SIFCO Industries(SIF) - 2025 Q3 - Quarterly Report

FORM 10-Q Filing Information This section details SIFCO Industries, Inc.'s identification, filing status, and common share trading information Registrant Information Details SIFCO Industries, Inc.'s identification, filing status, and common shares trading on NYSE American - SIFCO Industries, Inc. is incorporated in Ohio with IRS Employer Identification No. 34-0553950, located at 970 East 64th Street, Cleveland Ohio 44103[3] - The registrant is a non-accelerated filer and a smaller reporting company[3] Securities Registered (Amounts in millions) | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Shares | SIF | NYSE American | - As of June 30, 2025, the number of outstanding Common Shares, par value $1.00, was 6,180,388[3] Part I. Financial Information Presents SIFCO Industries, Inc.'s unaudited consolidated condensed financial statements and related notes for specified periods Item 1. Financial Statements Contains unaudited consolidated condensed financial statements and detailed notes for SIFCO Industries, Inc. Consolidated Condensed Statements of Operations Presents net income, gross profit, and EPS for the three and nine months ended June 30, 2025 and 2024 Consolidated Condensed Statements of Operations (Amounts in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $22.1 | $22.0 | $62.0 | $58.0 | | Gross profit | $5.9 | $2.7 | $8.4 | $3.7 | | Operating profit (loss) | $3.3 | $0.1 | $0.6 | $(4.8) | | Income (loss) from continuing operations | $3.3 | $(0.9) | $(0.4) | $(7.2) | | Income from discontinued operations, net of tax | $0.1 | $1.0 | $0.1 | $2.3 | | Net income (loss) | $3.4 | $0.1 | $(0.3) | $(4.9) | | Basic and diluted EPS from continuing operations| $0.54 | $(0.16) | $(0.07) | $(1.20) | | Basic and diluted EPS | $0.56 | $0.01 | $(0.05) | $(0.82) | Consolidated Condensed Statements of Comprehensive Income (Loss) Presents comprehensive income/loss, foreign currency adjustments, and retirement plan liabilities Consolidated Condensed Statements of Comprehensive Income (Loss) (Amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $3.4 | $0.1 | $(0.3) | $(4.9) | | Foreign currency translation adjustment | — | $(0.1) | — | $0.1 | | Reclassification of foreign translation adjustments to net loss | — | — | $5.6 | — | | Retirement plan liability adjustment | $0.0 | $0.1 | $0.1 | $0.2 | | Comprehensive income (loss) | $3.4 | $0.1 | $5.3 | $(4.7) | Consolidated Condensed Balance Sheets Summarizes assets, liabilities, and shareholders' equity, reflecting discontinued operations impact Consolidated Condensed Balance Sheets (Amounts in millions) | Metric | June 30, 2025 | September 30, 2024 | | :---------------------------------------- | :------------ | :----------------- | | Total current assets | $38.1 | $54.3 | | Total assets | $77.3 | $104.6 | | Total current liabilities | $25.6 | $54.0 | | Total liabilities and shareholders' equity| $77.3 | $104.6 | | Total shareholders' equity | $35.8 | $30.4 | - Current assets of discontinued operations were $0 as of June 30, 2025, down from $16.0 million as of September 30, 2024, reflecting the CBlade sale[11] - Current maturities of long-term debt increased significantly to $3.0 million as of June 30, 2025, from $0.4 million as of September 30, 2024[11] Consolidated Condensed Statements of Cash Flows Outlines cash flows from operating, investing, financing, and discontinued operations Consolidated Condensed Statements of Cash Flows (Amounts in millions) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | | Net cash used for operating activities | $(0.6) | $(3.5) | | Net cash used for investing activities | $(0.3) | $(1.7) | | Net cash (used for) provided by financing activities | $(13.4) | $6.2 | | Net cash provided by discontinued operations | $13.6 | $0.3 | | (Decrease) increase in cash and cash equivalents | $(0.7) | $1.3 | | Cash and cash equivalents from continuing operations at the end of the period | $2.0 | $1.0 | Supplemental Disclosure of Cash Flow Information Highlights cash paid for interest and non-cash investing activities for specified periods Supplemental Cash Flow Information (Amounts in millions) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------ | :------------------------------ | | Cash paid for interest | $(1.5) | $(1.1) | | Cash paid for income taxes, net | $(0.0) | $(0.0) | | Additions to property, plant & equipment — incurred but not yet paid | $0.0 | $0.0 | | Debt issuance costs — incurred but not yet paid | $0.1 | — | | Accrued guaranty fees — related party | — | $0.9 | | Origination fees capitalized to promissory note principal — related party | — | $0.2 | Consolidated Condensed Statements of Shareholders' Equity Details changes in common shares, paid-in capital, retained earnings, and comprehensive income (loss) Consolidated Condensed Statements of Shareholders' Equity (Amounts in millions) | Metric | June 30, 2025 | September 30, 2024 | | :---------------------------------------- | :------------ | :----------------- | | Common Shares (Amount) | $6.2 | $6.2 | | Additional Paid-In Capital | $11.9 | $11.8 | | Retained Earnings | $17.6 | $17.9 | | Accumulated Other Comprehensive Income (Loss) | $0.2 | $(5.4) | | Total Shareholders' Equity | $35.8 | $30.4 | - Comprehensive income for the nine months ended June 30, 2025, was $5.3 million, a significant improvement from a loss of $(4.7) million in the prior year[18] - Accumulated other comprehensive income (loss) shifted from a loss of $(5.4) million at October 1, 2024, to an income of $0.2 million at June 30, 2025, largely due to a reclassification of foreign translation adjustments[18] Notes to Unaudited Consolidated Condensed Financial Statements Provides essential context and detailed explanations for the unaudited financial statements 1. Summary of Significant Accounting Policies Outlines key accounting principles, discontinued operations, foreign currency, and new accounting standards - The Company sold its European operations (CBlade S.p.A.) in October 2024 to refocus on its core aerospace forging business, resulting in CBlade's financial results being presented as discontinued operations[21](index=21&