gross margin
30 pct
FY 2030
management target
THE ELMET GROUP CO.
Last · NASDAQ$15.84-0.02 (-0.13%)stale · yahoo · 128h ago
Limited price history since listing (2026-04-23 → 2026-09-08).
Market cap$482.48M30.5M sh
P/E · TTM-45.3fwd 25.4 · eps -0.35 · loss
Beta—vs S&P 500
Div yield—annual · TTM
52w range
$12.49$22.51
Volume45.5Ksession
| Revenue | $122.4M |
|---|---|
| Operating income | $-5.8M |
| Net income | $-1.0M |
| Free cash flow | $-10.7M |
| Operating margin | -4.7% |
| Net margin | -0.8% |
| Return on equity | -0.6% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Constructive quarter, but not an unquestioned buy:
revenue rose 35.2% to $66.4M, adjusted EBITDA increased 57.2% to $8.9M, gross margin expanded 430 bps to 25.0%, and backlog reached a record $131.5M (+55%). The balance-sheet repair is meaningful after the IPO, but the more durable growth rate looks less dramatic—TTM revenue rose only 8.2%—while a substantial portion of backlog and margin improvement reflects tungsten/molybdenum pricing, and EMP execution remains impaired.
Near term
EMP operational problems affected higher-margin aerospace, defense and semiconductor products; management expects improvement in the second half but acknowledged recovery will take time through the balance of the year.
The major missile-defense awards discussed by analysts have not yet meaningfully entered backlog: management cited only RFQs and modest residual-funding orders, leaving near-term order conversion timing unproven.
CMC should continue benefiting from sourcing agreements and productivity gains, but investors need to separate recurring demand from commodity-price pass-through. Approximately $36.3M of the $46.9M year-over-year backlog increase was attributed to tungsten product price and volume effects.
Medical backlog fell to $5.5M from $12M a year ago because of an inconsistent ordering pattern from one large customer, creating potential quarterly volatility.
Longer term
The strongest structural case is domestic, vertically integrated production of refractory-metal components for missile defense, radar, aerospace and other ADG programs. ADG backlog grew 100.5% year over year, but the thesis still depends on converting RFQs and defense-prime awards into firm orders and production revenue.
The company’s non-China sourcing—over 95% of tungsten and molybdenum—plus its EQ Resources relationship and long-term offtake arrangement may strengthen supply-chain differentiation, though the economic returns and capital requirements of the investment were not quantified.
Management reiterated a long-term target of reaching and sustaining roughly 30% gross margin within four to five years. That target requires both higher-value ADG mix and sustained operating improvement; it should not be extrapolated from the current quarter’s commodity-assisted 25% margin.
The $66.1M cash balance and $44.6M unused revolver capacity provide substantial expansion flexibility after retiring $17.5M of term debt and paying down $31.0M of revolver borrowings, but future acquisitions or capacity investments could add execution and dilution risk.
Red flags
The quarter’s GAAP result remained a $4.5M net loss, and adjusted earnings exclude $14.2M of equity compensation, including $12.9M of IPO-related vesting. While much of this is described as one-time, public-company costs and ongoing stock compensation can remain economically meaningful.
EMP margins were pressured by material costs rising faster than expected under long-term agreements with customers such as CERN and Fermi. Management did not quantify the backlog margin shortfall or the cost and timing of remediation.
Backlog growth is less clean than the headline suggests: management attributed roughly 77% of the year-over-year backlog increase to tungsten product price and volume effects. This raises questions about how much backlog represents real unit-demand expansion and future earnings growth.
The company has not provided formal revenue or earnings guidance, leaving investors without a firm framework for assessing the timing of defense-program ramp-up, EMP recovery, or the contribution from the new orbital-compute manufacturing line.
Inventory increased to $102.4M from $67.1M a year ago and $75.0M in the prior quarter. Some of the increase is explained by raw-material prices and growth, but it increases working-capital exposure if demand or metal prices reverse.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$0.15
Est. revenue
62.6M
Earnings transcripts
Press & signals
- GlobeNewswire
The Elmet Group Co. Signs Agreement to Acquire ams OSRAM Schwabmünchen Metal Production Operations, Establishing European Manufacturing Footprint for Tungsten and Molybdenum Components
- GlobeNewswire
The Elmet Group Co. Reports Second Quarter 2026 Results