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The Elmet Group Co.
The Elmet Group Co. Reports First Quarter 2026 Results
Published 7h ago
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The Elmet Group Co. Reports First Quarter 2026 Results

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Demand accelerating in Aerospace, Defense & Government markets

Successfully completed an upsized IPO, raising $125.5 million in net proceeds in Q2

Revenue increased nearly 21%, with over 250 basis points of gross profit margin expansion driving adjusted EBITDA increase of 106%

Backlog increased by nearly 52% to record level of $113 million

PORTLAND, Maine, May 29, 2026 (GLOBE NEWSWIRE) -- The Elmet Group Co. (“Elmet,” the “Company,” “we,” or “our”) (NASDAQ: ELMT), a U.S.-based provider of precision-engineered components and advanced high-power systems, today reported financial results for its fiscal first quarter ended April 3, 2026.

First Quarter Fiscal Year 2026 Highlights

  • Revenue increased 20.7% to approximately $56.0 million compared to approximately $46.4 million in Q1 2025.

  • Revenue from our Critical Materials & Components (“CMC”) division increased approximately $9.1 million compared to Q1 2025 primarily from growth within the Aerospace, Defense & Government (“ADG”) end market.

  • Gross profit margin improved 260 basis points to 21.2% of revenue compared to 18.6% of revenue Q1 2025.

  • Net income (loss) for Q1 2026 was $(0.3) million, or $(0.02) per share, compared to $1.2 million, or $0.06 per share, in Q1 2025. Adjusted net income (loss) for Q1 2026 was $4.7 million, or $0.24 per share, compared to $1.9 million, or $0.10 per share, in Q1 2025.

  • Adjusted EBITDA increased to approximately $9.2 million, or 16.4% of revenue, compared to approximately $4.5 million, or 9.6% of revenue, in Q1 2025.

  • Open order backlog increased to approximately $113.3 million, up from approximately $96.3 million at the end of Q4 2025 and approximately $74.7 million at the end of Q1 2025.

  • Recorded approximately $3.7 million in income related to a change in fair value and mark to market of the Company’s strategic investment in tungsten mining company EQ Resources Limited.

Trailing Twelve Months Highlights

  • Revenue increased 4.8% to approximately $211.2 million compared to 2025 fiscal year results of approximately $201.6 million.

  • Gross profit margin improved 60 basis points to 20.9% of revenue compared to 20.3% for the 2025 fiscal year.

  • Net income (loss) decreased to approximately $4.0 million, or $0.20 per share, compared to $5.5 million, or $0.28 per share, for the 2025 fiscal year. Adjusted net income (loss) increased to approximately $16.2 million, or $0.81 per share, compared to $13.4 million, or $0.67 per share, for the 2025 fiscal year.

  • Adjusted EBITDA increased approximately $5.2 million to $28.6 million, or 13.5% of revenue, compared to approximately $23.4 million, or 11.6% of revenue, for the 2025 fiscal year.

Management Commentary
“Today, we view the environment in which we operate as highly favorable and supported by strong demand for critical materials and engineered high-power systems, increasing defense spending, and ongoing supply chain realignment,” said Company CEO Peter V. Anania. “Following our successful public listing in April, we believe we are well-positioned to effectively meet this demand and expand our role as a trusted supplier across mission-critical systems.

“Our recent performance demonstrates the resilience and diversification of our operating model and our competitive strategic positioning within key growth markets, most notably ADG. We have built significant momentum, supported by our record backlog and newly fortified balance sheet, which we believe will allow us to make opportunistic investments to further support our long-term competitive positioning.”

Subsequent Events
Subsequent to the end of Q1 2026, we completed a successful upsized IPO of an aggregate of approximately 9.9 million shares of our common stock, including the full exercise by the underwriters of their overallotment option to purchase approximately 1.3 million additional shares, at a public offering price of $14.00 per share. The aggregate net proceeds from the offering were approximately $125.5 million after deducting underwriting discounts and commissions and other offering expenses payable by Elmet. We subsequently retired $17.8 million in term debt and paid $8.3 million transaction related stock appreciation rights costs, resulting in net $99.4 million cash on hand from the proceeds. We intend to use the net cash we received from this offering, as well as our pre-existing cash, for growth capital, working capital, and general corporate purposes.

Conference Call
The Elmet Group Co. management will host a conference call today, Friday, May 29, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period.

Toll-Free Number: 877-869-3847
International Number: +1 201-689-8261
Webcast: Register and Join

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

The conference call will be broadcast simultaneously and available for webcast replay here.

