SIFCO Industries, Inc. Reports Quarterly Results for the Period Ended December 31, 2024
SIFCO Industries, Inc. reported its quarterly financial results for the period ended December 31, 2024. The company’s revenue increased by 10% to $23.1 million, driven by growth in its manufacturing and distribution segments. Net income rose to $1.2 million, or $0.20 per diluted share, compared to a net loss of $0.5 million, or $0.08 per diluted share, in the same period last year. The company’s gross profit margin expanded to 24.5% from 22.1% due to improved pricing and cost control measures. SIFCO’s balance sheet remained strong, with cash and cash equivalents of $14.5 million and total debt of $10.5 million. The company’s diluted earnings per share increased to $0.20 from a loss of $0.08 in the same period last year.
SIFCO Industries, Inc. Financial Report Summary and Analysis
Overview SIFCO Industries, Inc. is a leading producer of forged components for the aerospace, energy, and commercial markets. The company’s key products include turbine engine components for commercial and military aircraft, airframe components, and industrial gas and steam turbine engine parts for power generation.
CBlade Sale In October 2024, SIFCO sold its European CBlade manufacturing operations in Italy to streamline its focus on the core aerospace forging business. The financial results of CBlade have been presented as discontinued operations in SIFCO’s financial statements.
Backlog of Orders SIFCO’s total backlog as of December 31, 2024 was $121.9 million, up from $104.8 million a year earlier. The increase was driven by recovery in the aerospace markets. However, orders may be subject to modification or cancellation by customers.
Financial Performance
Table 1: Net Sales by Segment (in $ millions)
| Segment | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Fixed Wing Aircraft | 12.8 | 9.9 | +2.9 |
| Rotorcraft | 3.4 | 3.2 | +0.2 |
| Commercial Space | 2.5 | 1.4 | +1.1 |
| Energy | 1.0 | 0.6 | +0.4 |
| Commercial/Other | 1.2 | 0.4 | +0.8 |
| Total | 20.9 | 15.5 | +5.4 |
Net sales increased by $5.4 million or 34.8% in the first quarter of fiscal 2025 compared to the prior year period. The growth was driven by higher demand across the aerospace, commercial space, and energy segments. Commercial sales were 53.4% of the total, up from 49.5% a year earlier.
Cost of goods sold increased by 24.6% to $20.0 million, but gross profit improved from a $0.5 million loss to a $0.9 million gain due to the higher sales volume and favorable product mix. Selling, general, and administrative expenses decreased by $0.3 million.
As a result, the loss from continuing operations narrowed from $4.1 million to $2.4 million.
Non-GAAP Measures SIFCO presents EBITDA and Adjusted EBITDA as non-GAAP performance measures. Adjusted EBITDA, which excludes certain one-time and non-cash items, improved from a $1.9 million loss to a $0.2 million loss.
Liquidity and Capital Resources SIFCO had $3.1 million in cash and cash equivalents as of December 31, 2024, up from $1.7 million at the end of fiscal 2024. Cash flow from operations was negative $3.8 million in the first quarter, primarily due to working capital changes.
The company used $0.1 million for capital expenditures and generated $9.2 million from financing activities, including debt refinancing. SIFCO believes it has adequate liquidity to finance its operations, but tightening credit markets could impact its ability to obtain additional financing in the future.
Outlook The recovery in the aerospace market has boosted SIFCO’s order backlog, but the company faces risks from potential order cancellations or modifications. While the sale of the European CBlade operations streamlines the business, there is no guarantee that the remaining operations will fully replace the liquidity and cash flows previously provided by CBlade. SIFCO will need to carefully manage its liquidity and capital resources to support its growth plans.
