M-tron Industries (MPTI) investor relations material

Company overview and market positioning

• Focused on aerospace and defense, with 20% annual growth over the past three years and strong EBITDA and cash flow generation.

• Vertically integrated U.S.-based manufacturer specializing in microwave and RF applications, serving top U.S. defense primes and major commercial aerospace clients like Boeing and Airbus.

• Shifted from telecom to defense and aerospace markets post-2004, with a blue-chip customer base and broad employee ownership.

• Products include filters, oscillators, and subsystems, with most sales in aerospace and defense; commercial aerospace and SATCOM are also key markets.

• Serves over 40 long-term defense programs, providing stability and diversification.

Financial performance and growth

• Revenue has grown from $8M to $13.5M per quarter in two years, with gross margins rising from mid-30% to mid-40%.

• EBITDA margin now around 20%, with significant cash generation; cash balance expected to reach $19–20M by year-end.

• Backlog increased from $45M to $61M in 2024, driven by aerospace, defense, avionics, and space orders.

• About 30% of revenue comes from products developed in the past 3–4 years, reflecting ongoing innovation.

• SG&A costs rose due to higher commissions, stock compensation, and increased engineering and marketing spend.

Strategic initiatives and future outlook

• Pursuing both organic and inorganic growth, with a disciplined M&A strategy targeting $10–20M revenue, cash-producing, accretive companies.

• Long-term goals: 10%+ annual growth, gross margins in the mid-40s, and consistent 20–21% EBITDA margin.

• No plans for dividends; cash will be used for acquisitions and CapEx (3–4% of revenue annually).

• Manufacturing plants in Florida and South Dakota have significant unused capacity and can scale with additional labor.

• Labor pipeline improved through partnerships with local schools and internal training, especially for touch labor and RF engineers.