M-tron Industries, Inc. Reports Robust Fourth Quarter and Full Fiscal Year 2024 Results; Record Full Year Revenues, Gross Margins and Earnings

Rhea-AI Summary

M-tron Industries (MPTI) reported strong Q4 and full-year 2024 financial results, marking its third consecutive year of record revenues. Q4 2024 saw revenues increase 18.9% to $12.8M, with gross margin rising to 47.2% and net income per diluted share jumping to $0.73.

For full-year 2024, the company achieved:

• Revenue growth of 19.1% to $49.0M
• Gross margin improvement to 46.2%
• Net income per diluted share increase to $2.65
• Adjusted EBITDA of $11.1M

The Aerospace and Defense sector drove growth with a 40% year-over-year increase. The company ended 2024 with $12.6M in cash and maintained a strong backlog of $47.2M. Additionally, MPTI's Board declared a warrant dividend for stockholders with a record date of March 10, 2025.

Positive

• Revenue increased 19.1% to $49.0M in FY2024
• Gross margin improved significantly to 46.2% in 2024 from 40.7% in 2023
• Net income per share grew 107.4% to $2.65 in FY2024
• Aerospace and Defense sector showed strong 40% YoY growth
• Strong cash position of $12.6M at year-end
• Robust backlog of $47.2M indicating steady future revenue

Negative

• Slight decrease in backlog from $47.8M to $47.2M
• Higher manufacturing costs and operating expenses
• Challenging year for Avionics sector due to airframe providers' difficulties

Insights

Financial Analyst

M-tron Industries' Q4 and full-year 2024 results demonstrate exceptional financial performance across all key metrics. The 19.1% annual revenue growth to $49.0 million showcases strong market demand for their electronic frequency control components. Most impressive is the substantial margin expansion, with gross margins improving 550 basis points to 46.2%, indicating successful operational efficiency initiatives and a strategic shift toward higher-margin products.

The bottom-line impact is remarkable, with diluted EPS increasing 107.4% to $2.65 for the full year. The defense segment's 40% growth highlights M-tron's strong position in a critical market with stable government spending. Their $47.2 million backlog, nearly equivalent to a full year's revenue, provides excellent visibility for 2025.

The company's balance sheet has strengthened considerably, ending with $12.6 million in cash, providing flexibility for potential investments or acquisitions. The warrant dividend announced for shareholders indicates management confidence and offers additional potential value.

While the slight backlog reduction merits monitoring, management's explanation about timing of large program orders is reasonable given their focus on long-duration contracts. The aerospace/avionics segment shows resilience despite industry challenges, with potential upside as commercial aircraft manufacturers work through their order backlogs.

Defense Industry Specialist

M-tron's 40%+ growth in the defense sector represents exceptional performance even within today's strong defense electronics market. The company's frequency control components are critical infrastructure for modern defense systems, where precision timing and signal integrity are non-negotiable requirements.

The robust $47.2 million backlog, though slightly down year-over-year, still represents nearly a full year of revenue, providing substantial visibility. The nature of defense procurement, with its large, lumpy orders, explains the minor variability in backlog numbers. More telling is the margin improvement to 46.2%, suggesting M-tron has successfully positioned its products as mission-critical components rather than commodities.

The company's focus on "program centric business" indicates they're securing designed-in positions on major defense platforms, which typically translates to years of predictable revenue streams. Defense electronics suppliers with strong positions in major programs benefit from high switching costs and long product lifecycles.

While the commercial aviation segment faced headwinds in 2024, the stated expectation for improvement as aircraft manufacturers work through their substantial backlogs presents an additional growth vector beyond the already strong defense performance. The balance of defense and aviation markets provides some counter-cyclical protection against potential future defense budget fluctuations.

ORLANDO, Fla.--(BUSINESS WIRE)-- M-tron Industries, Inc. (NYSE American: MPTI) ("Mtron" or the "Company"), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the fourth quarter and full fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

• Revenues increased 18.9%, or $2.0 million, to $12.8 million for the three months ended December 31, 2024 from $10.8 million for the three months ended December 31, 2023
• Gross margin increased 360 basis points to 47.2% for the three months ended December 31, 2024 from 43.6% for the three months ended December 31, 2023
• Net income per diluted share increased 2,333.3%, or $0.70, to $0.73 for the three months ended December 31, 2024 from $0.03 for the three months ended December 31, 2023

Fiscal Year 2024 Highlights

• Revenues increased 19.1%, or $7.8 million, to $49.0 million for the fiscal year ended December 31, 2024 from $41.2 million for the fiscal year ended December 31, 2023
• Gross margin increased 550 basis points to 46.2% for the fiscal year ended December 31, 2024 from 40.7% for the fiscal year ended December 31, 2023
• Net income per diluted share increased 107.4%, or $1.37, to $2.65 for the fiscal year ended December 31, 2024 from $1.28 for the fiscal year ended December 31, 2023

"We are pleased to report robust financial results for the full fiscal year 2024, reflecting the continued momentum in our business and the effectiveness of our strategic initiatives," said Cameron Pforr, Mtron Interim Chief Executive Officer. "Our performance underscores the strength and ability of the Mtron team to drive sustained growth and the confidence of our defense and commercial customers in Mtron's ability to deliver critical components and solutions."

