Mti Wireless Share News (MWE)

(Sharecast News) - MTI Wireless Edge reported a solid start to 2025 on Tuesday, with first-quarter revenue rising 7% year-on-year to $12m and net profit increasing 9% to $1.02m.

Operating profit grew 6% to $1.25m, while earnings per share rose 12% to 1.18 cents.

The AIM-traded company said its net cash position strengthened to $8.05m as of 31 March, supported by a sharp rise in operating cash flow to $2.31m.

It said its antenna division saw strong momentum, with revenue up 22% and a threefold increase in profitability, driven by demand for 5G backhaul and military antenna solutions, which accounted for over 70% of the segment's first-quarter revenue.

The water control and management division, operating under the Mottech brand, delivered 11% revenue growth but experienced a 23% decline in profit due to lower-margin project mix, with stronger-margin contracts expected to benefit future results.

Its distribution and consulting services division saw a 7% decline in revenue due to weaker PSK sales, though performance across other components remained stable.

MTI said its order backlog and pipeline across all divisions remained robust, underpinning expectations for continued growth throughout 2025.

"We have started 2025 positively, delivering a good performance at all levels despite headwinds from adverse currency translation," said chief executive officer Moni Borovitz.

"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."

Borovitz said demand across the globe for defence products had 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, the second quarter is progressing well with three material contracts wins announced so far and as a Board we are confident about the outlook for the year."

At 1121 BST, shares in MTI Wireless Edge were up 3.37% at 44.45p.

Reporting by Josh White for Sharecast.com.