TechPrecision Corporation Reports Fiscal Year 2025 Fourth Quarter and Year End Financial Results

Rhea-AI Summary

TechPrecision Corporation (NASDAQ:TPCS) reported its Q4 and fiscal year 2025 financial results, showing mixed performance. Q4 revenue increased 10% to $9.5 million with net income of $0.1 million ($0.01 per share), compared to a net loss in the prior year. For fiscal 2025, revenue grew 8% to $34.0 million, though the company recorded a net loss of $2.7 million.

The company's Ranor segment demonstrated sustained operating profitability, while Stadco showed Q4 profitability but an overall operating loss for the year. The company maintains a strong backlog of $48.6 million as of March 31, 2025, expected to be delivered over the next 1-3 fiscal years. Working capital remained negative at -$1.6 million with total debt of $7.4 million, primarily due to debt covenant violations.

Positive

• None.

Negative

• Negative working capital of $1.6 million due to debt covenant violations
• Full year net loss of $2.7 million
• Stadco segment reported overall operating loss for fiscal year
• Total debt remains high at $7.4 million
• Low cash position of only $0.2 million

Insights

Financial Analyst

TechPrecision shows operational improvement with Q4 profit of $0.1M despite full-year loss, signaling potential turnaround with 10% revenue growth.

TechPrecision has delivered a mixed but improving financial picture in their Q4 and full-year FY2025 results. The company reported fourth quarter revenue of $9.5 million, representing a 10% year-over-year increase, with both business segments (Ranor and Stadco) contributing to the growth. Most significantly, they've managed to achieve profitability in Q4 with net income of $0.1 million, a substantial improvement from the $5.1 million loss in the same quarter last year.

The gross margin expansion is particularly noteworthy, with Q4 gross profit reaching $2.1 million, a 70% increase compared to Q4 FY2024. This dramatic improvement stems from better operational execution and a more favorable project mix at Ranor, while Stadco has finally achieved profitability in the fourth quarter after operating at a loss throughout most of the fiscal year.

For the full fiscal year, TechPrecision recorded $34 million in revenue, an 8% increase year-over-year, but still posted a net loss of $2.7 million. However, this represents a significant improvement compared to the $7 million loss in FY2024.

The company's financial position remains challenging with negative working capital of $1.6 million and total debt of $7.4 million. The negative working capital situation is particularly concerning as it stems from debt covenant violations that forced reclassification of long-term debt. This suggests potential liquidity constraints that could impact operations.

On a positive note, the robust backlog of $48.6 million provides revenue visibility for the next 1-3 years and exceeds the current annual revenue by approximately 43%. Management's expectation of gross margin expansion as they work through this backlog indicates confidence in continued operational improvements.

Reported fourth quarter net income of $0.1 million, customer confidence remains high

Management to host conference call at 4:30 p.m. ET on Wednesday, July 30, 2025

WESTMINSTER, MA / ACCESS Newswire / July 29, 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 fourth quarter and fiscal year ended March 31, 2025. The components that we manufacture are customer designed and sold to customers in the defense and precision industrial markets. We have two wholly owned subsidiaries that are each reportable segments, Ranor and Stadco.

Management will host a conference call on Wednesday, July 30, 2025 at 4.30 p.m. ET, to discuss our financial results for the fiscal year ended March 31, 2025.

"Fourth quarter consolidated revenue was $9.5 million or 10% higher when compared to $8.6 million in the fiscal 2024 fourth quarter," stated Alexander Shen, TechPrecision's Chief Executive Officer. "Methodical execution of several long-term initiatives to continuously resecure customer confidence at both Ranor and Stadco segments yielded positive impacts to fourth quarter revenue and net income. Consolidated gross margin expanded in the fourth quarter, and consolidated gross profit totaled $2.1 million, or 70% higher when compared with the fourth quarter of fiscal 2024. Net income was $0.1 million or $0.01 per share."

