# M-tron Industries, Inc. (MPTI)

Informational only - not investment advice.

CIK: 0001902314
SIC: 3679 Electronic Components, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3679 Electronic Components, NEC](/industry/3679/)
Latest 10-K filed: 2026-03-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1902314
Filing source: https://www.sec.gov/Archives/edgar/data/1902314/000143774926009844/mpti20251231_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-26 · accession 0001437749-26-009844 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001902314.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 54,417,000 USD | 2025 | verified |
| Net income | 8,447,000 USD | 2025 | verified |
| Assets | 68,383,000 USD | 2025 | verified |
| Free cash flow | 8,108,000 USD | 2025 | computed |
| Net margin | 15.52% | 2025 | computed |
| Operating margin | 18.91% | 2025 | computed |
| Revenue YoY | +11.03% | 2025 | computed |
| ROE | 13.36% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MPTI | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 15.5% | 4.4% | 78 | 135 |
| Operating margin | 18.9% | 4.4% | 80 | 128 |
| Revenue growth | 11.0% | 10.2% | 51 | 142 |
| FCF margin | 14.9% | 8.0% | 72 | 138 |
| ROE | 13.4% | 5.4% | 66 | 136 |
| ROA | 12.4% | 2.7% | 84 | 143 |
| Liabilities / equity | 0.08 | 0.81 | 1 | 138 |
| Current ratio | 12.52 | 2.59 | 97 | 144 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 54417000 | USD | 2025 | 2026-03-26 |
| Net income | 8447000 | USD | 2025 | 2026-03-26 |
| Assets | 68383000 | USD | 2025 | 2026-03-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001902314.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 26,694,000 | 31,845,000 | 41,168,000 | 49,012,000 | 54,417,000 |
| Net income |  | 1,582,000 | 1,798,000 | 3,489,000 | 7,636,000 | 8,447,000 |
| Operating income |  | 2,114,000 | 2,875,000 | 4,299,000 | 9,394,000 | 10,291,000 |
| Diluted EPS |  | 0.59 | 0.67 | 1.28 | 2.65 | 2.62 |
| Operating cash flow |  | 2,960,000 | 2,042,000 | 4,405,000 | 7,521,000 | 10,659,000 |
| Capital expenditures |  | 1,099,000 | 936,000 | 1,281,000 | 1,898,000 | 2,551,000 |
| Assets |  | 20,006,000 | 19,273,000 | 24,305,000 | 36,560,000 | 68,383,000 |
| Liabilities |  | 3,157,000 | 4,932,000 | 4,410,000 | 5,288,000 | 5,168,000 |
| Stockholders' equity | 14,974,000 | 16,849,000 | 14,341,000 | 19,895,000 | 31,272,000 | 63,215,000 |
| Cash and cash equivalents |  | 2,635,000 | 926,000 | 3,913,000 | 12,641,000 | 20,891,000 |
| Free cash flow |  | 1,861,000 | 1,106,000 | 3,124,000 | 5,623,000 | 8,108,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 5.93% | 5.65% | 8.48% | 15.58% | 15.52% |
| Operating margin |  | 7.92% | 9.03% | 10.44% | 19.17% | 18.91% |
| Return on equity |  | 9.39% | 12.54% | 17.54% | 24.42% | 13.36% |
| Return on assets |  | 7.91% | 9.33% | 14.36% | 20.89% | 12.35% |
| Liabilities / equity |  | 0.19 | 0.34 | 0.22 | 0.17 | 0.08 |
| Current ratio |  | 4.01 | 2.95 | 4.15 | 5.70 | 12.52 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001902314.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.19 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.20 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.47 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 1,277,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 10,888,000 |  | 0.57 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 10,773,000 | 73,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 11,185,000 | 1,486,000 | 0.53 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 11,808,000 | 1,744,000 | 0.63 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 13,214,000 | 2,267,000 | 0.81 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 12,805,000 | 2,139,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 12,732,000 | 1,630,000 | 0.56 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 13,282,000 | 1,560,000 | 0.53 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 14,170,000 | 1,832,000 | 0.63 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 14,233,000 | 3,425,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 14,686,000 | 2,388,000 | 0.67 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 15,109,000 | 1,870,000 | 0.43 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MPTI's latest 10-K: [/company/MPTI/business/](/company/MPTI/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MPTI's latest 10-K: [/company/MPTI/risk-factors/](/company/MPTI/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1902314/000143774926027371/mpti20260630_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-12
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements, the notes thereto and the other unaudited financial data included in this Quarterly Report on Form 10-Q. The following discussion should also be read in conjunction with the audited Consolidated Financial Statements and the notes thereto, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the "SEC") on March 26, 2026. The terms the "Company," "Mtron," "MPTI," "we," "our" or "us" refer to M-tron Industries, Inc. and unless otherwise defined herein, capitalized terms used herein shall have the same meanings as set forth in our Condensed Consolidated Financial Statements and the notes thereto.

