TechPrecision Corporation Reports FY 2025 Third Quarter Financial Results

TechPrecision Corporation, a custom manufacturer of precision, large-scale fabrication components and precision, large-scale machined metal structural components, has released its financial results for the third quarter ended December 31, 2024. The company serves customers in the defense and precision industrial markets.

Financial Highlights

For the third quarter of FY 2025, TechPrecision reported consolidated revenue of $7.6 million, a slight decrease of less than 1% compared to the same period last year. The cost of revenue increased by 2% to $6.6 million, primarily due to higher production costs at Stadco. Gross profit was $1.0 million, down 15% from the previous year. SG&A expenses decreased by 22% to $1.7 million, mainly due to the absence of due diligence costs for acquisitions. The company reported an operating loss of $0.7 million, an improvement from the $1.0 million loss in the same period last year. Interest expense increased by $26,000 due to higher borrowing under the revolver loan, and the net loss was $0.8 million.

Business and Operational Highlights

Ranor, a segment of TechPrecision, recorded another profitable quarter with a favorable project mix, while Stadco continued to face challenges with legacy pricing issues and an unfavorable project mix. Customer confidence remains high, with a backlog of $45.5 million as of December 31, 2024, expected to be delivered over the next one to three fiscal years with gross margin expansion.

Strategic Initiatives and Corporate Developments

TechPrecision's financial position showed a slight increase in cash and cash equivalents to $165,000 as of December 31, 2024. Working capital was negative $1.8 million, an improvement from negative $2.9 million on March 31, 2024. Total debt decreased to $7.4 million from $7.6 million.

Management's Perspective

Alexander Shen, TechPrecision’s Chief Executive Officer, commented on the results, highlighting the sustained operating profitability of the Ranor segment and the ongoing challenges at Stadco. He emphasized the high customer confidence and the significant backlog, which is expected to contribute to future gross margin expansion.

Future Outlook

Management expects to deliver the current backlog over the next one to three fiscal years, with an emphasis on gross margin expansion. The company will host a conference call to discuss the financial results and future outlook.

SEC Filing: TECHPRECISION CORP [ TPCS ] - 8-K - Apr. 08, 2025