Mtron's Third-Quarter Revenue Growth Cools From Second Quarter

The Tip Desk · November 12, 2026 · 2 min read

Revenue was $15.7 million in the three months ended September 30, 2026, up 11.1% from a year earlier, while net income reached $3.0 million, or $0.70 a share.

M-tron Industries, Inc. (MPTI), a U.S.-based designer and manufacturer of highly engineered electronic components for aerospace and defense, avionics, and space, reported third-quarter revenue of $15.7 million for the three months ended September 30, 2026, an 11.1% increase from $14.2 million a year earlier.

Year-over-year revenue growth slowed from the 13.8% pace recorded in the three months ended June 30, 2026. The company said the increase was primarily due to strong growth in aerospace and defense, avionics, and space product shipments.

Gross margin expanded 20 basis points to 44.5% from 44.3% a year earlier, which the company attributed primarily to product mix. That rate recovered from 41.2% in the immediately preceding quarter, down from 43.6% a year earlier. The company said an approximately $0.5 million stock-based compensation charge in manufacturing cost of sales had a 3.1% impact on that quarter's gross margin.

Net income rose 66.4% to $3.0 million from $1.8 million a year earlier, or $0.70 a share versus $0.60. The company said the increase was primarily due to higher gross margin and higher interest income earned on investments in money market mutual funds driven by higher balances invested. The increase was partially offset by higher engineering, selling and administrative expenses driven by higher research and development investment, higher sales commissions consistent with the increase in revenues, higher stock-based compensation, and an increase in administrative and corporate expenses consistent with overall growth.

Diluted earnings of $0.70 a share reversed the 18.9% year-over-year decline recorded in the three months ended June 30, 2026, when net income per diluted share was $0.43. Adjusted EBITDA increased 12.9% to $3.6 million from $3.2 million a year earlier.

Backlog was $84.9 million as of September 30, 2026, up 44.3% from $58.8 million a year earlier and 11.0% from $76.4 million at December 31, 2025. The company said the increase reflects broad demand including continued purchasing under several large aerospace and defense programs, the initiation of orders for new aerospace and defense programs, and a recent uptick in space industry orders. Backlog had been $84.0 million as of June 30, 2026.

Cash and cash equivalents were $97.5 million at September 30, 2026, versus $20.9 million at December 31, 2025, after the April 2026 rights offering added $42.1 million of cash.

Chief Executive Officer Cameron Pforr said third-quarter results reflect continued strength of demand across defense and aerospace markets, that revenue increased 11% compared with the third quarter of last year, and that the company is continuing to invest in its team and capabilities to support the growth opportunities it sees ahead.