SIFCO Industries, Inc. (“SIFCO”) Announces First Quarter Fiscal 2025 Financial Results
SIFCO Industries (NYSE American: SIF) reported its Q1 fiscal 2025 financial results, showing a 35% increase in net sales to $20.9 million compared to $15.5 million in Q1 fiscal 2024. Despite the sales growth, the company posted a net loss from continuing operations of $2.4 million ($(0.40) per share), an improvement from the $4.1 million loss ($(0.67) per share) in the same period last year.
The company's EBITDA improved to $(0.8) million from $(2.5) million, while Adjusted EBITDA was $(0.2) million compared to $(1.9) million in Q1 fiscal 2024. Notably, the company's backlog increased to $121.9 million, indicating strong product demand. The quarter focused on margin improvement and increasing throughput at both plants.
SIFCO Industries (NYSE American: SIF) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025, evidenziando un aumento del 35% delle vendite nette, che sono arrivate a 20,9 milioni di dollari rispetto ai 15,5 milioni di dollari del primo trimestre dell'anno fiscale 2024. Nonostante la crescita delle vendite, l'azienda ha registrato una perdita netta dalle operazioni continuative di 2,4 milioni di dollari ($(0,40) per azione), un miglioramento rispetto alla perdita di 4,1 milioni di dollari ($(0,67) per azione) nello stesso periodo dell'anno scorso.
L'EBITDA dell'azienda è migliorato a $(0,8) milioni rispetto a $(2,5) milioni, mentre l'EBITDA rettificato è stato di $(0,2) milioni rispetto a $(1,9) milioni nel primo trimestre dell'anno fiscale 2024. È interessante notare che il portafoglio ordini dell'azienda è aumentato a 121,9 milioni di dollari, indicativo di una forte domanda di prodotti. Il trimestre si è concentrato sul miglioramento dei margini e sull'aumento della capacità produttiva in entrambi gli impianti.
SIFCO Industries (NYSE American: SIF) informó sus resultados financieros del primer trimestre del año fiscal 2025, mostrando un aumento del 35% en las ventas netas, alcanzando los 20.9 millones de dólares en comparación con los 15.5 millones de dólares en el primer trimestre del año fiscal 2024. A pesar del crecimiento en las ventas, la compañía reportó una pérdida neta de operaciones continuas de 2.4 millones de dólares ($(0.40) por acción), una mejora respecto a la pérdida de 4.1 millones de dólares ($(0.67) por acción) en el mismo periodo del año pasado.
El EBITDA de la compañía mejoró a $(0.8) millones desde $(2.5) millones, mientras que el EBITDA Ajustado fue de $(0.2) millones en comparación con $(1.9) millones en el primer trimestre del año fiscal 2024. Notablemente, la cartera de pedidos de la compañía aumentó a 121.9 millones de dólares, lo que indica una fuerte demanda de productos. El trimestre se centró en la mejora del margen y el aumento del rendimiento en ambas plantas.
SIFCO Industries (NYSE American: SIF)는 2025 회계연도 1분기 재무 결과를 발표하며 순매출이 1억 9천만 달러에서 2천만 달러로 35% 증가했다고 전했습니다. 판매 성장에도 불구하고, 회사는 계속 운영에서 240만 달러 ($(0.40) 주당)의 순손실을 기록했으며, 이는 지난해 같은 기간 410만 달러 ($(0.67) 주당)의 손실보다 개선된 수치입니다.
회사의 EBITDA는 $(0.8) 백만 달러에서 $(2.5) 백만 달러로 개선되었고, 조정 EBITDA는 2024 회계연도 1분기의 $(1.9) 백만 달러와 비교하여 $(0.2) 백만 달러였습니다. 특히, 회사의 수주 잔고는 1억 2,190만 달러로 증가하여 강력한 제품 수요를 나타냅니다. 이번 분기는 두 공장에서의 마진 개선과 생산량 증가에 초점을 맞추었습니다.