Unless otherwise stated, all dollar amounts are in thousands.

In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See the Cautionary Note Concerning Forward-Looking Statements included in this Quarterly Report on Form 10-Q.

Overview

Mtron is engaged in the designing, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. Mtron’s primary markets are aerospace & defense, avionics, industrials, and space.

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries.

Trends and Uncertainties

We are not aware of any material trends or uncertainties, other than national economic conditions affecting our industry generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on our revenues or income other than the one listed below and the risk factors disclosed in our Annual Report on Form 10-K, as filed with the SEC on March 26, 2026.

Tariffs

The current U.S. federal administration has imposed tariffs on certain products and materials entering the United States imported from other countries. Additionally, foreign governments have imposed retaliatory tariffs on products and materials exported from the United States. Following the Supreme Court’s February 2026 decision striking down certain tariffs, the Trump Administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on our business. To date, we have not seen an impact from tariffs on the demand for our products.

19

Table of Contents

Results of Operations

Three months ended June 30, 2026 compared to three months ended June 30, 2025

The following table presents our Condensed Consolidated Statements of Operations for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,"],["(in thousands)","","2026","","2025","","$ Change","","% Change"],["Revenues","","$","15,109","","","$","13,282","","","$","1,827","","","","13.8","%"],["Costs and expenses:"],["Manufacturing cost of sales","","","8,883","","","","7,490","","","","1,393","","","","18.6","%"],["Engineering, selling and administrative","","","4,507","","","","3,948","","","","559","","","","14.2","%"],["Total costs and expenses","","","13,390","","","","11,438","","","","1,952","","","","17.1","%"],["Operating income","","","1,719","","","","1,844","","","","(125",")","","","(6.8","%)"],["Other income (expense):"],["Interest income, net","","","690","","","","124","","","","566","","","","456.5","%"],["Other income (expense), net","","","34","","","","27","","","","7","","","","25.9","%"],["Total other income, net","","","724","","","","151","","","","573","","","","379.5","%"],["Income before income taxes","","","2,443","","","","1,995","","","","448","","","","22.5","%"],["Income tax expense","","","573","","","","435","","","","138","","","","31.7","%"],["Net income","","$","1,870","","","$","1,560","","","$","310","","","","19.9","%"]]
[[/GREPCENT_TABLE]]

Total Revenues

Total revenues increased $1,827, or 13.8%, from $13,282 for the three months ended June 30, 2025 to $15,109 for the three months ended June 30, 2026 primarily due to strong aerospace and defense, space, and avionics product shipments.

