ELMT

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 9:00 a.m. ET Chairman and Chief Executive Officer - Peter V. Anania Chief Financial Officer - Michael Lee Operator: Good morning. Welcome to the Elmet Group Company Second Quarter 2026 Earnings Conference Call. Joining us for today's presentation are the company's Chairman and CEO, Peter V. Anania; and CFO, Mike Lee. [Operator Instructions] I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at investors.theelmetgroup.com. Before I turn the call over to Elmet's Chairman and CEO, the company would like to remind all participants that statements made by management during the course of this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the U.S. securities laws, including the Private Securities Litigation Reform Act of 1995. These statements are predictions, projections or other statements about future events and are based on current expectations and assumptions that are subject to risks and uncertainties, including those risks identified in the Risk Factors section of the company's registration statement on Form S-1 and in its other reports and filings with the Securities and Exchange Commission. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's belief only as of the date hereof. The company expressly disclaims any duty to update or correct any forward-looking statements. Further, management's remarks today will include certain non-GAAP financial measures. These measures are calculated by management and do not have any standardized meanings under the U.S. GAAP. These non-GAAP measures supplement GAAP measures but should not be viewed as substitutes for GAAP measures. A reconciliation of the most directly comparable GAAP financial measures to these non-GAAP financial measures is available in the company's quarterly report on Form 10-Q and in its earnings press release. I will now turn the call over to Elmet's Chairman and CEO, Peter V. Anania, for his comments. Sir, please proceed. Peter Anania: Welcome. Thank you. Welcome, everyone, and thank you for joining us for the Elmet Group's second earnings call as a public company. Since we are still new to many people following our story, I'll begin my remarks with a brief overview of who we are and what we do before discussing updates from our strong second quarter. The Elmet Group brings together a rare set of strengths with the mission to secure U.S. critical material supply chain. Today, we are the sole U.S.-based provider of certain precision engineered refractory metal components and some high-power microwave systems, serving the U.S. government and top blue-chip customers across key end markets such as aerospace and defense and/or ADG as well as industrial, medical, semiconductor and electronics and energy. We operate through 2 divisions: the Critical Materials Components, or CMC, a vertically integrated manufacturer of critical materials specializing in tungsten and molybdenum products from powders to machine goods to fine wires and engineered Microwave Products, or EMP, a manufacturer of microwave systems and high-power components for military and demanding industrial applications. In terms of how we are positioned competitively in the market, we believe our long-term outlook is supported by several key advantages. First, macro tailwinds from defense fortification and U.S. reshoring and the overall focus on U.S. material independence continue to drive backlog and future growth. Second, as mentioned a moment ago, we have the sole U.S.-based supplier of certain highly engineered critical materials components, making us a critical supplier for key end markets and customers. Third, our vertically integrated operations supported by a dedicated engineering team allow us to maintain strong control throughout the engineering to production process from material processing all the way to final machining. Fourth, our difficult to replicate asset base paired with our specialized production capabilities has created a naturally high barrier to entry, which took decades to develop. Finally, our team has a proven track record of driving organic growth in the business while also integrating synergistic acquisitions, helping drive sustainable long-term growth. With that overview complete, I will now briefly discuss some updates from the quarter before handing the call over to our CFO, Mike Lee, for a review of our financial results in greater detail. In the second quarter, we built on our existing momentum and delivered strong results highlighted by our acceleration in revenue growth and profitability with a record backlog. More specifically, revenues growth increased 35% year-over-year to $66.4 million. Gross profit expanded by 430 basis points, leading to 57.9% growth in adjusted EBITDA and our open order backlog now stands at $131.5 million, up 55% from this time last year. Our performance was driven by a healthy combination of strong operational execution, skillful navigation of dynamic metals pricing market and ongoing returns from our strategic focus on servicing the broader ADG landscape, all of which we expect to drive continued demand through the balance of the year. Outside of our own execution, the largest factor impacting our results this year has been the significant and persistent rise in prices for global tungstens and molybdenum markets. which have been exasperated by export controls on critical materials. The prices of critical materials like tungsten have dramatically increased over the last year, which is further complicated by fluctuating and often steep tariffs on those same critical materials. While these dynamics create challenges, they also create opportunities. Opportunities that we have navigated to date through a combination of foresight and strategic agility for over a decade, we have sourced more than 95% of our tungsten and molybdenum from outside of China, which largely shields us from export control-related supply chain disruptions. Additionally, our strategic tungsten sourcing agreements have kept us highly protected from material input pricing changes. This positioning enables us to capture the benefits of the sharp increase in tungsten prices during Q1, which drove a portion of the increase in Q2 backlog. Relatedly, and to further support our commitment to securing sustainable and resilient supply chain for critical raw materials, in June, we announced our increased ownership stake in EQ Resources as part of our strategic collaboration and long-term offtake contract. Over the last 2 years, we have witnessed an increased focus on the critical material supply chain, particularly in defense applications, which is why we sought out the strategic collaboration with one of the fastest-growing Western tungsten mining groups. We look forward to continuing our strategic collaboration as well as exploring additional opportunistic investments to bolster our long-term competitive positioning. We believe today's environment presents a significant opportunity to grow our business and differentiate ourselves, thanks to our positioning. To that end, we are investing in growth to support the accelerating demand we are seeing. Our increases in both staffing and third-party support to improve operations in our CMC factories have been significant, and we are already seeing favorable impacts on productivity across the CMC sites. Looking outward, there is a bipartisan support for strengthening our domestic industrial base, and we are seeing the effects of current U.S. focus on replenishing stockpiles for the general increase in global defense spending. For example, in June, we announced -- in June, we announced we had secured strategic funding of $4.3 million to develop and advance domestic manufacturing capabilities for molybdenum-based products and refractory metal components utilizing critical defense programs. This contract award aims to bolster domestic manufacturing readiness to meet the projected long-term demand for refractory metal components, specifically molybdenum-based products used in modern defense interceptor programs. These funds will enable us to expand capacity and deploy advanced manufacturing technologies in support of our nation's critical defense initiatives, several of which depend on molybdenum-based components as a foundation. With the ongoing conflict in Iran as well as the in-process budget and appropriation cycle as a backdrop, we expect to see continued funding opportunities ahead. Importantly, while many AD&G programs operate on multiyear implementations, we are not an impediment to the process, and we typically produce multiple years of production in 1 year for such programs. Looking ahead, we believe we remain well positioned to effectively meet today's and tomorrow's demand as we expand our role as a trusted supplier across mission-critical systems. Longer term, we expect the operating environment to remain highly favorable for