M-tron Industries, Inc. (MPTI – Free Report) secured a multi-year production contract worth more than $12 million from a key supplier in the avionics and aerospace sector. The agreement includes more than 45 products, such as high-performance radio frequency filters, crystal resonators, TCXOs, OCXOs and precision clock oscillators.
The contract will be executed at company facilities in Orlando, FL; Yankton, SD; and Noida, India. Production is expected to continue through mid-2028.
MPTI stock rose 1.4% during the trading session yesterday.
MPTI Expands Presence in Avionics Industry
This agreement supports the recovering avionics sector, including Boeing and Airbus aircraft, which are expected to remain in production beyond 2030. The company continues to expand its presence in the market, securing an average of 16 design wins per commercial aircraft for applications such as collision avoidance radar, communications and engine control.
The contract reflects MPTI’s capability to design and manufacture high-volume, custom RF components that meet complex industry requirements. MPTI’s precision RF components are built for critical applications that demand reliable performance under extreme conditions. The company supplies several Tier One avionics manufacturers and continues to secure design wins for large airframes.
MPTI Focuses on Growth in Defense and Aerospace Markets
M-tron has seen steady growth in the defense and aerospace markets over the years and continues to find new opportunities. The company works closely with customers to support system upgrades and new designs that meet government requirements. Avionics and industrial sectors also present growth potential. MPTI is securing design wins in the space and satellite industry while expanding its presence in the drone, UAV, radar and electronic warfare markets.
The company plays a key role in these growing markets and has secured multiple design wins with both established and emerging vendors. As demand increases, M-tron expects revenues to grow. While focusing on organic growth, MPTI is also exploring partnerships and acquisitions to expand its business.
MPTI’s Share Price Performance
Image Source: Zacks Investment Research
MPTI’s shares have rallied 71.6% in the past year against the Zacks Engineering – R and D Services industry’s 20.7% decline. The company is benefiting from continued momentum in the Aerospace and Defense sector. Strong shipments of defense program products and solutions drove an 18.9% year-over-year revenue increase to $12.81 million in the fourth quarter of 2024. (Read more: M-tron Industries Q4 Earnings Meet Estimates, Revenues Miss)
The company continues to invest in production facilities and has started a program to explore automation on the floor to improve yields. Despite market uncertainties and potential federal budget changes, M-tron has not experienced any disruptions and expects revenue growth to continue in 2025.
MPTI’s Zacks Rank & Other Key Picks
M-tron currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. (STRL – Free Report) , EMCOR Group, Inc. (EME – Free Report) and Gibraltar Industries, Inc. (ROCK – Free Report) .
Sterling presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has gained 6.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 4.1% and the same for earnings implies an increase of 34.6% year over year.
EMCOR currently sports a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has gained 2% in the past year.
The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.
Gibraltar currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 28.7% in the past year.
The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.
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