Core Insights - SIFCO Industries, Inc. reported financial results for the fourth quarter and fiscal year 2025, showing improvements in sales and reductions in net losses compared to the previous year [1][4][7]. Fourth Quarter Highlights - Net sales for the fourth quarter of fiscal 2025 increased by 5% to $22.8 million, up from $21.7 million in the same period of fiscal 2024 [7]. - The net loss from continuing operations for the fourth quarter was $0.5 million, or $(0.08) per diluted share, an improvement from a net loss of $1.4 million, or $(0.24) per diluted share, in the fourth quarter of fiscal 2024 [7]. - EBITDA for the fourth quarter was $1.1 million, compared to $0.8 million in the fourth quarter of fiscal 2024 [7]. - Adjusted EBITDA for the fourth quarter was $1.8 million, up from $0.8 million in the same quarter of fiscal 2024 [7]. Fiscal Year 2025 Highlights - Net sales for fiscal 2025 increased by 6% to $84.8 million, compared to $79.6 million in fiscal 2024 [7]. - The net loss from continuing operations for fiscal 2025 was $0.9 million, or $(0.15) per diluted share, significantly improved from a net loss of $8.6 million, or $(1.44) per diluted share, in fiscal 2024 [7]. - EBITDA for fiscal 2025 was $6.0 million, compared to $(0.7) million in fiscal 2024 [7]. - Adjusted EBITDA for fiscal 2025 was $5.7 million, up from $0.8 million in fiscal 2024 [7]. Other Highlights - The company has focused on capitalizing on market opportunities while improving margins through cost reductions and selective price increases [4]. - Strong demand in military and commercial aerospace markets contributed to financial improvements [4]. - The customer backlog stood at $119.2 million at the end of fiscal year 2025, indicating positive future demand for forging solutions [4].

Financial Performance - Net sales in Q4 2025 increased by 5% to $22.8 million, compared to $21.7 million in Q4 2024[8] - Net loss from continuing operations in Q4 2025 was $0.5 million, or $(0.08) per diluted share, an improvement from a net loss of $1.4 million, or $(0.24) per diluted share, in Q4 2024[8] - EBITDA for Q4 2025 was $1.1 million, up from $0.8 million in Q4 2024[8] - Net sales for fiscal 2025 increased by 6% to $84.8 million, compared to $79.6 million in fiscal 2024[8] - Net loss from continuing operations for fiscal 2025 was $0.9 million, or $(0.15) per diluted share, significantly improved from a net loss of $8.6 million, or $(1.44) per diluted share, in fiscal 2024[8] - EBITDA for fiscal 2025 was $6.0 million, compared to $(0.7) million in fiscal 2024[8] - Adjusted EBITDA in Q4 2025 was $1.8 million, compared to $0.8 million in Q4 2024[8] Customer Demand - Customer backlog stood at $119.2 million at the end of fiscal 2025, indicating strong demand for forging solutions[5] Strategic Focus - The company focused on cost reduction and selective price increases to improve margins[5] - The company plans to increase production to meet customer needs for the upcoming year and beyond[5]

Revenue and Sales Performance - In fiscal 2025, SIFCO's revenues from commercial and military sectors accounted for 43.5% and 56.5% respectively, compared to 52.4% and 47.6% in fiscal 2024[21]. - Net sales in fiscal 2025 increased by 6.5%, or $5.2 million, to $84.8 million compared to $79.6 million in fiscal 2024[119]. - Military net sales increased by $10.0 million to $47.9 million in fiscal 2025, while commercial net sales decreased by $4.8 million to $36.9 million[120]. - Net sales for 2025 increased to $84,815,000 from $79,633,000 in 2024, representing a growth of 2.5%[183]. - Gross profit rose significantly to $10,585,000 in 2025, compared to $5,982,000 in 2024, marking an increase of 77.5%[183]. Backlog and Orders - As of September 30, 2025, SIFCO's total backlog increased to $119.2 million from $114.4 million in the previous year, with orders for delivery in fiscal 2026 rising to $87.3 million[30]. - As of September 30, 2025, the total backlog was $119.2 million, but there is uncertainty regarding the realization of these amounts due to potential order cancellations and scope adjustments[56]. Operational Changes and Focus - The company sold its European operations in October 2024 to refocus on its core aerospace forging business, with CBlade's financial results presented as discontinued operations[18][19]. - The company completed the sale of its CBlade forging and manufacturing business in October 2024, focusing