The Elmet Group (ELMT) investor relations material

Executive summary

• Q3 revenue rose 55.6% YoY to $79.6M; gross margin expanded to 31.3%, and Adjusted EBITDA increased 129.4% to $17.0M.

• Firm order backlog reached a record $347.4M, up 164% QoQ and 298% YoY.

• A $450M Department of War investment and a DLA framework with a $2B ceiling and $161.9M initially funded orders support a multi-year domestic tungsten expansion.

Financial highlights

• Q3 revenue rose 55.6% to $79.6M; gross profit increased 124.1% to $24.9M, and operating income rose to $12.0M from $3.4M.

• Q3 net income was $8.3M, or $0.24 per diluted share, versus $1.6M and $0.08; Adjusted net income was $11.4M, or $0.35 per diluted share.

• Q3 Adjusted EBITDA was $17.0M, up 129.4% YoY; its margin was 21.3% versus 14.5%.

• 9M revenue increased 37.7% to $202.0M; net income was $3.5M versus $4.0M, while operating income decreased 34.7% to $6.2M.

• TTM revenue rose 12.4% to $257.0M; TTM Adjusted EBITDA increased 33.6% to $38.1M, with a 14.8% margin versus 12.5%.

Outlook and guidance

• Up to $165M is planned for U.S. facility upgrades; equipment procurement and modernization are expected to begin in 2027, with full run rate targeted by 2031.

• Springer plans target mine and mill restart in Q4 2027 and APT operations in H2 2028, with ~4,000 tons of annual conversion capacity; full operations are targeted by 2031.

• Schwabmünchen acquisition was expected to close in FY27 Q1, subject to conditions; the turnaround may initially dilute margins, with cash flow expected to turn positive by year three.

• ERT expects to begin DLA deliveries in H1 2028, subject to mine ramps; refining and the Springer APT restart are targeted for H1 2029 or sooner.

• Backlog provides increased visibility, but customer response to DFARS changes, appropriations, DLA funding, feedstock ramps and execution affect demand and timing.