TechPrecision Corporation Reports FY 2025 Third Quarter Financial Results

Ranor records another profitable quarter, customer confidence remains high

Management to host conference call at 4:30 p.m. ET on Tuesday, April 8, 2025

WESTMINSTER, MA / ACCESS Newswire / April 8, 2025 / TechPrecision Corporation (NASDAQ:TPCS) ("TechPrecision" or "the Company"), a custom manufacturer of precision, large-scale fabrication components and precision, large-scale machined metal structural components, today reported financial results for the third quarter ended December 31, 2024. The components that we manufacture are customer designed and we sell to customers in two main industry sections: defense and precision industrial markets.

Management will host a conference call on Tuesday, April 8, 2025 at 4.30 p.m. ET, to discuss our financial results for the quarter ended December 31 ^, 2024.

"Third quarter consolidated revenue was $7.6 million, a decrease of less than 1% when compared to the fiscal 2024 third quarter. Our fiscal third quarter is seasonally characterized with higher under-absorbed overhead. Our Ranor segment experienced a favorable project mix enabling us to sustain operating profitability. In contrast, our Stadco segment is continuing to work through remaining legacy pricing problems on core business, with an unfavorable project mix for the quarter coupled with under-absorbed overhead." stated Alexander Shen, TechPrecision's Chief Executive Officer. "Customer confidence remains high as our backlog was $45.5 million on December 31, 2024. We expect to deliver our backlog over the course of the next one to three fiscal years with gross margin expansion."

The following summary compares the three and nine months ended December 31, 2024 to the same prior year period:

Consolidated Financial Results - Fiscal 2025 Three Months Ended December 31, 2024

• Revenue was $7.6 million, a decrease of less than 1% when compared to revenue of $7.7 million a year ago.

• Cost of revenue was $6.6 million, or 2% higher, due primarily to higher production costs at Stadco.

• Gross profit was $1.0 million, or 15% lower due primarily to higher production costs at Stadco.

• SG&A totaled $1.7 million or 22% lower due primarily to the absence of due diligence costs for acquisitions.

• Operating loss was $0.7 million compared with a loss of $1.0 million in the same period a year ago.

• Interest expense increased by $26,000 due primarily to an increase in borrowing under the revolver loan.

• Net loss was $0.8 million, as the Company maintained a full valuation on its deferred tax assets.

Consolidated Financial Results - Fiscal 2025 Nine Months Ended December 31, 2024

• Revenue was $24.6 million, or 7% higher on a favorable project mix at both Ranor and Stadco.

• Cost of revenue was $22.3 million, or 11% higher, due primarily to higher production costs at Stadco.

• Gross profit was $2.2 million, or 22% lower, primarily the result of higher Stadco production issues.

• SG&A was $4.8 million or a 6% decrease, due primarily to the absence of due diligence costs for acquisitions.

• Operating loss was $2.5 million, an increase of $0.4 million due to higher losses at Stadco.

• Interest expense increased by 9% due to higher borrowing under the revolver loan.

• Net loss was $2.9 million, as the Company maintained a full valuation on its deferred tax assets.

Financial Position

On September 30, 2024, the Company had approximately $165,000 in cash and cash equivalents, a $27,000 increase since March 31, 2024. Working capital was negative $1.8 million on December 31, 2024 and debt totaled $7.4 million. Working capital was negative $2.9 million and total debt was $7.6 million on March 31, 2024.

Conference Call

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Tuesday, April 8, 2025. To participate in the live conference call, please dial 1-888-506-0062 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-973-528-0011. When prompted, reference TechPrecision and enter code 538981.

A replay will be available until April 22, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 52309.

The call will also be available over the Internet and accessible at: https://www.webcaster4.com/Webcast/Page/2198/52309.

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Stadco, The manufacturing operations of our Ranor subsidiary are situated on approximately 65 acres in North Central Massachusetts. Leveraging our 145,000 square foot facilities, Ranor provides a full range of custom solutions to transform material into precision finished welded components and precision finished machined components up to 100 tons: manufacturing engineering, materials management and traceability, high-precision heavy fabrication (in-house fabrication operations include cutting, press and roll forming, welding, heat treating, assembly, blasting and painting), heavy high-precision machining (in-house machining operations include CNC programming, finishing, and assembly), QC inspection including portable CMM, NonDestructive Testing, and final packaging.

All manufacturing at Ranor is performed in accordance with customer requirements. Ranor is an ISO 9001:2015 certificate holder. Ranor is a US defense-centric company with over 95% of its revenue in the defense sector. Ranor is registered and compliant with ITAR.

The manufacturing operations of our Stadco subsidiary are situated in an industrial self-contained multi-building complex comprised of approximately 183,000 square feet under roof in Los Angeles, California. Stadco manufactures large mission-critical components on several high-profile military aircraft, military helicopter, and military space programs. Stadco has been a critical supplier to a blue-chip customer base that includes some of the largest OEMs and prime contractors in the defense and aerospace industries. Stadco also manufactures tooling, molds, fixtures, jigs and dies used in the production of defense-centric aircraft components.