on its core aerospace forging operations[90]. - In October 2024, the company sold its European operations, specifically CBlade S.p.A., to streamline operations and refocus on its core aerospace forging business[117]. Financial Condition and Performance - Loss from continuing operations improved to $0.9 million in fiscal 2025 from a loss of $8.6 million in fiscal 2024[126]. - The net loss decreased to $729,000 in 2025 from $5,383,000 in 2024, reflecting a reduction of approximately 86.5%[185]. - Comprehensive income for 2025 was $6,321,000, a significant recovery from a loss of $4,112,000 in 2024[185]. - Total assets decreased to $73,394,000 in 2025 from $104,624,000 in 2024, a decline of 29.8%[187]. - Total current liabilities reduced to $22,240,000 in 2025 from $54,010,000 in 2024, a decrease of 58.8%[187]. Cost and Expenses - Cost of goods sold (COGS) increased by $0.6 million, or 0.8%, to $74.2 million, representing 87.5% of net sales in fiscal 2025[121]. - Selling, general and administrative (SG&A) expenses decreased to $10.4 million, or 12.3% of net sales, from $11.1 million, or 14.0% of net sales, in fiscal 2024[123]. - Depreciation expense increased from $4,784,000 in fiscal 2024 to $5,020,000 in fiscal 2025, indicating higher asset utilization or investment[212]. Workforce and Employment - SIFCO's workforce increased from approximately 244 to 259 employees during fiscal 2025, excluding CBlade employees[32]. - The company employed approximately 259 people as of September 30, 2025, excluding the CBlade division sold in October 2024[78]. Risks and Challenges - The military aerospace cycle is highly dependent on U.S. and foreign government funding, with potential reductions in defense spending posing risks to sales and operating profit[46][48]. - The company faces risks related to global trade policies, including tariffs that could increase costs and disrupt supply chains, impacting financial results[51][52]. - Competitive bidding processes present risks, as the company may not consistently win contracts or retain existing ones, affecting future sales and profitability[54][55]. - The company faces significant risks related to supply chain disruptions, which could lead to contract cancellations, penalties, and delays in revenue realization[68]. - Cybersecurity threats and information technology disruptions pose risks to operational continuity and could lead to increased costs and reputational damage[61][63]. Customer Concentration - Approximately 34% of SIFCO's consolidated net sales in fiscal 2025 came from two major customers, highlighting the company's reliance on key accounts[29]. - One direct customer accounted for approximately 18% of consolidated net sales, while two direct customers and their subcontractors accounted for about 34% of consolidated net sales in fiscal 2025, indicating a dependency on a limited customer base[59]. Manufacturing and Quality Standards - SIFCO's manufacturing facilities are certified under AS 9100D and/or ISO 9001:2015, ensuring compliance with quality standards in the aerospace and defense sectors[22]. - The company aims to expand its market share by increasing capacity utilization and broadening its product lines through investment in manufacturing capabilities[26]. - The company’s future success relies on its ability to develop and maintain sophisticated manufacturing techniques to meet customer needs[70]. Cash Flow and Financing - Cash provided by operating activities was $0.1 million in fiscal 2025, compared to cash used of $2.6 million in fiscal 2024[132]. - Cash used for investing activities was $0.5 million in fiscal 2025, down from $2.0 million in fiscal 2024[134]. - Cash used for financing activities was $14.0 million in fiscal 2025, compared to cash provided of $6.3 million in fiscal 2024[135]. - The company has incurred debt and may face limitations on operational flexibility due to restrictive covenants under its credit facilities[81]. Asset Management - Goodwill amounted to $3.5 million, representing a portion of total assets of $73.4 million as of September 30, 2025[89]. - The company recorded inventory reserves of $3,164,000 and $705,000 as of September 30, 2025 and 2024, respectively, indicating a significant increase in inventory valuation adjustments[209]. - Total property, plant, and equipment decreased from $88,480,000 in 2024 to $83,677,000 in 2025, with accumulated depreciation of $61,883,000[212].

