M-tron Industries (MPTI) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 11.1% YoY to $15.741M; net income increased 66.4% to $3.049M, while operating income declined 4.3% to $2.441M.

• Nine-month revenue grew 13.3% to $45.536M and net income rose to $7.307M; backlog reached $84.861M, up 44.3% YoY.

Financial highlights

• Q3 gross profit increased to $7.002M from $6.279M; gross margin rose 20 bps YoY to 44.5%.

• Q3 diluted EPS was $0.70 versus $0.60; nine-month diluted EPS was $1.79 versus $1.64.

• Adjusted EBITDA was $3.587M versus $3.176M in Q3 and $10.160M versus $8.097M for nine months.

• Q3 interest income, net, rose to $851K from $143K; income tax expense fell to $268K from $931K, primarily on a discrete tax benefit.

Outlook and guidance

• FY26 revenue growth is expected to finish near the 13% YTD rate, accelerate in 2027 and reach the high teens in 2028.

• Next-year gross margin outlook is 43%–46%; hiring and production scale-up may modestly pressure margins as capacity expands for contracted demand.

• Backlog may dip in Q4 as large A&D orders shift to early 2027, then strengthen in Q1; backlog exceeds quarterly production capacity.

• Missile-program order quantities are expected to increase significantly from 2028; facility needs may arise for 2029–2030 demand.

• Existing cash, equity securities and operating cash generation are expected to cover working capital and capex needs for the next 12 months.