Elmet Group Q3 2026: A 159% EPS Beat Backed by a $347M Backlog
As seen on the 24/7 Wall St. homepage on November 9, 2026.
Firm tungsten backlog hit $347.4 million against a $670 million market cap, so the order book now dwarfs the company itself. Gross margin widened to 31.3% on defense and aerospace demand, and management is funding a U.S. capacity expansion.
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Elmet Group posted adjusted earnings of $0.35 per share for the third quarter of 2026, against a consensus estimate of $0.14, a beat of roughly 159%. Revenue of $79.56 million topped expectations by 23%, rising 55.6% from the same quarter a year earlier to set a company record.
The principal driver of that growth was broad-based demand across aerospace, defense, and government end markets, combined with favorable raw material pricing on tungsten. Gross margin expanded 960 basis points to 31.3%, and adjusted EBITDA more than doubled to $16.96 million from $7.39 million a year earlier. GAAP net income reached $8.29 million, or $0.24 per diluted share, compared with $1.57 million in the prior-year period.
The firm order backlog stood at $347.4 million at quarter end, up 164% sequentially and 298% year over year. With a market cap of roughly $670 million, the backlog alone represents the majority of the company's market value, giving unusual near-term revenue visibility. Management said the backlog supports confidence that current demand levels are sustainable.
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The company secured a $450 million committed investment from the Department of War and a framework agreement with the Defense Logistics Agency worth up to $2 billion, moves CEO Peter V. Anania described as part of an "unprecedented realignment" in domestic tungsten supply chains. Those commitments are funding a planned $165 million U.S. manufacturing expansion, a $150 million joint venture in Blue Moon Metal's Springer Tungsten Complex in Nevada, a $125 million investment in Masan High-Tech Materials, and the pending acquisition of OSRAM's tungsten and molybdenum operations in Schwabmünchen, Germany.
Investors should keep in mind a few risks alongside the momentum. Inventory growth drove a nine-month operating cash outflow of $60,727K, and the January 2026 conversion from S-corporation to C-corporation status added a 39.9% GAAP effective tax rate in the quarter. Execution on the manufacturing expansion, the Blue Moon restart, and the OSRAM closing each carry their own timing and cost uncertainty.
Mentioned: ELMT