Core Insights - SIFCO Industries, Inc. has seen a significant stock price increase of 77% over the past six months, outperforming the industry and major indices [1][7] - The company reported strong third-quarter fiscal 2025 results, with notable increases in revenue and earnings, indicating operational efficiencies [2] Company Performance - Demand for SIFCO's forged and machined components remains robust, driven by increased production from aerospace and energy sector customers [3][10] - The company has improved raw material availability, although supply chain constraints still limit shipment volumes [3][11] - SIFCO's order backlog has increased year-over-year, reflecting recovery in aerospace markets and providing a clearer path for future production and deliveries [12] Strategic Developments - SIFCO has streamlined its portfolio by exiting non-core operations and refinancing, which has strengthened its financial position and liquidity [13] - Recent improvements in margins and profits further support the benefits of this strategic refocus [13] Challenges - Despite solid demand, ongoing supply chain issues may hinder the conversion of orders into revenue [14] - The company's capital structure remains sensitive to lender terms, which could sustain liquidity pressures [14] Valuation - SIFCO's trailing 12-month EV/Sales ratio is 0.5X, significantly lower than the industry average of 10.7X, indicating potential for growth [15] - Comparatively, peers like Optex Systems and Park Aerospace have higher EV/Sales ratios of 2.4X and 5.2X, respectively [17] Investment Outlook - SIFCO's strong core business, earnings potential, and financial stability present a compelling case for both existing and new investors [18][19] - The current valuation suggests room for growth, making it an attractive option for portfolio additions [19]

Core Insights - SIFCO Industries, Inc. has experienced significant short-term stock gains, with a 69.3% increase over the past three months, outperforming the industry and major indices [1][7] - The company reported strong third-quarter fiscal 2025 results, showcasing a notable upswing in revenue and earnings, driven by operational efficiencies and disciplined cost management [2][12] Company Performance - Demand for SIFCO's forged and machined components remained resilient, particularly as aerospace and energy sector customers increased production [3][10] - Despite slight sales growth, the company achieved a turnaround in profitability, indicating effective operational strategies [2][12] - SIFCO's stock performance has outpaced peers like Optex Systems Holdings, Inc. and Park Aerospace Corp., which saw gains of 5.1% and 30.3%, respectively, in the same period [7] Operational Efficiency - The company has made substantial progress in driving operational efficiency through tighter cost control and improved product mix, resulting in stronger margins despite limited top-line growth [12] - Initiatives such as the sale of non-core European operations and consolidation of production activities have streamlined operations and reduced fixed costs [12] Market Dynamics - Improved raw material availability has eased production bottlenecks, while constructive pricing discussions with customers support a stable revenue outlook [13] - The aerospace industry faces challenges, including supply chain weaknesses and the complexities of digitalization, yet SIFCO's favorable share price movement suggests potential for maintaining market momentum [8] Valuation and Investment Outlook - SIFCO's trailing 12-month EV/Sales ratio of 0.5X is significantly lower than the industry's average of 11.5X, indicating potential for growth if it aligns more closely with market performance [15][19] - The company's strong core business strength and earnings potential present a compelling case for both existing and new investors to consider holding or adding to their positions [17][19]

Core Insights - SIFCO Industries, Inc. has seen a significant stock price increase of 101.1% over the past three months, outperforming the industry and major indices [1][7] - The company reported strong third-quarter fiscal 2025 results, with notable improvements in profitability despite only a slight increase in sales, indicating effective cost control measures [2][12] - Demand for SIFCO's products remains robust, particularly in the aerospace and energy markets, although supply chain constraints still pose challenges [3][10] Financial Performance - SIFCO's operational initiatives have led to a structural turnaround, enhancing profitability through cost reductions and efficient production, resulting in improved cash generation [12] - The company has strengthened its financial position by reducing debt and improving liquidity, allowing for greater flexibility in operations and potential growth initiatives [13] - SIFCO's trailing 12-month EV/Sales ratio is 0.5X, significantly lower than the industry average of 11.3X, indicating potential for growth if it aligns more closely with market performance [15][18] Market Position - The aerospace sector's momentum is benefiting SIFCO, as demand from aircraft and defense customers continues to rise, supporting revenue growth and margin stability [10][11] - Despite challenges in the aerospace industry, including supply chain weaknesses and digitalization complexities, SIFCO's favorable share price movement suggests it may maintain positive market momentum [8] - Compared to peers like Optex Systems Holdings, Inc. and Park Aerospace Corp., SIFCO has outperformed in stock price appreciation, indicating strong market positioning [7][17]

