[Company Overview & Key Highlights](index=1&type=section&id=1.%20Company%20Overview%20%26%20Key%20Highlights) TechPrecision, a custom manufacturer, reported strong Q4 and full-year FY2025 financial performance, driven by revenue growth and a substantial backlog [Company Information](index=1&type=section&id=1.1%20Company%20Information) TechPrecision Corporation is a custom manufacturer of precision, large-scale fabrication and machined metal structural components for defense and precision industrial markets, operating through two wholly-owned subsidiaries, Ranor and Stadco - TechPrecision manufactures precision, large-scale fabrication and machined metal structural components[1](index=1&type=chunk) - The company operates through two wholly-owned subsidiaries: Ranor and Stadco, serving defense and precision industrial markets[1](index=1&type=chunk) [Fiscal Year 2025 Fourth Quarter and Year End Highlights](index=1&type=section&id=1.2%20Fiscal%20Year%202025%20Fourth%20Quarter%20and%20Year%20End%20Highlights) TechPrecision reported strong Q4 FY2025 results with significant revenue and gross profit growth, driven by improved performance at both Ranor and Stadco. Full-year revenue also increased, and the company maintains high customer confidence with a substantial backlog Fiscal Year 2025 Fourth Quarter Financial Highlights | Metric | FY25 Q4 (Millions) | Change YoY | | :----------------- | :----------------- | :--------- | | Consolidated Revenue | $9.5 | +10% | | Consolidated Gross Profit | $2.1 | +70% | | Net Income | $0.1 | N/A (vs. loss) | | EPS | $0.01 | N/A (vs. loss) | Fiscal Year 2025 Full Year Financial Highlights | Metric | FY25 Full Year (Millions) | Change YoY | | :----------------- | :------------------------ | :--------- | | Consolidated Revenue | $34.0 | +8% | | Net Loss | $(2.7) | Reduced from $(7.0)M | - Customer confidence remains high with a backlog of **$48.6 million** as of March 31, 2025, expected to be delivered over the next one to three fiscal years with gross margin expansion[3](index=3&type=chunk) [Conference Call Details](index=1&type=section&id=1.3%20Conference%20Call%20Details) The company will host a conference call on Wednesday, July 30, 2025, at 4:30 p.m. ET to discuss the financial results, with replay and webcast options available - Conference call scheduled for July 30, 2025, at 4:30 p.m. ET[2](index=2&type=chunk)[7](index=7&type=chunk) - Replay will be available until August 13, 2025, via dial-in or webcast[8](index=8&type=chunk) [Business Description](index=2&type=section&id=2.%20Business%20Description) TechPrecision Corporation specializes in custom manufacturing of precision, large-scale components for defense and industrial markets through its subsidiaries, Ranor and Stadco [About TechPrecision Corporation](index=2&type=section&id=2.1%20About%20TechPrecision%20Corporation) TechPrecision Corporation specializes in custom manufacturing of precision, large-scale components for defense and industrial markets through its subsidiaries, Ranor and Stadco - TechPrecision Corporation manufactures precision, large-scale fabrication and machined metal structural components[1](index=1&type=chunk)[9](index=9&type=chunk) - The company serves customers in the defense and precision industrial markets[1](index=1&type=chunk) [Ranor Segment](index=2&type=section&id=2.2%20Ranor%20Segment) Ranor, located in North Central Massachusetts, provides custom solutions for precision welded and machined components up to 100 tons, with over 95% of its revenue from the US defense sector and holding ISO 9001:2015 and ITAR compliance - Ranor's operations are in North Central Massachusetts, offering manufacturing engineering, materials management, high-precision heavy fabrication, and machining services for components up to **100 tons**[9](index=9&type=chunk) - Over **95%** of Ranor's revenue is from the US defense sector, and it is ISO 9001:2015 certified and ITAR compliant[10](index=10&type=chunk) [Stadco Segment](index=2&type=section&id=2.3%20Stadco%20Segment) Stadco, based in Los Angeles, California, manufactures large mission-critical components for military aircraft, helicopters, and space programs, serving blue-chip OEMs and prime contractors in defense and aerospace, and is AS 9100 D, ISO 9001:2015, NADCAP, and ITAR compliant - Stadco's operations are in Los Angeles, California, specializing in large mission-critical components for military aircraft, helicopters, and space programs, including tooling and fixtures[11](index=11&type=chunk) - Stadco provides a full range of custom solutions, including high-precision fabrication, machining, and unique electron beam welding and NonDestructive Testing work cells[12](index=12&type=chunk) - Over **60%** of Stadco's revenue is from the defense sector, and it holds AS 9100 D, ISO 9001:2015, NADCAP, and ITAR certifications[14](index=14&type=chunk) [Consolidated Financial Results](index=1&type=section&id=3.