Half-year Results

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to today announce its financial results for the six month period ended 30 June 2026.

Financial highlights - double digit growth at all levels

• 11% growth in revenues to US$26.7m (H1 2025: US$24.1m)
• 21% increase in operating profit to US$3.0m (H1 2025: US$2.5m)
• 28% rise in net profit to US$2.5m (H1 2025: US$2.0m)
• 15% boost to basic earnings per share to 2.88 US cents (H1 2025: 2.50 US cents)
• Continued strong cash position with net cash standing at US$7.7m on 30 June 2026, reflecting high cashflow conversion rate and after a $3.0m dividend payment in April 2026 (net cash at 31 December 2025: $9.4m)

Operational highlights

Antenna division

· The Antenna division is well positioned following the award of a series of significant defence contracts in April 2026. These contracts were secured late in the period and due to this timing, the Antenna division's H1 revenues were 20% below the prior year comparison. Nonetheless, a stronger business mix delivered improved margins, resulting in the division's operating profit broadly in line with H1 2025, excluding a $100,000 bad debt provision made this year. With the benefit of the new contracts, together with a strong existing order backlog, the division is well placed for the second half of the year.

• Reflecting the rise in conflicts globally, defence orders are expected to continue to be the primary driver of future revenues for this division. Order intake has been high from this sector alongside a notable increase in contract values.

Mottech

· Mottech delivered an excellent period of outperformance, with sales increasing 31% and operating profit rising 51% compared with H1 2025. Demand for Mottech's services was particularly strong across international markets with North America, Italy and the Arabian Gulf being key contributors to growth. The division opened a new office in Italy in May. The division is assessing opportunities to bring selected external distribution businesses in-house in key markets, providing the potential to accelerate growth and deepen its market presence. Overall, Mottech is on course to deliver a strong performance for the full year.

MTI Summit

• MTI Summit delivered another strong performance, with sales increasing 18% and operating profit rising 46% compared with H1 2025, reflecting an improved business mix alongside the benefits of greater operational scalability. Importantly, PSK, in which the Group has increased its stake to 60%, has successfully overcome the challenges it faced and has secured a series of valuable new defence contracts, providing a strong platform for future growth. The division continues to have a strong pipeline of future design tenders, underpinning a positive outlook for the remainder of the year.

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

"I am delighted to report an excellent trading period for the Group. This is clearly demonstrated by the double-digit improvement across all of our trading performance. While defence has been a key driver, given the increase in global tensions and related defence spending, we are a diversified business and in these six months our water control and distribution business, Mottech, was the best performing division.

"This shows the importance of having a diversified business relevant across a variety of sectors. MTI targets several growth markets, and the technology and services we provide are based on our core expertise of sending and receiving information wirelessly and reliably, often in harsh environments.

"We have entered the second half well placed to achieve a good result for the year. We have an extensive backlog of orders, good visibility on future opportunities to tender for new contracts, a strong balance sheet and rising demand across all three divisions."

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Chief Executive's statement

The Group delivered a strong trading performance in the first half of 2026, against a backdrop that continues to create real opportunities across all three divisions of the business. There is ongoing sustained demand across our products and solutions, driven by both higher defence budgets alongside mounting pressure on water security driving investment in smart irrigation, a trend from which Mottech continues to benefit. As a result, MTI achieved double digit growth in revenue, gross margin, operating profit, net profit and earnings per share, with gross margin improving to 33.8% from 32.5%, reflecting a healthy sales mix and improving the Group's earnings growth.

The Group remains focused on its long-standing strategy of maintaining a diversified offering across three divisions, each serving specialised sectors, which has been the foundation of MTI's consistent performance.

Antenna division

This division is a one stop shop for the sale of 'off the shelf' flat and parabolic antennas, combined with the provision of custom-developed antenna solutions to a range of commercial and military customers, with a growing focus on providing 5G backhaul antenna solutions to support mobile phone operators as they roll-out their 5G networks. These are mission-critical products, engineered to send information reliably in unpredictable environments, a quality that continues to underpin demand from military and commercial customers alike.

The Antenna division has been extremely successful in securing a series of new orders in total worth approximately $6 million with the vast majority due over the next 18 months; these contracts were won in April 2026, which will result in a second-half weighted revenue split this year. Notwithstanding the second-half weighting in revenue, operational profitability was broadly maintained relative to the prior year, reflecting an improved gross margin derived from military and ABS® antenna sales.

In December 2025, the division achieved AS9100D certification, the internationally recognised quality standard for the aerospace and defence sector, which has visibly strengthened MTI's ability to tender for higher value airborne defence contracts, an area of the market experiencing significant growth as governments invest in next generation military hardware.

Sales of the division's innovative ABS® antenna solution, which forms part of the Company's 5G backhaul offering, remained strong and were a key driver of profitability during the period. This was further supported by a significant new customer win for the ABS® antenna solution during the six months, strengthening the division's position as the leading provider of this technology to Western customers. The benefits of this win are expected to be reflected in future periods, providing further support for the division's growth prospects.

