- TechPrecision Corporation (TPCS, Financial) reported Q3 FY2025 revenue of $7.6 million, a decrease of less than 1% year-over-year.
- The company's net loss for the quarter was $0.8 million, despite a strong backlog of $45.5 million.
- The Ranor segment maintained profitability, while Stadco faced challenges due to legacy pricing issues.
TechPrecision Corporation (TPCS) has announced its financial results for the third quarter of the fiscal year 2025, ending December 31, 2024. The company reported a slight decline in revenue to $7.6 million, down less than 1% from the same quarter last year. The company also recorded a net loss of $0.8 million for this period.
The Ranor segment continued to perform well with profitability attributed to a beneficial project mix. However, the Stadco segment is still dealing with challenges from legacy pricing issues and an unfavorable project mix, which contributed significantly to a 15% decrease in gross profit.
Despite these challenges, TechPrecision's backlog remains robust at $45.5 million as of December 31, 2024. The company anticipates delivering this backlog over the next one to three fiscal years, with expectations of gross margin expansion.
The company also reported a reduction in Selling, General, and Administrative (SG&A) expenses by 22%. However, this benefit was offset by increased interest expenses due to higher borrowing, alongside a negative working capital of $1.8 million, and only $165,000 in cash and cash equivalents against a debt of $7.4 million as of September 30, 2024.
Management has outlined plans to address these challenges, with a focus on delivering backlog projects and further improving operational efficiencies moving forward. A conference call is scheduled for April 8, 2025, at 4:30 p.m. ET to discuss these results in detail.
