TechPrecision .(US:TPCS)2025-11-13 21:11Revenue Performance - Consolidated revenue for the three months ended September 30, 2025, was $9,086,000, an increase of $140, or 2%, compared to the same period in 2024[116] - Ranor's revenue decreased by $417, or 9%, to $4,373,000, primarily due to a shift in customer project mix[117] - Stadco's revenue increased by $596, or 14%, to $4,819,000, driven by higher contract values and gross margins[118] - Consolidated revenue for the six months ended September 30, 2025, was $16,465, a decrease of $467, or 3%, compared to the same period last year[135] - Ranor's revenue for the six months ended September 30, 2025, was $8,670, a decrease of $502, or 5%, compared to the same period last year[136] - Stadco's revenue for the six months ended September 30, 2025, was $8,151, an increase of $324, or 4%, compared to the same period last year[138] Cost and Profitability - Consolidated cost of revenue for the three months ended September 30, 2025, was $6,628,000, a decrease of 16% compared to the same period in 2024[119] - Gross profit increased by $1,444, or 143%, to $2,458,000, with a gross margin of 27% compared to 11% in the same period last year[119] - Ranor's cost of revenue was $2,271,000, a decrease of 31% from $3,272,000 in the prior year[115] - Stadco's cost of revenue was $4,463,000, a decrease of 6% from $4,727,000 in the prior year[115] - Ranor's gross profit increased by $623, or 39%, compared to the same period last year, while cost of revenue decreased by $1,001, or 31%[120] - Stadco's gross profit was $250 for the three months ended September 30, 2025, an increase of $821 compared to the same period last year, with cost of revenue decreasing by $264, or 6%[121] - Consolidated gross profit increased by $2,235, or 179%, for the six months ended September 30, 2025, with a gross margin of 21.0% compared to 7.0% in the same period last year[140] Operating Performance - Consolidated SG&A expenses for the six months ended September 30, 2025, decreased by $73, or 2%[144] - Operating income for the six months ended September 30, 2025, was $479, compared to an operating loss of $1,829 for the same period last year, reflecting improved performance at both Ranor and Stadco[146] - EBITDA for the six months ended September 30, 2025 was $1,885, compared to a negative EBITDA of $425 for the same period in 2024[175] Net Income and Liquidity - Net income for the three months ended September 30, 2025, was $825, or $0.08 per share, compared to a net loss of $601, or $0.06 per share for the same period last year[133] - For the six months ended September 30, 2025, the company recorded net income of $228, or $0.02 per share, compared to a net loss of $2,061, or $0.22 per share for the same period in 2024[153] - As of September 30, 2025, total available liquidity was $1,400, consisting of $1,180 in undrawn capacity under the Revolver Loan and $220 in cash and cash equivalents, compared to $1,451 in total available liquidity as of March 31, 2025[154] Debt and Financing - The company had total debt obligations of $7,235 as of September 30, 2025, classified as current due to debt covenant violations[176] - The company plans to renew its Revolver Loan or seek alternative financing by January 16, 2026, to continue operations beyond the next twelve months[170] - The company drew down $8,940 under the Revolver Loan during the six months ended September 30, 2025, and repaid $8,770 during the same period[159] - Interest expense increased by $11 compared to the same period last year, primarily due to higher levels of borrowings under the amended loan agreement[129] Investments and Obligations - The company invested $2,245 in new factory machinery and equipment for the six months ended September 30, 2025, up from $1,622 in the same period in 2024[158] - The company has $10,896 in purchase obligations outstanding for machinery and equipment, with reimbursement from a customer for all purchases[176] - The valuation allowance on deferred tax assets was approximately $5,700 as of September 30, 2025, indicating a likelihood that certain state NOL carryforwards will not be realized[152] Market Focus - Over 95% of revenue for both Ranor and Stadco is derived from the defense sector, highlighting the company's market focus[96][99] - The project mix for Stadco included products with higher contract values and gross margins, contributing to revenue growth[118] - The company relies on individual purchase orders rather than long-term contracts, which may impact revenue stability[93]