%20Consolidated%20Financial%20Results) TechPrecision achieved significant financial improvements in FY2025, turning a Q4 loss into net income and substantially narrowing its full-year net loss, driven by revenue growth and reduced SG&A expenses [Fiscal Year 2025 Fourth Quarter Financial Performance](index=1&type=section&id=3.1%20Fiscal%20Year%202025%20Fourth%20Quarter%20Financial%20Performance) In Q4 FY2025, TechPrecision achieved significant improvements, turning a prior-year loss into net income, driven by a **10%** revenue increase, **70%** gross profit growth, and a **53%** reduction in SG&A costs due to the absence of acquisition-related expenses Q4 FY2025 Consolidated Financial Performance | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :----------------- | :----------------- | :----------------- | :--------- | | Revenue | $9.5 | $8.6 | +10% | | Cost of Revenue | $7.4 | $7.4 | <1% | | Gross Profit | $2.1 | $1.2 | +70% | | SG&A | $1.7 | $3.7 | -53% | | Operating Income | $0.4 | $(2.5) | N/A (vs. loss) | | Net Income | $0.1 | $(5.1) | N/A (vs. loss) | - The **53%** decrease in SG&A was primarily due to the absence of due diligence costs for a terminated acquisition[4](index=4&type=chunk) [Fiscal Year 2025 Full Year Financial Performance](index=1&type=section&id=3.2%20Fiscal%20Year%202025%20Full%20Year%20Financial%20Performance) For the full fiscal year 2025, consolidated revenue increased by **8%**, and the net loss significantly narrowed compared to the prior year, primarily due to a **27%** reduction in SG&A expenses and improved gross profit, despite an increase in cost of revenue FY2025 Full Year Consolidated Financial Performance | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :----------------- | :-------------- | :-------------- | :--------- | | Revenue | $34.0 | $31.6 | +8% | | Cost of Revenue | $29.7 | $27.5 | +8% | | Gross Profit | $4.3 | $4.1 | +5% | | SG&A | $6.5 | $8.8 | -27% | | Operating Loss | $(2.2) | $(4.6) | -53% | | Net Loss | $(2.7) | $(7.0) | -61% | - The decrease in operating loss and net loss was primarily driven by the absence of due diligence costs for acquisitions, leading to a **27%** reduction in SG&A[13](index=13&type=chunk) [Financial Position (Balance Sheet Summary)](index=2&type=section&id=3.3%20Financial%20Position%20(Balance%20Sheet%20Summary)) As of March 31, 2025, the company's cash and cash equivalents increased slightly, while working capital remained negative due to long-term debt reclassification. Total debt saw a minor decrease Key Financial Position Metrics | Metric | March 31, 2025 (Millions) | March 31, 2024 (Millions) | | :--------------------- | :------------------------ | :------------------------ | | Cash and Cash Equivalents | $0.2 | $0.1 | | Working Capital | $(1.6) | $(2.9) | | Total Debt | $7.4 | $7.6 | | Total Assets | $33.5 | $34.7 | | Total Liabilities | $24.8 | $26.9 | | Total Stockholders' Equity | $8.7 | $7.8 | - Negative working capital was primarily due to the reclassification of long-term debt because of debt covenant violations[6](index=6&type=chunk) [Segment Performance](index=6&type=section&id=4.%20Segment%20Performance) Both Ranor and Stadco segments contributed to consolidated revenue growth and improved gross profit in Q4 FY2025, with Ranor maintaining profitability and Stadco facing higher production costs for the full year [Fourth Quarter Segment Performance](index=6&type=section&id=4.1%20Fourth%20Quarter%20Segment%20Performance) In Q4 FY2025, both Ranor and Stadco segments contributed to consolidated revenue growth. Ranor's gross profit increased significantly by **51%**, while Stadco's gross profit more than doubled, indicating strong operational improvements in both segments Q4 FY2025 Segment Revenue and Gross Profit | Segment | Q4 FY25 Revenue (Millions) | Q4 FY24 Revenue (Millions) | Revenue Change (%) | Q4 FY25 Gross Profit (Millions) | Q4 FY24 Gross Profit (Millions) | Gross Profit Change (%) | | :------ | :------------------------- | :------------------------- | :----------------- | :------------------------------ | :------------------------------ | :---------------------- | | Ranor | $4.68 | $4.53 | +3% | $1.28 | $0.85 | +51% | | Stadco | $4.86 | $4.63 | +5% | $0.81 | $0.38 | +111% | - Consolidated gross profit expanded by **70%** in Q4, reaching **$2.1 million**, driven by improved operating performance at both Ranor and Stadco[3](index=3&type=chunk)[4](index=4&type=chunk)[22](index=22&type=chunk) [Full Year Segment Performance](index=7&type=section&id=4.2%20Full%20Year%20Segment%20Performance) For the full fiscal year 2025, both Ranor and Stadco segments showed revenue growth, with Stadco's revenue increasing by **10%**. Ranor's gross profit grew by **25%**, offsetting an operating loss at Stadco, which experienced a significant increase in cost of revenue FY2025 Full Year Segment Revenue and Gross Profit | Segment | FY25 Revenue (Millions) | FY24 Revenue (Millions) | Revenue Change (%) | FY25 Gross Profit (Millions) | FY24 Gross Profit (Millions) | Gross Profit Change (%) | | :------ | :---------------------- | :---------------------- | :----------------- | :--------------------------- | :--------------------------- | :---------------------- | | Ranor | $18.17 | $17.82 | +2% | $5.67 | $4.55 | +25% | | Stadco | $16.00 | $14.57 | +10% | $(1.35) | $(0.43) | -213% | - Ranor's segment executed on a favorable project mix, enabling sustained operating profitability for the full year[3](index=3&type=chunk) - Stadco reported an overall operating loss for the fiscal year, with higher production costs contributing to a **15%** increase in its cost of revenue[3](index=3&type=chunk)[13](index=13&type=chunk)[24](index=24&type=chunk) [Financial Statements](index=4&type=section&id=5.