Record Backlog Growth
Backlog and long-term agreements reached a record ~$580 million as of March 31, up from $550 million at the end of 2025 (≈+5.5%), driven mostly by new contract wins and strong MRO intake.
Revenue and Work In Progress Reflect Demand
While reported revenue for Q1 was $41.1 million (vs. $42.1 million in Q1 2025, ≈-2.4%), management attributes the decline to timing/parts availability rather than demand; approximately $15.5 million of APU and Landing Gear open work orders were near completion but could not be released due to missing components.
Gross Margin Expansion
Gross profit increased to $10.0 million (up 0.8% year-over-year) and gross margin expanded ~80 basis points to 24.4% (from 23.6%), driven by operational discipline, cost structure improvements and efficiencies.
Positive Operating Cash Flow and Strong Liquidity
Operating cash flow turned positive at $1.9 million in Q1 versus negative $5.0 million a year ago (≈$6.9 million improvement). The company closed the quarter with $51.2 million in cash and $11.2 million in total debt, producing a debt-to-EBITDA ratio of 0.45 and shareholders' equity of $180.5 million (equity-to-balance ratio 77.5%).
Product Line Strengths — APU and Heat Exchangers
APU intake hit a record level in the quarter with increased flow of newer engine platforms and higher book-to-bill; heat exchangers showed growing demand and operational milestone delivering >97% of customer orders on time, underpinning recurring revenue.
Trading and Listing Growth
Trading and Listing segment delivered strong results with 29% year-over-year revenue growth, demonstrating meaningful contribution potential to consolidated results despite quarter-to-quarter variability.
M&A Capability and Strategic Investment
Company established a dedicated corporate development team, upgraded Board expertise, built processes and expanded an M&A pipeline; management is prioritizing accretive bolt-on transactions and has financial flexibility to pursue deals.