
Sypris Solutions Announces Second Quarter Results Q2 2025 Earnings Release Sypris Solutions reported Q2 2025 financial results, noting decreased revenue and a net loss year-over-year - Sypris Solutions, Inc. reported financial results for its second quarter ended June 29, 20251 Key Highlights Operational & Strategic Highlights Sypris Solutions experienced Q2 2025 revenue and gross profit declines, offset by Sypris Electronics' significant order and backlog growth - Second quarter revenue and gross profit decreased due to tariffs, reduced transportation demand, unfavorable mix, and material availability issues for Sypris Electronics3 - Sypris Electronics Order & Backlog Growth (Q2 2025 vs. Prior Year/Year-End 2024): | Metric | Change | Value | | :----- | :----- | :---- | | Orders | Up 110% | $47 million | | Backlog | Up 26% | from year-end 2024 | - Sypris Electronics secured follow-on awards for a U.S. DoD secure communications infrastructure program and a U.S. Navy electronic warfare improvement program, with deliveries starting in 20263 - Sypris Technologies secured a long-term agreement to supply drivetrain components for a new electrified truck, with deliveries anticipated to begin in 20263 - Orders for energy products increased slightly, and backlog rose 26% from year-end 20243 Management Commentary CEO's Strategic Insights CEO Jeffrey T. Gill emphasized Sypris Electronics' operational excellence and funding, while Sypris Technologies expects production declines offset by diversification and pursues energy growth - CEO Jeffrey T. Gill emphasized operational excellence for Sypris Electronics to ensure timely and efficient execution of rapidly growing demand, while evaluating tariff impacts4 - Customer funding secured for key programs enables multi-year inventory procurement to mitigate future supply chain issues4 - Sypris Technologies anticipates a moderate production decrease from automotive and commercial vehicle customers, with market diversification expected to offset cyclical declines5 - Energy product orders remained steady, with growth opportunities in LNG demand, including AI-related data center electricity, and active pursuit of CO2 capture applications6 Financial Performance Overview Consolidated Second Quarter & Year-to-Date Results Sypris Solutions reported consolidated revenue decreases for Q2 and H1 2025, resulting in a Q2 net loss of $2.1 million and an increased H1 net loss of $3.0 million - Consolidated Financial Results (Q2 2025 vs. Q2 2024): | Metric | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenue | $31.4 million | $35.5 million | Down $4.1 million | | Net (loss) income | $(2.1) million | $0.0 million | Down $2.1 million | | (Loss) Income per share | $(0.09) | $0.00 | Down $0.09 | - Consolidated Financial Results (Six Months Ended June 29, 2025 vs. June 30, 2024): | Metric | H1 2025 | H1 2024 | Change | | :----- | :------ | :------ | :----- | | Revenue | $60.9 million | $71.1 million | Down $10.2 million | | Net loss | $(3.0) million | $(2.2) million | Down $0.8 million | Sypris Technologies Segment Performance Sypris Technologies' Q2 2025 revenue decreased to $14.1 million due to cyclical commercial vehicle market decline and tariff uncertainty, maintaining a 15.2% gross profit margin - Revenue decline attributed to the anticipated cyclical decline in the commercial vehicle market, tariff uncertainty, and a $1.6 million decrease from a sub-maquiladora services agreement in Mexico9 - Sypris Technologies Financial Results (Q2 2025 vs. Q2 2024): | Metric | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenue | $14.1 million | $17.8 million | Down $3.7 million | | Gross Profit | $2.1 million | $2.7 million | Down $0.6 million | | Gross Profit Margin | 15.2% | 15.2% | No Change | - Gross profit negatively impacted by volume decreases, partially offset by a $0.4 million favorable foreign currency exchange rate impact for the Mexican subsidiary9 Sypris Electronics Segment Performance Sypris Electronics' Q2 2025 revenue slightly decreased to $17.3 million due to delivery changes and material issues, resulting in a significant gross profit decline to $0.4 million (2.5% margin) - Sypris Electronics Financial Results (Q2 2025 vs. Q2 2024): | Metric | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenue | $17.3 million | $17.7 million | Down $0.4 million | | Gross Profit | $0.4 million | $2.9 million | Down $2.5 million | | Gross Profit Margin | 2.5% | 16.5% | Down 14.0 percentage points | - Revenue decline resulted from changes in customer delivery schedules and delays due to material availability issues10 - Material availability issues delayed deliveries, limited production ramp-up, and caused out-of-sequence manufacturing, increasing costs and decreasing operational efficiency, significantly impacting gross profit10 Outlook Future Expectations and Market Factors Sypris Solutions expresses confidence despite market uncertainty, citing strong backlog and new contracts, anticipating modest revenue declines partially offset by Sypris Electronics' backlog and energy orders - The company expresses confidence in its future potential despite increased market uncertainty, citing a strong backlog, new program wins, and long-term contract extensions12 - Anticipates a modest revenue decline due to the conversion of Mexican shipments to a value-add only sub-maquiladora basis and cyclical decreases in commercial vehicle production volumes12 - The combined strength of Sypris Electronics' backlog and robust energy product orders are expected to partially offset anticipated revenue declines12 About Sypris Solutions Sypris Solutions is a diversified manufacturing and engineering services company that serves the defense, transportation, communications, and energy industries - Sypris Solutions is a diversified manufacturing and engineering services company13 - The company serves the defense, transportation, communications, and energy industries13 Forward-Looking Statements This section details various risks and uncertainties that could impact Sypris Solutions' future financial and operational performance, including fees and access to capital, contract terminations, failure to achieve profitability, volatility in customer forecasts, supply chain issues, reliance on key customers/vendors, foreign operations risks, and geopolitical conflicts - Forward-looking statements encompass future financial and operational performance, subject to risks and uncertainties detailed in SEC filings14 - Key risks include access to capital, contract terminations, failure to achieve profitability, volatile customer forecasts, supply chain issues (raw materials, electronic components, tariffs), reliance on key customers/vendors, foreign operations risks, and potential delays from U.S. government shutdowns14 - Additional risks include inventory valuation, competitive pressures, insurance costs, product liability, equipment breakdowns, compliance, pension/benefit costs, key employee dependence, market reliance (oil/gas, automotive), new business acquisition, geopolitical conflict, labor relations, litigation, intellectual property, legal rights changes, cybersecurity, Nasdaq compliance, and public health emergencies14 Detailed Financial Statements Summary Financial Highlights This section summarizes Sypris Solutions' key financial metrics for the three and six months ended June 29, 2025, compared to prior-year periods, detailing consolidated revenue, net income/loss, and earnings per share - Financial Highlights (Three Months Ended June 29, 2025 vs. June 30, 2024): | Metric | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------- | :------------ | :------------ | | Revenue | $31,426 | $35,521 | | Net (loss) income | $(2,051) | $16 | | (Loss) Income per common share: Basic | $(0.09) | $0.00 | | (Loss) Income per common share: Diluted | $(0.09) | $0.00 | | Weighted average shares outstanding: Basic | 22,285 | 21,989 | | Weighted average