Mtron secures $5.5 million defense contract for RF components

Published 23/06/2025, 21:42
Mtron secures $5.5 million defense contract for RF components

ORLANDO - M-tron Industries, Inc. (NYSE American:MPTI), a company that generated $50.56 million in revenue over the last twelve months, has been awarded a $5.5 million production contract from a major U.S. Department of Defense prime contractor, the company announced today. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score, suggesting strong operational capabilities.

The contract covers multiple high-performance radio frequency components, including rugged crystal filters and lumped element filters designed for mission-critical environments. These components will support a major weapons system, according to the company’s press release statement.

Mtron, which provides radio frequency components and solutions, has supplied specialized components for this particular program for nearly a decade.

"Delivering custom, high-performance solutions at production scale is core to what we do," said Cameron Pforr, Mtron CEO.

Work under the contract will be performed at Mtron’s manufacturing facility in Orlando, Florida, through 2026. The company indicated that the program is expected to continue production through at least 2035.

Mtron, founded in 1965, designs and manufactures frequency and spectrum control products. The company maintains design and manufacturing facilities in Orlando, Florida, and Yankton, South Dakota, with additional operations in Hong Kong and Noida, India.

The contract represents ongoing business for Mtron in the defense sector, where the company provides components for military applications requiring high reliability in demanding environments.

In other recent news, M Tron Industries reported its Q1 2025 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to analyst expectations. The company posted an EPS of $0.56, missing the forecasted $0.66, while revenue came in at $12.7 million, falling short of the anticipated $13 million. Despite a 13.8% year-over-year increase in revenue, gross margins slightly decreased by 20 basis points to 42.5%. Net income for the quarter was $1.6 million, translating to $0.56 per diluted share. Additionally, M Tron Industries experienced strong backlog growth of 18.9%, which suggests potential future revenue. The company is investing in automation and new product lines, indicating a strategic focus on future growth. The backlog reached $55.5 million, reflecting several large defense and avionics orders received during the quarter. Analysts from Sidoti discussed the company’s gross margin challenges and the potential for improvement as new products mature.

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