Executive Summary

Q2 revenue grew 12.5% year over year to $13.28M on continued defense program shipments, while diluted EPS declined to $0.53 on lower gross margin and higher operating expenses .
Backlog reached a record $61.2M, up 35% Y/Y and up from $47.2M at year-end, underscoring visibility into 2H25 and beyond .
Versus S&P Global consensus, revenue modestly beat ($13.28M vs $13.20M*) while EPS missed ($0.53 vs $0.60*) amid mix and tariff headwinds; only one estimate was available for each metric (limited sample size)*.
Management highlighted robust demand and pipeline strength; June awards of $3.0M and $5.5M to major U.S. defense programs support the medium-term outlook .
Gross margin contracted 300 bps Y/Y to 43.6% on mix and tariffs; management is working with defense customers on potential FAR tariff exemptions and continuing supply chain optimization .

What Went Well and What Went Wrong

What Went Well
- Strong top-line growth: Revenue +12.5% Y/Y to $13.28M on “continued strong defense program product and solution shipments” .
- Record backlog: Backlog rose to $61.2M (vs $45.3M a year ago; $47.2M at 12/31/24), reflecting broad demand across aerospace & defense, avionics, and space .
- Positive demand signals and wins: $3.0M follow-on air defense order (program of record in production past 2029) and $5.5M production contract for a major weapons system (program through at least 2035) reinforce revenue pipeline .
- Management tone: “We’re pleased to report strong revenue growth… [and] significant increase in our backlog… This momentum positions us well for sustained performance in the second half of 2025 and beyond.” — Interim CEO Cameron Pforr .
What Went Wrong
- Margin pressure: Gross margin fell to 43.6% from 46.6% Y/Y on product mix and tariff impacts .
- EPS decline: Diluted EPS fell to $0.53 from $0.63 Y/Y as lower gross margin and higher engineering/selling/admin (R&D, commissions, corporate) outpaced revenue gains .
- Adjusted EBITDA slipped Y/Y: $2.42M vs $2.52M driven by margin compression and higher operating expenses .

Financial Results

Quarterly performance (oldest → newest):

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$12.81	$12.73	$13.28
Gross Margin (%)	47.2%	42.5%	43.6%
Net Income ($USD Millions)	$2.14	$1.63	$1.56
Diluted EPS ($)	$0.73	$0.56	$0.53
Adjusted EBITDA ($USD Millions)	$3.06	$2.50	$2.42
Adjusted EBITDA Margin (%)	23.9%	19.7%	18.2%

Q2 year-over-year comparison:

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$11.81	$13.28
Gross Margin (%)	46.6%	43.6%
Net Income ($USD Millions)	$1.74	$1.56
Diluted EPS ($)	$0.63	$0.53
Adjusted EBITDA ($USD Millions)	$2.52	$2.42

Actual vs S&P Global consensus (Q2 2025):

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$13.28	$13.20*	Slight beat
Diluted EPS ($)	$0.53	$0.60*	Miss

Values retrieved from S&P Global.
Note: Primary EPS - # of Estimates = 1; Revenue - # of Estimates = 1*.

KPIs:

KPI	Q4 2024	Q1 2025	Q2 2025
Backlog ($USD Millions)	$47.2	$55.5	$61.2
Cash & Equivalents ($USD Millions)	$12.64	$13.66	$15.53

Segment breakdown: Not disclosed; company reports consolidated results focused on aerospace & defense, avionics, and space .

Guidance Changes

No quantitative forward guidance (revenue, margin, EPS, OpEx, tax rate) was provided in the Q2 press release/8-K. Management emphasized backlog growth and demand strength; an investor call was scheduled for Aug 13, 2025 .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY25	Not provided	Not provided	N/A
Gross Margin	FY25	Not provided	Not provided	N/A
EPS	FY25	Not provided	Not provided	N/A
OpEx / R&D	FY25	Not provided	Ongoing R&D investments noted	Commentary only
Backlog	Point-in-time	$47.2M (12/31/24)	$61.2M (6/30/25)	Up

Earnings Call Themes & Trends

(Using Q4 2024 and Q1 2025 disclosures vs current Q2 2025 press release; Q2 transcript not available.)

