MTI Wireless Edge H1 2026: Profit Rises 28% as Mottech Leads Growth

MTI Wireless Edge's H1 results at a glance

MTI Wireless Edge Limited has reported a strong set of interim results, with revenue, profit and earnings per share all moving higher during the six months to 30 June 2026.

Revenue increased by 11% to US$26.7 million, while operating profit rose faster, climbing 21% to US$3.0 million. Net profit improved by 28% to US$2.5 million, and basic earnings per share increased by 15% to 2.88 US cents.

That combination matters. Sales growth is welcome, but the faster increase in operating profit suggests MTI also generated better returns from each dollar of revenue.

Key figure	H1 2026	H1 2025	Change
Revenue	US$26.7 million	US$24.1 million	11%
Gross profit	US$9.0 million	US$7.8 million	15%
Gross margin	33.8%	32.5%	1.3 percentage points
Operating profit	US$3.0 million	US$2.5 million	21%
Net profit	US$2.5 million	US$2.0 million	28%
Basic earnings per share	2.88 US cents	2.50 US cents	15%
Net cash	US$7.7 million	Not disclosed for H1 2025	Not disclosed

The operating margin increased to approximately 11.3%, compared with 10.3% in the prior-year period. This reflects what management described as an improved business mix, meaning a greater contribution from higher-margin products and contracts.

Investors can read the original company announcement for the full unaudited financial statements.

Mottech was the standout performer

MTI operates through three divisions covering antennas, water control systems and radio frequency distribution and consulting services.

Mottech, the water control and management business, delivered the strongest H1 performance. Revenue increased by 31% to US$10.9 million, while segment profit rose by 51% to US$1.2 million.

Demand was particularly strong in North America, Italy and the Arabian Gulf. The division also opened an Italian office in May and secured a landscape irrigation contract in the Arabian Gulf shortly after the period ended.

The long-term attraction here is the need to manage limited water supplies more efficiently. Mottech provides wireless systems used to monitor and control irrigation and water distribution.

MTI acquired the remaining 50% of Australian subsidiary Mottech Parkland in February for AUD550,000. This gives the group full ownership and greater control over its development, although the announcement does not disclose how much Mottech Parkland contributed to H1 revenue or profit.

Management is also assessing whether to bring selected external distribution businesses in-house. This could deepen Mottech's presence in important markets, but the potential cost and timing were not disclosed.

MTI Summit benefits from defence demand and scalability

The MTI Summit division also performed well, with external revenue increasing by 21% to US$9.2 million. The company reported an 18% increase in divisional sales on its broader measure, with operating profit up 46% to US$1.0 million.

Management attributed the profit growth to a favourable product mix and improved operational scalability. Scalability means the business can handle more sales without costs rising at the same rate.

PSK, in which MTI has increased its stake to 60%, secured a contract to supply communications infrastructure to the Israeli Ministry of Defence. Initially valued at US$2.2 million, its scope was subsequently expanded to approximately US$4.5 million.

The company says PSK has overcome the challenges it previously faced and now has a stronger platform for future growth. However, the announcement does not quantify those earlier challenges or disclose the expected profit margin on the new work.

Antenna revenue fell, but the order book offers support

The Antenna division was the weak spot in the headline revenue figures. Sales declined by 20% to US$6.6 million, while segment profit fell to US$596,000 from US$696,000.

There is important context. MTI secured approximately US$6 million of new antenna orders in April, with the vast majority expected to be delivered over the following 18 months. Their late timing means the revenue contribution is weighted towards the second half of 2026 and beyond.

Profitability was broadly maintained before a US$100,000 bad debt provision, helped by a stronger mix of military and ABS antenna sales. ABS forms part of MTI's 5G backhaul range, which helps carry mobile network traffic between sites and the wider network.

The division also secured a significant new ABS customer, although the customer's identity, contract value and delivery schedule were not disclosed.

Antenna sales into India's E-band 5G backhaul market remained slower than in previous periods. Management believes the market opportunity is unchanged, but describes the timing as difficult to predict. That remains a genuine area of uncertainty.

Cash generation remains healthy

MTI generated US$2.3 million of net cash from operating activities, compared with US$2.5 million a year earlier. Cash conversion remained solid despite the lower year-on-year operating cash flow.

Cash and cash equivalents stood at US$8.2 million at the period end. Net cash was US$7.7 million, down from US$9.4 million at the end of 2025 after several financing outflows.

These included a US$3.0 million dividend paid in April, US$480,000 used to acquire the remaining interest in Mottech Parkland and US$314,000 of lease payments.

The dividend was 3.4 US cents per share. No additional interim dividend was announced with these results.

The balance sheet therefore remains a positive feature. MTI ended June with total equity of US$30.9 million and relatively limited bank borrowing. This provides some flexibility to invest in growth, manage working-capital movements and pursue selected opportunities.

What investors should watch in the second half

MTI says third-quarter trading started well and expects to perform in line with market expectations for the full year. The numerical level of those expectations was not disclosed.

The main positives are the improved group margin, Mottech's rapid growth, MTI Summit's stronger profitability and the Antenna division's approximately US$6 million of recently secured orders. The diversified divisional structure also reduced the impact of weaker first-half antenna revenue.

The main risks are execution and timing. MTI must convert its backlog into delivered revenue, while antenna demand in India remains unpredictable. The group is also exposed to geopolitical conditions, particularly through its defence activities and Israeli operations.

Compared with MTI's H1 2025 performance, this update shows that growth has continued while margins have strengthened. The second half now needs to demonstrate that the delayed antenna contracts can complement the momentum already visible at Mottech and MTI Summit.