Payton Planar Magnetics (PAY) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales revenues were $10.65M, down 9% year-over-year due to global industrial slowdown and project-specific declines.

• Net profit for Q1 2026 was $1.4M, a decrease from $2.91M in Q1 2025.

• Order backlog increased to $19.335M as of March 31, 2026, up from $17.401M at year-end 2025.

• Security situation in Israel had no material effect on operations; production and shipments remained on schedule, but future impact remains uncertain.

• Group operates globally in planar and conventional transformers, with recent expansion via SI Manufacturing acquisition in October 2025.

Financial highlights

• Gross profit for Q1 2026 was $4.26M (40% margin), down from $5.21M (45%) in Q1 2025, impacted by lower sales and SI's lower margins.

• Operating income fell to $1.342M from $2.946M year-over-year.

• Cash and short-term deposits totaled $59.291M at March 31, 2026, up from $58.2M at December 31, 2025.

• Operating cash flow for Q1 2026 was $1.208M, down from $2.203M in Q1 2025.

• Basic and diluted EPS for Q1 2026 was $0.08, compared to $0.16 in Q1 2025.

Outlook and guidance

• Management expects ongoing global economic uncertainty, elevated costs, and currency volatility to persist.

• Most of the order backlog as of March 31, 2026, is expected to be supplied by year-end 2026.