%20Financial%20Statements) The financial statements reflect a slight decrease in total assets and liabilities, an increase in stockholders' equity, and a significant improvement in Q4 and full-year net income/loss, with cash flow from financing activities increasing [Consolidated Balance Sheets](index=4&type=section&id=5.1%20Consolidated%20Balance%20Sheets) The consolidated balance sheets show a slight decrease in total assets and liabilities from FY2024 to FY2025, with stockholders' equity increasing. Current liabilities remain higher than current assets, resulting in negative working capital Consolidated Balance Sheet Summary | Metric | March 31, 2025 (Thousands) | March 31, 2024 (Thousands) | | :--------------------- | :------------------------- | :------------------------- | | Total Current Assets | $15,346 | $14,850 | | Total Current Liabilities | $16,916 | $17,754 | | Total Assets | $33,527 | $34,747 | | Total Liabilities | $24,787 | $26,944 | | Total Stockholders' Equity | $8,740 | $7,803 | - Working capital was negative **$1.6 million** on March 31, 2025, primarily due to the reclassification of long-term debt[6](index=6&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=5.2%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations reflect a significant improvement in Q4 FY2025, moving from a net loss to net income, and a substantial reduction in the full-year net loss, driven by revenue growth and reduced SG&A expenses Consolidated Statements of Operations (Key Figures) | Metric (Thousands) | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----------------- | :------ | :------ | :------ | :------ | | Revenue | $9,477 | $8,600 | $34,031 | $31,591 | | Gross Profit | $2,085 | $1,228 | $4,329 | $4,118 | | SG&A | $1,718 | $3,687 | $6,487 | $8,750 | | Operating Income (Loss) | $367 | $(2,459)| $(2,158)| $(4,632)| | Net Income (Loss) | $112 | $(5,121)| $(2,748)| $(7,042)| | EPS (Basic & Diluted) | $0.01 | $(0.59) | $(0.29) | $(0.81) | - The company achieved net income of **$0.1 million** in Q4 FY2025, a significant turnaround from a net loss of **$5.1 million** in the prior-year quarter[4](index=4&type=chunk)[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=5.3%20Consolidated%20Statements%20of%20Cash%20Flows) For FY2025, cash flow from operating activities was negative, while cash used in investing activities decreased. Cash provided by financing activities increased, primarily due to higher proceeds from revolver loans and a private placement, resulting in a net increase in cash and cash equivalents Consolidated Statements of Cash Flows Summary | Cash Flow Activity (Thousands) | FY25 | FY24 | | :----------------------------- | :------ | :------ | | Net cash (used in) provided by operating activities | $(599) | $728 | | Net cash used in investing activities | $(1,081)| $(2,591)| | Net cash provided by financing activities | $1,737 | $1,467 | | Net increase (decrease) in cash and cash equivalents | $57 | $(396) | | Cash and cash equivalents, end of period | $195 | $138 | - Proceeds from revolver loans increased to **$13.88 million** in FY2025 from **$7.16 million** in FY2024, and the company received **$2.30 million** from a private placement[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=6.%20Non-GAAP%20Financial%20Measures) This section provides a reconciliation of non-GAAP financial measures, specifically EBITDA, which significantly improved for both Q4 and the full fiscal year 2025, reflecting enhanced operational profitability [EBITDA Reconciliation](index=9&type=section&id=6.1%20EBITDA%20Reconciliation) EBITDA for Q4 FY2025 significantly improved to **$0.96 million** from a negative **$1.79 million** in the prior-year quarter. Full-year EBITDA also turned positive, reaching **$0.59 million** compared to a negative **$2.16 million** in FY2024, reflecting improved operational performance before non-cash and financing impacts EBITDA Reconciliation | Metric (Thousands) | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----------------- | :------ | :------ | :---- | :------ | | Net income (loss) | $112 | $(5,121)| $(2,748)| $(7,042)| | Income tax (benefit) expense | $(2) | $2,496 | $(2) | $1,932 |\ | Interest expense | $149 | $169 | $541 | $521 | | Depreciation and amortization | $703 | $670 | $2,796| $2,429 | | EBITDA | $962 | $(1,786)| $587 | $(2,160)| - The significant improvement in EBITDA for both the fourth quarter and full fiscal year indicates a positive shift in core operational profitability[27](index=27&type=chunk) [Forward-Looking Statements](index=3&type=section&id=7.