M‑tron Industries reported third‑quarter 2025 results that showed a 7.2% year‑over‑year increase in revenue to $14.17 million, while net income fell to $1.832 million and the gross margin contracted to 44.3%. The company’s earnings call was held on November 13, 2025, to discuss the details of the quarter.
Revenue rose $0.96 million, or 7.2%, above the $13.21 million reported in Q3 2024 and well above the consensus estimate of $13.5 million. The lift was driven by stronger shipments in the avionics, space, and industrials segments, which together accounted for roughly 70% of total revenue. The company’s mix shift toward higher‑margin industrials products helped offset weaker demand in legacy aerospace components, but the overall mix still weighed on profitability.
Gross margin fell from 47.8% in Q3 2024 to 44.3% in Q3 2025, a compression of 3.5 percentage points. Management attributed the decline to a less favorable product mix and increased tariff‑related expenses on imported components. The higher cost of raw materials and the impact of U.S. trade tariffs on key inputs pushed the cost of goods sold higher, eroding the margin even as revenue grew.
Diluted earnings per share were $0.63, a miss of $0.06 against the consensus estimate of $0.69, but a beat of $0.06 over the lower estimate of $0.57. The miss reflects the margin compression and higher operating costs that reduced net income, while the beat over the lower estimate indicates that the company still outperformed the more conservative expectations of some analysts.
The nine‑month backlog through September 30 rose to $58.8 million, up 47.9% year‑over‑year, underscoring robust future demand. Compared with Q2 2025, when revenue was $13.3 million and EPS was $0.53, the company’s revenue growth has slowed, but the backlog growth suggests that the company is still building a pipeline of high‑margin contracts.
Interim CEO Cameron Pforr highlighted the 7.2% revenue growth, noting that “the third quarter delivered 7.2% revenue growth year‑over‑year.” He also emphasized that “the continuous improvement in gross margins confirms our strong operational efforts,” a statement that contrasts with the reported margin contraction and signals management’s focus on long‑term margin recovery. The company did not provide new guidance for the next quarter or fiscal year, leaving investors to interpret the current results as a snapshot of ongoing cost pressures and a mixed outlook.
Investors reacted cautiously to the earnings, weighing the revenue beat against the margin compression and EPS miss. The market’s focus on the company’s declining profitability metrics suggests that, while demand remains solid, the cost and mix challenges are a significant concern for the near‑term outlook.
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