Core Insights - SIFCO Industries, Inc. has seen a significant stock price increase of 21.5% since its earnings report for the year ended June 30, 2025, outperforming the S&P 500 Index, which experienced a 1.1% loss during the same period [1] - The company reported a notable turnaround in profitability, moving from a net loss of $0.9 million in the prior year to a net income of $3.3 million in the third quarter of fiscal 2025 [2][3] Financial Performance - In the third quarter of fiscal 2025, SIFCO's net sales increased by 0.5% to $22.1 million compared to $21.9 million a year ago [2] - For the first nine months of fiscal 2025, net sales rose by 6.9% year over year to $62 million from $57.9 million [3] - EBITDA surged to $5.3 million from $1.2 million a year earlier, while adjusted EBITDA increased to $4.4 million from $1.8 million [2] Profitability Metrics - Gross profit for the fiscal third quarter reached $5.9 million, a 117.4% increase from $2.7 million in the prior-year quarter, driven by a 15.9% reduction in the cost of goods sold [4] - Operating profit improved significantly to $3.3 million from $147,000 in the prior-year quarter [4] - The gross margin increased to 26.7% from 12.3% year over year, indicating enhanced production efficiency [7] Balance Sheet Overview - As of June 30, 2025, total assets were reported at $77.3 million, down from $104.6 million at the end of fiscal 2024, primarily due to discontinued operations and reduced receivables [5] - Shareholders' equity strengthened to $35.8 million from $30.4 million, supported by the current year's profitability [5] Management Insights - Management highlighted strong demand for SIFCO's forgings and machined components, particularly from aerospace and energy sectors, despite some ongoing supply chain constraints [6] - Favorable pricing discussions with customers are expected to continue into the fiscal fourth quarter, contributing to a positive outlook [8] Operational Factors - The improvement in profitability was achieved with only a marginal rise in sales, reflecting effective cost control measures [7] - Interest expenses decreased by 56.8% to $0.4 million from $0.9 million a year earlier, contributing to the overall financial improvement [7] Strategic Developments - No acquisitions, divestitures, or major restructuring actions were reported during the quarter, with minimal activity from discontinued operations in the current fiscal year [9]

[Company Overview](index=1&type=section&id=Company%20Overview) SIFCO Industries, Inc. announced Q3 and 9M FY2025 financial results, specializing in aerospace and energy forgings, with forward-looking statements subject to risks [Announcement of Financial Results](index=1&type=section&id=Announcement%20of%20Financial%20Results) SIFCO Industries, Inc. announced its financial results for the third quarter and first nine months of fiscal year 2025, which concluded on June 30, 2025 - SIFCO Industries, Inc. (NYSE American: SIF) announced financial results for its **third quarter and first nine months of fiscal 2025**, ended June 30, 2025[1](index=1&type=chunk) [Business Overview](index=2&type=section&id=Business%20Overview) SIFCO Industries, Inc. specializes in the production of forgings and machined components primarily for the aerospace and energy markets, utilizing processes such as forging, heat-treating, coating, and machining - SIFCO Industries, Inc. produces **forgings and machined components** primarily for the **aerospace and energy markets**[8](index=8&type=chunk) - The company's processes and services include forging, heat-treating, coating, and machining[8](index=8&type=chunk) [Forward-Looking Statements and Risk Factors](index=1&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. Potential risks include economic conditions, pandemics, competition, and other factors detailed in the Company's SEC filings, particularly the Form 10-K - Statements in this press release are **forward-looking statements** subject to risks, uncertainties, and other factors that could cause actual results to differ materially[5](index=5&type=chunk) - Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of pandemics, contagious diseases or health epidemics, and competition[5](index=5&type=chunk)[7](index=7&type=chunk) - Detailed risk factors and uncertainties are available in Item 1A, 'Risk Factors' of the Company's Annual Report on Form 10-K for the year ended September 30, 2024, and other SEC filings[7](index=7&type=chunk) [Third Quarter Fiscal 2025 Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Results) SIFCO reported improved