Second Quarter 2026
Filed Aug 12, 2026M-tron Industries, Inc. Reports Second Quarter 2026 Results
Revenue, net income, adjusted EBITDA, and backlog increased year over year, supported by aerospace and defense program shipments and growth in avionics and space product shipments. Gross margin declined and diluted earnings per share decreased because of stock-based compensation and a higher weighted share count following the April 2026 rights offering.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended June 30, 2026GAAP | $15,109 (in thousands) | – | 13.8% |
| Gross margin, three months ended June 30, 2026GAAP | 41.2% | – | (5.5%) |
| Manufacturing cost of sales, three months ended June 30, 2026GAAP | 8,883 (in thousands) | – | – |
| Engineering, selling and administrative, three months ended June 30, 2026GAAP | 4,507 (in thousands) | – | – |
| Total costs and expenses, three months ended June 30, 2026GAAP | 13,390 (in thousands) | – | – |
| Operating income, three months ended June 30, 2026GAAP | 1,719 (in thousands) | – | – |
| Interest income, net, three months ended June 30, 2026GAAP | 690 (in thousands) | – | – |
| Other income (expense), net, three months ended June 30, 2026GAAP | 34 (in thousands) | – | – |
| Total other income, net, three months ended June 30, 2026GAAP | 724 (in thousands) | – | – |
| Income before income taxes, three months ended June 30, 2026GAAP | 2,443 (in thousands) | – | – |
| Income tax expense, three months ended June 30, 2026GAAP | 573 (in thousands) | – | – |
| Net income, three months ended June 30, 2026GAAP | $1,870 (in thousands) | – | 19.9% |
| Basic income per common share, three months ended June 30, 2026GAAP | $0.46 | – | – |
| Diluted income per common share, three months ended June 30, 2026GAAP | $0.43 | – | (18.9%) |
| Weighted average shares outstanding, basic, three months ended June 30, 2026GAAP | 4,056,379 | – | – |
| Weighted average shares outstanding, diluted, three months ended June 30, 2026GAAP | 4,339,332 | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $3,401 (in thousands) | – | 40.6% |
| Revenues, six months ended June 30, 2026GAAP | $29,795 (in thousands) | – | 14.5% |
| Gross margin, six months ended June 30, 2026GAAP | 43.0% | – | 0.0% |
| Manufacturing cost of sales, six months ended June 30, 2026GAAP | 16,975 (in thousands) | – | – |
| Engineering, selling and administrative, six months ended June 30, 2026GAAP | 8,491 (in thousands) | – | – |
| Total costs and expenses, six months ended June 30, 2026GAAP | 25,466 (in thousands) | – | – |
| Operating income, six months ended June 30, 2026GAAP | 4,329 (in thousands) | – | – |
| Interest income, net, six months ended June 30, 2026GAAP | 1,060 (in thousands) | – | – |
| Other income (expense), net, six months ended June 30, 2026GAAP | (88) (in thousands) | – | – |
| Total other income, net, six months ended June 30, 2026GAAP | 972 (in thousands) | – | – |
| Income before income taxes, six months ended June 30, 2026GAAP | 5,301 (in thousands) | – | – |
| Income tax expense, six months ended June 30, 2026GAAP | 1,043 (in thousands) | – | – |
| Net income, six months ended June 30, 2026GAAP | $4,258 (in thousands) | – | 33.5% |
| Basic income per common share, six months ended June 30, 2026GAAP | $1.13 | – | – |
| Diluted income per common share, six months ended June 30, 2026GAAP | $1.07 | – | (1.8%) |
| Weighted average shares outstanding, basic, six months ended June 30, 2026GAAP | 3,775,004 | – | – |
| Weighted average shares outstanding, diluted, six months ended June 30, 2026GAAP | 3,965,962 | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $6,573 (in thousands) | – | 33.6% |
| Backlog as of June 30, 2026other | $84.0 million | – | 37.2% |
What drove it
- The revenue increase was primarily due to continued strong aerospace and defense program shipments and quarter over quarter growth for both avionics and space product shipments.
- Backlog growth reflects broad demand, including continued purchasing under several large aerospace and defense programs, orders for new aerospace and defense programs, and a recent uptick in avionics and space industry orders.
- Adjusted EBITDA increased primarily due to higher revenues, partially offset by an increase in engineering, selling and administrative expenses.
- The Company made a small investment in Skyline Instruments, LLC during the quarter.
Concerns
- Gross margin was 41.2% for the three months ended June 30, 2026, compared with 43.6% for the three months ended June 30, 2025.
- Gross margin reflected approximately $0.5 million of stock-based compensation recorded in Manufacturing cost of sales in connection with the 2025 bonus awards, a 3.1% impact to gross margin.
- Current-period results included $1.0 million of non-cash stock-based compensation expense associated with the accelerated vesting of the 2025 bonus award.