"Fiscal 2025 full year consolidated revenue was $34.0 million," continued Mr. Shen, "an increase of 8% when compared to the fiscal 2024. Our Ranor segment executed on a favorable project mix enabling sustained operating profitability. Our Stadco segment reported an overall operating loss for the fiscal year, with the fourth quarter showing profitability. Customer confidence remains high with our backlog at $48.6 million on March 31, 2025; 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 fourth quarter and twelve months ended March 31, 2025 to the same prior year period:

Consolidated Financial Results - Fiscal 2025 Fourth Quarter Ended March 31, 2025

• Revenue was $9.5 million, a 10% increase on higher revenue at both Ranor and Stadco.

• Cost of revenue was $7.4 million, less than 1% higher than the same period a year ago.

• Gross profit was $2.1 million, or a 70% increase on improved operating performance at both Ranor and Stadco.

• SG&A was $1.7 million or 53% lower, due primarily to the absence of due diligence costs for the terminated Votaw acquisition.

• Operating income was $0.4 million in the fourth quarter of fiscal 2025, compared to a loss of $2.5M in the same period a year ago, and primarily due to improved margin drop-through and lower SG&A costs.

• Interest expense decreased by 12%, due primarily to lower amortization for our revolver loan renewals.

• Net income was $0.1 million, compared with net loss $5.1 million in the same period a year ago.

Consolidated Financial Results - Fiscal 2025 Twelve Months Ended March 31, 2025

• Revenue was $34.0 million, an 8% increase on revenue growth at both Ranor and Stadco.

• Cost of revenue was $29.7 million, an increase of 8%, due primarily to higher production costs at Stadco.

• Gross profit was $4.3 million, and increase of 5%, as Ranor gross profit more than offset losses at Stadco.

• SG&A was $6.5 million or a 27% decrease, due primarily to the absence of due diligence costs for acquisitions.

• Operating loss was $2.2 million, a 53% decrease, due primarily to the absence of due diligence costs.

• Interest expense increased by 4%, due primarily to higher borrowing costs under the revolver loan.

• Net loss was $2.7 million, compared with net loss of $7.0 million in fiscal 2024.

Financial Position

On March 31, 2025 and 2024, the Company had approximately $0.2 million and $0.1 million in cash and cash equivalents, respectively. Working capital was negative $1.6 million on March 31, 2025 and debt totaled $7.4 million. Working capital was negative $2.9 million and total debt was $7.6 million on March 31, 2024. Negative working capital was due primarily to the reclassification of our long-term debt because of debt covenant violations.

Conference Call

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Wednesday, July 30, 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 406038.

A replay will be available until August 13, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 52711.

The call will also be available over the Internet and accessible at:
https://www.webcaster4.com/Webcast/Page/2198/52711.

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.

Company Contact:	Investor Relations Contact:
Phillip Podgorski	Hayden IR
Chief Financial Officer	Brett Maas
TechPrecision Corporation	Phone: 646-536-7331
Phone: 978-874-0591	Email: brett@haydenir.com
Email: podgorskip@Ranor.com	Website: www.haydenir.com
Website: www.TechPrecision.com

