M-tron's Adjusted EBITDA Growth Accelerates
Adjusted EBITDA rose 40.6% to $3.4 million in the three months ended June 30, 2026, as backlog reached $84.0 million.
M-tron Industries (MPTI), a U.S.-based designer and manufacturer of electronic components for aerospace and defense, avionics, and space, reported adjusted EBITDA of $3.4 million for the three months ended June 30, 2026, up 40.6% from $2.4 million a year earlier. That year-over-year rate was faster than the 26.8% increase recorded in the first quarter.
Revenue was $15.1 million, up 13.8% from $13.3 million a year earlier, after 15.3% year-over-year growth in the prior quarter. The increase was primarily due to continued strong aerospace and defense program shipments and quarter-over-quarter growth in both avionics and space product shipments.
Net income was $1.9 million, or $0.43 a share, compared with $1.6 million, or $0.53 a share, a year earlier. Diluted earnings per share fell 18.9%, reversing a 19.2% year-over-year increase in the first quarter. The per-share decline was due to higher weighted shares outstanding after a rights offering completed in April 2026.
Gross margin was 41.2%, down from 43.6% a year earlier. The 240-basis-point compression reflected about $0.5 million of stock-based compensation recorded in manufacturing cost of sales, a 3.1% impact on gross margin, tied to 2025 bonus awards. The charge is not expected to recur at comparable levels. Current-period results also included $1.0 million of non-cash stock-based compensation from accelerated vesting of the 2025 bonus award.
Adjusted EBITDA’s increase was primarily due to higher revenues, partially offset by an increase in engineering, selling and administrative expenses. Operating income was $1.7 million. Interest income, net, was $690,000.
Backlog was $84.0 million as of June 30, 2026, up 37.2% from $61.2 million a year earlier, after a 38.4% year-over-year increase to $76.8 million as of March 31, 2026. The backlog increase reflected broad demand, including continued purchasing under several large aerospace and defense programs, initiation of orders for new programs, and a recent uptick in avionics and space industry orders.
Cash and cash equivalents were $96.2 million at June 30, 2026, versus $20.9 million at December 31, 2025. The April 2026 rights offering issued 713,362 shares and added $42.1 million of cash. Inventories, net, were $10.9 million. Total assets were $125.9 million.
During the quarter, the company made a small investment in Skyline Instruments, LLC, a synchronization and timing systems company that is making advancements critical for synchronization of RF sensor data and operations in GPS-denied environments. Chief Executive Officer Cameron Pforr said second-quarter results reflected continued momentum across the defense and aerospace business, with revenue increasing 13.8% and net income increasing 19.9%, and that the company remains focused on translating that growth into durable, long-term value for shareholders.