financial performance in Q3 FY2025, with slight sales growth, a turnaround to net income, and significant increases in EBITDA and Adjusted EBITDA [Key Financial Highlights (Q3)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q3%29) SIFCO reported a significant improvement in its third-quarter fiscal 2025 financial performance, with net sales slightly increasing and a substantial turnaround from a net loss to net income from continuing operations. Both EBITDA and Adjusted EBITDA saw considerable growth Third Quarter Fiscal 2025 Key Financial Highlights | Metric | Q3 FY2025 | Q3 FY2024 | Change (YoY) | | :--------------------------------- | :---------- | :---------- | :----------- | | Net Sales | $22.1 million | $22.0 million | +0.5% | | Net Income (Loss) from Continuing Operations | $3.3 million | $(0.9) million | Turnaround | | Diluted EPS from Continuing Operations | $0.54 | $(0.16) | Turnaround | | EBITDA | $5.3 million | $1.2 million | +341.7% | | Adjusted EBITDA | $4.4 million | $1.8 million | +144.4% | [Management Commentary (Q3)](index=1&type=section&id=Management%20Commentary%20%28Q3%29) Management noted strong demand for SIFCO's products in Q3, driven by increased end-user production. While raw material availability improved, some shipping constraints persisted. Favorable pricing discussions with customers contributed to positive trends in both sales and margins - Demand for SIFCO's products remained **strong** through the third quarter as end users increase production[4](index=4&type=chunk) - Raw material availability has improved, but some constraints continued to affect shipments during the period[4](index=4&type=chunk) - Favorable pricing discussions with customers are expected to continue into the fourth quarter, contributing to **positive sales and margin trends** in Q3[4](index=4&type=chunk) [First Nine Months Fiscal 2025 Results](index=1&type=section&id=First%20Nine%20Months%20Fiscal%202025%20Results) SIFCO's first nine months of FY2025 saw a 7.0% net sales increase, a significantly reduced net loss, and substantial improvements in EBITDA and Adjusted EBITDA [Key Financial Highlights (9M)](index=1&type=section&id=Key%20Financial%20Highlights%20%289M%29) For the first nine months of fiscal 2025, SIFCO experienced a 7.0% increase in net sales and significantly reduced its net loss from continuing operations compared to the prior year. Both EBITDA and Adjusted EBITDA showed substantial improvements, moving from negative or near-zero to positive figures First Nine Months Fiscal 2025 Key Financial Highlights | Metric | 9M FY2025 | 9M FY2024 | Change (YoY) | | :--------------------------------- | :---------- | :---------- | :----------- | | Net Sales | $62.0 million | $58.0 million | +7.0% | | Net Loss from Continuing Operations | $(0.4) million | $(7.2) million | Reduced Loss | | Diluted EPS from Continuing Operations | $(0.07) | $(1.20) | Reduced Loss | | EBITDA | $4.9 million | $(1.5) million | Turnaround | | Adjusted EBITDA | $4.0 million | $0.1 million | Significant Increase | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents SIFCO's consolidated statements of operations and balance sheets, highlighting improved profitability and changes in assets and liabilities due to discontinued operations [Consolidated Condensed Statements of Operations](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The consolidated statements of operations show a strong improvement in profitability for both the third quarter and the first nine months of fiscal 2025. Gross profit and operating profit significantly increased, leading to a net income in Q3 FY2025 compared to a net loss in Q3 FY2024, and a substantial reduction in net loss for the nine-month period Consolidated Condensed Statements of Operations (Q3 and 9M FY2025 vs FY2024) | Metric (in thousands) | Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net sales | $22.1 million | $22.0 million | $62.0 million | $58.0 million | | Cost of goods sold | $16.2 million | $19.3 million | $53.6 million | $54.3 million | | Gross profit | $5.9 million | $2.7 million | $8.4 million | $3.7 million | | Operating profit (loss) | $3.3 million | $0.1 million | $0.6 million | $(4.8) million | | Income (loss) from continuing operations | $3.3 million | $(0.9) million | $(0.4) million | $(7.2) million | | Net income (loss) | $3.4 million | $0.1 million | $(0.3) million | $(4.9) million | | Basic and diluted EPS from continuing operations | $0.54 | $(0.16) | $(0.07) | $(1.20) | [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of June 30, 2025, SIFCO's total assets decreased significantly compared to September 30, 2024, primarily due to the reclassification of discontinued operations. Total liabilities also saw a substantial reduction, while total shareholders' equity increased, reflecting improved financial health Consolidated Condensed Balance Sheets (June 30, 2025 vs. September 30, 2024) | Metric (in thousands) | June 30, 2025 | September 30, 2024 | Change | | :------------------------------------ | :------------ | :----------------- | :----- | | Total current assets | $38.1 