | $24.87M | – | – |
| Gross profit margin, Q3 2026GAAP | 31.3% | – | 960 basis points |
| General and administrative expense, Q3 2026GAAP | $9.59M | – | – |
| Research and development expense, Q3 2026GAAP | $850K | – | – |
| Sales and marketing expense, Q3 2026GAAP | $2.46M | – | – |
| Total operating expenses, Q3 2026GAAP | $12.90M | – | – |
| Operating income, Q3 2026GAAP | $11.98M | – | – |
| Interest (income) expense, Q3 2026GAAP | −$345K | – | – |
| Income tax provision, Q3 2026GAAP | $5.50M | – | – |
| Income from continuing operations, Q3 2026GAAP | $8.29M | – | – |
| Net income, Q3 2026GAAP | $8.29M | – | – |
| Diluted net income per share, Q3 2026GAAP | $0.24 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $16.96M | – | 129.4% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 21.3% | – | – |
| Adjusted net income, diluted, Q3 2026non-GAAP | $11.43M | – | – |
| Adjusted net income per diluted share, Q3 2026non-GAAP | $0.35 | – | – |
| Open order backlog, end of Q3 2026other | $347.4M | 164% | 298% |
| Revenue, nine months 2026GAAP | $202.0M | – | – |
| Cost of goods sold, nine months 2026GAAP | $148.7M | – | – |
| Gross profit, nine months 2026GAAP | $53.31M | – | – |
| General and administrative expense, nine months 2026GAAP | $34.42M | – | – |
| Research and development expense, nine months 2026GAAP | $6.02M | – | – |
| Sales and marketing expense, nine months 2026GAAP | $6.66M | – | – |
| Total operating expenses, nine months 2026GAAP | $47.10M | – | – |
| Operating income, nine months 2026GAAP | $6.21M | – | – |
| Income tax provision, nine months 2026GAAP | $6.46M | – | – |
| Net income, nine months 2026GAAP | $3.46M | – | – |
| Diluted net income per share, nine months 2026GAAP | $0.10 | – | – |
| Revenue, trailing twelve months ended October 2, 2026GAAP | $257.0M | 12.4% | – |
| Gross profit margin, trailing twelve months ended October 2, 2026GAAP | 25.1% | 290 basis points | – |
| Adjusted EBITDA, trailing twelve months ended October 2, 2026non-GAAP | $38.06M | 33.6% | – |
| Adjusted EBITDA margin, trailing twelve months ended October 2, 2026non-GAAP | 14.8% | – | – |
| Net income (loss), trailing twelve months ended October 2, 2026GAAP | $5M | – | – |
| Diluted net income (loss) per share, trailing twelve months ended October 2, 2026GAAP | $0.17 | – | – |
| Adjusted net income, diluted, trailing twelve months ended October 2, 2026non-GAAP | $22.71M | – | – |
| Adjusted net income per diluted share, trailing twelve months ended October 2, 2026non-GAAP | $0.89 | – | – |
Capital returns
- Proceeds from the issuance of Class A Redeemable Preferred Stock and warrants of $200,000 thousand in nine months 2026 (nil in nine months 2025), with payments of issuance costs of $(6,866) thousand.
- Proceeds from initial public offering, net of underwriting discount and offering costs, of $125,363 thousand in nine months 2026.
- Cumulative dividend on Class A Preferred Stock of $(551) thousand in Q3 2026, as shown in the adjusted net income reconciliation. Supplemental cash flow line shows accrued dividends and accretion on Class A Redeemable Preferred Stock of $634 thousand.
- Cash distributions paid to stockholders: nil in nine months 2026 versus $(6,833) thousand in nine months 2025.
- Repurchase of Class B common stock of $(25) thousand in nine months 2026.
- Employee taxes paid on shares withheld for tax-withholding purposes of $(4,371) thousand in nine months 2026.
- Payments of principal on long-term debt – related party of $(17,294) thousand in nine months 2026 (nil in nine months 2025).
What drove it
- The company states that revenue growth was driven by increased demand across all major end markets as well as the ongoing positive impact from increased raw material pricing.
- The company states that Q3 2026 revenue reached a company record of $79.6 million.
- The company states that gross profit margin improved 960 basis points to 31.3% of revenue, compared to 21.7% in Q3 2025, with no explanation of the cause printed beyond the revenue commentary above.
- Adjusted EBITDA and adjusted net income exclude stock-based compensation of $2,074 thousand in Q3 2026 versus $427 thousand in Q3 2025, and acquisition and transaction costs of $928 thousand versus $90 thousand, as shown in the company's reconciliation.
- Open order backlog of $347.4 million is described by the company as a company record and as giving increasing visibility into future performance.
Concerns
- Net cash used in operating activities was $(60,727) thousand in nine months 2026. The cash flow statement shows inventories of $(85,511) thousand and accounts receivable of $(16,677) thousand as the largest working-capital uses.
