Sypris Solutions(SYPR) - 2025 Q3 - Quarterly Results

Revenue Performance - Third quarter revenue for Sypris Solutions was $28.7 million, a decrease of 19.0% compared to $35.7 million in the prior-year period[7] - For the nine months ended September 28, 2025, revenue was $89.6 million, down from $106.7 million in the same period of 2024, with a net loss of $2.4 million compared to a net loss of $1.8 million in the prior-year period[8] - Sypris Electronics reported revenue of $17.1 million in the third quarter, up from $16.2 million in the prior-year period, driven by the ramp-up of certain programs[10] - Sypris Technologies experienced a revenue decline to $11.5 million in the third quarter, down from $19.5 million in the prior-year period, due to cyclical downturns and tariff uncertainties[9] - Total net revenue for the three months ended September 28, 2025, was $28,672,000, a decrease of 19.5% compared to $35,657,000 for the same period in 2024[19] Profitability - Net income for the third quarter was $0.5 million, or $0.02 per diluted share, compared to $0.4 million, or $0.02 per diluted share, in the prior-year period[7] - Net income for the three months ended September 28, 2025, was $517,000, compared to a net income of $390,000 for the same period in 2024, indicating a year-over-year increase of 32.6%[19] - Gross profit for the nine months ended September 28, 2025, was $8,001,000, down from $14,504,000 in the same period in 2024, representing a decline of 44.4%[19] - Operating loss for the nine months ended September 28, 2025, was $(3,309,000), compared to an operating income of $1,628,000 for the same period in 2024[19] Orders and Backlog - Year-to-date orders for Sypris Electronics increased by 65% compared to the prior year, contributing to a 14% increase in backlog from year-end 2024[4] - Backlog for energy products rose by 59% from year-end 2024, indicating strong demand in that sector[4] Cash Flow and Assets - The company reported a net cash used in operating activities of $(4,613,000) for the nine months ended September 28, 2025, compared to $(308,000) for the same period in 2024[23] - Total current assets decreased to $84,386,000 as of September 28, 2025, from $98,018,000 as of December 31, 2024, reflecting a decline of 13.9%[21] - Cash and cash equivalents at the end of the period were $8,443,000, down from $9,675,000 at the beginning of the period, representing a decrease of 12.7%[23] Liabilities - Total liabilities decreased to $92,514,000 as of September 28, 2025, from $99,795,000 as of December 31, 2024, a reduction of 7.3%[21] Other Developments - The company secured follow-on contract awards for electronic power supply modules for subsea communication networks, with production expected to continue through 2026[4] - A sale-leaseback transaction for the manufacturing facility in Louisville generated net proceeds of approximately $2.9 million and recognized a gain of $2.5 million[4] - The company anticipates a challenging operating environment to continue into early next year, but remains confident in its backlog and new program wins[12] - The weighted average shares outstanding for diluted shares was 22,863,000 for the three months ended September 28, 2025, compared to 22,415,000 for the same period in 2024[19] - The company had a provision for excess and obsolete inventory of $337,000 for the nine months ended September 28, 2025[23]