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M-tron Industries Inc (MPTI)
:MPTI
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M-tron Industries Inc (MPTI) AI Stock Analysis

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MPTI

M-tron Industries Inc

(NYSE MKT:MPTI)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$54.00
▲(5.37% Upside)
M-tron Industries Inc's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is a significant strength. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as decreased gross margins and tariff impacts, present risks. The valuation is reasonable, but the lack of a dividend yield may limit appeal to some investors.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand and effective market penetration, particularly in avionics, space, and industrial sectors.
Strong Balance Sheet
A debt-free balance sheet provides financial stability and flexibility, allowing for strategic investments and resilience against economic downturns.
Innovative Product Development
Innovation in product design enhances competitive advantage and meets evolving customer needs, driving future sales and market share.
Negative Factors
Decreased Gross Margins
Decreasing gross margins can pressure profitability, indicating challenges in cost management and pricing power amid external cost pressures.
Impact of Tariffs
Tariff impacts on costs can erode margins and competitiveness, necessitating strategic adjustments to supply chain and pricing strategies.
Decline in Net Income
A decline in net income reflects challenges in maintaining profitability, potentially affecting reinvestment capacity and shareholder returns.

M-tron Industries Inc (MPTI) vs. SPDR S&P 500 ETF (SPY)

M-tron Industries Inc Business Overview & Revenue Model

Company DescriptionM-tron Industries Inc (MPTI) is a leading provider of advanced electronic components, specializing in the design and manufacturing of high-performance frequency control products, such as crystal oscillators, filters, and resonators. Operating primarily in the telecommunications, aerospace, defense, and industrial sectors, MPTI is dedicated to delivering innovative solutions that meet the rigorous demands of its diverse customer base. The company prides itself on its commitment to quality, precision, and reliability in all its products.
How the Company Makes MoneyM-tron Industries generates revenue primarily through the sale of its electronic components, which are essential in various applications, including telecommunications equipment, military systems, and industrial machinery. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and distributors, as well as long-term contracts with key clients in sectors that require high reliability and performance. Additionally, MPTI benefits from partnerships with technology firms and defense contractors, which not only enhance its market reach but also provide opportunities for collaborative product development. The company's focus on research and development allows it to introduce innovative products that meet emerging market needs, thereby driving sales and increasing its market share.

M-tron Industries Inc Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted solid revenue growth and significant backlog increases, indicating strong demand across key sectors. However, challenges such as decreased gross margins, lower net income, and tariff impacts were notable. While the company is innovating and expanding its product line, financial headwinds balance the positive aspects.
Q3-2025 Updates
Positive Updates
Revenue Growth in Q3 2025
The total revenues for the third quarter were $14.2 million, representing a 7.2% increase over the $13.2 million for the third quarter in 2024. This growth was driven by strong performance in avionics, space, and industrial product shipments.
Significant Backlog Increase
The backlog as of September 30, 2025, was $58.8 million, an increase of 48% from the $39.8 million for September 30, 2024, and a 24.5% increase from the end of 2024. This reflects robust demand across aerospace and defense programs.
Innovative Product Development
M-tron developed an internally compensated oscillator significantly smaller in size (2 inches by 2 inches) compared to traditional models (16 inches by 16 inches), which has seen dramatic demand.
Early Trigger Condition for Warrants
The dividend of warrants granted in April 2025 achieved its early trigger condition, making them exercisable through December 11, 2025, at a strike price of $47.50 per share.
Negative Updates
Decrease in Gross Margins
Gross margins for Q3 2025 were 44.3%, down from 47.8% in Q3 2024, primarily due to product mix and higher tariff-related costs.
Decline in Net Income
Net income for Q3 2025 was $1.8 million, down from $2.3 million in Q3 2024. This decrease was mainly due to a large reversal of a deferred tax asset and lower gross margins.
Impact of Tariffs on Gross Margins
Tariffs are costing the company about 1% to 1.5% of revenue, impacting gross margins. Efforts to mitigate this include examining material orders and incorporating tariff charges into pricing for new orders.
Company Guidance
During the M-tron earnings call for the third quarter of 2025, the company reported robust financial results with total revenues reaching $14.2 million, a 7.2% increase from the same period in 2024. Despite a decrease in gross margins from 47.8% to 44.3%, primarily due to product mix and higher tariff-related costs, M-tron maintained strong performance with a net income of $1.8 million, or $0.63 per diluted share, compared to $2.3 million or $0.81 per diluted share in Q3 2024. The company's backlog grew significantly, ending at $58.8 million, marking a 48% increase from the previous year. M-tron highlighted strategic initiatives, including increased R&D investments and a notable partnership with Indiana Microelectronics to enhance their product offerings. Additionally, the company announced a dividend of warrants with a strike price of $47.50, exercisable until December 11, 2025. M-tron emphasized its commitment to innovation and growth in aerospace, defense, and industrial markets, with plans to participate in upcoming investor conferences to further engage with stakeholders.

