Sypris Reports Fourth Quarter Results
Sypris Solutions (NASDAQ: SYPR) reported Q4 2024 financial results with notable improvements in profitability. The company's gross profit increased 23.1% quarter-over-quarter, with gross margin expanding 350 basis points. Q4 revenue was $33.4 million, with EPS improving to $0.01 from a loss of $0.05 in the prior year.
Sypris Technologies saw a 41.6% surge in gross profit for Q4, benefiting from favorable exchange rates and productivity improvements. Energy product orders rose 8.6% year-to-date. The company's electronics division maintains a strong backlog exceeding $90 million.
For 2025 guidance, Sypris projects revenue between $125-$135 million, gross margin expansion of 150-175 basis points, and expects 10-15% growth in gross profit. The outlook factors in the conversion of certain Mexican facility shipments to a value-add sub-maquiladora basis.
Sypris Solutions (NASDAQ: SYPR) ha riportato i risultati finanziari del Q4 2024 con miglioramenti significativi nella redditività. Il profitto lordo dell'azienda è aumentato del 23,1% rispetto al trimestre precedente, con un margine lordo che si è espanso di 350 punti base. Le entrate del Q4 sono state di 33,4 milioni di dollari, con un utile per azione che è migliorato a 0,01 dollari rispetto a una perdita di 0,05 dollari nell'anno precedente.
Sypris Technologies ha registrato un aumento del 41,6% del profitto lordo per il Q4, beneficiando di tassi di cambio favorevoli e miglioramenti nella produttività. Gli ordini di prodotti energetici sono aumentati dell'8,6% dall'inizio dell'anno. La divisione elettronica dell'azienda mantiene un solido portafoglio ordini che supera i 90 milioni di dollari.
Per le previsioni del 2025, Sypris prevede entrate tra 125 e 135 milioni di dollari, un'espansione del margine lordo di 150-175 punti base e si aspetta una crescita del profitto lordo del 10-15%. Le prospettive considerano la conversione di alcune spedizioni da impianti messicani a una base di sub-maquiladora a valore aggiunto.
Sypris Solutions (NASDAQ: SYPR) informó los resultados financieros del Q4 2024 con mejoras notables en rentabilidad. El beneficio bruto de la compañía aumentó un 23,1% en comparación con el trimestre anterior, con un margen bruto que se expandió en 350 puntos básicos. Los ingresos del Q4 fueron de 33,4 millones de dólares, con un beneficio por acción que mejoró a 0,01 dólares desde una pérdida de 0,05 dólares en el año anterior.
Sypris Technologies experimentó un aumento del 41,6% en el beneficio bruto del Q4, beneficiándose de tipos de cambio favorables y mejoras en la productividad. Los pedidos de productos energéticos aumentaron un 8,6% en lo que va del año. La división de electrónica de la compañía mantiene una sólida cartera de pedidos que supera los 90 millones de dólares.
Para las proyecciones de 2025, Sypris prevé ingresos entre 125 y 135 millones de dólares, una expansión del margen bruto de 150-175 puntos básicos y espera un crecimiento del 10-15% en el beneficio bruto. Las perspectivas tienen en cuenta la conversión de ciertos envíos de instalaciones en México a una base de sub-maquiladora de valor agregado.
Sypris Solutions (NASDAQ: SYPR)는 2024년 4분기 재무 결과를 보고하며 수익성에서 눈에 띄는 개선을 보였습니다. 회사의 총 이익은 전 분기 대비 23.1% 증가하였고, 총 마진은 350 베이시스 포인트 확대되었습니다. 4분기 수익은 3,340만 달러였으며, 주당 순이익은 지난해의 손실 0.05달러에서 0.01달러로 개선되었습니다.
Sypris Technologies는 4분기 총 이익이 41.6% 급증하였으며, 이는 유리한 환율과 생산성 개선 덕분입니다. 에너지 제품 주문은 올해 들어 8.6% 증가했습니다. 회사의 전자 부문은 9천만 달러를 초과하는 강력한 백로그를 유지하고 있습니다.
2025년 가이던스에 따르면, Sypris는 수익을 1억 2,500만 달러에서 1억 3,500만 달러 사이로 예상하며, 총 마진은 150-175 베이시스 포인트 확대될 것으로 보며, 총 이익은 10-15% 성장할 것으로 기대하고 있습니다. 이러한 전망은 특정 멕시코 시설의 선적을 부가가치 서브 마킬라도라 기반으로 전환하는 것을 고려합니다.
