Maytronics (MTRN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached ILS 309.3M, at the top end of guidance, with stable demand in key markets but impacted by challenging market conditions, supply constraints, and security situation.

• Product launches enhanced competitive positioning and showed initial positive traction, but execution and supply constraints limited full revenue potential.

• Margin pressure was driven by product mix, FX, tariffs, and operational challenges.

Financial highlights

• Q1 2026 revenues declined 10.8% year-over-year to ILS 309.3M from ILS 346.6M; constant currency decline was 0.8%.

• Gross margin dropped 910 basis points to 28.4% from 37.5% in Q1 2025, impacted by tariffs, mix, operational challenges, and FX.

• Operating loss was ILS 10.8M, compared to an operating profit of ILS 34.9M in Q1 2025.

• Net loss was ILS 26.4M, versus net profit of ILS 15.5M a year ago.

• Net cash used in operating activities decreased to ILS 25.6M from ILS 33.4M year-over-year.

• Inventory reduced significantly to ILS 617M from ILS 828M year-over-year.

Outlook and guidance

• Q2 2026 revenue expected in the range of ILS 425–465M, based on current trends and order backlog.

• Order backlog stands at ILS 171.8M as of March 31, 2026, up 39% year-over-year.

• Guidance assumes average NIS exchange rates against USD, EUR, and AUD based on current data.