Results from Operations

Fourth Quarter 2024

Revenue was $12.8 million in the fourth quarter of 2024 compared with $10.8 million in the fourth quarter of 2023. The increase was primarily due to higher sales related to continued strong defense program product and solution shipments.

Net income was $2.1 million, or $0.73 per diluted share, in the fourth quarter of 2024 compared with $73.0 thousand, or $0.03 per diluted share, in the fourth quarter of 2023. In addition to the factors discussed above, the increase was primarily due to lower stock-based compensation expense partially offset by higher manufacturing cost of sales driven higher revenues, higher engineering expenses related to increased investment in research and development, higher sales commissions related to the increase in revenues, and an increase in administrative and corporate expenses to support the growth in revenues.

Gross margin was 47.2% in the fourth quarter of 2024 compared with 43.6% in the fourth quarter of 2023. The increase was primarily due to higher revenues, improved manufacturing efficiencies, and a higher margin product mix.

Adjusted EBITDA was $3.1 million in the fourth quarter of 2024 compared with $2.4 million in the fourth quarter of 2023. The increase was primarily due to improved gross margins and continued containment of expenses as well as a higher margin product mix.

Fiscal Year 2024

Revenue was $49.0 million in 2024 compared with $41.2 million in 2023. The increase was primarily due to higher sales related to continued strong defense program product and solution shipments.

Net income was $7.6 million, or $2.65 per diluted share, in 2024 compared with $3.5 million, or $1.28 per diluted share, in 2023. The increase in revenues discussed above was partially offset by higher manufacturing cost of sales driven higher revenues, higher engineering expenses related to increased investment in research and development, higher sales commissions related to the increase in revenues, and an increase in administrative and corporate expenses to support the growth in revenues.

Gross margin was 46.2% in 2024 compared with 40.7% in 2023. The increase was primarily due to higher revenues, improved manufacturing efficiencies, and a higher margin product mix.

Adjusted EBITDA was $11.1 million in 2024 compared with $7.7 million in 2023. The increase was primarily due to improved gross margins and continued containment of expenses as well as a higher margin product mix.

"The Company reported record revenues for the third year in a row, largely driven by strong growth in the Aerospace and Defense sector, which increased over 40% year over year. Our Avionics sector also grew slightly, which focuses on large commercial aircraft and some business jets. 2024 proved to be a difficult year for the major airframe providers, but we anticipate this sector picking up throughout the year and remaining strong as they begin to work through their large backlog of orders," continued Mr. Pforr. "Overall business performance, combined with the exercise of stock options, significantly strengthened our balance sheet, which ended the year with $12.6 million of cash and cash equivalents."

Backlog

Backlog was $47.2 million as of December 31, 2024 compared to $47.8 million as of December 31, 2023. The slight decrease reflects the continued strategy and focus on securing large, long duration program centric business, which can materially affect backlog to the timing and size of these orders.

Warrant Dividend

On February 27, 2025, Mtron's Board of Directors declared a dividend of warrants to purchase shares of common stock to holders of Mtron's common stock as means of distributing value to its stockholders. The record date for the warrants is March 10, 2025. A Q&A describing the anticipated terms of the warrants is available on the Investor Relations section of Mtron's website at ir.mtronpti.com.

Investor Call

Management, including Mr. Pforr, will host a conference call with the investment community on Friday, March 28, 2025, to discuss the Company's fourth quarter 2024 results and to respond to investor questions.

The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Friday, March 28, 2025, and can be accessed using the dial-in details below:

Toll-Free Dial-in Number:	(800) 715-9871
Toll Dial-in Number:	+1 (646) 307-1963
Conference ID:	8987082

An archive will be available after the call on the Investor Relations section of Mtron’s website at ir.mtronpti.com, along with Mtron’s earnings release.