Sypris Solutions (NASDAQ: SYPR) a annoncé les résultats financiers du 4ème trimestre 2024 avec des améliorations notables en matière de rentabilité. Le bénéfice brut de l'entreprise a augmenté de 23,1 % par rapport au trimestre précédent, avec une marge brute qui s'est élargie de 350 points de base. Les revenus du 4ème trimestre se sont élevés à 33,4 millions de dollars, avec un bénéfice par action qui s'est amélioré à 0,01 dollar contre une perte de 0,05 dollar l'année précédente.
Sypris Technologies a connu une augmentation de 41,6 % de son bénéfice brut pour le 4ème trimestre, bénéficiant de taux de change favorables et d'améliorations de la productivité. Les commandes de produits énergétiques ont augmenté de 8,6 % depuis le début de l'année. La division électronique de l'entreprise maintient un solide carnet de commandes dépassant 90 millions de dollars.
Pour les prévisions 2025, Sypris projette des revenus compris entre 125 et 135 millions de dollars, une expansion de la marge brute de 150 à 175 points de base, et s'attend à une croissance du bénéfice brut de 10 à 15 %. Les perspectives tiennent compte de la conversion de certaines expéditions d'installations mexicaines sur une base de sous-maquiladora à valeur ajoutée.
Sypris Solutions (NASDAQ: SYPR) hat die Finanzergebnisse für das 4. Quartal 2024 veröffentlicht, mit bemerkenswerten Verbesserungen in der Rentabilität. Der Bruttogewinn des Unternehmens stieg im Quartalsvergleich um 23,1%, während die Bruttomarge um 350 Basispunkte anstieg. Die Einnahmen im 4. Quartal betrugen 33,4 Millionen Dollar, und der Gewinn pro Aktie verbesserte sich auf 0,01 Dollar, nachdem im Vorjahr ein Verlust von 0,05 Dollar verzeichnet wurde.
Sypris Technologies verzeichnete einen Anstieg des Bruttogewinns um 41,6% im 4. Quartal, was auf günstige Wechselkurse und Produktivitätsverbesserungen zurückzuführen ist. Die Bestellungen für Energieprodukte stiegen im laufenden Jahr um 8,6%. Die Elektronikabteilung des Unternehmens hat einen starken Auftragsbestand von über 90 Millionen Dollar.
Für die Prognose 2025 rechnet Sypris mit Einnahmen zwischen 125 und 135 Millionen Dollar, einer Erweiterung der Bruttomarge um 150-175 Basispunkte und erwartet ein Wachstum des Bruttogewinns von 10-15%. Der Ausblick berücksichtigt die Umstellung bestimmter Lieferungen von mexikanischen Anlagen auf eine wertschöpfende Sub-Maquiladora-Basis.
- Q4 gross profit increased 23.1% with 350 basis points margin expansion
- Sypris Technologies' gross profit surged 41.6% in Q4
- Energy product orders up 8.6% year-to-date
- Strong electronics backlog exceeding $90 million
- Positive 2025 guidance with 10-15% expected gross profit growth
- Q4 revenue declined to $33.4M from $34.7M year-over-year
- Full-year 2024 net loss increased to $1.7M from $1.6M in 2023
- Sypris Electronics revenue dropped to $13.9M from $15.7M due to material delays
- Expected cyclical decline in commercial vehicle market
- Anticipated revenue decline in 2025 due to Mexican facility conversion
Insights
Sypris Solutions' Q4 results demonstrate operational improvements despite mixed overall performance. The 23.1% year-over-year increase in gross profit for Q4 and 350 basis point margin expansion highlight successful efficiency initiatives. Most notably, the company returned to profitability with $0.01 EPS compared to a $0.05 loss in the year-ago quarter.
The performance dichotomy between segments is significant. Sypris Technologies emerged as the standout performer with 41.6% gross profit growth for Q4 and 39.3% for the full year, benefiting from favorable exchange rates and improved product mix. Meanwhile, Sypris Electronics faced headwinds from material delays and supplier quality issues, resulting in reduced revenue and compressed margins.
Looking at the 2025 guidance, there's an interesting dynamic at play. The projected revenue of $125-$135 million represents a potential decline from 2024's $140.2 million, partially attributable to the conversion of certain Mexican shipments to a sub-maquiladora basis. However, management expects 150-175 basis point margin expansion and 10-15% gross profit growth, suggesting continued operational improvements will offset revenue challenges.
The $90+ million backlog in Sypris Electronics provides strong visibility through 2025, while secured customer funding mitigates supply chain risks. This foundation, combined with diversification efforts in Sypris Technologies to counterbalance the cyclical commercial vehicle market decline, positions the company for potential profitability improvement despite top-line challenges.