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Demand/Backlog	Backlog $47.2M at 12/31/24; strong A&D growth; avionics expected to pick up	Backlog $61.2M; broad demand across A&D, avionics, space	Improving visibility
Defense Program Shipments	Continued strong defense shipments	Continued strong defense program shipments drove revenue	Sustained strength
Tariffs/Macro	Initial tariff impact; exploring FAR exemptions; supply chain redundancy efforts	Tariffs and mix pressured gross margin (43.6% vs 46.6% Y/Y)	Ongoing headwind
R&D Investment	Increased engineering/R&D spend	Higher ES&A driven by R&D and commissions	Continued investment
Manufacturing Efficiency/Mix	Q4 margin aided by efficiency and higher-margin mix	Mix was a headwind; margin down Y/Y	Mixed
Regional/Sector Commentary	Avionics sector expected to improve during 2025	Avionics and space orders uptick contributed to backlog	Gradual improvement
AI/Technology Initiatives	Not discussed	Not discussed	No change

Management Commentary

“We’re pleased to report strong revenue growth… Even more encouraging is the significant increase in our backlog… This momentum positions us well for sustained performance in the second half of 2025 and beyond.” — Cameron Pforr, Interim CEO .
On drivers: Revenue growth “primarily due to continued strong defense program product and solution shipments” .
On margins: Gross margin decrease “primarily due to product mix and the impact of tariffs” .
On operating expenses: Increase driven by “investment in research and development, higher sales commissions… and an increase in administrative and corporate expenses” .
On defense demand backdrop: Follow-on awards with long production tails (air defense system in production past 2029; major weapons program expected through at least 2035) .

Q&A Highlights

The company scheduled its Q2 2025 earnings call for Aug 13, 2025 (10:30 a.m. ET); dial-in (800) 715-9871, Conference ID 4709075 .
A Q2 earnings call transcript was not available at this time; Q&A themes will be updated when the transcript is posted .

Estimates Context

Revenue: $13.28M actual vs $13.20M consensus (one estimate)* — modest beat; backlog expansion and June contract awards support potential upward revenue revisions if conversion remains timely .
EPS: $0.53 actual vs $0.60 consensus (one estimate)* — miss, reflecting lower gross margin and higher ES&A (R&D, commissions, corporate) .
With only one estimate per metric, consensus quality is limited; nonetheless, margin commentary and tariff headwinds suggest EPS estimate recalibration lower near-term, while robust backlog argues for sustained revenue trajectory*.

Values retrieved from S&P Global.

Key Takeaways for Investors

Backlog strength is the core pillar: $61.2M as of 6/30/25 (+35% Y/Y) provides solid revenue visibility into 2H25 and 2026+ .
Near-term margin risk persists: Mix and tariff headwinds compressed gross margin to 43.6% (from 46.6% Y/Y), likely weighing on EPS until mitigations (FAR exemptions, supply chain actions) take hold .
Operating investments are deliberate: Higher R&D and sales commissions support pipeline and product launches; weigh on near-term EPS but align with long-term growth .
Defense end-market momentum intact: Recent $3.0M and $5.5M awards to long-lived programs bolster medium-term demand resilience .
Print vs consensus: Slight revenue beat but EPS miss; given single-estimate coverage, treat revisions cautiously while monitoring order conversion and margin trajectory*.
Watch catalysts: Any update on tariff exemptions (FAR), additional program wins, avionics recovery pace, and margin inflection are likely stock movers .
Balance sheet remains a support: Cash rose to $15.53M; no long-term debt disclosed in balance sheet excerpt, implying capacity to invest through volatility .

* Values retrieved from S&P Global.

Sources: Q2 2025 8-K/press release and exhibits ; Q2 2025 press release -; Q1 2025 8-K/press release - -; Q4 2024 8-K/press release -; Contract awards .

M-tron Industries, Inc. (MPTI)·Q2 2025 Earnings Summary