Elmet. Supported by our strategic position and the nexus of several megatrends that remain in the early stages of an investment super cycle. Now I would like to turn the call over to our CFO, Mike Lee, to go over the results for the second quarter. Michael Lee: Thank you, Peter, and good morning, everyone. We are pleased to present a strong Q2 performance for the fiscal year 2026. Before I begin, please note that all numbers I plan to discuss have been rounded for ease of presentation. Our full financial results for the quarter can be found in our quarterly report filed with the SEC this morning. Now let's get started. Revenue in Q2 increased 35.2% to $66.4 million compared to $49.1 million in Q2 2025. Approximately 55% of the revenue growth is attributed to net demand increase across aerospace, defense and government, industrial, medical and semiconductor end markets with the balance associated with tungsten and molybdenum raw material pricing impacts. Gross profit for Q2 2026 increased 63.7% to $16.6 million or 25% gross margin compared to $10.1 million or 20.7% gross margin in Q2 2025. The increase was driven by our CMC division as our strategic tungsten sourcing agreements enabled us to capture the benefits of the sharp increase in tungsten pricing during Q1 that began flowing through our P&L during the quarter. We also saw favorable impacts from productivity increases across our CMC sites making a meaningful impact. Operating expenses for Q2 2026 increased 251.2% to $24.2 million compared to $6.9 million in Q2 2025 or a net increase of $17.3 million. Within the quarter, we incurred approximately $14.2 million associated with equity-based compensation compared to $0.4 million in Q2 2025. Of the $14.2 million, $12.9 million was associated with onetime vesting of awards associated with the completion of our IPO. We also saw increases in costs associated with our initial public offering, ongoing compliance and expenses associated with the growth. Turning to the balance sheet. Cash at the end of Q2 2026 totaled $66.1 million compared to $1.8 million at the end of Q1 2026 and $1.8 million at the end of Q4 2025. The increase in cash is driven by proceeds from our April IPO, where we raised net proceeds of $125.4 million, retired $17.5 million in term debt and paid approximately $8.6 million for working capital and other corporate requirements. We also paid approximately $31.0 million on our revolving credit facilities to optimize interest expense. At the end of Q2 2026, we had approximately $44.6 million in borrowing capacity on our revolving credit facilities, which, when combined with cash on hand, gave us approximately $110.7 million of cash availability for strategic investments. At the end of Q2 2026, we saw inventories grow to $102.4 million, up from $75.0 million in Q1 2026 and $67.1 million in Q2 2025. The increase is driven by our CMC division by a combination of tungsten and molybdenum raw material pricing increases, sourcing dynamics and volume increases associated with growth. To supplement our financial statements presented in accordance with GAAP, we use certain non-GAAP financial measures, including adjusted net income, EBITDA and adjusted EBITDA because we believe these metrics provide investors with additional meaningful methods to evaluate certain aspects of our results. We define adjusted net income as net income less stock-based compensation and onetime nonrecurring costs such as tax impacts of our reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, other nonrecurring costs and income tax benefit of such adjustments as applicable. Net loss for Q2 2026 was $4.5 million or $0.16 per share compared to net income of $1.2 million or $0.06 per share in Q2 2025. Adjusted net income for Q2 2026 was $5.2 million or $0.18 per share compared to $2.8 million or $0.14 per share in Q2 2025. It's worth noting that the majority of the adjustments in Q2 2026 are associated with the equity compensation associated with our initial public offering. We define adjusted EBITDA as our net income plus interest expense, income taxes, depreciation and amortization and as applicable for each period, stock-based compensation expense and noncash gains and losses on sale of assets. Adjusted EBITDA also excluded certain nonrecurring costs such as costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring and other nonrecurring costs. Adjusted EBITDA for Q2 2026 increased 57.2% to $8.9 million compared to $5.6 million in Q2 2025. The increase was driven by operational performance improvements within our CMC division. A full reconciliation between GAAP net income and adjusted net income and EBITDA and adjusted EBITDA can be found in our quarterly report and our earnings press release. As we've shared previously, our susceptibility to quarterly performance fluctuations driven by factors, including timing of purchase orders, metals market pricing dynamics and other drivers across our business, we believe it's prudent to examine our results over a longer time horizon. To that end, I will now review our results for the trailing 12 months or TTM. For clarity, the following comparisons will be made between the 12-month period ending -- excuse me, July 3, 2026 and April 3, 2026. Revenue increased 8.2% to $228.5 million compared to $211.3 million for the prior TTM period. Approximately 55% of revenue growth is attributed to demand across -- increase across aerospace, defense and government, industrial, medical and semiconductor end markets with the balance associated with tungsten and molybdenum raw material pricing impacts. Gross profit increased 14.6% to $50.7 million or 22.2% gross margin compared to $44.3 million or 20.9% gross margin in the prior TTM period. The increase in gross profit and gross margin was driven by the aforementioned effects of our strategic tungsten sourcing and productivity gains within the CMC division. Operating expenses increased 52.2% to $50.8 million compared to $33.3 million in the prior TTM period. The increase was primarily related to the equity compensation associated with the IPO, expenses associated with the ongoing public company compliance and expenses associated with growth. Net loss was $1.7 million or $0.08 per share compared to the net income of $4 million or $0.20 per share in the prior TTM. Adjusting for IPO-related operating expenses, equity compensation and reorganization costs, our adjusted net income increased to $18.6 million or $0.84 per share compared to $16.2 million or $0.81 per share in the prior TTM period. Adjusted EBITDA increased 11.3% to $31.8 million compared to $20.6 million in the prior TTM period. I'd like to touch base on our backlog where we've seen significant growth over the last year. Our firm order backlog grew to approximately $131.5 million at the end of Q2 2026 compared to approximately $113.3 million at the end of Q1 2026 and approximately $84.6 million at the end of Q2 2025. Our ADG end market backlog was up 100.5% at the end of Q2 '26 compared to the end of Q2 2025, driven by a series of new and growing programs such as CERN, Strategic Missile Systems, PrSM, Standard Missile, and Patriot, along with a mix of commercial and defense-related aerospace and radar programs. We also attribute approximately $36.3 million of the $46.9 million of total backlog growth between Q2 2025 and Q2 2026 to tungsten product increases within the ADG market, driven by a mixture of price and volume. That concludes our prepared remarks. I'd like to hand it back to our operator for Q&A. Operator: [Operator Instructions] And our first question comes from the line of Colin Canfield with Cantor. Colin Canfield: Maybe starting out on munitions. We saw some pretty sizable missile defense interceptor awards to the defense primes, and it looks like that's probably not reflected in backlog yet. So maybe if you could characterize kind of how kind of the quantity or the magnitude of those potential orders related to those specific orders and then perhaps kind of the timing of when you think that might hit? Michael Lee: Thanks for the question, Colin. Yes, you're correct. We really haven't seen a significant amount of those larger multiyears the primes are being awarded flow down to us yet. We've definitely seen some RFQ activity, and we've seen a couple of modest, I would consider sweep funding type orders where certain programs had residual funding and they came in for either some spares orders or they could do a few years based on residual funding. But nothing from the new appropriation cycle is really in our backlog at this point in time of significance. Colin Canfield: That's great. And then maybe following up on the orbital compute discussion from last quarter. If you could kind of talk through kind of where initial discussions are at with SpaceX and how you think about U.S. domestic supply chain requirements for orbital compute satellites versus international