M-tron Industries outlined plans for 12% long-term organic revenue growth during the 17th Annual Midwest IDEAS Conference on August 27, 2026, up from a prior target of 10%. The defense electronics manufacturer also reported a 37% year-over-year increase in its backlog and highlighted a significant expansion in its anti-drone radar program, which generated $6 million in revenue this year compared with $150,000 previously.
The company, which spun off from The LGL Group in 2022 at $11 per share, now trades near $78.39, down from a recent peak of $102. It has raised approximately $70 million over the past six to seven months through warrant and rights offerings, with an 82% to 83% subscription rate at the basic level and full subscription after excess demand allocations. Cash on the balance sheet has risen to roughly $95 million from about $10 million when CEO Cameron Pforr joined.
Revenue for the second quarter reached $15.1 million, up 15% year-over-year, with adjusted EBITDA margin of 22% and gross margin of 43%, or 44.5% after adjusting for non-recurring items. The company targets a gross margin range of 43% to 46% and a long-term goal of 50%. Annual cash generation after capital expenditures is estimated between $6 million and $8 million.
Defense programs accounted for 70% of revenue in the latest period, with commercial aviation at 20% and the remainder from satellites and space. About 30% of last year’s revenue came from products developed within the prior three to four years. The company’s backlog spans deliveries through 2036, including roughly 16,000 commercial aircraft expected from Boeing and Airbus.
M-tron’s anti-drone radar program has expanded rapidly, while its participation in missile programs remains significant. Missile-related revenue represents 33% of current sales, and the company competes in about 60% of new missile program bids. The U.S. Army’s requirement for PAC-3 Patriot interceptors stands at 14,000 units, with current inventory under 1,000, down from about 2,300 prior to the conflict. The Pentagon’s proposed missile spending budget for fiscal year 2027 is projected to rise to approximately $82 billion from $43 billion annually, pending approval.
Operations are supported by facilities in Orlando, Florida; Yankton, South Dakota; and an ITAR-registered assembly operation in New Delhi, India. Major customers include Raytheon, Lockheed, Boeing, and Airbus. The company estimates tariff impacts will reduce gross margins by roughly 1%.