Total Costs and Expenses

Total costs and expenses increased $1,952, or 17.1%, from $11,438 for the three months ended June 30, 2025 to $13,390 for the three months ended June 30, 2026. The following items contributed to the overall increase:

[[GREPCENT_TABLE]]
[["","\u2022","a $1,393, or 18.6%, increase in Manufacturing cost of sales from $7,490 for the three months ended June 30, 2025 to $8,883 for the three months ended June 30, 2026 driven by $470 of stock-based compensation related to 2025 bonuses, product mix, and higher revenues partially offset by manufacturing efficiencies; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","a $559, or 14.2%, increase in Engineering, selling and administrative from $3,948 for the three months ended June 30, 2025 to $4,507 for the three months ended June 30, 2026 from higher research and development investment, higher sales commissions related to an increase in revenues, $511 of stock compensation related to 2025 bonuses, and an increase in administrative and corporate expenses consistent with the overall growth in the business."]]
[[/GREPCENT_TABLE]]

Gross Margin

Gross margin (Revenues less Manufacturing cost of sales as a percentage of Revenues) decreased 240 basis points from 43.6% for the three months ended June 30, 2025 to 41.2% for the three months ended June 30, 2026 reflecting $470 of stock-based compensation related to 2025 bonuses and product mix partially offset by higher revenues and manufacturing efficiencies.

Total Other Income, Net

Total Other income, net increased $573, or 379.5%, from $151 for the three months ended June 30, 2025 to $724 for the three months ended June 30, 2026. The increase was primarily due to a $566, or 456.5%, increase in Interest income, net from $124 for the three months ended June 30, 2025 to $690 for the three months ended June 30, 2026 driven by higher balances invested in money market mutual funds.

Income Tax Expense

Income tax expense increased $138, or 31.7%, from $435 for the three months ended June 30, 2025 to $573 for the three months ended June 30, 2026 primarily due to the increase in Income before income taxes driven by the increase in revenues discussed above.

20

Table of Contents

Six months ended June 30, 2026 compared to six months ended June 30, 2025

The following table presents our Condensed Consolidated Statements of Operations for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Six Months Ended June 30,"],["(in thousands)","","2026","","2025","","$ Change","","% Change"],["Revenues","","$","29,795","","","$","26,014","","","$","3,781","","","","14.5","%"],["Costs and expenses:"],["Manufacturing cost of sales","","","16,975","","","","14,816","","","","2,159","","","","14.6","%"],["Engineering, selling and administrative","","","8,491","","","","7,341","","","","1,150","","","","15.7","%"],["Total costs and expenses","","","25,466","","","","22,157","","","","3,309","","","","14.9","%"],["Operating income","","","4,329","","","","3,857","","","","472","","","","12.2","%"],["Other income (expense):"],["Interest income, net","","","1,060","","","","235","","","","825","","","","351.1","%"],["Other income, net","","","(88",")","","","17","","","","(105",")","","","(617.6","%)"],["Total other income, net","","","972","","","","252","","","","720","","","","285.7","%"],["Income before income taxes","","","5,301","","","","4,109","","","","1,192","","","","29.0","%"],["Income tax expense","","","1,043","","","","919","","","","124","","","","13.5","%"],["Net income","","$","4,258","","","$","3,190","","","$","1,068","","","","33.5","%"]]
[[/GREPCENT_TABLE]]

Total Revenues

Total revenues increased $3,781, or 14.5%, from $26,014 for the six months ended June 30, 2025 to $29,795 for the six months ended June 30, 2026 primarily due to strong aerospace and defense program and avionics shipments.

Total Costs and Expenses

Total costs and expenses increased $3,309, or 14.9%, from $22,157 for the six months ended June 30, 2025 to $25,466 for the six months ended June 30, 2026. The following items contributed to the overall increase:

[[GREPCENT_TABLE]]
[["","\u2022","a $2,159, or 14.6%, increase in Manufacturing cost of sales from $14,816 for the six months ended June 30, 2025 to $16,975 for the six months ended June 30, 2026 primarily by higher stock-based compensation, product mix and higher revenues partially offset by manufacturing efficiencies; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","a $1,150, or 15.7%, increase in Engineering, selling and administrative from $7,341 for the six months ended June 30, 2025 to $8,491 for the six months ended June 30, 2026 from higher research and development investment, higher sales commissions related to an increase in revenues, $982 of stock-based compensation related to 2025 bonuses, and an increase in administrative and corporate expenses consistent with the overall growth in the business."]]
[[/GREPCENT_TABLE]]

Gross Margin

Gross margin (Revenues less Manufacturing cost of sales as a percentage of Revenues) remained flat at 43.0% for the six months ended June 30, 2026 and 2025.