Gross Profit Up
HIGHLIGHTS
|
-
The Company’s gross profit for the quarter increased
23.1% from the prior-year period, while gross margin expanded 350 basis points. -
For the full year, the Company’s gross profit increased
15.3% from the prior year, while gross margin increased 150 basis points. -
Gross profit for Sypris Technologies surged
41.6% for the quarter and39.3% for the full year, reflecting favorable exchange rates, improved mix and productivity improvements. Orders for energy products were up8.6% year-to-date. -
EPS for the quarter increased
to$0.06 per diluted share, up from a loss of$0.01 per diluted share for the prior-year period.$0.05 -
The Company announced its financial guidance for 2025, projecting revenue between
, gross margin expansion in the range of 150 to 175 basis points, and a forecast of 10$125 -$135 million -15% increase in gross profit. The revenue outlook partly reflects the conversion of certain shipments from our facility inMexico to a value-add only sub-maquiladora basis.
|
“We are pleased with the year-over-year revenue growth at Sypris Technologies, driven by an increase in sales of our energy products during the period,” commented Jeffrey T. Gill, President and Chief Executive Officer. “Orders for our energy products increased during the year, and additional opportunities for growth may exist with new global projects in support of increasing LNG demand including support for the steep increase in electricity demand from data centers to support AI. We are also actively pursuing applications for our products in adjacent markets including CO2 capture to further diversify our industry and customer portfolios.
“Demand from Sypris Technologies customers serving the automotive, commercial vehicle, sport utility and off-highway markets has remained relatively stable, with new product line shipments helping to offset the anticipated cyclical decline for the commercial vehicle market. We believe that the market diversification Sypris Technologies has accomplished over recent years by adding new programs in the automotive, sport-utility and off-highway markets will help offset some of this decline.
“The backlog at Sypris Electronics exceeds
Fourth Quarter and Full-Year Results
The Company reported revenue of
For the full-year 2024, the Company reported revenue of
Sypris Technologies
Revenue for Sypris Technologies was
Sypris Electronics
Revenue for Sypris Electronics was
Outlook
Commenting on the future, Mr. Gill added, “Demand from customers serving the markets for electronic warfare, aircraft and missile avionics, secure and subsea communications, and ground-based radar remain robust, while the outlook for the energy market continues to move in the right direction. Similarly, demand from customers serving the automotive, commercial vehicle and sport utility markets remains healthy despite the anticipated cyclical decline in the commercial vehicle market.
“With a strong backlog, new program wins, and continued long-standing contractual relationships in place, we are confident 2025 has the potential to be very positive for Sypris. While we anticipate a modest decline in revenue reported resulting from the conversion of certain shipments from
About Sypris Solutions
Sypris Solutions is a diversified manufacturing and engineering services company serving the defense, transportation, communications, and energy industries. For more information about Sypris Solutions, visit its Web site at www.sypris.com.
Forward Looking Statements
This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources or require us to sell assets to fund operating losses; volatility of our customers’ forecasts and our contractual obligations to meet current scheduling demands and production levels, which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; cost, quality and availability or lead times of raw materials such as steel, component parts (especially electronic components), natural gas or utilities including increased cost relating to inflation, as well as the impact of proposed or imposed tariffs by the