%20Forward-Looking%20Statements) This section outlines the forward-looking nature of certain statements in the release, emphasizing that actual results may differ materially due to various risks and uncertainties, including reliance on purchase orders, external factors, financing availability, competitive pressures, and changes in government spending [Safe Harbor Statement](index=3&type=section&id=7.1%20Safe%20Harbor%20Statement) This section outlines the forward-looking nature of certain statements in the release, emphasizing that actual results may differ materially due to various risks and uncertainties, including reliance on purchase orders, external factors, financing availability, competitive pressures, and changes in government spending - The release contains forward-looking statements based on current expectations, estimates, and projections, which are not guarantees of future performance[16](index=16&type=chunk) - Actual outcomes and results may differ materially due to numerous risks and uncertainties, including reliance on individual purchase orders, external factors (e.g., conflicts, inflation, supply chain), financing, and government spending[16](index=16&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[16](index=16&type=chunk)

Revenue and Financial Performance - Consolidated revenue for the three months ended December 31, 2024, was $7,622, a decrease of $28 or less than 1% compared to $7,650 for the same period in 2023[145]. - Ranor's revenue increased by $14 to $4,310 for the three months ended December 31, 2024, reflecting a percentage change of less than 1%[146]. - Stadco's revenue decreased by $58 to $3,312 for the three months ended December 31, 2024, representing a 2% decline[147]. - For the nine months ended December 31, 2024, consolidated revenue was $24,554, a 7% increase compared to $22,991 for the same period in 2023[164]. - Stadco's revenue for the nine months ended December 31, 2024, was $11,139 million, a 12% increase from $9,943 million in the same period of 2023[167]. Profitability and Losses - Consolidated gross profit decreased by $170 to $991 for the three months ended December 31, 2024, resulting in a gross margin of 13%, down from 15% in the same period last year[148]. - Operating loss for the three months ended December 31, 2024, was $696, an improvement of $300 compared to an operating loss of $996 for the same period in 2023[154]. - Ranor's operating income increased by $34 or 3% due to favorable operating execution and throughput[155]. - Stadco's operating loss increased by $340 or 66% due to ongoing production issues impacting throughput[156]. - Operating loss for the nine months ended December 31, 2024, was $2,525 million, a 16% increase compared to the same period in 2023[176]. - Net loss for the nine months ended December 31, 2024, was $2,860 million, or $0.30 per share, compared to a net loss of $1,921 million, or $0.22 per share, in the same period of 2023[183]. - The Company reported a net loss of $799 for the three months ended December 31, 2024, compared to a net loss of $865 for the same period in 2023, reflecting a change of $66[214]. - EBITDA for the three months ended December 31, 2024, was $51, a significant improvement from a negative EBITDA of $364 in the same period of 2023[214]. Backlog and Order Flow - Consolidated backlog as of December 31, 2024, was $45,522, indicating strong project order flow from prime defense contractors[164]. - Ranor's backlog increased to $20,344 million as of December 31, 2024, up from $18,497 million in 2023[166]. Expenses and Cost Management - Consolidated selling, general and administrative expenses decreased by $470 or 22% primarily due to the absence of due diligence work on acquisitions[151]. - Consolidated SG&A expenses decreased by $295 million, or 6%, primarily due to the absence of due diligence work on acquisitions[172]. - The Company plans to closely monitor expenses and may reduce operating costs to enhance liquidity[209]. Liquidity and Capital Management - Total available liquidity as of December 31, 2024, was approximately $330 million, consisting of $165 million in undrawn capacity under the Revolver Loan and $165 million in available cash[185]. - Cash used in operating activities for the nine months ended December 31, 2024, was $995 million, compared to cash provided of $1,180 million in the same period of 2023[189]. - The Company raised approximately $1,801 through a private placement of common stock and warrants to raise working capital[207]. - The Company is exploring various means to strengthen its liquidity position, including making Stadco operations profitable and renewing the revolver loan[206]. - The Company has outstanding debt obligations totaling $7,327 classified as current due to debt covenant violations[215]. - The Revolver Loan maturity has been extended multiple times, with the latest extension to April 30, 2025[203]. - The maturity date of the Revolver Loan was extended from May 24, 2024, to August 30, 2024, with a reduction in the maximum principal amount from $5 million to $4.5 million[127]. Risks and Compliance - The company has faced risks related to reliance on individual purchase orders and external factors such as supply chain inefficiencies and price inflation[107]. - The company is registered and compliant with ITAR, ensuring adherence