While E-band 5G backhaul solution sales in India have been slower compared to previous periods, they remain crucial to the leading mobile operators ability to rollout their 5G networks, and the potential therefore for this market remains unchanged albeit hard to predict.

Water Control & Management division

This division provides wireless control systems to manage irrigation and water distribution for agriculture, municipal authorities and commercial entities. It operates under the Mottech brand and utilises part of the hardware technology from Motorola, integrated with the Company's own proprietary hardware and management software.

Mottech delivered a strong increase in revenue, up 31% against the previous period last year, together with a 51% increase in operating profit, making it the leading division in the Group during H1 2026. Water scarcity remains a critical global issue and is driving demand for products which can efficiently manage irrigation and water distribution, creating scope to grow with existing clients and to win new customers in new markets, including a landscape irrigation contract secured in the Arabian Gulf shortly after the period end.

In February 2026, the Group acquired the remaining 50% interest in Mottech Parkland, the now wholly owned Australian subsidiary, which operates in a market projected to reach US$743 million by 2030, at a compound annual growth rate of 22.5%. The Board views full ownership of Mottech Parkland as timely, positioning the Group to actively pursue opportunities in this fast-growing market.

In May 2026, Mottech Italy was established to build on current momentum and exploit opportunities to secure further recurring revenue generating contracts. Elsewhere, the division is also assessing opportunities to bring selected external distribution businesses in-house, providing the potential to accelerate growth and deepen its market presence.

Distribution & Professional Consulting Services division

Operating under the MTI Summit Electronics brand, this division exclusively represents international suppliers of radio frequency/microwave components and sells these products to Israeli customers, while also acting as a consultant to both suppliers and customers on complete radio frequency/microwave solutions.

MTI Summit continued to perform very strongly, with revenue up 18% year on year and operating profit up 46% year on year. This performance was again driven by a favourable product mix and the increasing scalability of the division, underlining the consistency of its operating model. Within the division, PSK continued to build its order book, securing a US$2.2m contract to supply communications infrastructure to the Israeli Ministry of Defence, the scope of which was subsequently expanded to approximately US$4.5m. This illustrates the growing demand for PSK's capabilities within the defence sector, and the division looks ahead with confidence as more opportunities arise and further strengthen an already robust order pipeline.

Outlook

Against an uncertain geopolitical backdrop, increased defence spending is likely to remain a global priority, resulting in further strategic momentum for MTI. Trading in Q3 has started well, with activity weighted towards the delivery of orders already secured, and this provides the Board good visibility on the Group's performance for the year.

MTI enters the second half of the year in a position of real strength. It is a diversified business, with a robust balance sheet and three divisions each pursuing clear objectives. Supported by a healthy pipeline of opportunities, the Board remains confident that the Group will continue to trade in line with market expectations for the full year.

About MTI Wireless Edge Ltd. ("MTI")

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.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

For the six month period ended June 30, 2026 (Unaudited):

Attributable to owners of the parent

Changes during the six month period ended June 30, 2026:

Comprehensive income

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

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

For the six month period ended June 30, 2025 (Unaudited):

Attributable to owners of the parent

Changes during the six month period ended June 30, 2025:

Comprehensive income

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

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the year ended December 31, 2025 :

Attributable to owners of the parent

U.S. $ in thousands

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.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

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

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

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

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

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.
• Providing consulting, representation and marketing services to foreign companies in the field of RF (radio frequency) and Microwave, including engineering services in the field of aerostat systems and system engineering services.
• Development, manufacture and integration of communication systems and advanced monitoring and control systems for the Government and defence industry market.

Note 2 - Significant Accounting Policies:

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").

The interim consolidated financial information set out above does not constitute full year-end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2025 was approved by the board on 3 March 2026. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of June 30, 2026 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2025 and for the year then ended and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2025 are applied consistently in these interim consolidated financial statements.

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

Note 3 - REVENUES:

(*) at 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 six month period ended June 30, 2026 and 2025 respectively and for the year ended December 31, 2025.

Six month period ended June 30, 2026 (Unaudited):

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

Note 4 - operating SEGMENTS:

Six month period ended June 30, 2025 (Unaudited):

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

Note 4 - operating SEGMENTS:

December 31, 2025:

Note 5 - SIGNIFICANT EVENTS:

• The Board of directors declared a cash dividend of 3.4 US cents per share being approximately $3,010,000. This dividend was paid on 14 April 2026 to shareholders on the register at the close of trading on 27 March 2026.
• The financial statements for the year ended 31 December 2025 were authorized for issue by the board as a whole following their approval on 3 March 2026.
• 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 2027 and as at 30 June 2026, 2,343,000 Ordinary Shares were held in treasury under the Programme.
• On 9 February 2026, Mottech Water Solutions acquired the remaining 50% interest in its Australian subsidiary Mottech Parkland (Pty) Ltd. (Mottech Parkland) for AUD550,000 and is now the sole owner of Mottech Parkland (Pty) Ltd.