About The Elmet Group
The Elmet Group is a U.S.-based provider of precision-engineered components and advanced high-energy systems for the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. The Company operates through two divisions, Critical Materials Components (CMC) and Engineered Microwave Products (EMP), leveraging materials science and precision engineering expertise to deliver high-performance solutions. The Elmet Group is dedicated to strengthening domestic manufacturing capabilities to support the U.S. and its allies’ needs in both critical materials and advanced high-power microwave systems.

Reorganization and Presentation of Financial Results

On January 2, 2026, the Company effected a reorganization (the “Reorganization”) whereby Anania & Associates and its noncontrolling interest holders contributed their ownership interests in Anania & Associates and its consolidated subsidiaries in exchange for shares of common stock in the Company. The Reorganization was a reorganization of entities under common control as Anania & Associates and the Company were controlled by the Company’s Chief Executive Officer (“CEO”) before and after the Reorganization. As a result, the Reorganization was accounted for in a manner similar to a pooling of interests with the assets and liabilities of Anania & Associates and its consolidated subsidiaries being carried over at their historical amounts. The historical consolidated financial statements of Anania & Associates were retrospectively recast to reflect the results as if the Company owned Anania & Associates and its consolidated subsidiaries as of January 1, 2025. In connection with the Reorganization, Anania & Associates Investment Company LLC, an immaterial subsidiary of Anania & Associates, was no longer controlled by the Company and was deconsolidated on January 2, 2026. The deconsolidation was recognized as a spinoff and the impact of $0.5 million was recognized within equity. In connection with the Reorganization, the Company’s tax status changed from an S-corporation to a C-corporation.

Non-GAAP Financial Measures

In evaluating its business, the Company uses or may use certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance. These measures are commonly used in the manufacturing industry to provide stockholders and potential investors with additional information that excludes unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of the Company’s ongoing operating results. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools when assessing the Company’s operating and financial performances, and investors should not consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. The reconciliations to EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share from relevant GAAP metrics are included at the end of this press release. Backlog as reported is confirmed orders from customers for which revenue has not been recognized.

Forward Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements generally relate to future events or our future financial or operating performance and include statements regarding Elmet’s intended use of proceeds from the IPO, Elmet’s ability to: (i) effectively meet demand for its products, (ii) benefit from defense spending levels in the United States and other countries in which it does business, (iii) successfully pursue its ongoing supply chain realignment, (iv) expand its role as a supplier across its end markets, (v) successfully make opportunistic investments, if any, that will support its competitive positioning, and (vi) effectively use the net proceeds received from its IPO to its benefit in the manner currently contemplated, in a different manner, or at all. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Elmet’s Registration Statement on Form S-1, as amended (File No. 333-294725) and subsequent filings Elmet makes with the Securities and Exchange Commission. Elmet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Company Contact
Chris Chandler
contact@theelmetgroup.com

Investor Contact
Tom Colton and Greg Bradbury
Gateway Group, Inc.
ELMT@gateway-grp.com
949-574-3860

-Financial tables to follow-


THE ELMET GROUP CO.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)

 

 

April 3,
2026

 

December 31,
2025

Assets

 

 

 

 

Current Assets:

 

 

 

 

 

Cash

$

1,825

 

$

1,759

Marketable securities

 

838

 

 

202

Accounts receivable, net

 

29,127

 

 

28,904

Government grant receivables

 

 

 

1,690

Related party receivables

 

178

 

 

426

Unbilled revenue

 

3,610

 

 

2,621

Inventories, net

 

75,032

 

 

69,697

Income tax receivable

 

74

 

 

Derivative asset

 

3,095

 

 

Prepaid expenses and other current assets

 

6,462

 

 

4,774

Total current assets

 

120,241

 

 

110,073

Property, plant and equipment, net

 

44,185

 

 

42,342

Operating lease right-of-use assets

 

10,448

 

 

10,586

Intangible assets, net

 

6,870

 

 

7,184

Goodwill

 

4,547

 

 

4,583

Deferred tax assets, net

 

84

 

 

Other assets

 

872

 

 

878

Total assets

$

187,247

 

$

175,646

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

$

17,679

 

$

16,165

Accrued expenses and other current liabilities

 

13,765

 

 

13,659

Operating lease liabilities, current portion

 

898

 

 

875

Current portion of long-term debt – related party

 

2,396

 

 

2,319

Current portion of long-term debt

 

6,229

 

 

7,755

Deferred government grants

 

4,166

 

 

4,672

Deferred revenue

 

23,494

 

 

14,853

Total current liabilities

 

68,627

 

 

60,298

Operating lease liabilities, net of current portion

 

10,022

 

 