Total Other Income (Expense), Net

Total Other income (expense), net increased $720, or 285.7%, from $252 for the six months ended June 30, 2025 to $972 for the six months ended June 30, 2026. The increase was primarily due to a $825, or 351.1%, increase in Interest income, net from $235 for the six months ended June 30, 2025 to $1,060 for the six months ended June 30, 2026 primarily due to higher balances invested in money market mutual funds.

The increase was partially offset by a $105, or 617.6%, decrease in Other income (expense), net from $17 for the six months ended June 30, 2025 to ($88) for the six months ended June 30, 2026 primarily due to unfavorable currency movements.

Income Tax Expense

Income tax expense increased $124, or 13.5%, from $919 for the six months ended June 30, 2025 to $1,043 for the six months ended June 30, 2026 primarily due to the increase in Income before income taxes driven by the increase in revenues discussed above.

Backlog

As of June 30, 2026, our order backlog was $83,968, an increase of $7,543, or 9.9%, from $76,425 as of December 31, 2025 and an increase of $22,769, or 37.2%, from $61,199 as of June 30, 2025. The increase in backlog from December 31, 2025 reflects the continued strength of our aerospace & defense and avionics customer orders.

21

Table of Contents

Non-GAAP Financial Measures

To supplement our Condensed Consolidated Financial Statements presented on a GAAP basis, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company pre

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1902314/000143774926009844/mpti20251231_10k.htm
Complete FY 2025 MD&A: /company/MPTI/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-26
Report date: 2025-12-31

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis together with our audited consolidated financial statements and the accompanying notes. This discussion contains forward-looking statements, including statements regarding our expected financial position, business and financing plans. These statements involve risks and uncertainties. Our actual results could differ materially from the results described in or implied by these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Report, particularly under the headings "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors."

Unless otherwise stated, all dollar amounts are in thousands.

Overview

Mtron is engaged in the designing, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. Mtron’s primary markets are aerospace and defense, space, and avionics.

The accompanying consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries.

For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 27, 2025, which is available free of charge on the SEC's website at https://www.sec.gov and on our website at ir.mtron.com.

Trends and Uncertainties

We are not aware of any material trends or uncertainties, other than the global economic conditions affecting our industry generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on our revenues or income other than those listed in Part I, Item 1A, Risk Factors, of this Annual Report on Form 10-K.

16

Table of Contents

Results of Operations

The following table presents our Consolidated Statements of Operations for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["(in thousands)","","2025","","2024","","$ Change","","% Change"],["Revenues","","$","54,417","","","$","49,012","","","$","5,405","","","","11.0","%"],["Costs and expenses:"],["Manufacturing cost of sales","","","30,269","","","","26,372","","","","3,897","","","","14.8","%"],["Engineering, selling and administrative","","","13,857","","","","13,246","","","","611","","","","4.6","%"],["Total costs and expenses","","","44,126","","","","39,618","","","","4,508","","","","11.4","%"],["Operating income","","","10,291","","","","9,394","","","","897","","","","9.5","%"],["Other income:"],["Interest income, net","","","539","","","","243","","","","296","","","","121.8","%"],["Other income, net","","","124","","","","138","","","","(14",")","","","-10.1","%"],["Total other income, net","","","663","","","","381","","","","282","","","","74.0","%"],["Income before income taxes","","","10,954","","","","9,775","","","","1,179","","","","12.1","%"],["Income tax expense","","","2,507","","","","2,139","","","","368","","","","17.2","%"],["Net income","","$","8,447","","","$","7,636","","","$","811","","","","10.6","%"]]
[[/GREPCENT_TABLE]]

2025 compared to 2024

Total Revenues

Total revenues increased $5,405, or 11.0%, from $49,012 in 2024 to $54,417 in 2025 primarily due to strong defense program product and solution shipments, as well as an increase in shipments in the avionics and industrials sectors. 