- Inventories rose to $152,768 thousand at October 2, 2026 from $69,697 thousand at December 31, 2025.
- GAAP net income for nine months 2026 was $3,465 thousand, below $4,007 thousand in nine months 2025, and diluted EPS was $0.10 versus $0.20.
- Income tax provision was $5,504 thousand in Q3 2026 and $6,464 thousand in nine months 2026, against nil in the prior-year periods shown. The release states the company changed from an S-corporation to a C-corporation.
- Stock-based compensation was $12,809 thousand in nine months 2026 versus $810 thousand in nine months 2025 and is a large item in the GAAP cost base.
- Total operating expenses rose to $12,897 thousand in Q3 2026 from $7,688 thousand, and G&A rose to $9,592 thousand from $5,565 thousand.
- The company states that its forward-looking statements include the ability to restart production at the Blue Moon Springer Tungsten Complex on the anticipated timeline and cost, and the ability to close the Osram acquisition.
- Preferred stock accretion and cumulative dividends on Class A Redeemable Preferred Stock are included in the per-share numerator.
What to watch
- Whether operating cash flow turns positive as inventory and receivables normalize, given the nine-month outflow.
- Conversion of the $347.4 million backlog into revenue in subsequent quarters.
- Gross margin sustainability at 31.3% in Q3 2026, given the company's attribution to demand and raw material pricing.
- Deployment of the $450 million DoW Investment, the planned $165 million capacity investment, the approximately $150 million Blue Moon joint venture commitment and the $125 million Masan investment, as described by the company.
- Completion of the Osram acquisition, which the company describes as subject to closing.
- Restricted cash of $124,710 thousand and its use, since the release does not state the restriction terms.
- Income tax expense trend now that the company is a C-corporation.
Balance sheet and cash flow
- Cash of $105,714 thousand at October 2, 2026 versus $1,759 thousand at December 31, 2025.
- Restricted cash of $124,710 thousand at October 2, 2026 versus nil at December 31, 2025.
- Inventories, net of $152,768 thousand at October 2, 2026 versus $69,697 thousand at December 31, 2025.
- Accounts receivable, net of $45,424 thousand at October 2, 2026 versus $28,904 thousand at December 31, 2025.
- Deferred revenue of $25,621 thousand at October 2, 2026 versus $14,853 thousand at December 31, 2025.
- Long-term debt, net of current portion, of $34,139 thousand at October 2, 2026 versus $28,455 thousand at December 31, 2025. Current portion of long-term debt of $2,449 thousand at October 2, 2026 versus $7,755 thousand at December 31, 2025.
- Long-term debt, net of current portion – related party: nil at October 2, 2026 versus $15,000 thousand at December 31, 2025.
- Total assets of $523,320 thousand at October 2, 2026 versus $175,646 thousand at December 31, 2025.
- Total stockholders' equity of $277,690 thousand at October 2, 2026 versus $60,457 thousand at December 31, 2025. Class A Redeemable Preferred Stock of $120,378 thousand is presented outside equity.
- Net cash used in operating activities of $(60,727) thousand in nine months 2026, versus net cash provided by operating activities from continuing operations of $1,422 thousand in nine months 2025.
- Inventory change in operating cash flow of $(85,511) thousand in nine months 2026 versus $(13,046) thousand in nine months 2025.
- Purchases of property, plant and equipment, net of grant proceeds, of $(4,829) thousand in nine months 2026 versus $(5,872) thousand in nine months 2025.
- Net cash provided by financing activities of $295,719 thousand in nine months 2026.
- Net increase in cash and restricted cash of $228,665 thousand in nine months 2026.
Analysis
Elmet reported Q3 2026 (ended October 2, 2026) revenue of $79,560 thousand, up 55.6% from $51,124 thousand in Q3 2025, and cost of goods sold of $54,686 thousand. Gross profit was $24,874 thousand, and the company printed gross profit margin of 31.3% against 21.7% a year earlier, a 960 basis point improvement. The company attributes the revenue growth to increased demand across all major end markets and to increased raw material pricing. Operating expenses rose to $12,897 thousand from $7,688 thousand, with general and administrative expense up to $9,592 thousand from $5,565 thousand, and operating income reached $11,977 thousand against $3,413 thousand.
GAAP net income for Q3 2026 was $8,291 thousand, or $0.24 per diluted share, against $1,570 thousand or $0.08 per diluted share in Q3 2025. The Q3 2025 figure in the statement of operations includes a loss from discontinued operations of $(852) thousand, while the adjusted EBITDA table shows Q3 2025 income from continuing operations of $2,422 thousand. Adjusted EBITDA was $16,959 thousand, or 21.3% of revenue, up 129.4% from $7,394 thousand, and adjusted net income diluted was $11,428 thousand, or $0.35 per share, against $4,713 thousand or $0.23. The company's reconciliation shows a GAAP effective tax rate of 39.9% for the quarter and a non-GAAP rate of 140.3%, and states that the difference reflects Reorganization tax effects, stock-based compensation, executive compensation limits and discrete items.