sourcing? Peter Anania: Yes. Well, we're not presently have orders from SpaceX. We do have from other satellite companies that we have just bought a new line, roughly spent $3 million in CapEx to stand it up, and that is just starting to produce. And we see that, that is going to continue to be an area that we want to increase. That's on the CMC side. And on the EMP side, we are seeing an increase in drone defense activities, and now that is expanding into satellite areas where we're going to -- we are providing a similar product to help defense against drones from space. Operator: And the next question comes from the line of Jim Ricchiuti with Needham & Company. James Ricchiuti: I was hoping to get a little bit more color on the decline in backlog outside of ADG. Obviously, you saw significant growth in ADG backlog. But I'm wondering if you're anticipating a pickup in order activity from your large medical customer. Michael Lee: Yes. Thanks, Jim. And you hit it right on the head. That large medical customer is -- absolutely creates volatility in the other bucket for us. And while they are -- the actual demand for them is up this year in the first half over run rate last year. They are -- again, the order pattern tends to be a bit inconsistent. The they'll place large orders or they'll place small orders, but the volume is very consistent for us. And without a doubt, we saw medical fluctuate quite heavily. Q2 2025 in our CMC division, driven by this customer, we had almost $12 million of backlog. And at the end of Q2 '26, we're at like $5.5 million, all driven by that one customer. So it's -- if you look at that total bucket of other, they're driving the swing. All other -- if we look at our other end markets, we've seen increases in industrial in both business divisions. We've seen semi starts to move up a little bit. Again, that's a smaller end market for us, but we're seeing some traction there. Energy is down a little bit, but it's small enough that the variability is expected quarter-to-quarter, and a lot of that is waiting for fusion and vision demand to actually start to manifest beyond development cycles. So I mean we have -- we're seeing the nonmedical influence, we're seeing some traction and energy continues to be just a waited out kind of situation. James Ricchiuti: Just if we could switch gears a little bit and talk about margins. Obviously, very strong gross margins in Q2. And I don't know if this is in any of your filings or if there's -- you can give us some color as to how much of a benefit you've gotten from pricing on gross margin. And the follow-up to the margin question is just around EBITDA margins where you showed very good growth improvement in CMC, but we're still not seeing much improvement on the EMP side. So I wonder if you could just talk to some of those margin questions. Michael Lee: Yes. Thanks for the question, Jim, and insightful questions. So starting with gross margin, in particular with the impact of material pricing. We definitely saw -- first off, I want to acknowledge the excellent operational execution of our team during a rapid material price increase. That could have damaged us if we didn't have good process in place, but we do and we got the benefit of managing the price curve up. As we look in our CMC division, the growth in the quarter, we attribute about half of that growth to slightly more to some capture of that as the material spikes, we're able to either, a, leverage our existing agreements with our supply partners or b, in effect, sell some material at market versus what we had on the shelf and simple way to think about it. So that's definitely been beneficial. We do think that our supply agreements will continue to help us as we move through the rest of the year. And productivity within our factories, we're seeing some very good signs that not only did it hit us in Q2, but it's going to continue to be beneficial going forward. And we tie that back to the investments we made, both in direct hires as well as some third-party support. Regarding EBITDA margins, the balance of the year and going forward, again, just given its size, CMC will kind of dictate how the bottom line performs in general. So based on what I just said, you can draw a line to bottom line performance, at least in the, I'd say, the balance of the year. EMP margins and EMP EBITDA, we definitely -- we have a lot of demand for our end product. We're seeing record backlog come our way, both in industrial and the ADG space as well as semiconductor for that business. We did see some operational challenges in Q2 in our factory that happens to deal with a lot of our ADG and semiconductor product, which tends to be on the higher margin side. So we're working quite diligently to correct that in the second half and see some improvement from our Q2 results. But we do think it's going to take us a little while to get there throughout the balance of the year. Operator: And the next question comes from the line of Chip Moore with ROTH MKM. Alfred Moore: I wanted to maybe follow up on industrial, the strength there, right? I think 64% growth or something like that. Just maybe some of the trends you're seeing there and pockets of strength. Michael Lee: Yes. So we're seeing a couple of spots. In our EMP division, we've definitely seen an uptick in the industrial space, and we continue to see further growth there and a lot of opportunity. We think there's some opportunity with our IP that could definitely give us some longer-term continued growth. On the CMC side, we've seen -- while we've seen demand growth with tungsten drive ADG. We're also seeing the industrial segment get some uplift as well. We do sell tungsten and moly into those end market as well. So that is a little more distributed where it's more concentrated in ADG. But in general, we're seeing -- we haven't seen a real pull -- a major pullback on demand in industrial at CMC and the pricing uplift definitely flows through there. So we're seeing it for various reasons. But for sure, it's something we're very happy about, and we see it as being something that's going to continue throughout the foreseeable future. Peter Anania: Yes. I think we're in a good CapEx cycle. But in addition, people are finding more and more uses for our products. in the industrial space, which is -- looks good. Alfred Moore: Yes. No, that's helpful. And maybe back to just the raw material side, and you've done a great job managing that, particularly tungsten with some of the volatility. It looks like that contributed to those gross margins in CMC for sure. Just anything near term to contemplate around some of the movements in some of the underlying commodities? Peter Anania: Well, we did talk about the margins at the EMP division being down a little bit, and I think that may be because material costs there were spiking faster than we thought with some of our long-term agreements that we have with like CERN and Fermi and so forth, making these gigantic circulators. And I think that caught us off guard. But as Mike said, we're really digging into it, really making sure that the backlog -- we can figure out how to get that backlog up and gross margins up in the backlog. That's what I want to say and move forward. Operator: Your next question comes from the line of Austin Moeller with Canaccord Genuity. Austin Moeller: I think we already discussed the outstanding opportunities for some of the missile system weapons and structures for tungsten and moly that are outstanding. But I was just wondering if we could think about how we should think about the gross margin ramp and improvement as some of those larger volume production awards come in, in the next 12 to 24 months. Michael Lee: Thanks for the question, Austin. I'll go back to some of our prior communications in our S-1 that all holds -- continues to hold true. We make a mixture of -- or we provide engineering services microwave components that are quite difficult to produce and as well as a lot of materials that can be from early-stage production, say, powders all the way through to near net shape or finished components built to spec. Just a simple nature of the closer you get to an end component, the more value you put into the actual product. When we get into the ADG space, we're starting to live in that space. So we -- and creating more value for the customer, and therefore, our margin profile tends to be better when we're dealing with ADG. And so as we see our growth being driven predominantly over the long term, by ADG, we expect the new business to be coming at a differentiated margin, and that will end up lifting our overall average. We're seeing some of the productivity improvements happen faster than we had originally anticipated. We're very encouraged by that. But the combination of those two things and then we've done fairly well with managing, again, the material pricing spike where