Demand in aerospace, defense and government markets are driving revenue and backlog increases at the Elmet Group Co. (NASDAQ: ELMT), a Portland-based maker of precision-engineered components and high-energy systems.
Second-quarter revenue climbed 35.2%, to $66.4 million, up from $49.1 million a year ago, the company said in results posted last week.
The company said that more than half of the revenue growth, 55%, is attributed to net demand increase.
Elmet also posted a net loss of $4.5 million, compared to net income of $1.2 million a year ago, without giving a reason.
Adjusted net income was $5.2 million, compared to $2.8 million a year earlier.
Elmet’s open order backlog increased to $131.5 million, up from $84.6 million a year ago and $113.3 million at the end of the first quarter.
Adjusted earnings before interest, taxes, depreciation and amortization — a measure of baseline profitability — rose to $8.9 million, or 13.3% of revenue. That compares to $5.6 million, or 11.4% of revenue, a year ago.
The company recently raised $125.5 million in an initial public offering.
Peter Anania, the company’s CEO. attributed revenue growth to net demand increase, navigation of a dynamic raw tungsten and molybdenum pricing market and ongoing returns from servicing aerospace, defense and government markets
“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 Anania.
“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,” he said.
Elmet operates through two segments, critical materials components and engineered microwave products, with production facilities in Lewiston and Gorham
