Core Viewpoint - Sypris Solutions, Inc. reported mixed financial results for the fourth quarter of 2024, with a return to profitability despite a decline in revenues, driven by contrasting performances in its business segments [2][10]. Financial Performance - For Q4 2024, Sypris Solutions reported net earnings per share of $0.01, compared to a net loss of $0.05 per share in Q4 2023 [2]. - Revenues for the quarter were $33.4 million, down 3.7% from $34.7 million in the same period a year earlier [2]. - Gross profit increased by 23.1% year over year to $5.4 million, with gross margin improving by 350 basis points [3]. Segment Performance - Sypris Technologies achieved quarterly revenue of $19.5 million, a 2.7% increase from $19 million a year ago, with gross profit rising 41.6% to $4.4 million and gross margin improving to 22.5% from 16.3% [4]. - In contrast, Sypris Electronics reported revenues of $13.9 million, down 11.5% from $15.7 million in the year-ago quarter, with gross profit dropping to $1 million, or 7.1% of revenues [5]. Management Commentary - The CEO highlighted positive momentum in Sypris Technologies, driven by increased energy product sales and a growing order book, supported by global demand for LNG and power infrastructure [6]. - For Sypris Electronics, the CEO noted strong demand in key markets despite temporary shipment delays, with a backlog exceeding $90 million expected to support operations into 2025 [7]. Operational Efficiency - Inventory management improved, with inventory balances decreasing from $77.3 million at the end of 2023 to $66.7 million at the close of 2024, enhancing working capital efficiency [9]. - Net cash provided by operating activities turned positive at $2 million, compared to negative $11.1 million in the prior year, indicating better operational control [9]. Full Year and Future Outlook - For the full year 2024, revenues rose 2.9% to $140.2 million, with a net loss of $1.7 million, slightly wider than the previous year's loss [10]. - The company issued 2025 guidance projecting revenues between $125 million and $135 million, with expectations for gross margin expansion of 150 to 175 basis points and gross profit growth of 10% to 15% [11]. - The company acknowledged potential cyclical headwinds in the commercial vehicle market but expressed confidence in offsetting these with strength in energy and defense-related programs [12]. Capital Expenditures - Sypris reduced capital expenditures year over year, investing $1.1 million in 2024 compared to $2.1 million in 2023, while ending the year with a higher cash balance of $9.7 million [13].
SYPR Slips 4% Despite Q4 Earnings Up Y/Y on Solid Energy Shipments