Q1 2025 financial results

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce its financial results for the three-month period ended 31 March 2025.

Financial highlights

• 7% increase in revenues to $12m (Q1 2024: $11.24m).
• 6% increase in operating profit to $1.25m (Q1 2024: $1.18m).
• 9% increase in net profit for shareholders in the Company to $1.02m (Q1 2024: $0.93m).
• Earnings per share increased by 12% to 1.18 US cents (Q1 2024: 1.06 US cents).
• 85% increase in net cash provided by operating activities to $2.31m (Q1 2024: $1.25m), contributing to a continued strong financial position with net cash as at 31 March 2025 of $8.05m (31 December 2024: $5.96m).

Operational highlights

Antennas

• The Antenna division serves as a one-stop shop for 'off-the-shelf' flat and parabolic antennas, as well as custom-developed antenna solutions for commercial and military customers, and specialises in providing 5G backhaul antennas to support mobile network rollouts.
• The division had a good first quarter with strong revenue growth up 22% versus the same period in the prior year leading to a three-fold increase in the division's profitability.
• 5G backhaul antenna and military antennas represented over 70% of the division's revenue in Q1 2025 (about 50% in the same period last year), which bodes well for the future as these are the growth engines of this division.

Water Control & Management

• This division operates under the Mottech brand and provides wireless control systems to manage irrigation and water distribution for agriculture, municipal authorities and commercial entities.
• Mottech's solutions reduce water and power usage for its customers and allows these customers to generate higher revenues from the higher yields that result from both an increased number and improved quality of crops cultivated.
• Revenues in Q1 2025 increased 11% versus the same period last year, but profits were 23% softer than Q1 2024, as revenue came from projects with lower gross margins. However, recent wins have higher gross margins which will feed through into the trading performance during the course of the year.

Distribution & Professional Consulting Services

• Operates under the MTI Summit Electronics brand and represents approximately 40 international suppliers of radio frequency/microwave components, selling these products to Israeli customers.
• Expert knowledge of both the international suppliers and customers enables MTI to also act as a consultant to all parties and assist with devising complete radio frequency/microwave solutions.
• Revenues decreased by 7% in Q1 2025, due to lower revenue from PSK with sales from the other parts of this division up marginally, leading to the division's profitability being $27K below last year.
• Overall backlog and pipeline of opportunities in both the traditional representation business and PSK is very strong which bodes well for the remainder of 2025.

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:

"We have started 2025 positively, delivering a good performance at all levels despite headwinds from adverse currency translation. Looking ahead, with the current backlog and pipeline of opportunities we expect to see growth in all three business divisions during the year.

"We believe that the underlying demand for our products is strengthening in all three of our principal markets. Demand across the globe for defence products has seen the most obvious increase. Water scarcity is a problem that increases each year and while slower, awareness is growing, which is leading to meaningful action. The roll-out of 5G networks is expanding each year and we have made strong in-roads into the substantial Indian market. Overall MTI is in a good position, Q2 is progressing well with three material contracts wins announced so far and as a Board we are confident about the outlook for the year."

Antenna division

Water Control & Management division

Distribution & Professional Consulting Services division

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

Other comprehensive income (loss) net of tax:

Items that will not be reclassified to profit or loss:

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

For the three month period ended March 31, 2025 (Unaudited):

Attributable to owners of the parent

Changes during the three month period ended March 31, 2025:

Comprehensive income

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY (CONT.)

For the three month period ended March 31, 2024 (Unaudited):

Attributable to owners of the parent

Changes during the three month period ended March 31, 2024:

Comprehensive income

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT.)

For the year ended December 31, 2024 :

Attributable to owners of the parent

The accompanying notes form an integral part of the financial statements.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

The accompanying notes form an integral part of the financial statements.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General:

Corporate information:

The Company and its subsidiaries are engaged in the following areas:

• Development, design, manufacture and marketing of antennas for the military and civilian sectors.

Note 2 - Significant Accounting Policies:

The interim consolidated financial statements as of March 31, 2025 have not been audited.

Note 3 - REVENUES:

(*) at the point in time

(**) over time

Note 4 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the three month period ended March 31, 2025 and 2024 respectively and for the year ended December 31, 2024.

Three month period ended March 31, 2025 (Unaudited):

Note 5 - SIGNIFICANT EVENTS:

• The Board of directors declared a cash dividend of 3.3 US cents per share being approximately $2,922,000. This dividend was paid on 11 April 2025 to shareholders on the register at the close of trading on 28 March 2025.
• The financial statements for the year ended 31 December 2024 were authorized for issue by the board as a whole following their approval on 16 March 2025.
• On 24 January 2019, the Company announced a share repurchase program to conduct market purchases of ordinary shares of par value 0.01 Israeli Shekels each ("Ordinary Shares") in the Company up to a maximum value of £150,000 (the "Programme"). Thereafter, the board of directors of the Company and the board of directors of MTI Engineering have decided to continue with the Programme for several further periods and to increase the maximum value of the Programme up to £1,000,000, plus any additional funds received from dividends or profits from selling the shares, although the current intention is to hold the Ordinary Shares purchased for a longer period of time. The Programme is currently in place until the end of March 2026 and as at 31 March 2025, 2,343,000 Ordinary Shares were held in treasury under the Programme.
• On 18 March 2025 at the Company's extraordinary meeting, Mr. Luke Ahern was reelected as an external non-executive director for his second three year term.

Note 6 - SUBSEQUENT EVENTS

F. On 6 May 2025, MTI announced that MTI Summit had increased its ownership of its subsidiary P.S.K Wind Technologies Ltd. ("PSK") via a new equity investment of NIS 600,000 (approximately US$170,000) (the "Investment"). Following the Investment, the Group owns 60% of PSK. Previously, on 4 January 2022, MTI announced that MTI Summit had acquired 51% of PSK (the "Acquisition"). In addition to the Acquisition, an earn out mechanism was in place under which further consideration could potentially be payable to the vendors of PSK (the "Earn Out") and that MTI Summit has an option to purchase and the vendors of PSK have an option to sell to MTI Summit the remaining 49% of PSK (the "Option") starting from 2027. The Earn Out has now lapsed and no further consideration is payable to the vendors of PSK. Following the Investment, the Option has been modified to reflect that the vendors' holding in PSK is now 40%. The remaining terms of the Option remain as set out in MTI's announcement of 4 January 2022.