TechPrecision .(TPCS) - 2026 Q1 - Quarterly Results

Company Overview & Key Highlights TechPrecision, a custom manufacturer, reported strong Q4 and full-year FY2025 financial performance, driven by revenue growth and a substantial backlog Company Information 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] - The company operates through two wholly-owned subsidiaries: Ranor and Stadco, serving defense and precision industrial markets[1] Fiscal Year 2025 Fourth Quarter and Year End Highlights 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] Conference Call Details 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][7] - Replay will be available until August 13, 2025, via dial-in or webcast[8] Business Description 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 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][9] - The company serves customers in the defense and precision industrial markets[1] Ranor Segment 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] - Over 95% of Ranor's revenue is from the US defense sector, and it is ISO 9001:2015 certified and ITAR compliant[10] Stadco Segment 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] - Stadco provides a full range of custom solutions, including high-precision fabrication, machining, and unique electron beam welding and NonDestructive Testing work cells[12] - 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] Consolidated Financial Results 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 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] Fiscal Year 2025 Full Year Financial Performance 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] Financial Position (Balance Sheet Summary) 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] Segment Performance 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 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][4][22] Full Year Segment Performance 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] - 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][13][24] Financial Statements 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 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] Consolidated Statements of Operations 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][20] Consolidated Statements of Cash Flows 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] Non-GAAP Financial Measures 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 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] Forward-Looking Statements 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 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] - 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] - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[16]