Elmet Group revenue rises 21% as record backlog and recent IPO capitalize on defense demand
Elmet Group (NASDAQ:ELMT) reported a 20.7% increase in first-quarter revenue, propelled by expanding volumes in its core aerospace, defense, and government end markets.
The financial results mark the specialized component manufacturer’s first earnings update since executing its public market debut last month.
Net revenue for the three months ended March 31, 2026, rose to approximately $56 million, up from $46.4 million in the corresponding period last year.
Top-line performance was led primarily by the company's Critical Materials Components division, which realized a $9.1 million year-over-year increase in sales.
The growth stems from heightened domestic demand for precision refractory metals used across military and flight programs.
The revenue expansion was accompanied by a shift toward higher-margin project work.
Elmet’s gross profit margin expanded by 260 basis points to reach 21.2% of revenue, compared to 18.6% in the first quarter of the prior year.
Boosted by these margin improvements, adjusted EBITDA more than doubled during the quarter to approximately $9.2 million, translating to an adjusted EBITDA margin of 16.4%.
Forward visibility strengthened as the company’s open order backlog reached a record high of approximately $113.3 million at the close of the quarter.
This represents a sequential increase from the $96.3 million logged at the end of December 2025 and a substantial rise over the $74.7 million reported at the same point last year.
Following the conclusion of the first quarter, the company finalized an upsized initial public offering on the Nasdaq, which brought in $125.5 million in net proceeds after accounting for underwriting discounts and commissions.
Management deployed $17.8 million of the new capital immediately following the listing to retire outstanding term debt, earmarking the remaining proceeds to reinforce working capital and support capacity expansions.
Despite the operational momentum, Elmet posted a GAAP net loss of $0.3 million for the quarter, compared to a net profit of $1.2 million in the prior-year period.
The downswing was driven almost entirely by a one-time $4.7 million corporate tax provision related to its conversion from an S-corporation to a C-corporation status prior to the IPO.
Stripping out the tax adjustment and related public transition costs, adjusted net income for the quarter stood at $4.7 million, or an adjusted diluted earnings per share of $0.23.