TECHPRECISION CORPORATION
CONSOLIDATED BALANCE SHEETS

		March 31,				March 31,
(in thousands, except per share data)		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	195			$	138
Accounts receivable, less allowances of $53 and $22, on March 31, 2025 and 2024			2,192				2,371
Contract assets			9,587				8,527
Raw materials			1,800				1,827
Work-in-process			1,082				1,423
Other current assets			490				564
Total current assets			15,346				14,850
Property, plant and equipment, net			13,791				14,798
Right of use asset, net			4,268				4,977
Other noncurrent assets			122				122
Total assets		$	33,527			$	34,747
LIABILITIES AND STOCKHOLDERS??? EQUITY:
Current liabilities:
Accounts payable		$	2,437			$	1,408
Accrued expenses			3,685				4,263
Contract liabilities			1,040				2,104
Customer deposits			1,631				1,684
Current portion of long-term lease liability			770				736
Current portion of long-term debt, net			7,353				7,559
Total current liabilities			16,916				17,754
Long-term equipment financing			3				-
Long-term lease liability			3,638				4,408
Other noncurrent liability			4,230				4,782
Total liabilities			24,787				26,944
Stockholders' Equity:
Common stock - par value $.0001 per share, 50,000,000 shares authorized: Shares issued and outstanding: March 31, 2025 - 9,761,825 and 9,751,825, respectively. Shares issued and outstanding March 31, 2024 - 8,777,432			1				1
Additional paid in capital			18,885				15,200
Accumulated deficit			(10,146	)			(7,398	)
Total stockholders' equity			8,740				7,803
Total liabilities and stockholders' equity		$	33,527			$	34,747

TECHPRECISION CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended March 31,								Twelve Months Ended March 31,
(in thousands, except per share data)		2025				2024				2025				2024
Revenue		$	9,477			$	8,600			$	34,031			$	31,591
Cost of revenue			7,392				7,372				29,702				27,473
Gross profit			2,085				1,228				4,329				4,118
Selling, general and administrative			1,718				3,687				6,487				8,750
Income (loss) from operations			367				(2,459	)			(2,158	)			(4,632	)
Other (expense) income, net			(108	)			2				(51	)			43
Interest expense			(149	)			(169	)			(541	)			(521	)
Total other (expense) income, net			(257	)			(166	)			(592	)			(478	)
Income (loss) before income taxes			110				(2,625	)			(2,750	)			(5,110	)
Income tax benefit (expense)			(2	)			2,496				(2	)			1,932
Net income (loss)		$	112			$	(5,121	)		$	(2,748	)		$	(7,042	)
Net income (loss) per share - basic and diluted		$	0.01			$	(0.59	)		$	(0.29	)		$	(0.81	)
Weighted average shares outstanding: basic			9,671,658				8,720,603				9,459,164				8,717,160
diluted			9,877,432				8,720,603				9,459,164				8,717,160

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

Three Months Ended

		March 31, 2025								March 31, 2024								Changes
						Percent of								Percent of
		Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor		$	4,684				49	%		$	4,529				56	%		$	155				3	%
Stadco			4,859				51	%			4,625				44	%			234				5	%
Intersegment elimination			(67	)			-	%			(554	)			-	%			487				88	%
Consolidated Revenue		$	9,476				100	%		$	8,600				100	%		$	876				10	%
Cost of revenue
Ranor		$	3,408				35	%		$	3,685				41	%		$	(277	)			(8	)%
Stadco			4,050				43	%			4,241				45	%			191				(5	)%
Intersegment elimination			(67	)			-	%			(554	)			-	%			487				88	%
Consolidated Cost of revenue		$	7,393				78	%		$	7,372				86	%		$	21				-	%
Gross profit
Ranor		$	1,275				13	%		$	845				10	%		$	430				51	%
Stadco			810				9	%			383				4	%			427				111	%
Consolidated Gross profit		$	2,085				22	%		$	1,228				14	%		$	857				70	%

Twelve Months Ended

		March 31, 2025								March 31, 2024								Changes
						Percent of								Percent of
		Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor		$	18,165				53	%		$	17,821				56	%		$	344				2	%
Stadco			15,998				47	%			14,567				46	%			1,431				10	%
Intersegment elimination			(132	)			-	%			(797	)			(2	)%			665				83	%
Consolidated Revenue		$	34,031				100	%		$	31,591				100	%		$	2,440				8	%
Cost of Revenue
Ranor		$	12,623				37	%		$	13,273				42	%		$	(650	)			(5	)%
Stadco			17,211				50	%			14,997				47	%			2,214				15	%
Intersegment elimination			(132	)			-	%			(797	)			(2	)%			665				83	%
Consolidated Cost of Revenue		$	29,702				87	%		$	27,473				87	%		$	2,229				8	%
Gross Profit (Loss)
Ranor		$	5,674				16	%		$	4,548				14	%		$	1,126				25	%
Stadco			(1,345	)			(3	)%			(430	)			(1	)%			(915	)			(213	)%
Consolidated Gross profit		$	4,329				13	%		$	4,118				13	%		$	211				5	%

