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M-tron Industries (MPTI) Q2 Earnings & Revenues Beat, Margins Up

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M-tron Industries, Inc. (MPTI - Free Report) reported impressive results for the second quarter of 2024. Both adjusted earnings and revenues beat the Zacks Consensus Estimate and increased from the year-ago period.

Inside the Headline Numbers

M-tron Industries reported adjusted earnings per share (EPS) of 63 cents, which surpassed the consensus estimate of 50 cents by 26%. The reported figure increased 34% from 47 cents reported in the year-ago quarter. The upside was backed by continued strong defense program product and solution shipments partially offset by higher manufacturing costs of sales, engineering, selling and administrative expenses, sales commissions, and administrative and corporate expenses.

Quarterly revenues of $11.81 million beat the consensus mark of $11.2 million by 5.4%. The reported figure increased 16.4% from the year-ago quarter’s $10.1 million.

Gross margin was 46.6%, up from 41.6% a year ago. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix of higher-margin products.

Adjusted EBITDA was $2.52 million, which increased 30.7% from $1.93 million reported in the year-ago quarter. Adjusted EBITDA margin was 21.4%, up from 19% a year ago.

As of Jun 30, the total backlog was $45.32 million compared with $47.83 million at 2023-end and $51.59 million a year ago.

Financials

As of Jun 30, 2024, M-tron Industries had cash and cash equivalents of $6.5 million compared with $3.9 million at the end of 2023. Inventories were $9.34 million compared with $8.88 million at 2023-end.

2024 Outlook

With the continued momentum in defense-related sales and the acceleration in production and shipments in the first half of 2024, MPTI has raised the outlook for 2024.

The company has increased its revenue projection to $46-$48 million from the previous guidance of $43-$45 million. It still expects EBITDA in the range of 19-21%.

Peer Releases

Quanta Services Inc. (PWR - Free Report) reported mixed results for second-quarter 2024, wherein adjusted earnings missed the Zacks Consensus Estimate, but revenues surpassed the same. Both metrics increased on a year-over-year basis.

Quanta's performance in the second quarter marks a strong base for the rest of 2024, characterized by impressive growth across key metrics. Moreover, the company has raised its 2024 guidance for major metrics, owing to the expected contributions from its recent acquisition of CEI.

KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.

Fluor Corporation (FLR - Free Report) reported mixed results for second-quarter 2024, with earnings missing the Zacks Consensus Estimate but revenues beating the same. On a year-over-year basis, both earnings and revenues increased, given solid contributions from the Urban Solutions segment.

In the second half of 2024, FLR will focus on deploying resources to its high-value project backlog and positioning the company to return capital to shareholders.

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