The Elmet Group is the only U.S. owned, U.S. based producer of fully engineered tungsten and molybdenum products, and it just spent its IPO proceeds betting that Western customers keep paying a premium to never depend on Chinese metal again. The Q2 fiscal 2026 quarter is the cleanest evidence yet that this bet is working. Revenue rose 35.2% to $66.4 million in the period. Open order backlog hit a record $131.5 million. The company closed out the half with $66.1 million of cash against just $10.4 million of remaining debt. The stock has traded between $12.74 and $22.09 since its April debut, which leaves the core question of valuation hanging open.
What the market has not fully priced in is the direction of travel on the raw material itself. Tungsten concentrate was trading around $330 per metric ton unit at the start of 2025. By the end of March 2026, it stood above $3,000 per unit. Elmet sits on the downstream side of that repricing: it buys concentrate, controls the metallurgy from powder through finished component, and passes cost increases into its end product prices. That positioning turned a commodity shock into margin expansion, with gross profit up 63.7% year over year in Q2. The counterweight is that the same surge forces customers to buy less, and the company just signed the OSRAM deal that imports a German workforce and a formula based purchase price into the model. The bull case and the bear case are the same tungsten curve seen from different vantage points.