The Q2 report shows strong operational momentum (revenue +13.8%, backlog +37.2%, Adj. EBITDA +40.6%) but GAAP EPS declined 18.9% due to share dilution from the rights offering. The one-time $1.0M stock-based compensation charge is non-recurring, which should normalize EPS in future quarters. Monitor the Q3 earnings call for guidance on whether the defense/aerospace order trajectory can sustain backlog growth above $84M and for any update on the Skyline Instruments investment.
Price Chart
Executive Summary
M-tron Industries reported Q2 2026 revenue of $15.1M (+13.8% YoY) and net income of $1.9M (+19.9% YoY), but GAAP diluted EPS fell 18.9% to $0.43 due to a 48% increase in diluted share count from the April 2026 rights offering. Adjusted EBITDA grew 40.6% to $3.4M, and backlog reached a record $84.0M, signaling strong defense/aerospace demand, though the EPS decline and gross margin compression from one-time stock-based compensation temper the headline growth.
Key Financial Metrics
Key Facts
- Revenue grew 13.8% YoY to $15.1M for Q2 2026.
- GAAP diluted EPS fell 18.9% to $0.43 from $0.53 YoY, driven by a 48% increase in weighted average diluted shares from the April 2026 rights offering.
- Net income increased 19.9% to $1.9M, but included $1.0M in non-cash stock-based compensation related to accelerated vesting of 2025 bonus awards.
- Adjusted EBITDA rose 40.6% to $3.4M from $2.4M YoY.
- Gross margin contracted to 41.2% from 43.6% YoY, impacted by ~$0.5M of stock-based compensation in manufacturing cost of sales.
- Backlog increased 37.2% YoY to a record $84.0M as of June 30, 2026.
- Cash and cash equivalents surged to $96.2M from $20.9M at year-end 2025, reflecting the $42.1M rights offering proceeds.
- The company made a small strategic investment in Skyline Instruments, LLC, a synchronization and timing systems company.
Financial Impact
Revenue up 13.8% YoY to $15.1M; GAAP diluted EPS down 18.9% to $0.43; Adjusted EBITDA up 40.6% to $3.4M; Backlog at record $84.0M
Risk Factors
- Dilution from the April 2026 rights offering (713,362 new shares) will continue to pressure GAAP EPS growth despite rising net income.
- Gross margin compression (41.2% vs 43.6% YoY) from one-time stock-based compensation may recur if similar bonus structures are used.
- Dependence on defense/aerospace program timing; any slowdown in government spending could impact revenue growth.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-027369 |
| Document: mpti20260706_8k.htm | 0001437749-26-027369 |
| Document: 0001437749-26-027369-index-headers.html | 0001437749-26-027369 |
| Document: 0001437749-26-027369-index.html | 0001437749-26-027369 |
| Document: 0001437749-26-027369.txt | 0001437749-26-027369 |
| 8-K Data (Synthetic) | 0001437749-26-027369 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | SC 13G | $65.21 | awaiting T+60 | — | $68.28 (+4.71%) |
Aug 31, 2026 8w ago | 8-K | $76.16 | awaiting T+60 | — | $68.28 (−10.35%) |
Aug 17, 2026 10w ago | Press Release | $88.05 | awaiting T+60 | — | $68.28 (−22.45%) |
Aug 12, 2026 10w ago | 8-K | $84.47 | awaiting T+60 | — | $68.28 (−19.17%) |
Aug 11, 2026 10w ago | 144 | $85.62 | awaiting T+60 | — | $68.28 (−20.25%) |
Aug 3, 2026 12w ago | Press Release | $88.46 | awaiting T+60 | — | $68.28 (−22.81%) |
May 14, 2026 23w ago | 8-K | $79.11 $84.67 | ▲ +7.03% | ▲ +3.44% | $68.28 (−13.69%) |
May 13, 2026 23w ago | 15-12G | $79.11 $84.67 | ▲ +7.03% | ▲ +3.44% | $68.28 (−13.69%) |
May 8, 2026 24w ago | 8-K | $76.58 $87.28 | ▲ +13.97% | ▲ +9.58% | $68.28 (−10.84%) |
May 4, 2026 25w ago | Insider Cluster | $71.09 $78.19 | ▲ +9.99% | ▲ +8.13% | $68.28 (−3.95%) |
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