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Elmet Group Co. Class A
(NASDAQ:ELMT)
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Rating:61Neutral
Price Target:
$21.00
▲(26.20% Upside)
Action:Reiterated
Date:09/18/26
ELMT’s score is held back primarily by weakened cash generation and margin compression in the latest annual financials, despite meaningfully improved leverage. Offsetting that, technicals are strong with the stock trading well above key moving averages and positive MACD, and the latest earnings call was constructive with rapid revenue growth, margin expansion, and a record backlog supporting continued momentum. Valuation is a headwind because the negative P/E reduces earnings-based comparability and there is no dividend support.
Positive Factors
Revenue and backlog growth
Rapid quarterly growth and a record backlog indicate broadening demand across aerospace, defense, industrial, medical and semiconductor markets. The backlog provides stronger forward revenue visibility, while ADG momentum supports a potentially durable expansion in the company’s core end markets.
Negative Factors
Sharp free-cash-flow deterioration
The steep decline in free cash flow shows that reported earnings are currently converting poorly into cash, limiting internally funded investment and financial flexibility. If reinvestment or working-capital demands remain elevated, cash generation could constrain growth initiatives and reduce resilience through the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and backlog growth
Rapid quarterly growth and a record backlog indicate broadening demand across aerospace, defense, industrial, medical and semiconductor markets. The backlog provides stronger forward revenue visibility, while ADG momentum supports a potentially durable expansion in the company’s core end markets.
Read all positive factors
Elmet Group Co. Class A (ELMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$648.48M
Dividend YieldN/A
Average Volume (3M)998.19K
Price to Earnings (P/E)―
Beta (1Y)-0.23
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees533
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.09
Shares Outstanding30,459,497
10 Day Avg. Volume671,435
30 Day Avg. Volume998,190
Financial Highlights & Ratios
PEG Ratio-1.91
Price to Book (P/B)3.32
Price to Sales (P/S)2.66
P/FCF Ratio1.76K
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit9.57
Enterprise Value/Ebitda-120.74
Forecast
1Y Price Target
$25.67Price Target Upside54.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.52
Revenue Forecast (FY)$241.85M
Elmet Group Co. Class A Business Overview & Revenue Model
Company Description
Elmet Group Co. delivers high-precision engineered components. This firm supplies its products and tailored solutions to a wide array of clients, spanning the aerospace, defense, industrial, medical, semiconductor, electronics, and energy industri...
Elmet Group Co. Class A Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 28, 2027
Earnings Call Sentiment Positive
The call presented a largely positive operational and commercial picture: strong revenue growth (+35.2% YoY), sizable gross margin expansion (25.0% vs 20.7%) and meaningful adjusted EBITDA and backlog gains, supported by strategic supply arrangements and substantial IPO-driven liquidity. Headwinds include a GAAP net loss driven by large one-time equity compensation and IPO costs, a notable inventory increase that raises working capital needs, operational issues in the EMP division affecting margins, and ongoing commodity price and order-timing volatility. Most negative items are one-time or manageable (IPO-related comp and remediation of factory issues), while core demand, backlog growth (especially in ADG), and liquidity have meaningfully improved, supporting a constructive outlook.Positive Updates
Strong Revenue Growth
Revenue increased 35.2% year-over-year to $66.4 million in Q2 2026 (from $49.1 million in Q2 2025), with ~55% of growth attributed to increased demand across aerospace, defense & government (ADG), industrial, medical and semiconductor end markets.
Negative Updates
GAAP Net Loss and One-Time Charges
GAAP net loss in Q2 2026 was $4.5 million ($0.16 per share) compared to net income of $1.2 million in Q2 2025. Operating expenses increased 251.2% year-over-year to $24.2 million, driven largely by $14.2 million of equity-based compensation (including $12.9 million one-time IPO vesting) and other IPO and public-company related costs.
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Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased 35.2% year-over-year to $66.4 million in Q2 2026 (from $49.1 million in Q2 2025), with ~55% of growth attributed to increased demand across aerospace, defense & government (ADG), industrial, medical and semiconductor end markets.
Read all positive updates
Company Guidance
Management guided that momentum should continue through the balance of FY2026, citing a record firm backlog of $131.5M (up 55% YoY; ADG backlog +100.5% YoY) and reaffirming strong demand driven by CMC and ADG programs; they noted Q2 revenue grew 35.2% to $66.4M (TTM revenue $228.5M), Q2 gross profit rose 63.7% to $16.6M (25.0% gross margin), adjusted EBITDA was $8.9M (+57.2%) with TTM adjusted EBITDA $31.8M, and adjusted net income was $5.2M (Q2 GAAP net loss $4.5M largely due to $14.2M equity‑based comp). Management expects continued benefits from strategic tungsten/moly sourcing (sourcing >95% from outside China), ongoing productivity gains and capacity investments (including a $4.3M June contract and increased staffing/third‑party support), highlighted cash of $66.1M, $44.6M revolver capacity (≈$110.7M total availability), inventories of $102.4M, and reiterated a medium‑term goal of reaching and sustaining roughly 30% gross margin within 4–5 years.Elmet Group Co. Class A Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 228.53M | 201.64M | 190.44M |
| Gross Profit | 50.42M | 39.72M | 40.28M |
| EBITDA | -4.00M | 18.35M | 19.78M |
| Net Income | -9.00M | 4.37M | 11.79M |
Balance Sheet | |||
| Total Assets | 284.23M | 265.91M | 174.48M |
| Cash, Cash Equivalents and Short-Term Investments | 71.05M | 87.20M | 3.71M |
| Total Debt | 22.84M | 46.83M | 61.63M |
| Total Liabilities | 96.69M | 104.36M | 112.89M |
| Stockholders Equity | 187.54M | 161.55M | 53.98M |
Cash Flow | |||
| Free Cash Flow | -12.09M | 305.00K | 16.22M |
| Operating Cash Flow | -3.17M | 10.68M | 22.27M |
| Investing Cash Flow | -10.65M | -10.79M | -588.00K |
| Financing Cash Flow | 78.06M | -4.83M | -19.15M |
Elmet Group Co. Class A Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $13.93B | 16.17 | 27.33% | 1.03% | 14.81% | 21.29% | |
76 Outperform | $2.99B | 18.35 | 16.19% | 1.25% | 18.44% | 54.40% | |
75 Outperform | $26.29B | 55.79 | 26.59% | 1.81% | 4.58% | 15.71% | |
73 Outperform | $4.18B | 21.42 | 14.87% | 0.59% | 5.68% | -23.91% | |
73 Outperform | $1.02B | 20.85 | 12.16% | ― | 15.12% | 50.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $648.48M | -254.51 | -7.74% | ― | ― | ― |
* Industrials Sector Average
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Elmet Group Co. Class A
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.