Record Q3 2025 revenues and profit growth at MTI Wireless Edge
MTI Wireless Edge has posted a record quarter, with demand strong across all three divisions. For the nine months to 30 September 2025, revenue rose 12% to $37.8m and profit from operations climbed 21% to $4.2m. Basic earnings per share moved up 20% to 4.31 US cents. Management says the Group is on track for a strong full year and expects to declare a progressive final dividend alongside FY2025 results in Q1 2026.
The drivers are clear: defence now accounts for 48% of total sales, 5G roll-out continues to underpin antenna demand, and Mottech’s electronic water management solutions are benefiting from the global push to tackle water scarcity.
Key numbers investors should know
| Metric (9M to 30 Sep 2025) | Result | YoY change |
|---|---|---|
| Revenue | $37.8m | +12% (2024: $33.7m) |
| Profit from operations | $4.2m | +21% (2024: $3.5m) |
| Basic EPS | 4.31 US cents | +20% (2024: 3.60 US cents) |
| Net cash provided by operating activities | $4.0m | vs $1.1m in 9M 2024 |
| Net cash position | $6.4m | up from $4.8m at 30 Sep 2024 |
| Cash and cash equivalents | $6.6m | $5.1m at 30 Sep 2024 |
Divisional performance: defence-led momentum, water solutions resilience
Antenna division – defence offsets softer 5G backhaul in India
Antennas delivered a strong third quarter, fuelled by higher global defence spending. Rising demand for military antennas was the principal growth driver in both Q3 and the year-to-date. Management does flag a slower quarter for its 5G backhaul solution in India versus H1, and this softness is continuing into Q4. Balance that against “significant commercial interest” in the ABS antenna solution from leading cellular operators, which could set up a healthier 2026.
9M 2025 revenue in Antennas was $12.3m with segment profit of $1.1m (9M 2024: $1.0m). The order book includes a number of sizeable tenders awaiting responses, so near-term visibility looks decent.
Mottech (Water Control & Management) – steady growth from water scarcity themes
Mottech delivered a strong Q3. Demand for electronic water management and irrigation solutions continues to build among businesses and governments aiming to cut waste and improve resilience. Key markets were Israel, the Gulf States, Italy and the US. Management guides that the division is well placed for a strong FY2025.
For the nine months, Mottech revenue reached $13.4m with segment profit of $1.2m (9M 2024: $1.8m). Year-on-year profit is lower, but Q3 traction and the geographic breadth provide balance.
MTI Summit (Distribution & Professional Services) – PSK back to profit
MTI Summit recorded a positive quarter, with PSK – the defence-focused subsidiary – reversing prior under-performance to deliver a profit in Q3. The pipeline of new prospects is described as strong, and the division’s main revenue driver remains defence demand.
9M 2025 revenue was $12.2m with segment profit of $1.5m, a sharp improvement from $0.3m in 9M 2024. That rebound, coupled with a growing number of design solution requests, has helped create a robust order backlog.
Cash generation, balance sheet and dividends
Cash generation was a highlight. Operating cash flow came in at $4.0m in the first nine months – already ahead of the $3.1m delivered in the whole of 2024. Cash and cash equivalents stood at $6.6m at 30 September 2025, supporting a net cash position of $6.4m.
Working capital moved around – unbilled revenue rose to $5.9m (31 December 2024: $3.2m) – but did not prevent strong cash generation. The company paid a cash dividend of 3.3 US cents per share on 11 April 2025 and now anticipates a progressive final dividend to be declared with FY2025 results in Q1 2026.
Share count continues to edge down thanks to the ongoing buyback programme, with 2,343,000 shares held in treasury at 30 September 2025. The programme currently runs to the end of March 2026.
What management said – and why it matters
The CEO highlights three secular growth engines: defence, 5G roll-out and water scarcity. Defence is now the largest, representing 48% of total sales. With governments committing to higher defence budgets, MTI’s radio-frequency solutions are well aligned. This mix shift helps explain the step-up in operating profit and the confidence in a strong full-year outturn.
On antennas, the short-term drag from India’s 5G backhaul demand is worth noting. However, the ABS antenna solution is drawing “significant commercial interest” from top-tier cellular operators – a potential catalyst for 2026 if trial activity converts to orders.
Quick segment snapshot
| Division (9M 2025) | Revenue | Segment profit | Commentary |
|---|---|---|---|
| Antenna | $12.3m | $1.1m | Defence demand strong; India 5G backhaul softer; ABS antenna interest building |
| Water Solutions (Mottech) | $13.4m | $1.2m | Growth across Israel, Gulf, Italy and US; positioned for strong FY2025 |
| Distribution & Professional Services (MTI Summit) | $12.2m | $1.5m | Defence-led; PSK back to profit; robust pipeline and order backlog |
My take: positives, watch-outs and what’s next
- Positives: record revenue and profitability, strong operating cash flow, net cash up to $6.4m, and momentum across all divisions. The defence mix – now 48% of sales – is supporting margins and visibility.
- Dividend: a progressive final dividend is “anticipated” in Q1 2026, underpinned by cash generation and a solid balance sheet.
- Execution proof points: PSK’s return to profit and MTI Summit’s improved margin are encouraging; Antennas has meaningful tender activity and growing ABS interest.
- Watch-outs: softer 5G backhaul demand in India continued into Q4. Also, Mottech’s year-on-year segment profit dipped despite healthy demand – worth monitoring against the strong Q3 run-rate.
- Governance note: following the passing of founder and Chairman Zvi Borovitz in June, Amalia Borovitz Bryl was elected Chair in September under the same management services terms, ensuring continuity.
Outlook into Q4 2025 and FY2026
MTI says it is positioned for a strong full-year outturn, supported by a “robust order backlog” going into Q4. Looking into 2026, a “series of upcoming significant tenders” should help replenish and extend the order book. If ABS antenna trials convert and defence budgets remain elevated, the group has multiple shots on goal.
In short, this update reads positively: growth, cash, and an improving mix. The near-term India 5G pause is a blemish, but not a thesis breaker given the breadth of demand MTI is seeing across defence and water solutions.