to U.S. defense regulations[115]. - The uncertainty surrounding recurring operating losses at Stadco raises substantial doubt about the Company's ability to continue as a going concern for at least one year[210]. - The Company acknowledges an Existing Default due to failure to meet the required minimum Debt Service Coverage Ratio for the twelve-month periods ending March 31, 2024, and December 31, 2024[204]. Investments and Capital Expenditures - The company invested $2,796 million in new factory machinery and equipment for the nine months ended December 31, 2024[191]. - The company issued 320,000 shares as a Stock Termination Fee following the termination of the Votaw acquisition agreement[126]. Shareholder Actions - The company entered into a Securities Purchase Agreement on July 3, 2024, selling 521,800 shares and warrants for a total of $1.801 million, aimed at raising working capital[130]. - The company has filed a registration statement with the SEC for the resale of shares, which was declared effective on January 31, 2025[131].

Revenue Performance - Third quarter consolidated revenue was $7.6 million, a decrease of less than 1% compared to $7.7 million in the same period last year[4] - For the nine months ended December 31, 2024, revenue was $24.6 million, a 7% increase compared to $22.99 million in the prior year[7] - Consolidated revenue for the year ended December 31, 2024, was $7,622 million, a decrease of $28 million or approximately 0.4% compared to $7,650 million in 2023[24] - For the nine months ended December 31, 2024, consolidated revenue was $24,554 million, an increase of $1,562 million or 7% from $22,991 million in 2023[26] - Ranor's revenue increased by $14 million to $4,310 million, representing 57% of total revenue, while Stadco's revenue decreased by $58 million to $3,312 million, accounting for 43% of total revenue[24] Profitability - Gross profit for the quarter was $1.0 million, representing a 15% decrease from the previous year[7] - Consolidated gross profit decreased by $170 million to $991 million, resulting in a gross margin of 13%, down from 15% in the previous year[24] - Ranor's gross profit increased by $563 million to $4,266 million, while Stadco reported a gross loss of $2,022 million, a decline of $1,209 million[26] - EBITDA for the three months ended December 31, 2024, was $51 million, a significant improvement from a loss of $364 million in the same period of 2023[29] Costs and Expenses - Cost of revenue increased by 2% to $6.6 million, primarily due to higher production costs at the Stadco segment[7] - Consolidated cost of revenue increased by $142 million to $6,631 million, representing 87% of total revenue, up from 85% in the previous year[24] - SG&A expenses decreased by 22% to $1.7 million due to the absence of due diligence costs for acquisitions[7] Net Loss and Financial Position - Net loss for the quarter was $0.8 million, with a full valuation maintained on deferred tax assets[7] - The net loss for the nine months ended December 31, 2024, was $2,860 million, compared to a net loss of $1,921 million in 2023[28] - Working capital was negative $1.8 million as of December 31, 2024, compared to negative $2.9 million on March 31, 2024[8] - Total debt as of December 31, 2024, was $7.4 million, down from $7.6 million on March 31, 2024[8] - Cash and cash equivalents at the end of the period were $165 million, down from $391 million at the beginning of the period[28] Backlog and Future Expectations - The backlog as of December 31, 2024, was $45.5 million, indicating strong customer confidence[4] - The company expects to deliver its backlog over the next one to three fiscal years with gross margin expansion[4] -

Financial Data and Key Metrics Changes - The company reported its Q2 2025 financial results during the conference call, with specific emphasis on the changes in financial metrics [1][2]. - Management highlighted the importance of understanding the risks and uncertainties associated with forward-looking statements, which may impact actual results [2][3]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not disclosed in the provided excerpts [1][2]. Market Data and Key Metrics Changes - The conference call did not provide detailed market data or key metrics changes relevant to different markets [1][2]. Company Strategy and Development Direction - The company’s strategic direction and competitive positioning were not explicitly discussed in the provided excerpts [1][2]. Management Comments on Operating Environment and Future Outlook - Management acknowledged the potential risks and uncertainties that could affect future performance, emphasizing the need for caution in interpreting forward-looking statements [2][3]. Other Important Information - The company held its Annual Meeting of Stockholders on December 19, 2024, where six directors were elected, indicating ongoing governance and leadership changes [4]. Q&A Session Summary Question: What are the implications of the recent director elections? - The management did not provide specific insights into the implications of the recent director elections during the call [1][2].