10,247

Long-term debt, net of current portion

 

26,768

 

 

28,455

Long-term debt, net of current portion – related party

 

15,000

 

 

15,000

Deferred tax liabilities, net

 

4,820

 

 

Other liabilities

 

1,000

 

 

1,189

Total liabilities

 

126,237

 

 

115,189

 

 

 

 

 

 

Commitments and Contingencies (Note 18)

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Preferred Stock - $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding as of April 3, 2026 and December 31, 2025

 

 

 

 

Class A Common Stock – $0.001 par value; 500,000,000 shares authorized, 20,122,721 shares issued and outstanding as of April 3, 2026 and December 31, 2025

 

20

 

 

 

20

Class B Common Stock – $0.001 par value; 40,000,000 shares authorized, 466 shares issued and outstanding as of April 3, 2026 and December 31, 2025

 

 

 

 

Additional paid-in capital

 

16,011

 

 

 

15,366

Retained earnings

 

44,995

 

 

 

44,791

Accumulated other comprehensive (loss) income

 

(16

)

 

 

280

Total stockholders’ equity

 

61,010

 

 

 

60,457

Total liabilities and stockholders’ equity

$

187,247

 

 

$

175,646

The accompanying notes are integral to the unaudited consolidated financial statements.


THE ELMET GROUP CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

 

April 3,
2026

 

March 31,
2025

Revenue

 

$

56,007

 

 

$

46,387

 

Cost of goods sold

 

 

44,159

 

 

 

37,776

 

Gross profit

 

 

11,848

 

 

 

8,611

 

Operating expenses:

 

 

 

 

 

 

General and administrative

 

 

7,068

 

 

 

3,259

 

Research and development

 

 

850

 

 

 

811

 

Sales and marketing

 

 

2,067

 

 

 

1,683

 

Total operating expenses

 

 

9,985

 

 

 

5,753

 

Operating income

 

 

1,863

 

 

 

2,858

 

Other (income) expense, net:

 

 

 

 

 

 

Interest expense

 

 

613

 

 

 

510

 

Interest expense – related party

 

 

627

 

 

 

416

 

Change in fair value of derivative asset

 

 

(3,095

)

 

 

 

Other (income) expense, net

 

 

(654

)

 

 

79

 

Total other (income) expense, net

 

 

(2,509

)

 

 

1,005

 

Income from continuing operations before taxes

 

 

4,372

 

 

 

1,853

 

Income tax provision

 

 

4,710

 

 

 

 

(Loss) income from continuing operations

 

 

(338

)

 

 

1,853

 

Loss from discontinued operations

 

 

 

 

 

(656

)

Net (loss) income

 

$

(338

)

 

$

1,197

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

Basic

 

$

(0.02

)

 

$

0.06

 

Diluted

 

$

(0.02

)

 

$

0.06

 

Weighted average shares outstanding

 

 

 

 

 

 

Basic

 

 

20,123,187

 

 

 

20,123,187

 

Diluted

 

 

20,123,187

 

 

 

20,123,187

 

The accompanying notes are integral to the unaudited consolidated financial statements.


THE ELMET GROUP CO.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

 

 

 

Three Months Ended

 

 

 

April 3,
2026

 

 

 

March 31,
2025

 

Cash flows from operating activities:

 

 

 

 

 

Net (loss) income

$

(338)

 

 

$

1,197

 

Loss from discontinued operations

 

 

 

 

(656)

 

(Loss) income from continuing operations

 

(338)

 

 

 

1,853

 

Adjustments to reconcile (loss) income from continuing operations to net cash provided by operating activities:

 

 

 

 

 

Deferred income taxes

 

4,736

 

 

 

 

Change in fair value of derivative asset

 

(3,095)

 

 

 

 

Depreciation and amortization

 

1,923

 

 

 

1,604

 

Stock-based compensation

 

645

 

 

 

 

Noncash operating lease expense

 

138

 

 

 

217

 

Noncash interest expense

 

6

 

 

 

7

 

Provision for excess and obsolete inventories

 

36

 

 

 

395

 

Change in fair value of interest rate collars

 

(34)

 

 

 

(56)

 

Unrealized gain on marketable securities

 

(636)

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(229)

 

 

 

7,537

 

Unbilled revenue

 

(989)

 

 

 

(1,051)

 

Inventories

 

(5,387)

 

 

 

(6,405)

 

Related party receivables

 

171

 

 

 

(3)

 

Income tax receivable

 

(74)

 

 

 

 

Prepaid expenses and other current assets

 

(1,202)

 

 

 

(272)

 

Other assets

 

(4)

 

 

 

7

 

Accounts payable

 

