MTI Wireless Edge Ltd (LSE:MWE) has announced a further increase in the value of its communications infrastructure contract with the Israeli Ministry of Defence, taking the total agreement to US$8.5 million.
The contract, awarded to the company’s subsidiary P.S.K. Wind Technologies Limited (PSK), was initially valued at US$2.2 million when announced in April 2026. It was subsequently increased to approximately US$4.5 million in June before the latest expansion.
The revised value represents almost four times the original contract award, with completion expected during 2027.
Defence Contract Expands Following Previous Increases
The agreement covers the supply of communications infrastructure to the Israeli Ministry of Defence through MTI Wireless Edge’s PSK subsidiary.
The original contract was announced on 7 April 2026, with an initial value of US$2.2 million.
On 8 June, MTI confirmed that the contract had been expanded to approximately US$4.5 million.
The latest increase adds a further US$4 million to the agreement, bringing its total value to US$8.5 million.
This represents an increase of approximately 89% compared with the June contract value and around 286% relative to the original award.
MTI said the expanded agreement is scheduled to be completed in 2027, providing revenue visibility over the remaining delivery period.
Cost-Plus Structure Provides Revenue Visibility
The contract operates on a cost-plus basis, under which the supplier is reimbursed for eligible costs alongside an agreed margin.
MTI acknowledged that this arrangement generates lower margins than some of its other contracts but said it also reduces delivery risk for PSK.
The structure provides greater visibility over revenue associated with the contract while limiting some of the financial exposure typically associated with fixed-price agreements.
Chief Executive Officer Moni Borovitz welcomed the additional contract value.
“It is encouraging that, within a relatively short period, the Israeli MoD has shown the confidence in our capabilities to increase this contract almost fourfold,” Borovitz said.
He added that the cost-plus arrangement offered a lower-risk delivery structure and improved longer-term revenue visibility.
Defence Sector Demand Supports Business Opportunities
MTI Wireless Edge provides communications and radio frequency technology solutions across several markets, including defence-related applications.
The company said it continues to identify opportunities within the defence sector as governments maintain their focus on military communications and related infrastructure.
Management reported demand across its range of defence-related products, alongside a pipeline of potential new contracts.
Borovitz said the company was seeing a growing number of opportunities in the sector.
“Overall, the Group remains very well positioned, with a healthy order backlog and pipeline of potential orders across all three divisions,” he said.
The expanded PSK contract adds to the company’s existing order book, although MTI did not provide an updated total backlog figure in the announcement.
Nine-Month Financial Results Due on 9 November
MTI Wireless Edge also confirmed that it will publish its financial results for the nine months ended 30 September 2026 on 9 November 2026.
The upcoming results will provide further information on the group’s trading performance across its three divisions.
Investors will be monitoring revenue development, profitability and the contribution of existing contracts, alongside any additional information on the company’s order backlog.
Outlook
The increase in the Israeli Ministry of Defence contract to US$8.5 million provides MTI Wireless Edge with additional contracted business extending into 2027.
While the cost-plus agreement carries lower margins than some other group contracts, management considers it a lower-risk arrangement that supports revenue visibility.
The company continues to report demand for its defence-related products and a pipeline of potential orders across its operations.
Attention will now turn to the nine-month results scheduled for 9 November, when MTI is expected to provide a broader update on its financial and operational performance.
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