SIFCO Industries (NYSE American: SIF) a annoncé ses résultats financiers du premier trimestre de l'exercice 2025, montrant une augmentation de 35 % des ventes nettes, atteignant 20,9 millions de dollars par rapport à 15,5 millions de dollars au premier trimestre de l'exercice 2024. Malgré la croissance des ventes, l'entreprise a enregistré une perte nette des opérations continues de 2,4 millions de dollars ($(0,40) par action), une amélioration par rapport à la perte de 4,1 millions de dollars ($(0,67) par action) au cours de la même période l'année dernière.
L'EBITDA de l'entreprise a progressé à $(0,8) million par rapport à $(2,5) millions, tandis que l'EBITDA ajusté était de $(0,2) million contre $(1,9) million au premier trimestre de l'exercice 2024. Notamment, le carnet de commandes de l'entreprise a augmenté à 121,9 millions de dollars, ce qui indique une forte demande de produits. Le trimestre a été axé sur l'amélioration des marges et l'augmentation du rendement dans les deux usines.
SIFCO Industries (NYSE American: SIF) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht, die einen Anstieg der Nettoumsätze um 35% auf 20,9 Millionen Dollar im Vergleich zu 15,5 Millionen Dollar im ersten Quartal des Geschäftsjahres 2024 zeigen. Trotz des Umsatzwachstums verzeichnete das Unternehmen einen Nettoverlust aus fortgeführten Betrieben von 2,4 Millionen Dollar ($(0,40) pro Aktie), eine Verbesserung gegenüber dem Verlust von 4,1 Millionen Dollar ($(0,67) pro Aktie) im gleichen Zeitraum des Vorjahres.
Das EBITDA des Unternehmens verbesserte sich von $(2,5) Millionen auf $(0,8) Millionen, während das bereinigte EBITDA $(0,2) Millionen im Vergleich zu $(1,9) Millionen im ersten Quartal des Geschäftsjahres 2024 betrug. Bemerkenswert ist, dass der Auftragsbestand des Unternehmens auf 121,9 Millionen Dollar gestiegen ist, was auf eine starke Produktnachfrage hinweist. Das Quartal konzentrierte sich auf die Verbesserung der Margen und die Erhöhung des Durchsatzes in beiden Werken.
- Net sales increased 35% year-over-year to $20.9 million
- Net loss from continuing operations improved by 40.5% to $2.4 million
- EBITDA improved by $1.7 million year-over-year
- Strong backlog of $121.9 million indicating robust demand
- Gross profit improved to $0.9 million from a loss of $0.5 million
- Continuing operations still showing net loss of $2.4 million
- Negative EBITDA of $(0.8) million
- Interest expense increased 37% to $469,000
- Operating loss of $1.9 million
Insights
The Q1 FY2025 results reveal a complex picture of SIFCO's operational transformation. The 35% revenue growth to
The improved net loss from continuing operations (
Working capital management shows concerning trends. While inventory levels decreased slightly, the revolver balance of
The aerospace sector's recovery dynamics are evident in SIFCO's results, but the challenge lies in translating this increased demand into profitable operations. The focus on margin improvement and increased throughput at both plants is critical, as the current cost structure struggles to support the higher revenue base efficiently.
First Quarter Results
-
Net sales in the first quarter of fiscal 2025 increased
35.0% to$20.9 million $15.5 million
-
Net loss from continuing operations for the first quarter of fiscal 2025 was
$2.4 million $(0.40) $4.1 million $(0.67) $0.1 million $0.02 $0.6 million $0.10
-
EBITDA was
$(0.8) million $(2.5) million
-
Adjusted EBITDA in the first quarter of fiscal 2025 was
$(0.2) million $(1.9) million
Other Highlights
“Our first quarter was focused on opportunities for margin improvement and increasing throughput at both plants,” said George Scherff, Chief Executive Officer of SIFCO Industries, Inc. “Our backlog continues to increase and now stands at
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in
Forward-Looking Language
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company’s Securities and Exchange Commission filings. For a discussion of such risk factors and uncertainties, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 and other reports filed by the Company with the Securities & Exchange Commission.