million | $54.3 million | $(16.2) million | | Current assets of discontinued operations | $0 | $16.0 million | $(16.0) million | | Total assets | $77.3 million | $104.6 million | $(27.3) million | | Total current liabilities | $25.6 million | $54.0 million | $(28.4) million | | Current liabilities of discontinued operations | $0 | $10.1 million | $(10.1) million | | Total liabilities and shareholders' equity | $77.3 million | $104.6 million | $(27.3) million | | Total shareholders' equity | $35.8 million | $30.4 million | +$5.4 million | - The decrease in total assets and liabilities is largely due to the **reclassification of discontinued operations** to zero as of June 30, 2025[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the purpose and limitations of non-GAAP measures like EBITDA and Adjusted EBITDA, along with their reconciliation to GAAP net income [Definition and Purpose](index=5&type=section&id=Definition%20and%20Purpose) SIFCO uses non-GAAP measures like EBITDA and Adjusted EBITDA as supplements to GAAP results. Management believes these measures are useful indicators for evaluating operating performance, including debt servicing ability, and for evaluating prospective acquisitions - **EBITDA** represents earnings (losses) from continuing operations before interest, taxes, depreciation, and amortization[11](index=11&type=chunk) - **Adjusted EBITDA** is EBITDA plus specific adjustments detailed in the reconciliations[11](index=11&type=chunk) - Management considers these non-GAAP measures useful for evaluating **operating performance**, debt servicing ability, and prospective acquisitions[12](index=12&type=chunk) [Limitations of Non-GAAP Measures](index=5&type=section&id=Limitations%20of%20Non-GAAP%20Measures) Non-GAAP measures like EBITDA and Adjusted EBITDA have limitations, as they do not reflect interest expense, cash requirements for asset replacement (despite non-cash depreciation), amortization of intangible assets, or tax payments. They should not be considered in isolation or as substitutes for GAAP results - Neither EBITDA nor Adjusted EBITDA reflects **interest expense**, cash requirements for asset replacements, intangible asset amortization, or tax payments[15](index=15&type=chunk) - These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP results of operations[12](index=12&type=chunk) - The Company's calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies[13](index=13&type=chunk) [Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA](index=5&type=section&id=Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20EBITDA%20and%20Adjusted%20EBITDA) The reconciliation table details the adjustments made to net income (loss) from continuing operations to arrive at EBITDA and Adjusted EBITDA for both the third quarter and first nine months of fiscal 2025 and 2024. Key adjustments include depreciation, interest, income tax, and various non-recurring or non-operating items Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (Q3 and 9M FY2025 vs FY2024) | Metric (in thousands) | Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net income (loss) | $3.4 million | $0.1 million | $(0.3) million | $(4.9) million | | Income (loss) from continuing operations | $3.3 million | $(0.9) million | $(0.4) million | $(7.2) million | | Depreciation and amortization expense | $1.5 million | $1.2 million | $3.9 million | $3.6 million | | Interest (income) expense, net | $0.4 million | $0.9 million | $1.3 million | $2.1 million | | Income tax expense | $41 thousand | $0 thousand | $120 thousand | $11 thousand | | **EBITDA** | **$5.3 million** | **$1.2 million** | **$4.9 million** | **$(1.5) million** | | Foreign currency exchange loss (gain), net | $5 thousand | $(1) thousand | $4 thousand | $0 thousand | | Other (income) expense, net | $(479) thousand | $99 thousand | $(404) thousand | $253 thousand | | LIFO impact | $(470) thousand | $475 thousand | $(606) thousand | $826 thousand | | **Adjusted EBITDA** | **$4.4 million** | **$1.8 million** | **$4.0 million** | **$0.1 million** | [Corporate Information](index=6&type=section&id=Corporate%20Information) This section provides contact details for SIFCO Industries, Inc. and footnotes explaining various adjustments in the non-GAAP reconciliation [Contacts and Footnotes](index=6&type=section&id=Contacts%20and%20Footnotes) This section provides contact information for SIFCO Industries, Inc. and detailed explanations for the adjustments made in the non-GAAP reconciliation, including foreign currency exchange, other income/expense, asset disposal, severance, equity compensation, pension, transaction-related expenses, LIFO impact, IT incident costs, and strategic alternative expenses - Contact information for SIFCO Industries, Inc. includes Jennifer Wilson (216-881-8600) and www.sifco.com[17](index=17&type=chunk) - Footnotes detail non-GAAP reconciliation adjustments, including foreign currency exchange, other income/expense, asset disposal, severance, equity compensation, pension, transaction-related, LIFO impact, IT incident, and strategic alternative expenses[17](index=17&type=chunk)