About Mtron

M-tron Industries, Inc. (NYSE American: MPTI) was originally founded in 1965 and designs, manufactures and markets highly engineered, high reliability frequency and spectrum control products and solutions. As an engineering-centric company, Mtron provides close support to its customers throughout our products’ entire life cycle, including product design, prototyping, production and subsequent product upgrades. Mtron has design and manufacturing facilities in Orlando, Florida and Yankton, South Dakota, a sales office in Hong Kong, and a manufacturing facility in Noida, India. For more information, visit www.mtronpti.com.

Cautionary Note Concerning Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the uncertain financial impact of COVID-19 and the Company's financial condition, results of operations, business strategy and financial needs. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words "believe," "expect," "anticipate," "should," "plan," "will," "may," "could," "intend," "estimate," "predict," "potential," "continue" or the negative of these terms and similar expressions, as they relate to Mtron, are intended to identify forward-looking statements.

These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by Mtron with the Securities and Exchange Commission, including those risks set forth under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K as filed with the SEC on March 27, 2025. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.

These forward-looking statements speak only as of the date of this press release. Mtron undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

No Offer or Solicitation

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A Form 8-A registration statement and prospectus supplement describing the terms of the warrants and the shares of common stock issuable upon exercise thereof will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. When available, holders of the Company's common stock should read the prospectus supplement carefully, including the Risk Factors section included and incorporated by reference therein. This press release contains a general summary of the warrants. Please read the warrant agreement when it becomes available as it will contain important information about the terms of the warrants.

M-tron Industries, Inc. Quarterly Summary (Unaudited)
		2022																2023																2024
(in thousands)		Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4
Revenues		$	7,691			$	7,064			$	8,417			$	8,673			$	9,367			$	10,140			$	10,888			$	10,773			$	11,185			$	11,808			$	13,214			$	12,805
Y/Y																			21.8	%			43.5	%			29.4	%			24.2	%			19.4	%			16.4	%			21.4	%			18.9	%
Y/2Y																																			45.4	%			67.2	%			57.0	%			47.6	%
Gross margin			37.3	%			37.5	%			32.4	%			35.7	%			34.1	%			41.6	%			42.8	%			43.6	%			42.7	%			46.6	%			47.8	%			47.2	%
Y/Y																			-8.6	%			10.9	%			32.1	%			22.1	%			25.2	%			12.0	%			11.7	%			8.3	%
Y/2Y (a)																																			14.5	%			24.3	%			47.5	%			32.2	%
Net income (b)		$	619			$	486			$	503			$	190			$	553			$	1,277			$	1,586			$	73			$	1,486			$	1,744			$	2,267			$	2,139
Y/Y																			-10.7	%			162.8	%			215.3	%			-61.6	%			168.7	%			36.6	%			42.9	%			2830.1	%
Y/2Y (a)																																			140.1	%			258.8	%			350.7	%			1025.8	%
Adjusted EBITDA (c)		$	1,177			$	841			$	876			$	1,114			$	1,028			$	1,931			$	2,336			$	2,397			$	2,262			$	2,523			$	3,300			$	3,056
Y/Y																			-12.7	%			129.6	%			166.7	%			115.2	%			120.0	%			30.7	%			41.3	%			27.5	%
Y/2Y (a)																																			92.2	%			200.0	%			276.7	%			174.3	%

(a)	Year over 2 years
(b)	Q1 2022 - Q3 2022 do not include any public company costs as these periods were pre-IPO.
(c)	A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this press release.

M-tron Industries, Inc. Consolidated Statements of Operations (Unaudited)
		Three Months Ended December 31,								Fiscal Year Ended December 31,
(in thousands, except share data)		2024				2023				2024				2023
Revenues		$	12,805			$	10,773			$	49,012			$	41,168
Costs and expenses:
Manufacturing cost of sales			6,755				6,080				26,372				24,402
Engineering, selling and administrative			3,473				4,753				13,246				12,467
Total costs and expenses			10,228				10,833				39,618				36,869
Operating income (loss)			2,577				(60	)			9,394				4,299
Other income, net:
Interest income, net			104				13				243				7
Other income, net			77				100				138				94
Total other income, net			181				113				381				101
Income before income taxes			2,758				53				9,775				4,400
Income tax (benefit) provision			619				(20	)			2,139				911
Net income		$	2,139			$	73			$	7,636			$	3,489
Income per common share:
Basic		$	0.76			$	0.03			$	2.78			$	1.29
Diluted		$	0.73			$	0.03			$	2.65			$	1.28
Weighted average shares outstanding:
Basic			2,811,502				2,703,840				2,748,186				2,696,445
Diluted			2,925,348				2,774,023				2,883,944				2,733,502