On a nine-month basis, revenue was $201,968 thousand against $146,641 thousand, and gross profit was $53,308 thousand against $29,859 thousand. Operating income was $6,212 thousand against $9,517 thousand, because G&A rose to $34,416 thousand from $12,840 thousand and the company reported stock-based compensation of $12,809 thousand against $810 thousand. Net income for nine months was $3,465 thousand against $4,007 thousand, and diluted EPS was $0.10 against $0.20. The nine-month cash flow statement shows net cash used in operating activities of $(60,727) thousand, with inventories absorbing $(85,511) thousand, compared with net cash provided of $1,422 thousand from continuing operations a year earlier.
The balance sheet changed materially in the period. Cash was $105,714 thousand and restricted cash $124,710 thousand at October 2, 2026, against cash of $1,759 thousand at December 31, 2025. Total assets rose to $523,320 thousand from $175,646 thousand, total stockholders' equity to $277,690 thousand from $60,457 thousand, and the company reports $120,378 thousand of Class A Redeemable Preferred Stock outside equity. Nine-month financing inflows included the $200,000 thousand preferred issuance and the $125,363 thousand IPO proceeds, and the company repaid $17,294 thousand of related-party long-term debt. Open order backlog reached a company record $347.4 million, up 164% from $131.5 million at the end of Q2 2026 and up 298% from $87.3 million a year earlier.
The release presents trailing twelve month figures against the TTM period ended July 3, 2026. TTM revenue was $256,963 thousand, up 12.4% from $228,527 thousand, TTM gross margin was 25.1% against 22.2%, and TTM adjusted EBITDA was $38,060 thousand, up 33.6%. The release contains no forward guidance for revenue, margins or earnings, so the company's outlook can only be read from the qualitative statements and capital commitments it describes. Figures that deserve close attention are the operating cash outflow, the inventory build, and the gap between the record backlog and the still-modest quarterly operating expense base relative to revenue growth.
Management, verbatim
The last few months have been nothing short of transformational for Elmet,
Peter V. Anania, Company CEO
we grew revenue 55.6% to a Company record $79.6 million, driven by increased demand across all major end markets as well as the ongoing positive impact from increased raw material pricing.
Peter V. Anania, Company CEO
Our Company record firm order backlog at quarter end gives us increasing visibility into future performance as well as confidence in the sustainability of current demand.
Peter V. Anania, Company CEO
Not in the filing
stated, not guessed- Company financial guidance for the next period or fiscal year is not printed in the release.
- Revenue, margin and operating income by division (CMC, EMP and ERT) are not printed, so segment rows cannot be filled.
- Standalone Q2 2026 (quarter ended July 3, 2026) figures for revenue, gross profit, operating income, net income and EPS are not printed; only the TTM ended July 3, 2026 is shown.
- Q3 2026 and Q3 2025 cash flow statements are not printed; only nine-month cash flow is shown.
- Free cash flow is not printed.
- Prior-year change percentages for net income, diluted EPS, operating income, cost of goods sold, gross profit in dollars and operating expense lines are not printed in the release for those lines.
- Year-over-year change for nine-month figures is not printed for most lines.
- Prior-year change for TTM net income, TTM EPS, and TTM adjusted net income is not printed as a percentage; the release only describes them as increased.
- Terms of restricted cash of $124,710 thousand are not described.
- The release does not state the closing date or cost of the Osram acquisition.
- Historical Q3 2025 figures reflect the Reorganization on a recast basis; the release does not print a separate pre-Reorganization comparison.
- The Q3 2025 income from continuing operations of $2,422 thousand in the adjusted EBITDA table differs from the Q3 2025 net income of $1,570 thousand in the statement of operations; both are printed and each is used only on its own row.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Elmet Group is a U.S. provider of critical materials and high‑power systems serving aerospace, defense, and industrial markets.
Ticker impact
Elmet Group reported Q3 2026 results with 55% revenue growth, 960 bps margin expansion and a 129% jump in adjusted EBITDA.
likely upward pressure as the market prices in the earnings beat and growth outlook
Revenue and EBITDA surged well above prior year, backlog up 298%, and a $450M DoW investment signals future cash flow stability.
Market effects
Highlights strength in aerospace & defense critical materials, may lift peers in the sector.
Boosts sentiment for U.S. industrial manufacturers and defense suppliers.
Shows increased domestic tungsten supply chain investment, relevant for global supply‑chain dynamics.
Counterpoint
The rapid expansion may be unsustainable; high capital spend could pressure margins if demand softens.
Key entities
- ExecutivePeter V. Anania
CEO of Elmet Group who commented on the transformational quarter.
- GovernmentDepartment of War
Committed $450M investment to support tungsten supply chain.