Revenue and Financial Performance - Consolidated revenue for the three months ended September 30, 2024, was $8,946 million, a 12% increase from $7,970 million in the same period of 2023[135]. - Ranor's revenue increased by $295 million, or 7%, to $4,790 million, while Stadco's revenue rose by $617 million, or 17%, to $4,223 million[135][136]. - Consolidated revenue for the six months ended September 30, 2024, was $16,932 million, a 10% increase from $15,341 million in the same period of 2023[153]. - Stadco reported revenue of $7,827 for the six months ended September 30, 2024, an increase of $1,254, or 19%, compared to $6,573 for the same period in 2023[156]. Profitability and Losses - Consolidated gross profit decreased by $21 million, or 2%, to $1,014 million, with a gross margin of 11% compared to 13% in the prior year[137]. - Ranor's gross profit increased by $474 million, with a gross margin improvement to 17% from 13% year-over-year[138]. - Stadco reported a gross profit loss of $504 million, with a gross margin of (6)%, down from 0% in the same period last year[139]. - For the three months ended September 30, 2024, the operating loss was $488 million, an improvement of $109 million compared to the operating loss of $597 million in the same period of 2023[143]. - The net loss for the three months ended September 30, 2024, was $601 million, or $0.06 per share, compared to a net loss of $528 million, also $0.06 per share, in the prior year[151]. - The company recorded a net loss of $2,061, or $0.22 per share, for the six months ended September 30, 2024, compared to a net loss of $1,056, or $0.12 per share, for the same period in 2023[170]. - EBITDA for the six months ended September 30, 2024, was negative $425,000, compared to negative $8,000 for the same period in 2023, indicating a decline of $417,000[208]. Operational Highlights - The company has a manufacturing facility of 145,000 square feet in Massachusetts, capable of producing precision components weighing up to 100 tons[104]. - The company primarily targets repeating custom programs with stable designs, focusing on long-term solutions for customers[110]. - The backlog at Ranor increased to $21,714 million as of September 30, 2024, compared to $19,125 million in the same period of 2023[155]. - Stadco's backlog increased to $26,927 as of September 30, 2024, from $25,543 in 2023, indicating strong demand for components related to various programs[157]. Liquidity and Financing - The company entered into a Securities Purchase Agreement on July 3, 2024, selling 521,800 shares and warrants for a total of $1.801 million, aimed at raising working capital[122]. - As of September 30, 2024, total available liquidity was approximately $1,275, consisting of $1,143 in undrawn capacity under the Revolver Loan and $132 in cash[172]. - The company invested $1,622 in new factory machinery and equipment for the six months ended September 30, 2024, down from $2,659 in the same period in 2023[180]. - The Company is exploring various means to strengthen its liquidity position, including making Stadco operations profitable and renewing the revolver loan[199]. - The maturity date of the Revolver Loan has been extended multiple times, with the latest extension to April 30, 2025[193]. Compliance and Regulatory Matters - The company is registered and compliant with ITAR, ensuring adherence to U.S. defense regulations[105]. - The Company acknowledges an Existing Default due to failure to meet the required minimum Debt Service Coverage Ratio for the twelve-month periods ending March 31, 2024, and September 30, 2024[194]. Risks and Challenges - The company has faced risks related to reliance on individual purchase orders and external factors such as supply chain inefficiencies and government regulations[100]. - The uncertainty surrounding recurring operating losses at Stadco raises substantial doubt about the Company's ability to continue as a going concern for at least one year[202]. - The Company plans to monitor expenses closely and may reduce operating costs to enhance liquidity[201].