M-tron Industries Inc Financial Statement Overview

Summary
M-tron Industries Inc exhibits a robust financial position with strong revenue growth, high profitability, and excellent cash flow management. The balance sheet is particularly strong with no debt, providing financial stability and flexibility for future growth. The company is well-positioned to sustain its growth trajectory given its efficient operations and solid financial foundation.
Income Statement
85
Very Positive
M-tron Industries Inc has demonstrated strong growth, with a remarkable revenue growth rate of 19.05% in 2024 compared to 2023. The gross profit margin is exceptional at 100%, indicating efficient production and pricing strategies. The net profit margin improved to 15.57% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins increased, reflecting robust operational efficiency. Overall, the income statement shows a solid upward trajectory in terms of revenue and profitability.
Balance Sheet
90
Very Positive
The company maintains a solid balance sheet with zero debt, leading to a debt-to-equity ratio of 0. The equity ratio is strong at 85.70%, indicating a low reliance on external funding and high asset coverage by equity. Return on equity improved to 24.42% in 2024, reflecting effective utilization of shareholder funds to generate earnings. The balance sheet is stable and reflects strong financial health.
Cash Flow
80
Positive
M-tron's free cash flow grew by 80.04%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.99, suggesting effective conversion of earnings into cash. The free cash flow to net income ratio is 0.74, which shows a healthy conversion of net income into free cash flow. Overall, the cash flow statement indicates strong cash management and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue52.99M49.01M41.17M31.84M26.69M29.98M
Gross Profit23.53M22.64M16.77M11.35M9.34M10.30M
EBITDA10.25M10.37M5.15M3.60M2.66M3.47M
Net Income7.16M7.64M3.49M1.80M1.58M2.31M
Balance Sheet
Total Assets42.23M36.49M24.30M19.27M20.01M17.92M
Cash, Cash Equivalents and Short-Term Investments18.33M12.64M3.91M926.00K2.63M2.46M
Total Debt159.00K9.00K97.00K147.00K145.00K132.00K
Total Liabilities5.22M5.22M4.41M4.93M3.16M2.94M
Stockholders Equity37.01M31.27M19.89M14.34M16.85M14.97M
Cash Flow
Free Cash Flow7.16M5.62M3.12M1.11M1.86M3.50M
Operating Cash Flow9.79M7.52M4.41M2.04M2.96M3.91M
Investing Cash Flow-2.63M-1.90M-1.28M-936.00K-1.10M-407.00K
Financing Cash Flow2.68M3.10M-137.00K-2.81M-1.68M-3.91M

M-tron Industries Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price51.25
Price Trends
50DMA
53.08
Negative
100DMA
48.68
Positive
200DMA
47.03
Positive
Market Momentum
MACD
-0.81
Negative
RSI
48.99
Neutral
STOCH
88.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPTI, the sentiment is Neutral. The current price of 51.25 is above the 20-day moving average (MA) of 51.17, below the 50-day MA of 53.08, and above the 200-day MA of 47.03, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MPTI.

M-tron Industries Inc Risk Analysis

M-tron Industries Inc disclosed 30 risk factors in its most recent earnings report. M-tron Industries Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

M-tron Industries Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$147.46M20.5322.65%12.79%23.79%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$151.45M490.740.11%2.33%6.17%
58
Neutral
$63.29M-86.70-3.84%38.22%70.68%
53
Neutral
$144.79M-29.07%71.92%31.84%
47
Neutral
$97.76M-177.60%8.95%14.34%
41
Neutral
$64.81M-13.78%-1.70%17.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MPTI
M-tron Industries Inc
52.66
-14.62
-21.73%
GNSS
Genasys
2.30
-1.54
-40.10%
RELL
Richardson Electronics
10.81
-3.45
-24.19%
CPSH
CPS Technologies
3.24
1.74
116.00%
LINK
Interlink Electronics
3.64
0.40
12.35%
KULR
KULR Technology Group
3.47
-5.65
-61.95%

M-tron Industries Inc Corporate Events

M-tron Industries Reports Preliminary Q3 2025 Results
Nov 14, 2025

M-tron Industries, Inc. is a U.S.-based company specializing in the design, manufacture, and marketing of high-reliability frequency and spectrum control products, primarily serving the aerospace, defense, avionics, and space industries. With facilities in the U.S., Hong Kong, and India, M-tron is known for its engineering-centric approach and customer support throughout the product lifecycle.