2,492

 

 

 

291

 

Accrued expenses and other current liabilities

 

392

 

 

 

(203)

 

Operating lease liabilities

 

(202)

 

 

 

(188)

 

Deferred revenue

 

8,645

 

 

 

4,520

 

Other liabilities

 

(73)

 

 

 

(20)

 

Net cash provided by operating activities from continuing operations

 

6,921

 

 

 

8,233

 

Net cash used in operating activities from discontinued operations

 

 

 

 

(2,928)

 

Net cash provided by operating activities

 

6,921

 

 

 

5,305

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property, plant and equipment, net of grant proceeds (see Note 7 – Government Grants)

 

(2,337)

 

 

 

(2,733)

 

Net cash used in investing activities from continuing operations

 

(2,337)

 

 

 

(2,733)

 

Net cash used in investing activities from discontinued operations

 

 

 

 

(24)

 

Net cash used in investing activities

 

(2,337)

 

 

 

(2,757)

 

Cash flows from financing activities:

 

 

 

 

 

Payments of principal on revolving credit facility

 

(1,810)

 

 

 

(2,048)

 

Proceeds from revolving credit facility

 

164

 

 

 

400

 

Payments of principal on long-term debt

 

(1,074)

 

 

 

(2,966)

 

Payments of principal on long-term debt – related party

 

(1,519)

 

 

 

 

Cash distributions paid to stockholders

 

 

 

 

(1,789)

 

Payments of deferred consideration

 

(73)

 

 

 

 

Net payments of principal on revolving credit facility – related party

 

(150)

 

 

 

(32)

 

Payments of principal on finance leases

 

(11)

 

 

 

(13)

 

Net cash used in financing activities from continuing operations

 

(4,473)

 

 

 

(6,448)

 

Net cash provided by financing activities from discontinued operations

 

 

 

 

28

 

Net cash used in financing activities

 

(4,473)

 

 

 

(6,420)

 

Effects of exchange rate changes on cash

 

(45)

 

 

 

146

 

Net increase (decrease) in cash

$

66

 

 

$

(3,726)

 

Cash at beginning of period

 

1,759

 

 

 

6,532

 

Cash at end of period

$

1,825

 

 

$

2,806

 

Reconciliation of cash at beginning of period:

 

 

 

 

 

Cash at beginning of period – continuing operations

$

1,759

 

 

$

3,608

 

Cash at beginning of period – discontinued operations

 

 

 

 

2,924

 

Cash at beginning of period

$

1,759

 

 

$

6,532

 

 

 

 

 

 

 

Reconciliation of cash at end of period:

 

 

 

 

 

Cash at end of period – continuing operations

$

1,825

 

 

$

2,806

 

Cash at end of period – discontinued operations

 

 

 

 

 

Cash at end of period

$

1,825

 

 

$

2,806

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

Purchases of property, plant and equipment included in accounts payable and accrued expenses

$

1,081

 

 

$

52

 

Deferred offering costs included in accounts payable and accrued expenses

$

1,346

 

 

$

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid for interest

$

1,085

 

 

$

930

 

 

 

 

 

 

 

The accompanying notes are integral to the unaudited consolidated financial statements.

Non-GAAP Financial Measures:
The following tables display certain non-GAAP financial measures we believe are helpful in assessing our performance and interpreting our financial results. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.

Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measurement. We define Adjusted EBITDA as our net income plus interest expense, income taxes, depreciation and amortization, and, as applicable for each period, stock-based compensation expense and non-cash gains and losses on the sale of assets. Adjusted EBITDA also excludes certain non-recurring costs such as the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs.



THE ELMET GROUP CO.
ADJUSTED EBITDA FROM CONTINUING OPERATIONS
(NON- GAAP, UNAUDITED)
(in thousands)

 

 

 

Quarters Ended

 

 

 

 

March 31, 2025

 

April 3, 2026

 

Year ended December 31,
2025

 

TTM April 3,
2026

 

Revenue

$

46,387

 

$

56,007

 

$

201,636

 

$

211,256

 

 

Gross profit

 

8,611

 

 

11,848

 

 

41,019

 

 

44,257

 

 

Gross profit margin %

 

18.6%

 

 

21.2%

 

 

20.3%

 

 

20.9%

 

 

Operating expenses

 

5,753

 

 

9,985

 

 

28,945

 

 

33,177

 

 

Net income (loss) from continuing operations

 

1,853

 

 

(338)

 

 

7,940

 

 

5,749

 

 

Net income (loss) from continuing operations %

 

4.0%

 

 

(0.6)%

 

 

3.9%

 

 

2.7%

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

 