The Company’s Form 10-K for the year ended September 30, 2024 and other reports filed with the Securities & Exchange Commission can be accessed through the Company’s website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.
Consolidated Condensed Statements of Operations |
||||||||
(Amounts in thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended |
|||||||
December 31, |
||||||||
|
2024 |
|
2023 |
|||||
Net sales |
$ |
20,883 |
|
|
$ |
15,474 |
|
|
Cost of goods sold |
|
19,955 |
|
|
|
16,019 |
|
|
Gross profit (loss) |
|
928 |
|
|
|
(545 |
) |
|
Selling, general and administrative expenses |
|
2,840 |
|
|
|
3,103 |
|
|
Operating loss |
|
(1,912 |
) |
|
|
(3,648 |
) |
|
Interest expense, net |
|
469 |
|
|
|
342 |
|
|
Foreign currency exchange (gain) loss, net |
|
(2 |
) |
|
|
4 |
|
|
Other expense, net |
|
38 |
|
|
|
69 |
|
|
Loss from continuing operations before income tax expense |
|
(2,417 |
) |
|
|
(4,063 |
) |
|
Income tax expense |
|
5 |
|
|
|
6 |
|
|
Loss from continuing operations |
|
(2,422 |
) |
|
|
(4,069 |
) |
|
Income from discontinued operations, net of tax |
|
106 |
|
|
|
647 |
|
|
Net loss |
$ |
(2,316 |
) |
|
$ |
(3,422 |
) |
|
|
|
|
|
|||||
Basic and diluted earnings (loss) per share: |
|
|
|
|||||
Basic and diluted loss per share from continuing operations |
$ |
(0.40 |
) |
|
$ |
(0.67 |
) |
|
Basic and diluted earnings per share from discontinued operations |
|
0.02 |
|
|
|
0.10 |
|
|
Basic and diluted loss per share |
$ |
(0.38 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|||||
Weighted-average number of common shares (basic) |
|
6,016 |
|
|
|
5,956 |
|
|
Weighted-average number of common shares (diluted) |
|
6,016 |
|
|
|
5,956 |
|
|
Consolidated Condensed Balance Sheets |
|||||||
(Amounts in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
December 31,
|
|
September 30,
|
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
3,143 |
|
$ |
1,714 |
|
|
Receivables, net of allowance for credit losses of |
|
16,848 |
|
|
17,272 |
|
|
Contract assets |
|
10,119 |
|
|
10,745 |
|
|
Inventories, net |
|
5,683 |
|
|
6,230 |
|
|
Refundable income taxes |
|
13 |
|
|
13 |
|
|
Prepaid expenses and other current assets |
|
3,129 |
|
|
2,382 |
|
|
Current assets of discontinued operations |
|
— |
|
|
15,967 |
|
|
Total current assets |
|
38,935 |
|
|
54,323 |
|
|
Property, plant and equipment, net |
|
25,347 |
|
|
26,261 |
|
|
Operating lease right-of-use assets, net |
|
13,132 |
|
|
13,326 |
|
|
Goodwill |
|
3,493 |
|
|
3,493 |
|
|
Other assets |
|
75 |
|
|
357 |
|
|
Noncurrent assets of discontinued operations |
|
— |
|
|
6,864 |
|
|
Total assets |
$ |
80,982 |
|
$ |
104,624 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of long-term debt, net of unamortized debt issuance costs |
$ |
3,227 |
|
$ |
353 |
|
|
Promissory note — related party |
|
— |
|
|
3,510 |
|
|
Revolver |
|
12,633 |
|
|
20,142 |
|
|
Short-term operating lease liabilities |
|
892 |
|
|
879 |
|
|
Accounts payable |
|
8,820 |
|
|
11,574 |
|
|
Contract liabilities |
|
2,384 |
|
|
2,879 |
|
|
Accrued liabilities (related party — nil and |
|
3,058 |
|
|
4,615 |
|
|
Current liabilities of discontinued operations |
|
— |
|
|
10,058 |
|
|
Total current liabilities |
|
31,014 |
|
|
54,010 |
|
|
Long-term debt, net of current maturities |
|
85 |
|
|
— |
|
|
Long-term operating lease liabilities, net of short-term |
|
12,844 |
|
|
13,035 |
|
|
Deferred income taxes, net |
|
