Servotronic Stock Price, News & Analysis

BHW, Servotronics' (SVT) largest shareholder, announced the end of its proxy campaign following TransDigm Group's (TDG) proposed acquisition of Servotronics. The deal represents a significant victory, delivering a 250+% share price premium compared to January 2025 levels when BHW initiated its board slate nomination. The transaction, driven by BHW's S.A.V.E. Servotronics Plan, aims to preserve 275 jobs and aerospace manufacturing capabilities in Western New York. BHW's chairman Paul L. Snyder III emphasized TransDigm's recognition of Servotronics' underutilized potential, proprietary technology, and skilled workforce. While concluding its campaign, BHW will continue advocating for transparency and urges TransDigm to formally commit to maintaining and growing operations in Elma and Franklinville, N.Y.

TransDigm Group (NYSE: TDG) has announced a definitive merger agreement to acquire Servotronics (NYSE American: SVT) for $38.50 per share in cash, valuing the transaction at approximately $110 million. The offer represents a significant 274% premium over Servotronics' closing price on May 16, 2025.

Servotronics, headquartered in Elma, New York, is a leading manufacturer of servo controls and advanced technology components for aerospace and defense applications. The company generates approximately $45 million in annual revenue, with nearly 80% of its business serving commercial aerospace through proprietary products. The acquisition will be funded through TransDigm's cash on hand and is expected to commence with a tender offer by June 9, 2025.

Beaver Hollow Wellness (BHW), Servotronics' (SVT) largest shareholder with a 15.2% stake, has issued a critical warning about the company's future under its current Board of Directors. The Q1 2025 financial analysis reveals concerning metrics: negative $1.6M cash from operations, a 75% increase in credit line borrowing to $3.7M, and unrestricted cash dropping to just $37,000. BHW claims the reported profit is driven by accounting maneuvers rather than sustainable growth. The activist investor is urging shareholders to vote for its four director nominees on the WHITE proxy card to restore oversight and protect the company's future. BHW accuses the board of lack of transparency, refusing to examine corporate records, and potentially preparing for a company sale without stakeholder input.

Servotronics (SVT) reported improved Q1 2025 financial results, with revenue increasing 12% to $11.7 million from $10.4 million in Q1 2024. The company achieved a significant turnaround, posting a net income of $0.1 million ($0.06 per share) compared to a net loss of $0.4 million (-$0.15 per share) in Q1 2024. Gross profit margin expanded by 360 basis points to 20.2%, driven by higher volumes and operational efficiencies. Operating income improved by $0.5 million to $0.2 million, reversing a previous loss of $0.3 million. The company is actively pursuing strategic alternatives and has begun discussions with potential partners while implementing pricing improvements expected to enhance margins through 2026.

Beaver Hollow Wellness (BHW), owning 15.2% of Servotronics (NYSE: SVT), has filed a definitive proxy statement and nominated four directors for election at the June 3, 2025 Annual Meeting. BHW criticizes the current board for declining shareholder value, deteriorating operating margins, and excessive executive compensation. The activist investor nominated Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp, and Charles C. Alfiero to the board. BHW particularly criticizes the board's handling of the Ontario Knife divestiture and questions their ability to manage the ongoing strategic alternatives review. The investor urges shareholders to vote using the WHITE proxy card and withhold votes from all company nominees except Karen L. Howard.

Beaver Hollow Wellness (BHW), the largest active shareholder of Servotronics (NASDAQ: SVT), has issued a response to the company's amended proxy statement filed April 22, 2025. BHW criticizes the board's insertion of 'change of control' compensation provisions, which could trigger accelerated equity awards and enhanced severance benefits for executives if a majority of directors are replaced.

BHW's chairman, Paul L. Snyder III, argues that the board is prioritizing executive payouts over shareholder value. The activist investor aims to implement lean manufacturing principles, improve supply chain operations, and enhance deliverability. BHW has nominated four professionals with expertise in aerospace, finance, manufacturing, and governance: Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp, and Charles C. Alfiero.

Servotronics (NYSE: SVT), a manufacturer of servo-control components for aerospace applications, has announced its Board of Directors is initiating a strategic review of alternatives. The company has engaged Houlihan Lokey as financial advisor and Bond, Schoeneck & King PLLC as legal counsel for this process.

The strategic review will evaluate various options including capital investments, potential sale of the company, or maintaining current operations. Chairman Christopher Marks highlighted the company's progress in transformation efforts over the past three years as a commercial aerospace supplier, while CEO William F. Farrell, Jr. emphasized continued commitment to customers, employees, and suppliers during this process.

The company has not established a timeline for completing the review and notes there is no guarantee that any transaction will be consummated. Updates will only be provided if required by law or deemed appropriate by management.

Servotronics (SVT) reported mixed financial results for Q4 and full-year 2024. While annual performance showed improvements, Q4 faced significant challenges. Full-year 2024 highlights include:

- Revenue grew 3.0% to $44.9 million
- Gross profit increased to $8.3 million (18.4% margin)
- Operating loss improved 52.2% to ($1.0) million
- Loss per share of ($0.60), better than ($1.44) in 2023
- Operating cash flow improved to $1.3 million

Fourth quarter 2024 showed decline:
- Revenue fell 20.8% to $9.8 million
- Operating loss of ($1.1) million vs. $0.5 million profit in Q4 2023
- Loss per share of ($0.50) vs. $0.15 profit in Q4 2023

The company attributes Q4 challenges to industry headwinds and deferred customer deliveries, but maintains a positive outlook for 2025, citing strong positioning on major commercial airline platforms including 737 Max, 787, and A320 family.

Servotronics (SVT) is facing a proxy fight for control as Paul Snyder III, the company's largest individual shareholder with 15.2% ownership, challenges the current board. Snyder has introduced the SAVE Servotronics plan, a comprehensive strategy aimed at revitalizing the Elma, New York-based aerospace servo valve manufacturer.

The plan focuses on four key areas: strategic leadership, accountability and transparency, value creation, and employee empowerment. Through the first nine months of 2024, Servotronics reported a net loss of $251,000 on sales of $35.1 million. The company's stock price remains stagnant at 2016 levels, while the S&P 500 has nearly tripled during the same period.

On January 13, 2025, Snyder initiated a proxy contest to secure board seats for himself, Charles 'Chris' Alfiero, and two other nominees. Subsequently, on January 28, he demanded an internal investigation into potential unjust enrichment at the company.