M-tron Industries, Inc. Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)		December 31, 2024				December 31, 2023
Assets:
Current assets:
Cash and cash equivalents		$	12,641			$	3,913
Accounts receivable, net of allowances of $182 and $141, respectively			6,842				4,802
Inventories, net			9,509				8,884
Prepaid expenses and other current assets			760				588
Total current assets			29,752				18,187
Property, plant, and equipment, net			5,061				4,131
Right-of-use lease asset			9				97
Intangible assets, net			40				45
Deferred income tax asset			1,623				1,835
Other assets			3				10
Total assets		$	36,488			$	24,305
Liabilities:
Total current liabilities			5,216				4,384
Non-current liabilities			—				26
Total liabilities			5,216				4,410
Total stockholders' equity			31,272				19,895
Total liabilities and stockholders' equity		$	36,488			$	24,305

Non-GAAP Financial Measures

Throughout this press release, including the results from operations, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company presents are listed below and may not be comparable to similarly-named measures reported by other companies. the reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this press release. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP.

The Company uses the following operating performance measure because the Company believes it provides both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance:

Adjusted EBITDA is derived by excluding the items set forth below from Income before income taxes. Excluded items include the following:

• Interest income
• Interest expense
• Depreciation
• Amortization
• Non-cash stock-based compensation
• Other discrete items that might have a significant impact on comparable GAAP measures and could distort the evaluation of our normal operating performance

Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA

		Three Months Ended December 31,								Year Ended December 31,
(in thousands, except share data)		2024				2023				2024				2023
Income before income taxes		$	2,758			$	53			$	9,775			$	4,400
Adjustments:
Interest income, net			(104	)			(13	)			(243	)			(7	)
Depreciation			251				220				968				797
Amortization			—				13				5				53
Total adjustments			147				220				730				843
EBITDA			2,905				273				10,505				5,243
Non-cash stock compensation			151				2,124				636				2,421
Excess Separation costs			—				—				—				28
Adjusted EBITDA		$	3,056			$	2,397			$	11,141			$	7,692

The following table is a reconciliation of Adjusted EBITDA to Income before income taxes:
		2022																2023																2024
(in thousands)		Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4				Q1				Q2				Q3				Q4
Revenues		$	7,691			$	7,064			$	8,417			$	8,673			$	9,367			$	10,140			$	10,888			$	10,773			$	11,185			$	11,808			$	13,214			$	12,805
Income before income taxes		$	794			$	592			$	614			$	595			$	719			$	1,582			$	2,046			$	53			$	1,863			$	2,146			$	3,008			$	2,758
Adjustments:
Interest expense (income)			3				2				1				5				2				5				(1	)			(13	)			(32	)			(44	)			(63	)			(104	)
Depreciation			148				165				173				185				195				190				192				220				219				220				278				251
Amortization			13				14				13				14				13				14				13				13				5				—				—				—
Total adjustments			164				181				187				204				210				209				204				220				192				176				215				147
EBITDA			958				773				801				799				929				1,791				2,250				273				2,055				2,322				3,223				2,905
Non-cash stock compensation			219				68				75				96				71				140				86				2,124				207				201				77				151
Excess Spin-off costs			—				—				—				219				28				—				—				—				—				—				—				—
Adjusted EBITDA		$	1,177			$	841			$	876			$	1,114			$	1,028			$	1,931			$	2,336			$	2,397			$	2,262			$	2,523			$	3,300			$	3,056
Adjusted EBITDA margin			15.3	%			11.9	%			10.4	%			12.8	%			11.0	%			19.0	%			21.5	%			22.3	%			20.2	%			21.4	%			25.0	%			23.9	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327736151/en/

M-tron Industries, Inc. Investor Relations

ir@mtronpti.com

Cameron Pforr

Interim Chief Executive Officer

Source: M-tron Industries, Inc.

FAQ

What was MPTI's revenue growth in Q4 2024 compared to Q4 2023?

MPTI's revenue grew 18.9% to $12.8 million in Q4 2024, up from $10.8 million in Q4 2023.

How much did MPTI's Aerospace and Defense sector grow in 2024?

MPTI's Aerospace and Defense sector grew over 40% year-over-year in 2024.

What is MPTI's current backlog as of December 31, 2024?

MPTI's backlog stood at $47.2 million as of December 31, 2024, slightly down from $47.8 million in 2023.

What was MPTI's net income per diluted share for full-year 2024?

MPTI's net income per diluted share was $2.65 for fiscal year 2024, up 107.4% from $1.28 in 2023.

When will MPTI distribute the warrant dividend to shareholders?

MPTI set March 10, 2025, as the record date for the warrant dividend distribution to stockholders.