Total Costs and Expenses

Total costs and expenses increased $4,508, or 11.4%, from $39,618 in 2024 to $44,126 in 2025 primarily due to:

[[GREPCENT_TABLE]]
[["","\u2022","a $3,897, or 14.8%, increase in Manufacturing cost of sales from $26,372 in 2024 to $30,269 in 2025 driven by the increase in production of several new products, which result in higher initial manufacturing costs, as well as the impact of tariffs; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","a $611, or 4.6%, increase in Engineering, selling and administrative from $13,246 in 2024 to $13,857 in 2025 driven by continued investment in research and development; higher sales commissions consistent with the growth in revenues; higher stock-based compensation; higher sales and marketing costs; and an increase in administrative and corporate expenses consistent with the overall growth in the business."]]
[[/GREPCENT_TABLE]]

The Company's total costs and expenses for 2024 included bonus expense of approximately $1.5 million, or 3.0% of revenues, which was not incurred in 2025.

Gross Margin

Gross margin (Revenues less Manufacturing cost of sales as a percentage of Revenues) decreased 180 basis points from 46.2% in 2024 to 44.4% in 2025 reflecting product mix and higher tariff-related costs.

Total Other Income, Net

Total other income, net increased $282, or 74.0%, from $381 in 2024 to $663 in 2025 primarily due to a $296 increase in Interest income, net from $243 in 2024 to $539 in 2025 driven by higher average balances invested in money market mutual funds.

Income Tax Expense

Income tax expense 
increased 
$368, or
17.2%, from 
$2,139 in 
2024 to 
$2,507 in 
2025 primarily due to the increase in Income before income taxes discussed above.

Backlog

As of December 31, 2025, our order backlog was $76,425, an increase of $29,186, or 61.8%, from $47,239 as of December 31, 2024. The increase in backlog from December 31, 2024 reflects the nature of a program centric business model, which can materially affect backlog based on the timing and size of these orders.

The backlog of unfilled orders includes amounts based on signed contracts and purchase orders, which are likely to be fulfilled substantially within the next 12 to 24 months. Order backlog is adjusted quarterly to reflect project cancellations, deferrals, revised project scope and cost. We expect to fill the vast majority of our order backlog as of December 31, 2025 during 2026 and 2027, but cannot provide assurances as to what portion of the order backlog will be fulfilled in any given year.

17

Table of Contents

Non-GAAP Financial Measures

To supplement our Consolidated Financial Statements presented on a U.S. GAAP basis, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company presents are listed below and may not be comparable to similarly-named measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with U.S. GAAP.

The Company uses the following operating performance measure because the Company believes it provides both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance as well as a more accurate view of the Company's ability to generate profits:

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") is derived by excluding the items set forth below from Income before income taxes. Excluded items include the following:

[[GREPCENT_TABLE]]
[["","\u2022","Interest income"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Interest expense"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Depreciation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Amortization"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Non-cash stock-based compensation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Other discrete items that might have a significant impact on comparable GAAP measures and could distort the evaluation of our normal operating performance."]]
[[/GREPCENT_TABLE]]

Reconciliation of GAAP Income Before Income Taxes to EBITDA and Non-GAAP Adjusted EBITDA

The following table presents a reconciliation of income before income taxes to Adjusted EBITDA, a non-GAAP measure:

[[GREPCENT_TABLE]]
[["","","Three Months Ended December 31,","","Year Ended December 31,"],["(in thousands, except share data)","","2025","","2024","","2025","","2024"],["Income before income taxes","","$","4,082","","","$","2,758","","","$","10,954","","","$","9,775"],["Adjustments:"],["Interest income, net","","","(161",")","","","(104",")","","","(539",")","","","(243",")"],["Depreciation","","","286","","","","251","","","","1,086","","","","968"],["Amortization","","","\u2014","","","","\u2014","","","","\u2014","","","","5"],["Total adjustments","","","125","","","","147","","","","547","","","","730"],["EBITDA","","","4,207","","","","2,905","","","","11,501","","","","10,505"],["Non-cash stock compensation","","","278","","","","151","","","","1,081","","","","636"],["Adjusted EBITDA","","$","4,485","","","$","3,056","","","$","12,582","","","$","11,141"]]
[[/GREPCENT_TABLE]]

Three months ended December 31, 2025 compared to three months ended December 31, 2024

Adjusted EBITDA increased $1,429 from $3,056 for the three months ended December 31, 2024 to $4,485 for the three months ended December 31, 2025. The increase was primarily due to higher revenues and lower engineering, selling and administrative expenses partially offset by lower gross margin discussed above.

Year ended 2025 compared to Year ended 2024

Adjusted EBITDA increased $1,441 from $11,141 in 2024 to $12,582 in 2025. The increase was primarily due to higher revenues discussed above, continued operating leverage, and lower incentive compensation partially offset by lower gross margin discussed above. Adjusted EBITDA in 2024 included bonus expense of approximately 3.0% of revenues, which was not incurred in 2025.

18

Table of Contents

Liquidity and Capital Resources

Overview

Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities.

Capital refers to our long-term financial resources available to support business operations and future growth.

Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the business, timing of cash flows, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.

As of December 31, 2025 and 2024, Cash and cash equivalents were $20,891 and $12,641, respectively.

Cash Flow Activity

The following table presents the cash flow activity for the period indicated:

[[GREPCENT_TABLE]]
[["","","As of December 31,"],["(in thousands)","","2025","","2024"],["Cash and cash equivalents, beginning of year","","$","12,641","","","$","3,913"],["Cash provided by operating activities","","","10,659","","","","7,521"],["Cash used in investing activities","","","(2,551",")","","","(1,898",")"],["Cash provided by financing activities","","","142","","","","3,105"],["Net change in cash and cash equivalents","","","8,250","","","","8,728"],["Cash and cash equivalents, end of year","","$","20,891","","","$","12,641"]]
[[/GREPCENT_TABLE]]

Operating Activities

Cash provided by operating activities was $10,659 in 2025 compared to $7,521 in 2024, an increase of $3,138 primarily due to the following:

[[GREPCENT_TABLE]]
[["","\u2022","Higher net income;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u2022","Higher non-cash adjustments, including:"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","\u25e6","Stock-based compensation expense, which increased $445 from $636 in 2024 to $1,081 in 2025;"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MPTI/mda/fy2025/
All MD&A years: /company/MPTI/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MPTI/mda/fy2024/): filed 2025-03-27; accession 0001437749-25-009645 (https://www.sec.gov/Archives/edgar/data/1902314/000143774925009645/mpti20241231_10k.htm)
- [FY 2023 MD&A](/company/MPTI/mda/fy2023/): filed 2024-03-25; accession 0001437749-24-009243 (https://www.sec.gov/Archives/edgar/data/1902314/000143774924009243/mpti20221231_10k.htm)
- [FY 2022 MD&A](/company/MPTI/mda/fy2022/): filed 2023-03-30; accession 0001564590-23-004848 (https://www.sec.gov/Archives/edgar/data/1902314/000156459023004848/mpti-10k_20221231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3679 Electronic Components, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MPTI.md · JSON record: /company/MPTI.json · verified financials: /company/MPTI/financials.json / /company/MPTI/financials.csv · machine TOC for the whole site: /llms.txt