SYPRIS SOLUTIONS, INC. |
||||||||
Financial Highlights |
||||||||
(In thousands, except per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
||||||
Revenue | $ |
33,449 |
|
$ |
34,735 |
|
||
Net income (loss) | $ |
135 |
|
$ |
(1,079 |
) |
||
Income (loss) per common share: | ||||||||
Basic | $ |
0.01 |
|
$ |
(0.05 |
) |
||
Diluted | $ |
0.01 |
|
$ |
(0.05 |
) |
||
Weighted average shares outstanding: | ||||||||
Basic |
|
22,137 |
|
|
21,938 |
|
||
Diluted |
|
22,390 |
|
|
21,938 |
|
||
Year Ended |
||||||||
December 31, |
||||||||
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
||||||||
Revenue | $ |
140,180 |
|
$ |
136,223 |
|
||
Net loss | $ |
(1,680 |
) |
$ |
(1,596 |
) |
||
Loss per common share: | ||||||||
Basic | $ |
(0.08 |
) |
$ |
(0.07 |
) |
||
Diluted | $ |
(0.08 |
) |
$ |
(0.07 |
) |
||
Weighted average shares outstanding: | ||||||||
Basic |
|
22,043 |
|
|
21,876 |
|
||
Diluted |
|
22,043 |
|
|
21,876 |
|
Sypris Solutions, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
Three Months Ended |
|
Year Ended |
||||||||||||||
December 31, |
|
December 31, |
||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
|
(Unaudited) |
||||||||||||||
Net revenue: | ||||||||||||||||
Sypris Technologies | $ |
19,547 |
$ |
19,025 |
|
$ |
75,207 |
|
$ |
77,920 |
|
|||||
Sypris Electronics |
|
13,902 |
|
|
15,710 |
|
|
64,973 |
|
|
58,303 |
|
||||
Total net revenue |
|
33,449 |
|
|
34,735 |
|
|
140,180 |
|
|
136,223 |
|
||||
Cost of sales: | ||||||||||||||||
Sypris Technologies |
|
15,154 |
|
|
15,922 |
|
|
62,383 |
|
|
68,712 |
|
||||
Sypris Electronics |
|
12,909 |
|
|
14,436 |
|
|
57,907 |
|
|
50,263 |
|
||||
Total cost of sales |
|
28,063 |
|
|
30,358 |
|
|
120,290 |
|
|
118,975 |
|
||||
Gross profit: | ||||||||||||||||
Sypris Technologies |
|
4,393 |
|
|
3,103 |
|
|
12,824 |
|
|
9,208 |
|
||||
Sypris Electronics |
|
993 |
|
|
1,274 |
|
|
7,066 |
|
|
8,040 |
|
||||
Total gross profit |
|
5,386 |
|
|
4,377 |
|
|
19,890 |
|
|
17,248 |
|
||||
Selling, general and administrative |
|
4,087 |
|
|
4,660 |
|
|
16,963 |
|
|
16,279 |
|
||||
Operating income (loss) |
|
1,299 |
|
|
(283 |
) |
|
2,927 |
|
|
969 |
|
||||
Interest expense, net |
|
216 |
|
|
246 |
|
|
1,684 |
|
|
777 |
|
||||
Other expense, net |
|
436 |
|
|
342 |
|
|
1,217 |
|
|
1,125 |
|
||||
Income (loss) before taxes |
|
647 |
|
|
(871 |
) |
|
26 |
|
|
(933 |
) |
||||
Income tax expense, net |
|
512 |
|
|
208 |
|
|
1,706 |
|
|
663 |
|
||||
Net income (loss) | $ |
135 |
|
$ |
(1,079 |
) |
$ |
(1,680 |
) |
$ |
(1,596 |
) |
||||
Income (loss) per common share: | ||||||||||||||||
Basic | $ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.08 |
) |
$ |
(0.07 |
) |
||||
Diluted | $ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.08 |
) |
$ |
(0.07 |
) |
||||
Dividends declared per common share | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||
Weighted average shares outstanding: | ||||||||||||||||
Basic |
|
22,137 |
|
|
21,938 |
|
|
22,043 |
|
|
21,876 |
|
||||
Diluted |
|
22,390 |
|
|
21,938 |
|
|
22,043 |
|
|
21,876 |
|
Sypris Solutions, Inc. |
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Consolidated Balance Sheets |
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(in thousands, except for share data) |
||||||||
|
|
|
|
|
||||
|
|
December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
|
(Note) |
||||
ASSETS |
||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
9,675 |
|
$ |
7,881 |
|
||
Accounts receivable, net |
|
10,593 |
|
|
8,929 |
|
||
Inventory, net |
|
66,680 |
|
|
77,314 |
|
||
Other current assets |
|
11,070 |
|
|
9,743 |
|
||
Total current assets |
|
98,018 |
|
|
103,867 |
|
||
Property, plant and equipment, net |
|
13,299 |
|
|
17,133 |
|
||
Operating lease right-of-use assets |
|
3,749 |
|
|
3,309 |
|
||
Other assets |
|
4,310 |
|
|
5,033 |
|
||
Total assets | $ |
119,376 |
|
$ |
129,342 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
18,428 |
|
$ |
26,737 |
|
||
Accrued liabilities |
|
57,639 |
|
|
56,232 |
|
||
Operating lease liabilities, current portion |
