Payton Planar Magnetics (PAY) Q2 2026 earnings summary

Executive summary

• Operates globally in planar and conventional transformers, with subsidiaries in the US and UK and a strategic stake in a Hong Kong-based manufacturer.

• Faced a challenging environment in H1 2026 with global economic slowdown, higher raw material and labor costs, and currency headwinds.

• Order backlog increased to $23.3M as of June 30, 2026, up from $17.4M at year-end 2025, indicating potential future growth.

• Proposed merger with parent company was terminated in June 2026 after market feedback and lack of shareholder support.

• Net profit for H1 2026 was $2.26M, a significant decrease from $6.0M in H1 2025.

Financial highlights

• H1 2026 revenues were $20.48M, down 11% year-over-year from $23.0M in H1 2025.

• Gross profit for H1 2026 was $8.18M (40% margin), down from $10.3M (45% margin) in H1 2025.

• Operating profit dropped to $2.1M from $5.47M in H1 2025.

• Cash and short-term deposits totaled $59.89M at June 30, 2026, up from $58.2M at December 31, 2025.

• Operating cash flow for H1 2026 was $2.34M, down from $5.47M in H1 2025.

Outlook and guidance

• Management expects continued economic uncertainty, high raw material and labor costs, and currency volatility in the coming months.

• Order backlog growth signals potential for improved sales in the next nine months.