M-tron Industries’ Earnings Call: Growth Amid Challenges
Nov 14, 2025

The recent earnings call of M-tron Industries Inc. presented a mixed sentiment, highlighting both positive growth and notable challenges. On the upside, the company reported solid revenue growth and a significant increase in backlog, indicating strong demand across key sectors such as aerospace and defense. However, the call also addressed challenges including decreased gross margins, lower net income, and the impact of tariffs, which have balanced the positive aspects of the company’s performance.

Business Operations and StrategyExecutive/Board Changes
M-tron Industries Appoints Cameron Pforr as CEO
Neutral
Nov 13, 2025

On November 6, 2025, M-tron Industries, Inc. appointed Cameron Pforr as the permanent Chief Executive Officer, following his role as Interim CEO since February 2025. Mr. Pforr will continue his duties as Chief Financial Officer, with no new compensatory arrangements announced. The Board expressed confidence in his leadership to guide the company through its growth phase, emphasizing M-tron’s critical role in the defense sector amid evolving defense strategies and acquisition processes.

The most recent analyst rating on (MPTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on M-tron Industries Inc stock, see the MPTI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
M-tron Industries Reports Strong Q3 2025 Results
Neutral
Nov 12, 2025

M-tron Industries, Inc. reported strong financial results for the third quarter of 2025, with revenues of $14.2 million, marking a 7.2% increase from the previous year. Despite a decrease in gross margin to 44.3% due to product mix and higher tariff-related costs, the company experienced a significant backlog increase of 47.9% to $58.8 million, driven by robust demand across aerospace and defense programs. Net income per diluted share decreased to $0.63, attributed to higher expenses and a one-time tax adjustment, but the company continues to strengthen its profitability through operational initiatives.

The most recent analyst rating on (MPTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on M-tron Industries Inc stock, see the MPTI Stock Forecast page.

Financial Disclosures
M-tron Industries Reports Q3 2025 Revenue Growth
Neutral
Nov 4, 2025

M-tron Industries, Inc. announced its preliminary financial results for the third quarter ending September 30, 2025, reporting an increase in revenues to $14.1 million compared to $13.2 million in the same period of 2024. Despite a slight decline in gross margin and net income, the company continues to provide essential information to investors as they evaluate warrant exercises, with full financial results expected to be released on November 12, 2025.

The most recent analyst rating on (MPTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on M-tron Industries Inc stock, see the MPTI Stock Forecast page.

Other
M-tron Industries Warrants Now Exercisable
Neutral
Oct 23, 2025

On October 23, 2025, M-tron Industries, Inc. announced that the warrants to purchase shares of its common stock, which were granted on April 25, 2025, are now exercisable. The trigger for this exercisability was achieved on October 20, 2025, when the average volume weighted average price of the stock exceeded $52.00 per share for thirty consecutive trading days. The company has extended the warrant exercise period to December 11, 2025, allowing warrant holders to exercise their rights and potentially subscribe for additional shares through an over-subscription privilege.

The most recent analyst rating on (MPTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on M-tron Industries Inc stock, see the MPTI Stock Forecast page.

Business Operations and Strategy
M-tron Industries Presents at Global Investment Conference
Neutral
Sep 11, 2025

On September 10, 2025, M-tron Industries, Inc. presented a slide presentation at the H.C. Wainwright & Co. 27th Annual Global Investment Conference. The slides are available on the company’s investor relations website, providing stakeholders with insights into M-tron’s strategic direction and market positioning.

The most recent analyst rating on (MPTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on M-tron Industries Inc stock, see the MPTI Stock Forecast page.

M-tron Industries’ Earnings Call: Growth Amid Challenges
Sep 1, 2025

The recent earnings call from M-tron Industries Inc. painted a picture of robust revenue growth and a significant increase in backlog, primarily driven by defense and avionics orders. However, the company faces challenges with declining gross margins and net income, attributed to tariffs and rising expenses. While strategic investments indicate a focus on future expansion, the immediate financial metrics present a mixed performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 22, 2025