we've been able to capture that phenomenon as well. And that will help us throughout the, I'd say, the next 6 to maybe 12 months. So that's the way that I continue to think about it is net demand growth coming from ADG, which is on average higher margin. And that -- us getting to 30% and holding that, we still think that's a very viable target for us in the next 4 to 5 years. Austin Moeller: Okay. And can you comment on within the fiscal year '27 base budget and also the reconciliation bills that are being talked about 3.0 or 4.0, are you seeing any opportunities in there for additional investment funds for the defense industrial base that could be allocated to increase your capacity? Michael Lee: Yes. I mean we've always got a finger on that pulse. We're very active in our governmental relations. Yes, I think it's fair to say that when the opportunity arises, we'll be prepared for it. We've had success in the past, and we continue to be seen as a critical partner for the Department of War. And as the nature of material supply chains change, we only think that's going to be more distinct. Operator: At this time, this concludes our question-and-answer session. If you have additional questions, you may contact Elmet's Investor Relations team at [email protected]. I'd now like to turn the call back over to Mr. Anania for his closing remarks. Peter Anania: Thanks again, everyone, for joining us today. Before we wrap up, I want to provide you with some closing remarks about why we remain confident in our long-term opportunity. As the sole U.S.-based supplier of certain highly engineered critical materials and components and some high-power systems, we believe we remain well positioned to benefit from several favorable long-term market trends. With most of our competitors owned by foreign entities and as export restrictions cause more constraints, we remain one of the last U.S.-based facilities with capabilities to provide key components for mission-critical systems and the ability to source critical materials at a reasonable cost. We have leveraged our difficult-to-replicate asset base and production capacity to support key U.S. defense programs over the last decade, which we intend to continue growing as we qualify on additional Dow programs given the accelerating demand we are seeing today. Finally, we remain encouraged by the opportunities and increased activities we are seeing across all of our markets, driven by multiple megatrends from increased global defense spending to reshoring of critical manufacturing. To close, I'd like to thank our employees, partners, shareholders for their committed support. Operator? Operator: Thank you for joining us today for the Elmet Group Company Second Quarter 2026 Earnings Conference Call. You may now disconnect. Before you buy stock in Elmet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Elmet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* Now, it’s worth noting Stock Advisor’s total average return is 976% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Elmet Group. The Motley Fool has a disclosure policy. Elmet (ELMT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Elmet Group Co.? Here are five stocks we like better. Strong second-quarter growth: Revenue rose 35.2% to $66.4 million, while gross profit increased 63.7% and gross margin expanded to 25.0%. Adjusted EBITDA climbed 57.2% to $8.9 million, although GAAP results included a $4.5 million net loss due largely to one-time IPO-related equity compensation. Record backlog and defense momentum: Open backlog reached $131.5 million, up 55% year over year, with aerospace, defense and government backlog doubling. However, recently announced missile-defense awards have not yet produced significant orders for Elmet. Improved liquidity supports expansion: The IPO generated $125.4 million in net proceeds, helping repay debt and raise quarter-end cash to $66.1 million. Management expects CMC productivity, sourcing agreements and higher-margin defense work to support profitability, while it works to address operational challenges in EMP. Elmet Group (NASDAQ:ELMT) reported second-quarter fiscal 2026 revenue growth of 35.2% as demand increased across aerospace, defense and government, industrial, medical and semiconductor markets, while higher tungsten and molybdenum prices also contributed to results. Revenue rose to $66.4 million from $49.1 million a year earlier. CFO Mike Lee said approximately 55% of the increase reflected higher demand across the company’s end markets, with the remainder tied to raw-material pricing effects. Gross profit increased 63.7% to $16.6 million, and gross margin expanded to 25.0% from 20.7% in the prior-year period. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Chairman and CEO Peter V. Anania said the company’s open order backlog reached a record $131.5 million, up 55% from $84.6 million at the end of the second quarter of 2025. The company operates through its Critical Materials Components, or CMC, division, which manufactures tungsten and molybdenum products, and its Engineered Microwave Products, or EMP, division, which makes microwave systems and high-power components. Management attributed the quarter’s gross-profit improvement primarily to the CMC division. Lee said the company’s tungsten sourcing agreements allowed it to benefit from a sharp increase in tungsten prices during the first quarter that began flowing through earnings during the second quarter. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand “We definitely saw” benefits from managing through the increase in material prices, Lee said during the question-and-answer session. He added that roughly half, or slightly more, of CMC’s quarterly growth was related to the company’s ability to leverage supplier agreements and sell material at prevailing market prices compared with material already held in inventory. Anania said global tungsten and molybdenum prices have risen significantly over the past year amid export controls and tariff volatility. He said Elmet has sourced more than 95% of its tungsten and molybdenum from outside China for more than a decade, a position that management said has reduced exposure to export-control supply disruptions. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company also cited productivity gains from increased staffing and third-party operational support at CMC facilities. Lee said those improvements contributed meaningfully during the quarter and are expected to remain beneficial through the rest of the year. Adjusted EBITDA rose 57.2% to $8.9 million from $5.6 million a year earlier, driven by operational improvements in CMC. Adjusted net income was $5.2 million, or $0.18 per share, compared with $2.8 million, or $0.14 per share, in the prior-year quarter. On a GAAP basis, Elmet posted a net loss of $4.5 million, or $0.16 per share, compared with net income of $1.2 million, or $0.06 per share, a year earlier. Operating expenses increased to $24.2 million from $6.9 million, largely due to $14.2 million in equity-based compensation. Of that amount, $12.9 million was tied to one-time vesting of awards associated with the company’s initial public offering, according to Lee. The company’s aerospace, defense and government, or AD&G, backlog increased 100.5% year over year. Lee said the growth was driven by programs including CERN, Precision Strike Missile, Standard Missile and Patriot, as well as commercial and defense aerospace and radar programs. Elmet said approximately $36.3 million of the $46.9 million increase in total backlog from the second quarter of 2025 to the second quarter of 2026 was related to tungsten product growth in the AD&G market, reflecting a mix of price and volume. However, Lee said recently announced multiyear missile-defense interceptor awards to defense primes have not yet meaningfully reached Elmet’s backlog. The company has seen requests for quotations and some “modest” orders funded through residual program budgets, he said, but no significant contribution yet from the new appropriations cycle. Anania said the company expects continued defense-related opportunities as the U.S. replenishes stockpiles and global defense spending rises. In June, Elmet announced $4.3 million in strategic funding to develop domestic manufacturing capabilities for molybdenum-based products and refractory-metal components used in defense programs, including interceptor programs. Outside AD&G, Lee said backlog trends were influenced heavily by one large medical customer whose ordering pattern can vary despite what he described as consistent underlying volume. The medical customer accounted for nearly $12 million of CMC backlog at the end of the second quarter of 2025, compared with about $5.5 million at the end of the second quarter of 2026, he said. Management said industrial activity increased in both business divisions, while semiconductor