TECHPRECISION CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

		Years Ended March 31,
(dollars in thousands)		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(2,748	)		$	(7,042	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			2,796				2,429
Amortization of debt issue costs			103				107
Loss (gain) on disposal of equipment			1				(39	)
Stock based compensation			103				285
Change in contract loss provision			170				190
Change in allowance for doubtful accounts			(31	)			-
Deferred income taxes			-				1,931
Stock based acquisition termination fee			419				1,117
Changes in operating assets and liabilities:
Accounts receivable			210				(35	)
Contract assets			(1,060	)			421
Work-in-process and raw materials			368				(837	)
Other current assets			74				(214	)
Accounts payable			1,029				(816	)
Accrued expenses			(364	)			388
Contract liabilities and customer deposits			(1,117	)			1,454
Other noncurrent liabilities			(552	)			1,389
Net cash (used in) provided by operating activities			(599	)			728
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant, and equipment			(4,122	)			(3,230	)
Proceeds from fixed assets insurance settlement			-				62
Reimbursements for purchases of fixed assets			3,041				577
Net cash used in investing activities			(1,081	)			(2,591	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolver loan			13,876				7,160
Repayment of revolver loan			(13,511	)			(5,025	)
Proceeds from private placement			2,299				-
Private placement fees			(247	)			-
Proceeds from equipment financing			65				-
Debt issuance costs			(82	)			(51	)
Principal payments for leases			(9	)			(17	)
Repayment of long-term debt			(654	)			(600	)
Net cash provided by financing activities			1,737				1,467
Net increase (decrease) in cash and cash equivalents			57				(396	)
Cash and cash equivalents, beginning of period			138				534
Cash and cash equivalents, end of period		$	195			$	138

EBITDA Non-GAAP Financial Measure

		Three Months ended March 31,												Twelve Months ended March 31,
(dollars in thousands)		2025				2024				Change				2025				2024				Change
Net income (loss)		$	112			$				$	5,233			$				$				$	4,294
							(5,121	)							(2,748	)			(7,042	)
Income tax (benefit) expense			(2	)			2,496				(2,498	)			(2	)			1,932				(1,934	)
Interest expense (1)			149				169				(20	)			541				521				20
Depreciation and amortization			703				670				33				2,796				2,429				367
EBITDA		$	962			$	(1,786	)		$	2,748			$	587			$	(2,160	)		$	2,747

(1) Includes amortization of debt issue costs.

SOURCE: TechPrecision Corporation

View the original press release on ACCESS Newswire

FAQ

What was TechPrecision's (TPCS) revenue and earnings for Q4 2025?

TechPrecision reported Q4 2025 revenue of $9.5 million (up 10% year-over-year) and net income of $0.1 million ($0.01 per share).

How much backlog does TechPrecision (TPCS) have as of March 2025?

TechPrecision reported a backlog of $48.6 million as of March 31, 2025, expected to be delivered over the next 1-3 fiscal years.

What is TechPrecision's (TPCS) current debt and working capital position?

As of March 31, 2025, TechPrecision had $7.4 million in total debt and negative working capital of $1.6 million due to debt covenant violations.

How did TechPrecision's (TPCS) segments perform in fiscal 2025?

The Ranor segment maintained sustained operating profitability, while the Stadco segment showed Q4 profitability but reported an overall operating loss for the fiscal year.

What was TechPrecision's (TPCS) full-year revenue and net loss for fiscal 2025?

For fiscal 2025, TechPrecision reported revenue of $34.0 million (up 8% year-over-year) and a net loss of $2.7 million.