219 |
|
|
154 |
|
|
Pension liability |
|
2,398 |
|
|
2,465 |
|
|
Other long-term liabilities |
|
746 |
|
|
645 |
|
|
Noncurrent liabilities of discontinued operations |
|
— |
|
|
3,890 |
|
|
Shareholders’ equity: |
|
|
|
||||
Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at December 31, 2024 and September 30, 2024 |
|
— |
|
|
— |
|
|
Common shares, par value |
|
6,147 |
|
|
6,158 |
|
|
Additional paid-in capital |
|
11,778 |
|
|
11,775 |
|
|
Retained earnings |
|
15,565 |
|
|
17,881 |
|
|
Accumulated other comprehensive income (loss) |
|
186 |
|
|
(5,389 |
) |
|
Total shareholders’ equity |
|
33,676 |
|
|
30,425 |
|
|
Total liabilities and shareholders’ equity |
$ |
80,982 |
|
$ |
104,624 |
|
|
Non-GAAP Financial Measures
Presented below is certain financial information based on the Company’s EBITDA and Adjusted EBITDA. References to “EBITDA” mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.
Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in
- Neither EBITDA nor Adjusted EBITDA reflects the interest expense or the cash requirements necessary to service interest payments on indebtedness;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
- The omission of the amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
- Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.
The following table sets forth a reconciliation of net loss to EBITDA and Adjusted EBITDA:
|
Three Months Ended |
|||||||
December 31, |
||||||||
Dollars in thousands |
|
2024 |
|
|
|
2023 |
|
|
Net loss |
$ |
(2,316 |
) |
|
$ |
(3,422 |
) |
|
Less: Income from discontinued operations, net of tax |
|
106 |
|
|
|
647 |
|
|
Loss from continuing operations |
|
(2,422 |
) |
|
|
(4,069 |
) |
|
Adjustments: |
|
|
|
|||||
Depreciation and amortization expense |
|
1,181 |
|
|
|
1,232 |
|
|
Interest expense, net |
|
469 |
|
|
|
342 |
|
|
Income tax expense |
|
5 |
|
|
|
6 |
|
|
EBITDA |
|
(767 |
) |
|
|
(2,489 |
) |
|
Adjustments: |
|
|
|
|||||
Foreign currency exchange (gain) loss, net (1) |
|
(2 |
) |
|
|
4 |
|
|
Other expense, net (2) |
|
38 |
|
|
|
69 |
|
|
Non-recurring severance expense adjustments (3) |
|
(22 |
) |
|
|
— |
|
|
Equity compensation (3) |
|
21 |
|
|
|
86 |
|
|
Transaction-related expense adjustments (4) |
|
(17 |
) |
|
|
— |
|
|
LIFO impact (5) |
|
501 |
|
|
|
293 |
|
|
IT incident costs, net (6) |
|
— |
|
|
|
(1 |
) |
|
Strategic alternative expense (7) |
|
— |
|
|
|
187 |
|
|
Adjusted EBITDA |
$ |
(248 |
) |
|
$ |
(1,851 |
) |
|
(1) |
Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated. |
|
(2) |
Represents miscellaneous non-operating income or expense, such as pension costs or grant income. |
|
(3) |
Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures and executive severance. |
|
(4) |
Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful acquisition of another company. |
|
(5) |
Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out (“LIFO”) method. |
|
(6) |
Represents incremental information technology costs (and credits) as it relates to the cybersecurity incident and loss on insurance recovery. |
|
(7) |
Represents expense related to evaluation of strategic alternatives. |
Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250214325853/en/
SIFCO Industries, Inc.
Jennifer Wilson, 216-881-8600
www.sifco.com
Source: SIFCO Industries, Inc.
FAQ
What was SIFCO Industries' (SIF) revenue growth in Q1 2025?
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