demand has begun to improve from a smaller base. Energy demand was down somewhat, though Lee characterized that market as relatively small and subject to expected quarter-to-quarter variation as fusion and fission opportunities remain in development stages. During the call, management also said it has no current orders from SpaceX. However, Lee said the company has orders from other satellite companies and recently spent roughly $3 million in capital expenditures on a new CMC production line that has begun producing. He also cited growing EMP activity in drone defense and satellite-related applications. Cash at the end of the second quarter totaled $66.1 million, up from $1.8 million at the end of the first quarter. Lee said April’s initial public offering generated net proceeds of $125.4 million. The company used proceeds to retire $17.5 million in term debt, pay about $31.0 million on its revolving credit facility and fund working-capital and other corporate needs. Elmet ended the quarter with about $44.6 million in revolving-credit borrowing capacity, giving it roughly $110.7 million of cash availability for strategic investments when combined with cash on hand. Inventory increased to $102.4 million from $75.0 million at the end of the first quarter, reflecting higher raw-material prices, sourcing dynamics and volume growth in CMC. Looking ahead, Lee said CMC’s larger scale means it will continue to have the greatest influence on companywide profitability. Management said it expects higher-margin AD&G business, productivity improvements and sourcing arrangements to support margins, while acknowledging EMP faced operational challenges during the quarter in a facility serving higher-margin defense and semiconductor products. Lee said the company is working to improve EMP performance in the second half, though he expects the process to take time. He reiterated that Elmet continues to view a 30% gross-margin target over the next four to five years as viable. Elmet provides precision-engineered components and advanced high-energy systems for growth markets. Our customers in these markets require advanced technology involving critical and strategic materials, such as tungsten, molybdenum and niobium (such materials, the “Critical Materials”) and high-level radio frequency (“RF”) engineering, including plasma generation, radar, and other high-energy systems (together, “High-Power Microwave”). Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Elmet Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Continued demand acceleration in Aerospace, Defense & Government markets Revenue increased over 35%, with over 430 basis points of gross profit margin expansion driving adjusted EBITDA increase of 57.9% Backlog increased by nearly 55% to record level of $132 million PORTLAND, Maine, Aug. 13, 2026 (GLOBE NEWSWIRE) -- The Elmet Group Co. (“Elmet,” the “Company,” “we,” or “our”) (NASDAQ:ELMT), a U.S.-based provider of precision-engineered components and advanced high-power systems, today reported financial results for its fiscal second quarter ended July 3, 2026. Second Quarter Fiscal Year 2026 Highlights Successfully completed upsized initial public offering, raising net proceeds of $125.4 million. Revenue increased 35.2% to approximately $66.4 million compared to approximately $49.1 million in Q2 2025. Approximately 55% of the revenue growth is attributed to net demand increase with the balance associated with tungsten and molybdenum raw material pricing impacts. Gross profit margin improved 430 basis points to 25.0% of revenue compared to 20.7% of revenue in Q2 2025. Net income (loss) for Q2 2026 was approximately $(4.5) million, or $(0.16) per share, compared to approximately $1.2 million, or $0.06 per share, in Q2 2025. Adjusted net income for Q2 2026 was approximately $5.2 million, or $0.18 per share, compared to approximately $2.8 million, or $0.14 per share, in Q2 2025. Adjusted EBITDA increased to approximately $8.9 million, or 13.3% of revenue, compared to approximately $5.6 million, or 11.4% of revenue, in Q2 2025. Open order backlog increased to approximately $131.5 million, up from approximately $113.3 million at the end of Q1 2026 and approximately $84.6 million at the end of Q2 2025. Trailing Twelve Months (“TTM”) Highlights Revenue increased 8.2% to approximately $228.5 million compared to 2026 first quarter TTM results of approximately $211.2 million. Gross profit margin improved 130 basis points to 22.2% of revenue compared to 2026 first quarter TTM of 20.9%. Net income decreased to approximately $(1.7) million, or $(0.08) per share, compared to approximately $4.0 million, or $0.20 per share, for 2026 first quarter TTM. Adjusted net income (loss) increased to approximately $18.6 million, or $0.84 per share, compared to approximately $16.2 million, or $0.81 per share, for the 2026 first quarter TTM. Adjusted EBITDA increased approximately $3.2 million to $31.8 million, or 13.9% of revenue, compared to approximately $28.6 million, or 13.5% of revenue, for 2026 first quarter TTM. Management Commentary“In the second quarter we built on our existing momentum and delivered strong results, highlighted by an acceleration in revenue growth and profitability along with a record backlog,” said Company CEO Peter V. Anania. “Our performance was driven by a combination of strong operational execution, skillful navigation of a dynamic metals pricing market, and ongoing returns from our strategic focus on servicing the broader aerospace, defense & government landscape, all of which we expect to drive continued demand through the balance of the year.” “Looking ahead, we remain well-positioned to effectively meet this demand as we expand our role as a trusted supplier across mission-critical systems. Longer term, we believe the operating environment remains highly favorable to Elmet, supported by our strategic position at the nexus of several megatrends that are in the early stages of an investment supercycle.” Conference CallThe Elmet Group Co. management will host a conference call today, Thursday, August 13, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period. Toll-Free Number: 877-869-3847International Number: +1 201-689-8261Webcast: Register and Join Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will be broadcast simultaneously and available for webcast replay here. About The Elmet GroupThe Elmet Group is a U.S.-based provider of precision-engineered components and advanced high-energy systems for the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. The Company operates through two segments, Critical Materials Components (CMC) and Engineered Microwave Products (EMP), leveraging materials science and precision engineering expertise to deliver high-performance solutions. The Elmet Group is dedicated to strengthening domestic manufacturing capabilities to support the U.S. and its allies’ needs in both critical materials and advanced high-power microwave systems. Reorganization and Presentation of Financial ResultsOn January 2, 2026, the Company effected a reorganization (the “Reorganization”) whereby Anania & Associates and its noncontrolling interest holders contributed their ownership interests in Anania & Associates and its consolidated subsidiaries in exchange for shares of common stock in the Company. The Reorganization was a reorganization of entities under common control as Anania & Associates and the Company were controlled by the Company’s Chief Executive Officer (“CEO”) before and after the Reorganization. As a result, the Reorganization was accounted for in a manner similar to a pooling of interests with the assets and liabilities of Anania & Associates and its consolidated subsidiaries being carried over at their historical amounts. The historical consolidated financial statements of Anania & Associates were retrospectively recast to reflect the results as if the Company owned Anania & Associates and its consolidated subsidiaries as of January 1, 2025. In connection with the Reorganization, Anania & Associates Investment Company LLC, an immaterial subsidiary of Anania & Associates, was no longer controlled by the Company and was deconsolidated on January 2, 2026. The deconsolidation was recognized as a spinoff and the impact of $0.5 million was recognized within equity. In connection with the Reorganization, the Company’s tax status changed from an S-corporation to a C-corporation. Non-GAAP Financial MeasuresIn evaluating its business, the Company uses or may use certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance. These measures are commonly used in the manufacturing industry to provide stockholders and potential investors with additional information that excludes unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of the Company’s ongoing operating results. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools when assessing the Company’s operating and financial performances, and investors should not consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. The reconciliations to EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share from relevant GAAP metrics are included at the end of this press release. Backlog as reported is confirmed orders from customers for which revenue has not been recognized. Forward Looking StatementsThe information in this press release includes forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements generally relate to future events or our future financial or operating performance and include statements regarding Elmet’s intended use of proceeds from the IPO, Elmet’s ability to: (i) effectively meet demand for its products, (ii) benefit from defense spending levels in the United States and other countries in which it does business, (iii) successfully pursue its ongoing supply chain realignment, (iv) expand its role as a supplier across its end markets, (v) successfully make opportunistic investments, if any, that will support its competitive positioning, (vi) effectively use the net proceeds received from its IPO to its benefit in the manner currently contemplated, in a different manner, or at all, and (vii) successfully navigate turbulent raw materials markets. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Elmet’s Registration Statement on Form S-1, as amended (File No. 333-294725) and subsequent filings Elmet makes with the Securities and Exchange Commission. Elmet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Company ContactChris [email protected] Investor ContactTom Colton and Greg BradburyGateway Group, [email protected] -Financial tables to follow- The accompanying notes are integral to the unaudited consolidated financial statements. The accompanying notes are integral to the unaudited consolidated financial statements. The accompanying notes are integral to the unaudited consolidated financial statements. Non-GAAP Financial Measures: The following tables display certain non-GAAP financial measures we believe are helpful in assessing our performance and interpreting our financial results. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure. Adjusted EBITDA Adjusted EBITDA is a non-GAAP measurement. We define Adjusted EBITDA as our net income plus interest expense, income taxes, depreciation and amortization, and, as applicable for each period, stock-based compensation expense and non-cash gains and losses on the sale of assets. Adjusted EBITDA also excludes certain non-recurring costs such as the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs. Adjusted Net Income and Adjusted Net Income Per Share Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measurements. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable.

Elmet Group recently shifted to a 4-4-5 fiscal calendar ending on the Friday closest to December 31, meaning its 2026 interim quarters will not be fully comparable with prior-year periods because of differing numbers of days. Alongside this accounting change, the company’s first-quarter 2026 report highlighted strong order momentum and improved profitability metrics after its upsized Nasdaq IPO and debt reduction. With this backdrop of record backlog and a new fiscal calendar, we’ll examine how these developments shape Elmet Group’s investment narrative. Find 46 companies with promising cash flow potential yet trading below their fair value. To own Elmet Group, you need to believe in its niche position in tungsten and molybdenum components, particularly for aerospace, defense and semiconductor customers, and in management’s ability to convert a record US$113,300,000 backlog into healthier margins over time. The upsized Nasdaq IPO and subsequent debt reduction help alleviate balance sheet pressure, but the stock’s high earnings multiple and thin net margins keep execution risk front and center. The shift to a 4-4-5 fiscal calendar mainly changes how interim quarters line up rather than the underlying business, so it should not alter the core thesis, but it can make short term year on year comparisons noisier around key catalysts like margin trends and backlog conversion. For now, the real swing factors still sit in order timing, pricing and capital allocation. However, there is one specific risk in the near term that investors should not overlook. Elmet Group's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be. Explore 2 other fair value estimates on Elmet Group - why the stock might be worth over 2x more than the current price! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Elmet Group research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision. Our free Elmet Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Elmet Group's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Rare earth metals are the new gold rush. Find out which 31 stocks are leading the charge. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Explore 29 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ELMT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Demand accelerating in Aerospace, Defense & Government markets Successfully completed an upsized IPO, raising $125.5 million in net proceeds in Q2 Revenue increased nearly 21%, with over 250 basis points of gross profit margin expansion driving adjusted EBITDA increase of 106% Backlog increased by nearly 52% to record level of $113 million PORTLAND, Maine, May 29, 2026 (GLOBE NEWSWIRE) -- The Elmet Group Co. (“Elmet,” the “Company,” “we,” or “our”) (NASDAQ: ELMT), a U.S.-based provider of precision-engineered components and advanced high-power systems, today reported financial results for its fiscal first quarter ended April 3, 2026. First Quarter Fiscal Year 2026 Highlights Revenue increased 20.7% to approximately $56.0 million compared to approximately $46.4 million in Q1 2025. Revenue from our Critical Materials & Components (“CMC”) division increased approximately $9.1 million compared to Q1 2025 primarily from growth within the Aerospace, Defense & Government (“ADG”) end market. Gross profit margin improved 260 basis points to 21.2% of revenue compared to 18.6% of revenue Q1 2025. Net income (loss) for Q1 2026 was $(0.3) million, or $(0.02) per share, compared to $1.2 million, or $0.06 per share, in Q1 2025. Adjusted net income (loss) for Q1 2026 was $4.7 million, or $0.24 per share, compared to $1.9 million, or $0.10 per share, in Q1 2025. Adjusted EBITDA increased to approximately $9.2 million, or 16.4% of revenue, compared to approximately $4.5 million, or 9.6% of revenue, in Q1 2025. Open order backlog increased to approximately $113.3 million, up from approximately $96.3 million at the end of Q4 2025 and approximately $74.7 million at the end of Q1 2025. Recorded approximately $3.7 million in income related to a change in fair value and mark to market of the Company’s strategic investment in tungsten mining company EQ Resources Limited. Trailing Twelve Months Highlights Revenue increased 4.8% to approximately $211.2 million compared to 2025 fiscal year results of approximately $201.6 million. Gross profit margin improved 60 basis points to 20.9% of revenue compared to 20.3% for the 2025 fiscal year. Net income (loss) decreased to approximately $4.0 million, or $0.20 per share, compared to $5.5 million, or $0.28 per share, for the 2025 fiscal year. Adjusted net income (loss) increased to approximately $16.2 million, or $0.81 per share, compared to $13.4 million, or $0.67 per share, for the 2025 fiscal year. Adjusted EBITDA increased approximately $5.2 million to $28.6 million, or 13.5% of revenue, compared to approximately $23.4 million, or 11.6% of revenue, for the 2025 fiscal year. Management Commentary“Today, we view the environment in which we operate as highly favorable and supported by strong demand for critical materials and engineered high-power systems, increasing defense spending, and ongoing supply chain realignment,” said Company CEO Peter V. Anania. “Following our successful public listing in April, we believe we are well-positioned to effectively meet this demand and expand our role as a trusted supplier across mission-critical systems. “Our recent performance demonstrates the resilience and diversification of our operating model and our competitive strategic positioning within key growth markets, most notably ADG. We have built significant momentum, supported by our record backlog and newly fortified balance sheet, which we believe will allow us to make opportunistic investments to further support our long-term competitive positioning.” Subsequent EventsSubsequent to the end of Q1 2026, we completed a successful upsized IPO of an aggregate of approximately 9.9 million shares of our common stock, including the full exercise by the underwriters of their overallotment option to purchase approximately 1.3 million additional shares, at a public offering price of $14.00 per share. The aggregate net proceeds from the offering were approximately $125.5 million after deducting underwriting discounts and commissions and other offering expenses payable by Elmet. We subsequently retired $17.8 million in term debt and paid $8.3 million transaction related stock appreciation rights costs, resulting in net $99.4 million cash on hand from the proceeds. We intend to use the net cash we received from this offering, as well as our pre-existing cash, for growth capital, working capital, and general corporate purposes. Conference CallThe Elmet Group Co. management will host a conference call today, Friday, May 29, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period. Toll-Free Number: 877-869-3847International Number: +1 201-689-8261Webcast: Register and Join Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will be broadcast simultaneously and available for webcast replay here. About The Elmet GroupThe Elmet Group is a U.S.