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This section details SIFCO Industries, Inc.'s identification, filing status, and common share trading information [Registrant Information](index=1&type=section&id=Registrant%20Information) Details SIFCO Industries, Inc.'s identification, filing status, and common shares trading on NYSE American - SIFCO Industries, Inc. is incorporated in Ohio with IRS Employer Identification No. 34-0553950, located at 970 East 64th Street, Cleveland Ohio 44103[3](index=3&type=chunk) - The registrant is a non-accelerated filer and a smaller reporting company[3](index=3&type=chunk) Securities Registered (Amounts in millions) | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Shares | SIF | NYSE American | - As of June 30, 2025, the number of outstanding Common Shares, par value $1.00, was **6,180,388**[3](index=3&type=chunk) [Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) Presents SIFCO Industries, Inc.'s unaudited consolidated condensed financial statements and related notes for specified periods [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Contains unaudited consolidated condensed financial statements and detailed notes for SIFCO Industries, Inc. [Consolidated Condensed Statements of Operations](index=2&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Presents net income, gross profit, and EPS for the three and nine months ended June 30, 2025 and 2024 Consolidated Condensed Statements of Operations (Amounts in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $22.1 | $22.0 | $62.0 | $58.0 | | Gross profit | $5.9 | $2.7 | $8.4 | $3.7 | | Operating profit (loss) | $3.3 | $0.1 | $0.6 | $(4.8) | | Income (loss) from continuing operations | $3.3 | $(0.9) | $(0.4) | $(7.2) | | Income from discontinued operations, net of tax | $0.1 | $1.0 | $0.1 | $2.3 | | Net income (loss) | $3.4 | $0.1 | $(0.3) | $(4.9) | | Basic and diluted EPS from continuing operations| $0.54 | $(0.16) | $(0.07) | $(1.20) | | Basic and diluted EPS | $0.56 | $0.01 | $(0.05) | $(0.82) | [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) Presents comprehensive income/loss, foreign currency adjustments, and retirement plan liabilities Consolidated Condensed Statements of Comprehensive Income (Loss) (Amounts in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $3.4 | $0.1 | $(0.3) | $(4.9) | | Foreign currency translation adjustment | — | $(0.1) | — | $0.1 | | Reclassification of foreign translation adjustments to net loss | — | — | $5.6 | — | | Retirement plan liability adjustment | $0.0 | $0.1 | $0.1 | $0.2 | | Comprehensive income (loss) | $3.4 | $0.1 | $5.3 | $(4.7) | [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Summarizes assets, liabilities, and shareholders' equity, reflecting discontinued operations impact Consolidated Condensed Balance Sheets (Amounts in millions) | Metric | June 30, 2025 | September 30, 2024 | | :---------------------------------------- | :------------ | :----------------- | | Total current assets | $38.1 | $54.3 | | Total assets | $77.3 | $104.6 | | Total current liabilities | $25.6 | $54.0 | | Total liabilities and shareholders' equity| $77.3 | $104.6 | | Total shareholders' equity | $35.8 | $30.4 | - Current assets of discontinued operations were **$0** as of June 30, 2025, down from **$16.0 million** as of September 30, 2024, reflecting the CBlade sale[11](index=11&type=chunk) - Current maturities of long-term debt increased significantly to **$3.0 million** as of June 30, 2025, from **$0.4 million** as of September 30, 2024[11](index=11&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Outlines cash flows from operating, investing, financing, and discontinued operations Consolidated Condensed Statements of Cash Flows (Amounts in millions) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | | Net cash used for operating activities | $(0.6) | $(3.5) | | Net cash used for investing activities | $(0.3) | $(1.7) | | Net cash (used for) provided by financing activities | $(13.4) | $6.2 | | Net cash provided by discontinued operations | $13.6 | $0.3 | | (Decrease) increase in cash and cash equivalents | $(0.7) | $1.3 | | Cash and cash equivalents from continuing operations at the end of the period | $2.0 | $1.0 | [Supplemental Disclosure of Cash Flow Information](index=6&type=section&id=Supplemental%20Disclosure%20of%20Cash%20Flow%20Information) Highlights cash paid for interest and non-cash investing activities for specified periods Supplemental Cash Flow Information (Amounts in millions) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------ | :------------------------------ | | Cash paid for interest | $(1.5) | $(1.1) | | Cash paid for income taxes, net | $(0.0) | $(0.0) | | Additions to property, plant & equipment — incurred but not yet paid | $0.0 | $0.0 | | Debt issuance costs — incurred but not yet paid | $0.1 | — | | Accrued guaranty fees — related party | — | $0.9 | | Origination fees capitalized to promissory note principal — related party | — | $0.2 | [Consolidated Condensed Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Shareholders'%20Equity) Details