Our Stadco subsidiary, similar to Ranor, provides a full range of custom solutions: manufacturing engineering, materials management and traceability, high-precision fabrication (in-house fabrication operations include waterjet cutting, press forming, welding, and assembly) and high-precision machining (in-house machining operations include CNC programming, finishing, and assembly), QC inspection including both fixed and portable CMM NonDestructive Testing, and final packaging. In addition, Stadco features a large electron beam welding cell, and two NonDestructive Testing work cells, a unique mission-critical technology set.

All manufacturing at Stadco is performed in accordance with customer requirements. Stadco is an AS 9100 D and ISO 9001:2015 certificate holder and a NADCAP NonDestructive Testing certificate holder. Stadco is a US defense-centric company with over 60% of its revenue in the defense sector. Stadco is registered and compliant with ITAR.

To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "prospects," "will," "should," "would" and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from: our reliance on individual purchase orders, rather than long-term contracts, to generate revenue; our ability to balance the composition of our revenues and effectively control operating expenses; external factors that may be outside our control, including health emergencies, like epidemics or pandemics, the conflicts in Eastern Europe and the Middle East, price inflation, interest rate increases and supply chain inefficiencies; the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity; our ability to receive contract awards through competitive bidding processes; our ability to maintain standards to enable us to manufacture products to exacting specifications; our ability to enter new markets for our services; our reliance on a small number of customers for a significant percentage of our business; competitive pressures in the markets we serve; changes in the availability or cost of raw materials and energy for our production facilities; restrictions in our ability to operate our business due to our outstanding indebtedness; government tariffs, regulations and requirements; pricing and business development difficulties; changes in government spending on national defense; our ability to make acquisitions and successfully integrate those acquisitions with our business; our failure to maintain effective internal controls over financial reporting; general industry and market conditions and growth rates; and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law. Investors should evaluate any statements made by us in light of these important factors.

TECHPRECISION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

		(Unaudited)
		December 31,				March 31,
(in thousands, except per share data)		2024				2024
ASSETS
Current assets:
Cash and cash equivalents		$	165			$	138
Accounts receivable, net			1,970				2,371
Contract assets			8,417				8,527
Raw materials			1,871				1,827
Work-in-process			1,329				1,423
Other current assets			375				564
Total current assets			14,127				14,850
Property, plant and equipment, net			13,463				14,798
Right of use asset, net			4,449				4,977
Other noncurrent assets			121				122
Total assets		$	32,160			$	34,747
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable		$	1,833			$	1,408
Accrued expenses			3,344				4,263
Contract liabilities			2,667				3,788
Current portion of long-term lease liability			761				736
Current portion of long-term debt, net			7,278				7,559
Total current liabilities			15,883				17,754
Long-term equipment financing			19				---
Long-term lease liability			3,834				4,408
Other noncurrent liability			4,323				4,782
Total liabilities			24,059				26,944
Stockholders' Equity:
Common stock - par value $0.0001 per share, 50,000,000 shares authorized; Shares issued and outstanding December 31, 2024 - 9,662,525 and 9,607,525, respectively; Shares issued and outstanding March 31, 2024 - 8,777,432.			1				1
Additional paid in capital			18,359				15,201
Accumulated deficit			(10,259	)			(7,399	)
Total stockholders' equity			8,101				7,803
Total liabilities and stockholders' equity		$	32,160			$	34,747

TECHPRECISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended December 31,								Nine Months Ended December 31,
(in thousands, except per share data)		2024				2023				2024				2023
Revenue		$	7,622			$	7,650			$	24,554			$	22,991
Cost of revenue			6,631				6,489				22,310				20,101
Gross profit			991				1,161				2,244				2,890
Selling, general and administrative			1,687				2,157				4,769				5,063
Loss from operations			(696	)			(996	)			(2,525	)			(2,173	)
Other income			44				---				57				41
Interest expense			(147	)			(110	)			(392	)			(353	)
Total other income (expense)			(103	)			(110	)			(335	)			(312	)
Loss before income taxes			(799	)			(1,106	)			(2,860	)			(2,485	)
Income tax benefit			---				(241	)			---				(564	)
Net loss		$	(799	)		$	(865	)		$	(2,860	)		$	(1,921	)
Net loss per share - basic and diluted		$	(0.08	)		$	(0.10	)		$	(0.30	)		$	(0.22	)
Weighted average shares outstanding - basic and diluted			9,607,785				8,759,171				9,389,346				8,698,034

TECHPRECISION CORPORATION
REVENUE, COST OF REVENUE, GROSS PROFIT BY SEGMENT
(dollars in thousands)