4,710

 

 

(45)

 

 

4,665

 

 

Interest expense(1)

 

926

 

 

1,240

 

 

4,410

 

 

4,724

 

 

Depreciation and amortization

 

1,604

 

 

1,923

 

 

6,048

 

 

6,367

 

 

Acquisition and transaction costs(2)

 

67

 

 

30

 

 

440

 

 

403

 

 

Stock-based compensation(3)

 

 

 

645

 

 

1,451

 

 

2,096

 

 

Corporate costs associated with the offering(4)

 

10

 

 

798

 

 

2,580

 

 

3,368

 

 

Other(5)

 

 

 

166

 

 

1,013

 

 

1,179

 

 

Adjusted EBITDA (6)

$

4,460

 

$

9,174

 

$

23,387

 

$

28,551

 

 

Adjusted EBITDA Margin

 

9.6%

 

 

16.4%

 

 

11.6%

 

 

13.5%

 

 


(1)   Interest expense includes both third-party interest expense and related party interest expense.
(2)   The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.
(3)   Stock-based compensation includes expenses associated with restricted stock grants made in support of our initial public offering and the Reorganization.
(4)   Corporate costs associated with the initial public offering include third-party expenses related to enhancing our accounting controls and procedures, incremental audit costs, recruitment of executive team and legal expenses.
(5)   Others includes non-recurring costs associated with a utility failure at our CMC facility in Euclid, Ohio, and other restructuring costs.
(6)   Adjusted EBITDA excludes the financial impact of discontinued operations. On October 1, 2025 A&A distributed its shares in Polymer Laboratories, LLC to the individual shareholders, which is unrelated to A&A continuing operations and The Elmet Group Co.

Adjusted Net Income and Adjusted Net Income Per Share

Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measurements. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable.



THE ELMET GROUP CO.
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
(NON-GAAP, UNAUDITED)
(in thousands)

 

 

 

Quarters Ended

 

 

 

 

 

 

March 31, 2025

 

April 3, 2026

 

Year ended December 31,
2025

 

TTM April 3,
2026

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

$

1,197

$

(338)

 

$

5,542

$

4,007

 

 

Income (loss) from discontinued operations

 

656

 

 

 

2,398

 

1,742

 

 

One time tax expense associated with the Reorganization(1)

 

 

3,791

 

 

 

3,791

 

 

Corporate costs associated with the IPO(2)

 

10

 

798

 

 

2,580

 

3,368

 

 

Stock-based compensation(3)

 

 

645

 

 

1,451

 

2,096

 

 

Acquisition and transaction costs(4)

 

67

 

 

 

440

 

373

 

 

Other(5)

 

 

196

 

 

1,013

 

1,209

 

 

Tax effect of adjustments(6)

 

 

(344)

 

 

 

(344)

 

 

Adjusted net income

$

1,930

$

4,748

 

$

13,424

$

16,242

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

20,123

 

20,123

 

 

20,123

 

20,123

 

 

Weighted average shares outstanding – diluted(7)

 

20,123

 

20,426

 

 

20,260

 

20,337

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.10

$

0.24

 

$

0.67

$

0.81

 

 

Diluted(7)

$

0.10

$

0.23

 

$

0.66

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

Unadjusted net income per share:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.06

$

(0.02)

 

$

0.28

$

0.20

 

 

Diluted(7)

$

0.06

$

(0.02)

 

$

0.27

$

0.20

 

 


(1)   Reflects the impact of the deferred tax adjustment of $3.5 million, which was recognized in the period of Reorganization and does not reflect ongoing income tax expense, and other discrete tax impacts of $0.3 million related to the Reorganization.
(2)   Corporate costs associated with the initial public offering include third-party expenses related to enhancing our accounting controls and procedures, incremental audit costs, recruitment of executive team and legal expenses.
(3)   Stock-based compensation includes expenses associated with restricted stock grants made in support of our initial public offering and the Reorganization.
(4)   The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.
(5)   Other includes restructuring and severance costs associated with a reorganization at our CMC division and non-recurring costs associated with a utility failure at our CMC facility in Euclid, Ohio and other restructuring costs.
(6)   The tax effect for the quarter ended April 3, 2026 represents our actual effective tax rate for the period of 21.0% when excluding the Reorganization impacts. There is no tax impact prior to the quarter ended April 3, 2026, as we were treated as an S-corporation for tax purposes prior to the Reorganization.
(7)   The potential impact on weighted average common stock outstanding (diluted) related to our restricted stock was evaluated under the treasury stock method based on the weighted average unrecognized compensation costs for each period and the estimated fair value of our common stock for each period.