changes in common shares, paid-in capital, retained earnings, and comprehensive income (loss) Consolidated Condensed Statements of Shareholders' Equity (Amounts in millions) | Metric | June 30, 2025 | September 30, 2024 | | :---------------------------------------- | :------------ | :----------------- | | Common Shares (Amount) | $6.2 | $6.2 | | Additional Paid-In Capital | $11.9 | $11.8 | | Retained Earnings | $17.6 | $17.9 | | Accumulated Other Comprehensive Income (Loss) | $0.2 | $(5.4) | | Total Shareholders' Equity | $35.8 | $30.4 | - Comprehensive income for the nine months ended June 30, 2025, was **$5.3 million**, a significant improvement from a loss of **$(4.7) million** in the prior year[18](index=18&type=chunk) - Accumulated other comprehensive income (loss) shifted from a loss of **$(5.4) million** at October 1, 2024, to an income of **$0.2 million** at June 30, 2025, largely due to a reclassification of foreign translation adjustments[18](index=18&type=chunk) [Notes to Unaudited Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) Provides essential context and detailed explanations for the unaudited financial statements [1. Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines key accounting principles, discontinued operations, foreign currency, and new accounting standards - The Company sold its European operations (CBlade S.p.A.) in October 2024 to refocus on its core aerospace forging business, resulting in CBlade's financial results being presented as discontinued operations[21](index=21&

Core Viewpoint - SIFCO Industries, Inc. experienced a decline in share price following its earnings report for Q2 and the first half of fiscal 2025, despite a recent surge in stock performance over the past month, indicating mixed investor sentiment [1] Revenue and Earnings Overview - For Q2 ended March 31, 2025, SIFCO reported net sales of $19 million, a 7.3% decrease from $20.5 million in the same quarter last year, primarily due to raw material sourcing issues [2] - The net loss from continuing operations narrowed to $1.3 million, or $(0.22) per diluted share, compared to a loss of $2.2 million, or $(0.38) per share, in the prior year [2] - Total net loss for the quarter was $1.4 million, an improvement from the $1.6 million loss a year ago [2] Half-Year Performance - For the first half of fiscal 2025, net sales increased by 10.9% to $39.9 million from $35.9 million in the previous year [3] - The net loss from continuing operations decreased to $3.7 million, or $(0.62) per diluted share, down from $6.3 million, or $(1.05) per share, last year [3] - Total net loss for the first six months was $3.7 million compared to $5 million a year earlier [3] Profitability and Operational Metrics - Gross profit for Q2 rose 5.1% to $1.6 million from $1.5 million despite declining revenues [4] - SG&A expenses decreased by 16.6% to $2.4 million from $2.8 million, contributing to reduced operating losses [4] - The operating loss for the quarter was $0.8 million, an improvement from $1.3 million a year ago [4] EBITDA Trends - EBITDA for Q2 improved to $0.4 million from a loss of $0.2 million in the prior year [6] - Adjusted EBITDA swung to a loss of $0.2 million from a positive $0.2 million in the previous year, primarily due to an unfavorable LIFO inventory adjustment of $(0.6) million [6] - For the first half, EBITDA was $(0.4) million compared to $(2.7) million last year, while adjusted EBITDA improved to a loss of $(0.4) million from $(1.7) million previously [7] Management Commentary - CEO George Scherff highlighted operational improvements and emphasized the focus on throughput and margin-enhancing initiatives despite sales challenges [8] - The order backlog reached $129.2 million, indicating solid demand from aerospace and energy markets [8] Factors Behind Financial Results - The revenue decline was attributed to raw material shortages, but cost controls, particularly lower SG&A expenses and interest costs, helped mitigate losses [9] - Interest expenses dropped 47.7% to $0.4 million from $0.8 million in the prior-year quarter [9] Balance Sheet and Asset Management - Current assets fell to $38.1 million as of March 31, 2025, from $54.3 million as of September 30, 2024, largely due to the removal of discontinued operations [12] - The revolving credit facility balance decreased to $8.9 million from $20.1 million, indicating significant deleveraging [12] - Shareholders' equity increased to $32.4 million from $30.4 million, mainly due to positive adjustments in accumulated other comprehensive income [12] Guidance and Future Outlook - SIFCO did not provide specific financial guidance but noted a growing backlog as a positive indicator of sustained demand [13] - Management did not quantify expectations or provide adjusted earnings targets [13] Other Developments - The financials reflected the impact of completed divestitures, with discontinued operations having minimal impact this year compared to the previous fiscal year [14] - No new acquisitions or divestitures were announced during the quarter [14]