Three Months Ended

	December 31, 2024								December 31, 2023								Changes
					Percent of								Percent of
	Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor	$	4,310				57	%		$	4,296				56	%		$	14				---	%
Stadco		3,312				43	%			3,370				44	%			(58	)			(2	)%
Intersegment elimination		---				---	%			(16	)			---	%			16				100	%
Consolidated Revenue	$	7,622				100	%		$	7,650				100	%		$	(28	)			---	%
Cost of revenue
Ranor	$	2,798				37	%		$	2,919				38	%		$	(121	)			(4	)%
Stadco		3,833				50	%			3,586				47	%			247				7	%
Intersegment elimination		---				---	%			(16	)			---	%			16				100	%
Consolidated Cost of revenue	$	6,631				87	%		$	6,489				85	%		$	142				2	%
Gross profit (loss)
Ranor	$	1,512				20	%		$	1,377				18	%		$	135				10	%
Stadco		(521	)			(7	)%			(216	)			(3	)%			(305	)			(141	)%
Consolidated Gross profit	$	991				13	%		$	1,161				15	%		$	(170	)			(15	)%

Nine Months Ended

	December 31, 2024								December 31, 2023								Changes
					Percent of								Percent of
	Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor	$	13,482				55	%		$	13,291				58	%		$	191				1	%
Stadco		11,139				45	%			9,943				43	%			1,196				12	%
Intersegment elimination		(67	)			---	%			(243	)			(1	)%			176				72	%
Consolidated Revenue	$	24,554				100	%		$	22,991				100	%		$	1,562				7	%
Cost of revenue
Ranor	$	9,215				38	%		$	9,382				40	%		$	(167	)			(2	)%
Stadco		13,161				54	%			10,962				48	%			2,199				20	%
Intersegment elimination		(67	)			---	%			(243	)			(1	)%			176				72	%
Consolidated Cost of revenue	$	22,309				92	%		$	20,101				87	%		$	2,208				11	%
Gross profit (loss)
Ranor	$	4,266				17	%		$	3,703				16	%		$	563				15	%
Stadco		(2,022	)			(8	)%			(813	)			(3	)%			(1,209	)			(149	)%
Consolidated Gross profit	$	2,244				9	%		$	2,890				13	%		$	(646	)			(22	)%

TECHPRECISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		Nine Months Ended December 31,
(dollars in thousands)		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(2,860	)		$	(1,921	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			2,093				1,759
Amortization of debt issue costs			67				55
Change in fair value of stock acquisition termination fee			419				-
Stock-based compensation			40				196
Change in contract loss provision			186				155
Deferred income taxes			---				(563	)
Gain on disposal of fixed assets			1				(40	)
Changes in operating assets and liabilities:
Accounts receivable			401				144
Contract assets			110				576
Work-in-process and raw materials			50				(1,228	)
Other current assets			189				(305	)
Accounts payable			425				(497	)
Accrued expenses			(536	)			(527	)
Contract liabilities			(1,121	)			1,702
Other noncurrent liabilities			(459	)			1,674
Net cash (used in) provided by operating activities			(995	)			1,180
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from insurance claim on fixed assets			---				62
Purchases of property, plant, and equipment			(2,796	)			(2,782	)
Reimbursements for purchases of property, plant and equipment			2,566				-
Net cash used in investing activities			(230	)			(2,720	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from private placement			1,801				---
Private placement fees			(213	)			---
Debt issue costs			(58	)			(40	)
Proceeds from equipment financing			65				---
Revolver loan borrowings			10,526				10,160
Revolver loan payments			(10,381	)			(8,260	)
Payments of principal for leases			(7	)			(15	)
Repayments of long-term debt			(481	)			(448	)
Net cash provided by financing activities			1,252				1,397
Net increase (decrease) in cash and cash equivalents			27				(143	)
Cash and cash equivalents, beginning of period			138				534
Cash and cash equivalents, end of period		$	165			$	391

EBITDA Non-GAAP Financial Measure

		Three Months ended December 31,												Nine Months ended December 31,
(dollars in thousands)		2024				2023				Change				2024				2023				Change
Net loss		$	(799	)		$	(865	)		$	66			$	(2,860	)		$	(1,921	)		$	(939	)
Income tax benefit			---				(240	)			240				---				(563	)			563
Interest expense (1)			147				110				37				392				353				39
Depreciation and amortization			703				631				72				2,093				1,759				334
EBITDA		$	51			$	(364	)		$	415			$	(375	)		$	(372	)		$	(3	)

(1) Includes amortization of debt issue costs.

Company Contact:	Investor Relations Contact:
Alexander Shen	Hayden IR
Chief Executive Officer	Brett Maas
TechPrecision Corporation	Phone: [phone]
Phone: [phone]	Email: [e-mail]
Email: [e-mail]	Website: www.haydenir.com
Website: www.TechPrecision.com

SOURCE: TechPrecision Corporation

View the original press release on ACCESS Newswire