The Elmet Group Co. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 55.6% year-over-year to approximately $79.6 million for Q3 2026, compared to $51.1 million in Q3 2025.
• Gross profit margin expanded 960 basis points to 31.3% in Q3 2026, up from 21.7% in Q3 2025.
• Adjusted EBITDA increased 129.4% year-over-year to approximately $17.0 million (21.3% of revenue) in Q3 2026, compared to $7.4 million (14.5% of revenue) in Q3 2025.
• Net income for Q3 2026 was approximately $8.3 million ($0.24 per diluted share), compared to $1.6 million ($0.08 per diluted share) in Q3 2025.
• Adjusted net income for Q3 2026 was approximately $11.4 million ($0.35 per diluted share), compared to $4.7 million ($0.23 per diluted share) in Q3 2025.
• Trailing Twelve Months (TTM) revenue increased 12.4% to approximately $257.0 million compared to the prior TTM period of $228.5 million.
• TTM gross profit margin improved 290 basis points to 25.1% compared to 22.2% in the prior TTM period.
• TTM Adjusted EBITDA increased 33.6% to approximately $38.1 million (14.8% of revenue) compared to $28.5 million (12.5% of revenue) in the prior TTM period.
• TTM Net income was approximately $5.0 million ($0.17 per diluted share), compared to a net loss of $1.7 million ($0.08 per diluted share) in the prior TTM period.
• TTM Adjusted net income increased to approximately $22.7 million ($0.89 per diluted share) compared to $16.0 million ($0.71 per diluted share) in the prior TTM period.
• Open order backlog rose to a record $347.4 million, up 164% from $131.5 million at the end of Q2 2026 and up 298% from $87.3 million at the end of Q3 2025.
• Cash and restricted cash increased to $230.4 million at the end of the period, up from $1.8 million at the beginning of the period.
• Deferred revenue increased to $25.6 million as of October 2, 2026, from $14.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expressed confidence in the sustainability of current demand and visibility into future performance due to the record firm order backlog.
• The Company intends to invest $165 million to expand and modernize existing U.S. manufacturing capacity.
• The Company aims to build a more integrated platform expanding domestic tungsten capabilities from raw material sourcing through advanced manufacturing.
• Management anticipates realizing benefits from the Department of War (DoW) investment and the Defense Logistics Agency (DLA) framework agreement.
• The Company expects to successfully perform under the DLA Agreement and realize anticipated benefits from partnerships, including with Blue Moon Metal.
• Management indicated the potential to restart production at the Blue Moon Springer Tungsten Complex on an anticipated timeline and cost.
• The Company plans to effectively use net proceeds from the IPO and DoW Investment to benefit the business.

Business Segments and Product Lines:

• The Company operates through three divisions: Critical Materials Components (CMC), Engineered Microwave Products (EMP), and Elmet Refining & Trading (ERT).
• A new division, Elmet Refining and Trading, LLC ("ERT"), was formed to coordinate sourcing, refining, and delivery activities.
• Demand increased across all major end markets, including Aerospace, Defense & Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries.
• The Company secured long-term tungsten feedstock and processing capacity through strategic investments and offtake agreements.
• The Company committed approximately $150 million to Blue Moon Metal's Springer Tungsten Complex in Nevada through a joint venture.
• The Company invested $125 million in Masan High-Tech Materials Corporation ("Masan"), a long-time partner and major integrated tungsten producer.
• The Company announced the acquisition of OSRAM GmbH's metal production operations in Germany.

Market and Competitive Landscape:

• The Company operates in a period of "unprecedented realignment" in the critical materials and defense sectors.
• The Company is positioned to capitalize on significant opportunities driven by increased demand in Aerospace, Defense, and Government markets.
• The Company is strengthening domestic manufacturing capabilities to support U.S. and Allied needs in critical materials and advanced high-power microwave systems.
• The Company benefits from increased raw material pricing impacting results.

Risks and Challenges:

• Forward-looking statements regarding the DoW Investment and DLA Agreement include risks related to the ultimate size of these commitments.
• Risks exist regarding the ability to effectively meet product demand, build manufacturing capacity on time and within budget, and realize expected results.
• Potential risks include the ability to restart production at the Blue Moon facility on anticipated timelines and costs.
• Risks involve successfully closing the acquisition of Osram's assets and timing of such closing.
• The Company faces risks related to defense spending levels in the U.S. and other countries where it operates.
• Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict.

Management Commentary and Tone:

• CEO Peter V. Anania described the last few months as "transformational" for the Company.
• Management highlighted the "landmark" $450 million committed investment from the Department of War and an up to $2 billion long-term framework agreement with the Defense Logistics Agency.
• Management stated the quarter was a "pivotal step forward" in the mission to capitalize on significant opportunities.
• Management expressed confidence in the sustainability of current demand and the Company's exceptional positioning.
• The tone reflects high confidence in the Company's ability to execute its expanded strategy and integrated platform vision.

Other Key Points:

• The Company received a landmark $450 million committed investment from the Department of War (DoW) to secure the tungsten supply chain.
• The Company secured an up to $2 billion long-term framework agreement with the Defense Logistics Agency (DLA).
• The Company completed a reorganization on January 2, 2026, where Anania & Associates contributed ownership interests in exchange for Company common stock; the Company's tax status changed from an S-corporation to a C-corporation.
• The Company conducted an Initial Public Offering (IPO), raising net proceeds of $125.4 million.
• The Company issued Class A Redeemable Preferred Stock, raising $200 million in proceeds.
• The Company deconsolidated Anania & Associates Investment Company LLC on January 2, 2026, recognizing a $0.5 million spinoff impact within equity.
• Stock-based compensation for the nine months ended October 2, 2026, was $12.8 million.
• The Company recognized a provision for excess and obsolete inventories of $2.4 million for the nine months ended October 2, 2026.
• The Company paid $1.3 million in cash for income taxes during the nine months ended October 2, 2026.