Q2 2026 MTI Wireless Edge Ltd Earnings Call Transcript
Key Points
- MTI Wireless Edge Ltd (LSE:MWE) reported double-digit growth in revenue, operational profit, and earnings per share for both 2025 and the first half of 2026, with operational cash flow converting 70-80% of EBIT.
- The defense market is a major growth driver, with a large and growing backlog and pipeline of orders, including significant new orders and increased demand for electronic warfare solutions.
- Mottech, the water management division, delivered excellent results, driven by new hardware like the ELITE range, expansion into new markets (e.g., Eastern Europe, Italy), and a strong recurring revenue model (over 40% of Israel revenue).
- The ABS (Antenna Beam Steering) solution for 5G backhaul is gaining traction, with a new Tier 1 vendor agreement and production now in both Israel and India, positioning the company as a leader in the Western market.
- The Distribution and Special Consulting Services division, including PSK, has a record backlog and strong demand, allowing the company to selectively choose high-margin projects.
- The company maintains a strong balance sheet with a healthy cash balance, supports shareholder returns through dividends, and is actively pursuing M&A opportunities that are profit-enhancing from day one.
- The military antenna business started 2026 slowly, with revenue contribution dipping to 47% of total revenue, though management expects a stronger second half.
- The Indian 5G market remains on hold, with very low penetration, limiting growth in that region despite the ABS product's potential.
- The build-to-print process with defense customers is slower than anticipated, though it offers long-term benefits like deeper customer ties.
- The company faces geopolitical risk due to its Israeli base, which may be a concern for some investors, though management emphasizes a focus on business.
- Mottech's growth is partly dependent on new market entries (e.g., Italy) where service agreements are only expected to be signed this year, indicating early-stage development.
- The company's R&D spending is relatively small, relying on external funding and collaborations, which could limit its ability to innovate independently in the long term.
Perfect. So a good amount of people that joined so far for us to kick off today's webinar. And good morning, and thank you all for joining us for MTI Wireless Edge's 2026 interim results webinar. (Operator Instructions)
The company might not be in a position to answer every question submitted today. However, we will review all questions and where appropriate, share responses following today's webinar. The webinar today is also being recorded and will be published on the MTI website after today or later this afternoon.
I'd now like to hand you over to MTI Group CEO, Moni Borovitz; and CEO of Mottech, David Shani.
Thank you, Polly. Good morning, everyone, and thank you for joining our call today. Polly, can you jump to the next two slides? One more, please.
So we'll start with the results. We are very delighted with those results, showing double-digit growth both in '25 and in the first half of '26 from revenue all the way down to the earnings per
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