-based provider of precision-engineered components and advanced high-energy systems for the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. The Company operates through two divisions, Critical Materials Components (CMC) and Engineered Microwave Products (EMP), leveraging materials science and precision engineering expertise to deliver high-performance solutions. The Elmet Group is dedicated to strengthening domestic manufacturing capabilities to support the U.S. and its allies’ needs in both critical materials and advanced high-power microwave systems. Reorganization and Presentation of Financial Results On January 2, 2026, the Company effected a reorganization (the “Reorganization”) whereby Anania & Associates and its noncontrolling interest holders contributed their ownership interests in Anania & Associates and its consolidated subsidiaries in exchange for shares of common stock in the Company. The Reorganization was a reorganization of entities under common control as Anania & Associates and the Company were controlled by the Company’s Chief Executive Officer (“CEO”) before and after the Reorganization. As a result, the Reorganization was accounted for in a manner similar to a pooling of interests with the assets and liabilities of Anania & Associates and its consolidated subsidiaries being carried over at their historical amounts. The historical consolidated financial statements of Anania & Associates were retrospectively recast to reflect the results as if the Company owned Anania & Associates and its consolidated subsidiaries as of January 1, 2025. In connection with the Reorganization, Anania & Associates Investment Company LLC, an immaterial subsidiary of Anania & Associates, was no longer controlled by the Company and was deconsolidated on January 2, 2026. The deconsolidation was recognized as a spinoff and the impact of $0.5 million was recognized within equity. In connection with the Reorganization, the Company’s tax status changed from an S-corporation to a C-corporation. Non-GAAP Financial Measures In evaluating its business, the Company uses or may use certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance. These measures are commonly used in the manufacturing industry to provide stockholders and potential investors with additional information that excludes unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of the Company’s ongoing operating results. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools when assessing the Company’s operating and financial performances, and investors should not consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. The reconciliations to EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share from relevant GAAP metrics are included at the end of this press release. Backlog as reported is confirmed orders from customers for which revenue has not been recognized. Forward Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements generally relate to future events or our future financial or operating performance and include statements regarding Elmet’s intended use of proceeds from the IPO, Elmet’s ability to: (i) effectively meet demand for its products, (ii) benefit from defense spending levels in the United States and other countries in which it does business, (iii) successfully pursue its ongoing supply chain realignment, (iv) expand its role as a supplier across its end markets, (v) successfully make opportunistic investments, if any, that will support its competitive positioning, and (vi) effectively use the net proceeds received from its IPO to its benefit in the manner currently contemplated, in a different manner, or at all. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Elmet’s Registration Statement on Form S-1, as amended (File No. 333-294725) and subsequent filings Elmet makes with the Securities and Exchange Commission. Elmet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Company ContactChris [email protected] Investor ContactTom Colton and Greg BradburyGateway Group, [email protected] -Financial tables to follow- The accompanying notes are integral to the unaudited consolidated financial statements. The accompanying notes are integral to the unaudited consolidated financial statements. The accompanying notes are integral to the unaudited consolidated financial statements. Non-GAAP Financial Measures:The following tables display certain non-GAAP financial measures we believe are helpful in assessing our performance and interpreting our financial results. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure. Adjusted EBITDAAdjusted EBITDA is a non-GAAP measurement. We define Adjusted EBITDA as our net income plus interest expense, income taxes, depreciation and amortization, and, as applicable for each period, stock-based compensation expense and non-cash gains and losses on the sale of assets. Adjusted EBITDA also excludes certain non-recurring costs such as the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs. (1)   Interest expense includes both third-party interest expense and related party interest expense.(2)   The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.(3)   Stock-based compensation includes expenses associated with restricted stock grants made in support of our initial public offering and the Reorganization.(4)   Corporate costs associated with the initial public offering include third-party expenses related to enhancing our accounting controls and procedures, incremental audit costs, recruitment of executive team and legal expenses.(5)   Others includes non-recurring costs associated with a utility failure at our CMC facility in Euclid, Ohio, and other restructuring costs.(6)   Adjusted EBITDA excludes the financial impact of discontinued operations. On October 1, 2025 A&A distributed its shares in Polymer Laboratories, LLC to the individual shareholders, which is unrelated to A&A continuing operations and The Elmet Group Co. Adjusted Net Income and Adjusted Net Income Per Share Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measurements. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable. (1)   Reflects the impact of the deferred tax adjustment of $3.5 million, which was recognized in the period of Reorganization and does not reflect ongoing income tax expense, and other discrete tax impacts of $0.3 million related to the Reorganization.(2)   Corporate costs associated with the initial public offering include third-party expenses related to enhancing our accounting controls and procedures, incremental audit costs, recruitment of executive team and legal expenses.(3)   Stock-based compensation includes expenses associated with restricted stock grants made in support of our initial public offering and the Reorganization.(4)   The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.(5)   Other includes restructuring and severance costs associated with a reorganization at our CMC division and non-recurring costs associated with a utility failure at our CMC facility in Euclid, Ohio and other restructuring costs.(6)   The tax effect for the quarter ended April 3, 2026 represents our actual effective tax rate for the period of 21.0% when excluding the Reorganization impacts. There is no tax impact prior to the quarter ended April 3, 2026, as we were treated as an S-corporation for tax purposes prior to the Reorganization.(7)   The potential impact on weighted average common stock outstanding (diluted) related to our restricted stock was evaluated under the treasury stock method based on the weighted average unrecognized compensation costs for each period and the estimated fair value of our common stock for each period.

