Elmet Group (ELMT) investor relations material

Company overview and business model

• Operates as a vertically integrated supplier of critical materials (tungsten, molybdenum, niobium) and high-power microwave systems for aerospace, defense, industrial, medical, semiconductor, and energy markets.

• Structured into two divisions: Critical Materials Components (CMC) and Engineered Microwave Products (EMP), with six U.S. and one German facility.

• Sole U.S.-owned producer of many critical materials, with a focus on supply chain security and non-PRC sourcing.

• Business model leverages government contracts, proprietary engineering, and long-term customer relationships in high-barrier, regulated markets.

Financial performance and metrics

• 2025 revenue: $201.6M (up 5.9% YoY); net income: $5.5M (down from $15.4M in 2024 due to discontinued operations and higher costs).

• Adjusted EBITDA for 2025: $23.8M (11.8% margin); gross profit margin: 20.3%.

• CMC division: $172M revenue, 18.3% gross margin; EMP division: $29.7M revenue, 32.4% gross margin.

• Cash at year-end 2025: $1.8M; total assets: $175.6M; total liabilities: $115.2M.

• Debt principal outstanding as of Dec 31, 2025: $53.5M, including $17.3M related-party debt.

Use of proceeds and capital allocation

• IPO proceeds to be used for repayment of the Great Falls Term Loan, President Line of Credit, and AAI Note, with remaining funds for working capital, growth capital, and general corporate purposes.

• Growth capital may be allocated to strategic acquisitions, facility upgrades, and R&D.

• Anticipates sufficient liquidity for at least 12 months post-offering.