- Diluted income per common share decreased to $0.43 from $0.53, which the Company attributed to higher weighted shares outstanding related to the rights offering completed in April 2026.
What to watch
- Whether continued aerospace and defense program shipments, avionics shipments, and space product shipments sustain revenue growth.
- Conversion of the $84.0 million backlog into shipments.
- The extent to which stock-based compensation associated with the 2025 bonus award recurs, as the Company stated that the charge is not expected to recur at comparable levels in future periods.
- Engineering, selling and administrative expenses, which increased and partially offset the benefit from higher revenues.
Balance sheet and cash flow
- Cash and cash equivalents were $96,245 (in thousands) as of June 30, 2026, compared with $20,891 (in thousands) as of December 31, 2025.
- Accounts receivable, net of allowance of $208 and $204, respectively, were 8,221 (in thousands) as of June 30, 2026 and 6,656 (in thousands) as of December 31, 2025.
- Inventories, net were 10,884 (in thousands) as of June 30, 2026 and 9,673 (in thousands) as of December 31, 2025.
- Warrant proceeds receivable were — as of June 30, 2026 and 22,335 (in thousands) as of December 31, 2025.
- Total assets were $125,935 (in thousands) as of June 30, 2026 and $68,383 (in thousands) as of December 31, 2025.
- Total liabilities were 7,220 (in thousands) as of June 30, 2026 and 5,168 (in thousands) as of December 31, 2025.
- Total stockholders' equity was 118,715 (in thousands) as of June 30, 2026 and 63,215 (in thousands) as of December 31, 2025.
Analysis
M-tron reported a strong second quarter, led by $15,109 (in thousands) of revenue, up 13.8% from $13,282 (in thousands), and $1,870 (in thousands) of net income, up 19.9% from $1,560 (in thousands). Management attributed the revenue increase to continued strong aerospace and defense program shipments, alongside quarter over quarter growth in avionics and space product shipments. For the six months ended June 30, 2026, revenue was $29,795 (in thousands), up 14.5%, while net income was $4,258 (in thousands), up 33.5%.
Profitability was affected by stock-based compensation tied to the 2025 bonus award. Gross margin declined to 41.2% from 43.6%, and the Company cited approximately $0.5 million of stock-based compensation in Manufacturing cost of sales as a 3.1% impact to gross margin. Operating income was 1,719 (in thousands), compared with 1,844 (in thousands) in the prior-year quarter, while interest income, net rose to 690 (in thousands) from 124 (in thousands). The current period also included $1.0 million of non-cash stock-based compensation expense associated with accelerated vesting of the 2025 bonus award, which management said is not expected to recur at comparable levels in future periods.
Adjusted EBITDA rose to $3,401 (in thousands) from $2,419 (in thousands), a 40.6% increase. Management attributed the increase to higher revenue, partly offset by higher engineering, selling and administrative expense. Diluted income per common share decreased to $0.43 from $0.53 despite higher net income. The Company attributed the per-share decline to increased weighted shares outstanding following the rights offering completed in April 2026.
Demand visibility improved through backlog. Backlog reached $84.0 million as of June 30, 2026, compared with $76.4 million as of December 31, 2025 and $61.2 million as of June 30, 2025. The Company identified continued purchasing under large aerospace and defense programs, new program orders, and an uptick in avionics and space orders as contributors. Cash and cash equivalents were $96,245 (in thousands) at June 30, 2026, compared with $20,891 (in thousands) at December 31, 2025, while warrant proceeds receivable was — compared with 22,335 (in thousands).
The release did not provide forward financial guidance. The central items for investors are therefore conversion of the elevated backlog into shipments, the progression of aerospace, defense, avionics, and space demand, expense growth, and normalization of the bonus-award stock-based compensation effects. The Company also disclosed a small strategic investment in Skyline Instruments, LLC, a synchronization and timing systems company focused on RF sensor data and operations in GPS denied environments.
Management, verbatim
Our second quarter results reflect continued momentum across our defense and aerospace business, with revenue increasing 13.8% and net income increasing 19.9%, and notably, adjusted EBITDA increasing 40.6% from Q2 2025 to $3.4 million.
Cameron Pforr, Chief Executive Officer
Our backlog is continuing to grow with another strong quarter of bookings. The strength we are seeing in our core markets gives us confidence in the trajectory of the business, and we remain focused on translating that growth into durable, long-term value for our shareholders.
Cameron Pforr, Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, gross margin, operating expense, tax rate, earnings, cash flow, or other financial guidance.
- Previous-quarter values and quarter-over-quarter changes for operating metrics.
- Reportable segment revenue, segment growth rates, and segment profitability.
- Operating cash flow and free cash flow.
- Debt balances.
- Share repurchases, dividends, and other capital-return figures.
- A reported operating margin.
- The remainder of the balance sheet and any cash-flow statement data beyond the filing text provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.