Sypris (SYPR) Q2 Earnings Break Even With Mixed Segment Results

Core Insights - Sypris Solutions, Inc. reported breakeven net income per share for Q2 2024, down from 1 cent in the prior-year quarter, with revenues of $35.5 million, largely unchanged from $35.6 million in Q2 2023 [1][2] Business Segment Performance - Sypris Technologies experienced an 11% decline in revenue year over year to $17.8 million in Q2 2024, impacted by timing delays in energy shipments and a downturn in the commercial vehicle market [5] - Despite the revenue decline, gross profit for Sypris Technologies surged 35.5% year over year to $2.7 million, with gross margin improving by 520 basis points to 15.2% [6] - Sypris Electronics posted a 13.6% increase in revenues to $17.7 million in Q2 2024, driven by increased shipments related to defense programs [7] - Gross profit for Sypris Electronics increased by 9.7% year over year to $2.9 million, although gross margin slightly declined to 16.5% [8] Financial Update - As of June 30, 2024, Sypris Solutions reported cash and cash equivalents of $13.8 million, up from $7.9 million at the end of 2023, while total assets decreased to $124.2 million from $129.3 million [9] - Stockholders' equity decreased to $19 million from $22.5 million at the end of 2023, with operating cash flows improving to $4.5 million in the first half of 2024 from $3.7 million in the same period in 2023 [10] Management Guidance - The company reaffirmed its full-year 2024 outlook, expecting revenue growth of 10-15% year over year and gross profit increase of 20-25%, with gross margins anticipated to expand by 100-125 basis points [11] - Management highlighted a strong backlog in Sypris Electronics exceeding $100 million, expected to support growth through the remainder of 2024 and beyond [11] Other Developments - Sypris Electronics received releases for an additional four systems under a multi-year production contract for the U.S. Navy's electronic warfare improvement program, providing a steady revenue stream [12] - Sypris Technologies secured a long-term sole-source extension to its supply agreement with a leading commercial vehicle manufacturer, ensuring continued production of Ultra Axle Shafts [13]