The Elmet Group (ELMT) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 increased 35.2% year-over-year to $66.4 million, driven by strong demand in aerospace, defense, industrial, and medical markets, with CMC and EMP divisions contributing to growth.

• Gross profit margin expanded to 25.0% from 20.7% in Q2 2025, reflecting pricing management, operational improvements, and productivity gains.

• Adjusted EBITDA rose 57.9% to $8.9 million (13.3% margin), up from $5.6 million (11.4% margin) in Q2 2025.

• Record open order backlog reached $131.5 million, up 55% year-over-year, with significant growth in AD&G programs.

• Completed an upsized IPO in April 2026, raising $125.4 million in net proceeds, used to retire debt and strengthen the balance sheet.

Financial highlights

• Q2 2026 revenue: $66.4 million (+35.2% YoY); H1 2026 revenue: $122.4 million (+28.2% YoY).

• Gross profit: $16.6 million (25% margin), up from $10.1 million (20.7% margin) year-over-year.

• Net loss: $4.5 million, or $0.16 per share, versus net income of $1.2 million, or $0.06 per share, in Q2 2025; adjusted net income: $5.2 million, or $0.18 per share.

• Adjusted EBITDA: $8.9 million (13.3% margin), up 57.2% from $5.6 million (11.4% margin) in Q2 2025.

• Trailing 12 months revenue: $228.5 million, up 8.2%; adjusted net income: $18.6 million, up from $16.2 million.

Outlook and guidance

• Management expects continued demand growth in aerospace, defense, and industrial markets, supported by a record $131.5 million backlog.

• Anticipate further margin improvement as higher-value AD&G contracts ramp and productivity gains persist.

• Targeting 30% gross margin over the next four to five years, driven by mix shift and operational improvements.

• Ongoing focus on supply chain management, pricing, and productivity to mitigate raw material volatility and labor constraints.

• No formal quantitative guidance provided for the remainder of 2026.