Financial Data and Key Metrics Changes - Fiscal 2025 Q4 consolidated revenue was $9.5 million, a 10% increase from $8.6 million in Q4 2024 [5] - Consolidated gross profit for Q4 was $2.1 million, a 70% increase compared to the previous year [5] - Full year consolidated revenue for fiscal 2025 was $34 million, an 8% increase from fiscal 2024 [6][12] - Net income for Q4 was $100,000, while the net loss for the full year was $2.7 million, or $0.29 per share [11][12] Business Line Data and Key Metrics Changes - Raynor segment revenue for Q4 was $4.7 million with an operating profit of $1.2 million [6] - STADCO segment revenue for Q4 was $4.9 million with an operating profit of $800,000, showing a turnaround from an overall operating loss for the fiscal year [6][12] - Raynor's gross profit increased by 25% for the fiscal year, while STADCO's revenue increased by 10% [12][14] Market Data and Key Metrics Changes - Raynor's backlog was $48.6 million as of March 31, 2025, expected to be delivered over the next one to three fiscal years [8] - STADCO's backlog was $27.6 million, down slightly from the previous year, attributed to timing of purchase orders [14] Company Strategy and Development Direction - The company aims to secure and maintain partnerships within the defense sector, focusing on growth in revenue and profitability [18] - Management emphasized the importance of cash management and controlling expenses as part of their risk mitigation strategy [7] - The company is focused on integrating its subsidiaries to improve overall profitability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the defense sector, citing strong customer relationships and backlog as indicators of future growth [18] - The company acknowledged ongoing challenges in operational efficiency, particularly in the STADCO segment, but is optimistic about continued improvements [21][26] Other Important Information - The company has secured over $21 million in fully funded grant money, which will be used for new equipment and production efficiency [8] - The company is actively managing cash flow and has reduced total debt from $7.6 million in 2024 to $7.4 million in 2025 [15][16] Q&A Session Summary Question: What is the current state of operational improvements? - Management indicated that while there has been progress, particularly in the Raynor segment, there is still more work to be done in the STADCO segment [21][26] Question: How will backlog delivery be distributed? - Management stated that backlog delivery is unlikely to be linear due to the nature of the business being "lumpy" and dependent on various factors [35] Question: Is there potential for growth in submarine programs? - Management confirmed that there is potential for growth in submarine programs, having shifted focus to predominantly Navy submarine business [40] Question: What are the impacts of legacy pricing agreements? - Management explained that reaching agreements on legacy pricing has allowed for reversals of loss provisions, positively impacting the income statement [81][82] Question: How does the company plan to utilize its facilities? - Management noted that capacity utilization varies and that they are focused on growing within existing customer bases to mitigate risks [72][73]