Revenue Performance - Second quarter consolidated revenue was $8.9 million, a 12% increase compared to $8.0 million in the same period last year[4] - For the six months ended September 30, 2024, revenue was $16.9 million, a 10% increase from $15.3 million in the prior year[13] - Consolidated revenue for the six months ended September 30, 2024, was $16,932 million, a 10% increase from $15,341 million in the same period of 2023[23] - Ranor's revenue increased by 2% to $9,172 million, while Stadco's revenue rose by 19% to $7,827 million for the six months ended September 30, 2024[23] Cost and Profitability - Cost of revenue was $7.9 million, up 14% primarily due to higher production costs at Stadco[5] - Consolidated cost of revenue for the six months ended September 30, 2024, was $15,679 million, reflecting a 15% increase from $13,612 million in 2023[23] - Gross profit was $1.0 million, a 2% decrease compared to the same period a year ago[5] - Consolidated gross profit decreased by 28% to $1,253 million for the six months ended September 30, 2024, compared to $1,729 million in 2023[23] Losses and Financial Position - The company reported a net loss of $0.6 million, maintaining a full valuation on its deferred tax assets[5] - The net loss for the six months ended September 30, 2024, was $2,061 million, compared to a net loss of $1,056 million in the same period of 2023[25] - The operating loss for the six months was $1.8 million, an increase of $0.6 million primarily due to losses at Stadco[13] - EBITDA for the six months ended September 30, 2024, was negative at $(425) million, a decline from $(8) million in 2023[27] Working Capital and Debt - Working capital was negative $1.5 million, with total debt amounting to $7.2 million[7] - Cash and cash equivalents at the end of the period were $132 million, down from $138 million at the beginning of the period[25] - The company reported a significant increase in accounts payable by $1,741 million for the six months ended September 30, 2024[25] Capital Expenditures and Financing - The company incurred $1,622 million in capital expenditures for property, plant, and equipment during the six months ended September 30, 2024[25] - The company raised $1,801 million through a private placement during the financing activities[25] Backlog and Future Expectations - As of September 30, 2024, the company had a backlog of $48.6 million, indicating strong customer confidence[4] - The company expects to deliver its backlog over the next one to three fiscal years with gross margin expansion[4] SG&A Expenses - SG&A expenses totaled $1.5 million, an 8% decrease due to reduced spending on outside advisory services[5]

Core Viewpoint - TechPrecision Corporation has scheduled a conference call to discuss its financial results for the second quarter of fiscal year 2025, indicating a focus on transparency and communication with stakeholders [1] Financial Results - The conference call will provide insights into the company's financial performance, including revenue, profit margins, and other key financial metrics for the second quarter [1] - The specific date and time for the conference call have been announced, allowing investors and analysts to prepare for the discussion [1] Company Communication - The scheduling of the conference call reflects the company's commitment to keeping investors informed about its financial health and operational developments [1] - This proactive approach may enhance investor confidence and engagement with the company's strategic direction [1]

Financial Data and Key Metrics Changes - The company is currently in a quiet period and has not released the fiscal year 2025 second quarter financials, limiting the ability to discuss financial specifics [6]. Business Line Data and Key Metrics Changes - No specific data on business lines was provided during the call due to the ongoing quiet period [6]. Market Data and Key Metrics Changes - There were no updates on market data or key metrics as the company is in a quiet period [6]. Company Strategy and Development Direction and Industry Competition - The company is facing a pending proxy contest, which may influence its strategic direction and competitive positioning [6]. Management's Comments on Operating Environment and Future Outlook - Management refrained from discussing future performance estimates due to the quiet period and pending proxy contest [6]. Other Important Information - The call included a reminder about the forward-looking statements and the associated risks and uncertainties [3][4]. Q&A Session All Questions and Answers - No Q&A session was conducted during this call as the company is in a quiet period [6].

Revenue Performance - Revenue for the first quarter of FY 2025 was $8.0 million, an increase of 8% compared to $7.4 million in the same period of FY 2024[4] - Consolidated revenue for the three months ended June 30, 2024, was $7,986,000, an increase of 8% compared to $7,371,000 for the same period in 2023[18] Cost and Profitability - The cost of revenue increased by 16% to $7.7 million, primarily due to higher production costs at Stadco[4] - The cost of revenue increased to $7,747,000, representing a 16% increase from $6,677,000 in the prior year[18] - Gross profit decreased by 66% to $238,000, attributed to higher production costs and under-absorbed overhead at Stadco[4] - Gross profit decreased significantly to $238,000, down 66% from $694,000 in the same quarter of 2023[18] - EBITDA for the three months ended June 30, 2024, was negative $634,000, a decline of $615,000 from negative $19,000 in the prior year[22] Losses and Financial Health - The operating loss for the first quarter was $1.3 million, compared to a loss of $0.6 million in the same quarter of the previous year[4] - The net loss for the quarter was $1.5 million, with a full valuation maintained on deferred tax