Interested in Elmet Group Co.? Here are five stocks we like better. Elmet Group posted a strong first quarter, with revenue up 20.7% to $56 million and adjusted EBITDA more than doubling to $9.2 million. Gross profit also improved, helped by growth in aerospace, defense and government demand. The company’s backlog hit a record $113.3 million, led by a sharp increase in aerospace, defense and government orders and meaningful contributions from tungsten-related business. Management said higher tungsten prices and customer efforts to lock in supply are also supporting backlog growth. Following its IPO, Elmet raised $125.5 million in net proceeds and plans to use the capital for growth investments, supply-chain security and potential acquisitions. Management also highlighted a long-term goal of expanding gross margins toward 30% through operational improvements and a richer product mix. Elmet Group (NASDAQ:ELMT) reported higher first-quarter revenue and profit metrics in its first earnings call as a public company, with management pointing to growth in aerospace, defense and government demand, rising tungsten prices and a record backlog as key themes shaping the business. Chairman and CEO Peter V. Anania said the company is positioned around “several mega trends,” including defense spending, reshoring and U.S. critical materials independence. Elmet operates through two divisions: Critical Materials Components, or CMC, and Engineered Microwave Products, or EMP. The CMC division manufactures tungsten and molybdenum products, while EMP produces high-power microwave components and systems for military and industrial applications. → Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move Anania said Elmet is the sole U.S.-owned supplier of certain highly engineered critical material components and noted that the company has sourced more than 95% of its tungsten and molybdenum from outside China for more than a decade. He said that positioning has helped shield the company from some supply chain disruptions as export controls and tariffs affect critical materials markets. CFO Mike Lee said first-quarter revenue rose 20.7% to $56 million, compared with $46.4 million in the prior-year quarter. The increase was primarily driven by a $9.1 million gain in the CMC division, including growth from the aerospace, defense and government, or ADG, end market. → Record Revenue, Rising Dividends—So Why Aren't Analysts Saying Buy? Gross profit increased 37.5% to $11.8 million, representing a gross margin of 21.2%, compared with $8.6 million and an 18.6% margin in the first quarter of 2025. Lee attributed the improvement to CMC growth in ADG markets. Operating expenses rose 73.6% to $10 million from $5.8 million a year earlier. Lee said the quarter included about $1 million of one-time IPO and restructuring-related expenses, with the remaining increase tied primarily to public company compliance costs, equity compensation and sales and marketing expenses associated with growth. → Zscaler Stock Drops 30%: Why the Dip Is a Buy Opportunity Adjusted net income was $4.7 million, or $0.24 per share, compared with $1.9 million, or $0.10 per share, in the first quarter of 2025. Adjusted EBITDA rose 105.7% to $9.2 million from $4.5 million. Lee said the adjusted EBITDA increase reflected about $1 million of operational performance improvements and a $3.7 million adjustment tied to the change in fair value of Elmet’s strategic investment in EQ Resources Limited, a tungsten mining company. Elmet’s firm order backlog increased to approximately $113.3 million at the end of the first quarter, up from $96.3 million at the end of the fourth quarter of 2025 and $74.7 million at the end of the first quarter of 2025. Lee said ADG backlog rose 133.9% year over year, driven by programs including CERN, PrSM, Next Generation Interceptor, Hellfire, Javelin and a mix of commercial and defense-related aerospace and radar programs. During the question-and-answer session, Lee said $83.5 million of the first-quarter backlog was tied to ADG, while $29.7 million came from other markets. He also said roughly $44 million of the backlog was tungsten-related business, compared with $32 million of tungsten revenue in 2025. Of the $38.6 million increase in total backlog from the prior-year period, Lee attributed about $13.4 million to tungsten pricing impacts. Management said customer behavior has shifted as some buyers seek to lock in pricing amid volatility. Anania said Elmet is taking quotes, sourcing tungsten and then confirming sales orders once material is secured, often with customer prepayments to help cover tungsten costs. The CMC division generated $48.2 million in first-quarter revenue and a 20.3% gross margin, compared with $39.1 million and a 15.1% gross margin in the prior-year period. Lee said all CMC end markets grew, with ADG contributing the most significant expansion, rising to $19.3 million from $13.2 million. The EMP division reported $7.8 million in revenue and a 26.4% gross margin, compared with $7.3 million and a 37% gross margin a year earlier. Lee said revenue increased while margin percentage declined because of a shift toward the industrial end market. Across the total business, ADG revenue increased 26.6% to $22.8 million from $18 million, representing 40.7% of total revenue in the quarter. Lee cited higher sales volumes tied to defense programs including Hellfire, Javelin, Sidewinder, Patriot missile system, KC-135 Stratotanker and defense radar programs. Industrial revenue rose 11.1% to $17.6 million, helped by higher sales of industrial microwave systems for tempering and drying and favorable tungsten pricing impacts. Medical revenue increased 4.9% to $10.7 million, driven by a demand recovery from a long-term medical wire customer. Semiconductor and electronics, along with energy, more than doubled on a combined basis to $4.9 million. After the end of the quarter, Elmet completed an initial public offering of approximately 9.9 million shares at $14 per share, generating $125.5 million in net proceeds. Lee said the company retired $17.8 million in term debt and paid $8.3 million in transaction-related appreciation rights costs, leaving $99.4 million in cash from the proceeds. Lee said Elmet plans to use the proceeds for high-return investments intended to support organic growth and margin expansion. Priorities include higher-margin products, operational improvements, expanded customized capacity and securing additional long-term raw material supply. The company also plans to pursue strategic mergers and acquisitions when opportunities arise. Lee said Elmet is focused on maintaining total leverage below 3.0 while maximizing liquidity and minimizing debt-servicing costs. He said the company expects to refinance remaining term debt later in the year and consolidate fragmented banking relationships, with a goal of completing the process in the fourth quarter. Lee said one of Elmet’s key financial priorities is gross margin expansion. He identified three pathways: manufacturing cost improvements, a richer product mix as ADG revenue grows and economies of scale. The company recently hired a supply chain and operations consulting firm to help improve throughput and margins in the CMC division. In response to an analyst question, Lee said Elmet has internal plans to approach 30% gross margin within five years, requiring about a 10-percentage-point increase from the 2025 baseline across both divisions. He said CMC margin gains are expected to come from operational performance and mix, while EMP improvement is expected from new products and more work involving engineering services. Anania also discussed growth areas in satellites and additive manufacturing. He said Elmet materials are used in satellites for shielding electronics from electromagnetic pulse and solar radiation, and that the company is working on 3D-printed prototypes and recently received orders to print engines for satellite applications. On mergers and acquisitions, Anania said the microwave market is fragmented and that Elmet is looking at companies with niche technology, higher-frequency capabilities or solid-state technology. In CMC, he said the company is interested in adding processing capabilities between concentrate and blue tungsten oxide, as well as machining and fabrication capacity. He also said Elmet is considering opportunities to expand its geographic footprint, potentially in Europe. Anania closed the call by reiterating that Elmet sees increased activity across its end markets, supported by defense spending, reshoring and tighter sourcing conditions for tungsten and molybdenum. Elmet provides precision-engineered components and advanced high-energy systems for growth markets. Our customers in these markets require advanced technology involving critical and strategic materials, such as tungsten, molybdenum and niobium (such materials, the “Critical Materials”) and high-level radio frequency (“RF”) engineering, including plasma generation, radar, and other high-energy systems (together, “High-Power Microwave”). Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Elmet Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.