|
906 |
|
|
1,068 |
|
||
Finance lease obligations, current portion |
|
1,507 |
|
|
1,327 |
|
||
Equipment financing obligations, current portion |
|
481 |
|
|
618 |
|
||
Working capital line of credit |
|
500 |
|
|
500 |
|
||
Total current liabilities |
|
79,461 |
|
|
86,482 |
|
||
Operating lease liabilities, net of current portion |
|
3,251 |
|
|
2,642 |
|
||
Finance lease obligations, net of current portion |
|
735 |
|
|
1,852 |
|
||
Equipment financing obligations, net of current portion |
|
852 |
|
|
1,333 |
|
||
Note payable - related party, net of current portion |
|
8,986 |
|
|
6,484 |
|
||
Other liabilities |
|
6,510 |
|
|
8,082 |
|
||
Total liabilities |
|
99,795 |
|
|
106,875 |
|
||
Stockholders’ equity: | ||||||||
Preferred stock, par value |
|
- |
|
|
- |
|
||
Series A preferred stock, par value |
|
- |
|
|
- |
|
||
Common stock, non-voting, par value |
|
- |
|
|
- |
|
||
Common stock, par value |
|
230 |
|
|
224 |
|
||
Additional paid-in capital |
|
156,980 |
|
|
156,242 |
|
||
Accumulated deficit |
|
(118,612 |
) |
|
(116,932 |
) |
||
Accumulated other comprehensive loss |
|
(19,017 |
) |
|
(17,067 |
) |
||
Treasury stock, 21,513 in 2024 and 5,835 in 2023 |
|
- |
|
|
- |
|
||
Total stockholders’ equity |
|
19,581 |
|
|
22,467 |
|
||
Total liabilities and stockholders’ equity | $ |
119,376 |
|
$ |
129,342 |
|
||
Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by accounting principles generally accepted in |
Sypris Solutions, Inc. | ||||||||
Consolidated Cash Flow Statements | ||||||||
(in thousands) | ||||||||
Year Ended |
||||||||
December 31, |
||||||||
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
||||||||
Cash flows from operating activities: | ||||||||
Net loss | $ |
(1,680 |
) |
$ |
(1,596 |
) |
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization |
|
3,181 |
|
|
3,259 |
|
||
Deferred income taxes |
|
232 |
|
|
54 |
|
||
Stock-based compensation expense |
|
868 |
|
|
813 |
|
||
Deferred loan costs amortized |
|
8 |
|
|
3 |
|
||
Provision for excess and obsolete inventory |
|
593 |
|
|
(167 |
) |
||
Non-cash lease expense |
|
1,160 |
|
|
942 |
|
||
Other noncash items |
|
414 |
|
|
(56 |
) |
||
Contributions to pension plans |
|
(712 |
) |
|
(16 |
) |
||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable |
|
(1,826 |
) |
|
(1,096 |
) |
||
Inventory |
|
9,129 |
|
|
(34,693 |
) |
||
Prepaid expenses and other assets |
|
(1,934 |
) |
|
(1,105 |
) |
||
Accounts payable |
|
(8,163 |
) |
|
8,984 |
|
||
Accrued and other liabilities |
|
734 |
|
|
13,585 |
|
||
Net cash provided by (used in) operating activities |
|
2,004 |
|
|
(11,089 |
) |
||
Cash flows from investing activities: | ||||||||
Capital expenditures |
|
(1,083 |
) |
|
(2,139 |
) |
||
Proceeds from sale of assets |
|
24 |
|
|
- |
|
||
Net cash used in investing activities |
|
(1,059 |
) |
|
(2,139 |
) |
||
Cash flows from financing activities: | ||||||||
Proceeds from equipment financing obligations |
|
430 |
|
|
710 |
|
||
Proceeds from working capital line of credit |
|
- |
|
|
500 |
|
||
Proceeds from Note Payable - related party |
|
2,500 |
|
|
2,500 |
|
||
Principal payments on finance lease obligations |
|
(1,366 |
) |
|
(1,168 |
) |
||
Principal payments on equipment financing obligations |
|
(618 |
) |
|
(551 |
) |
||
Principal payments on Note Payable - related party |
|
- |
|
|
(2,500 |
) |
||
Indirect repurchase of shares for minimum statutory tax withholdings |
|
(126 |
) |
|
(105 |
) |
||
Net cash provided by (used in) financing activities |
|
820 |
|
|
(614 |
) |
||
Effect of exchange rate changes on cash balances |
|
29 |
|
|
75 |
|
||
Net increase (decrease) in cash and cash equivalents |
|
1,794 |
|
|
(13,767 |
) |
||
Cash and cash equivalents at beginning of period |
|
7,881 |
|
|
21,648 |
|
||
Cash and cash equivalents at end of period | $ |
9,675 |
|
$ |
7,881 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250324765956/en/
For more information, contact:
Rebecca R. Eckert
Chief Accounting Officer
(502) 329-2000
Source: Sypris Solutions, Inc.