assets[4] - The net loss for the three months ended June 30, 2024, was $1,460,160, compared to a net loss of $527,455 for the same period in 2023[19] Cash and Working Capital - Cash and cash equivalents decreased to approximately $45,000, down $93,000 since March 31, 2024[5] - Cash and cash equivalents at the end of the period were $44,797, a decrease from $271,918 at the end of June 2023[19] - Working capital was negative $1.7 million as of June 30, 2024, with total debt at $7.5 million[5] Expenses and Fees - SG&A expenses totaled $1.6 million, an increase from $1.3 million in the same period last year, primarily due to a $0.4 million breakup fee related to the terminated Votaw acquisition[4] - The company recognized a one-time non-cash breakup fee of $0.4 million from the termination of the Votaw acquisition, impacting the bottom line for the first quarter[3] - The company incurred $116,423 in cash paid for interest, net of amounts capitalized, compared to $94,087 in the prior year[19] Accounts Payable and Cash Flow - The company reported a significant increase in accounts payable, totaling $2,209,214, compared to a decrease of $1,480,387 in the previous year[19] - The company experienced a cash outflow of $30,905 from investing activities, a significant reduction from $1,854,002 in the same quarter of 2023[19] Customer Confidence - Customer confidence remains high with a backlog of $41.2 million as of June 30, 2024, expected to be delivered over the next one to three fiscal years[3] Fair Value Changes - The company reported a change in fair value of stock acquisition termination fee amounting to $419,200, which was not present in the previous year[19]

Revenue and Financial Performance - Consolidated revenue for the three months ended June 30, 2024, was $7.986 million, an increase of 8% compared to $7.371 million for the same period in 2023[131]. - Ranor's revenue decreased by $0.1 million, or 3%, to $4.382 million for the three months ended June 30, 2024, while Stadco's revenue increased by $0.6 million, or 21%, to $3.604 million[132][133]. - Consolidated gross profit for the three months ended June 30, 2024, was $238,000, a decrease of $455,000, or 66%, compared to $694,000 for the same period in 2023, resulting in a gross margin of 3.0%[135]. - The company reported an operating loss of $1.341 million for the three months ended June 30, 2024, which is $0.761 million higher than the operating loss of $0.580 million for the same period in 2023[141]. - The net loss for the three months ended June 30, 2024, was $1.5 million, or $0.16 per share, compared to a net loss of $527,455, or $0.06 per share for the same period in 2023[149]. - EBITDA for the three months ended June 30, 2024, was negative $634,000, a decrease of $615,000 from negative $19,000 in the same period in 2023[182]. Liquidity and Debt Management - As of June 30, 2024, the company had approximately $1.6 million in total available liquidity, consisting primarily of $1.5 million in undrawn capacity under its Revolver Loan[151]. - The company is exploring various means to strengthen its liquidity position, including making Stadco operations profitable and renewing the Revolver Loan[172]. - The company must renew its revolver loan or seek alternative financing by January 15, 2025, to continue operations beyond the next twelve months[174]. - The company's debt obligations totaled $7.5 million, classified as current due to debt covenant violations[177]. - The company has approximately $1.5 million of unused borrowing capacity under the Revolver Loan as of June 30, 2024, up from $0.5 million on March 31, 2024[152]. - Interest expense increased by approximately $39,313, or 52%, to $114,638 for the three months ended June 30, 2024, primarily due to increased borrowings under the revolver loan[145]. Operational Focus and Compliance - The company focuses on custom manufacturing according to customer specifications, with no distribution of components on the open market[109]. - The company primarily targets repeating custom programs for stable designs, with secondary activities including one-off requirements[110]. - The company is registered and compliant with ITAR, ensuring adherence to defense industry regulations[105][108]. - The company has a critical focus on maintaining effective internal controls over financial reporting to ensure compliance and accuracy[114]. - The company's operations, assets, and customers are all located in the U.S., emphasizing its domestic focus[113]. Backlog and Future Commitments - The backlog for Ranor was $18.8 million as of June 30, 2024, down from $21.8 million in the previous year, while Stadco's backlog was $22.4 million, down from $24.5 million[132][134]. - Outstanding unconditional contractual commitments for raw materials and supplies amounted to approximately $8.7 million, all due within the next twelve months[178]. - Lease obligations for buildings totaled $5.6 million through 2030, with approximately $0.9 million due annually for the next six years[179]. Capital Expenditures and Investments - The company invested approximately $0.2 million in new factory machinery and equipment during the three months ended June 30, 2024, a significant decrease from $1.9 million in the same period in 2023[158]. - The company is currently in violation of its Loan Agreement due to exceeding the capital expenditure limit of $1.5 million[170]. Management and Strategic Outlook - The company plans to closely monitor expenses and may reduce operating costs to enhance liquidity[174]. - The company is facing substantial doubt about its ability to continue as a going concern for at least one year due to recurring operating losses and financing uncertainties[175]. - EBITDA is considered an important measure of operating performance, but it has limitations and should not be viewed in isolation from U.S. GAAP results[180].