TechPrecision Corporation Reports Fiscal Year 2026 Second Quarter Financial Results

Rhea-AI Summary

TechPrecision (NASDAQ:TPCS) reported second quarter fiscal 2026 results for the period ended September 30, 2025. Revenue was $9.1 million (up 2% year‑over‑year) with consolidated gross margin improving to 27% and gross profit of $2.5 million (an increase of $1.4 million year‑over‑year). Net income was $0.8 million (EPS $0.08), compared with a net loss in the prior‑year quarter.

Segment performance at Ranor and Stadco drove favorable product mix and lower cost of revenue. Backlog reached $47.8 million as of September 30, 2025. Six‑month revenue was $16.5 million (down 3%), six‑month gross profit was $3.5 million, and six‑month net income was $0.2 million. Cash and equivalents were approximately $0.2 million and total debt was $7.3 million on September 30, 2025.

Positive

• Consolidated gross margin improved to 27% in Q2 FY26
• Q2 gross profit $2.5M, up $1.4M year‑over‑year
• Q2 net income $0.8M (EPS $0.08) vs prior‑year loss
• Backlog reached $47.8M as of September 30, 2025

Negative

• Six‑month revenue declined 3% to $16.5M
• Low cash on hand of approximately $0.2M at quarter end
• Total debt of $7.3M on September 30, 2025

FY26 Q2 net income increases by $1.4 million year-over-year to $0.08 per share

WESTMINSTER, MA / ACCESS Newswire / November 13, 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 second quarter ended September 30, 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.

"Both Ranor and Stadco executed on a favorable project mix and improved gross margins and gross profit in the second quarter," stated Alexander Shen, TechPrecision's Chief Executive Officer. "We improved consolidated gross margin to 27% on $9.1 million in revenue in the second quarter of fiscal 2026, and consolidated gross profit totaled $2.5 million. Cost of revenue was lower at both Ranor and Stadco as a direct result of favorable mix at both segments."

"Customer confidence remains high with our backlog reaching $47.8 million as of September 30, 2025," Mr. Shen continued. "We expect to deliver this backlog over the next one to three fiscal years with expectations for gross margin improvement throughout the period."

The following summary compares the three and six months ended September 30, 2025 to the same prior year period:

Consolidated Financial Results - Fiscal 2026 Three Months Ended September 30, 2025

• Revenue was $9.1 million, a 2% increase primarily on higher revenue at Stadco.

• Cost of revenue was $6.6 million, or a 16% decrease primarily on favorable product mix at Ranor and Stadco.

• Gross profit was $2.5 million, an increase of $1.4 million driven by improved operating performance at both Ranor and Stadco.

• SG&A was $1.5 million or 1% higher, as an increase in compensation slightly offset a decrease in advisory costs.

• Operating income was $0.9 million in the second quarter of fiscal 2026, compared to a loss of $0.5 million in the same period a year ago, primarily due to improved margin drop-through.

• Interest expense increased by 12%, due primarily to interest costs for our revolver loan borrowings.

• Net income was $0.8 million, compared with net loss $0.6 million in the same period a year ago.

Consolidated Financial Results - Fiscal 2026 Six Months Ended September 30, 2025

• Revenue was $16.5 million, a 3% decrease primarily on lower revenue at Ranor.

• Cost of revenue was $13.0 million, or a 17% decrease primarily on favorable product mix at Ranor and Stadco.

• Gross profit was $3.5 million, an increase of $2.2 million driven by improved operating performance at both Ranor and Stadco.

• SG&A was $3.0 million or 2% lower, primarily on a decrease in outside advisory costs.

• Operating income was $0.5 million compared to a loss of $1.8 million in the same period a year ago, primarily due to improved margin drop-through.

• Interest expense increased by 3%, due primarily to interest costs for our revolver loan borrowings.

• Net income was $0.2 million, compared with net loss $2.1 million in the same period a year ago.

Financial Position

On September 30, 2025 and March 31, 2025, the Company had approximately $0.2 million and $0.2 million in cash and cash equivalents, respectively. Working capital was $0.3 million on September 30, 2025 and debt totaled $7.3 million. Working capital was negative $1.7 million and total debt was $7.4 million on March 31, 2025.

Conference Call

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Thursday, November 13, 2025. To participate in the live conference call, please dial 1-877-545-0523 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-973-528-0016. When prompted, reference TechPrecision and enter code 305080.

A replay will be available until November 27, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 53138.

The call will also be available over the Internet and accessible at: https://www.webcaster5.com/Webcast/Page/2198/53138.

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 95% 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)
		September 30,				March 31,
(in thousands, except per share data)		2025				2025
ASSETS
Current assets:
Cash and cash equivalents		$	220			$	195
Accounts receivable, less allowances of $0 and $22, on September 30 and March 31, 2025			3,102				2,192
Contract assets			10,132				9,587
Raw materials			2,525				1,800
Work-in-process			1,197				1,082
Other current assets			552				490
Total current assets			17,728				15,346
Property, plant and equipment, net			12,091				13,791
Right of use asset, net			3,902				4,268
Other noncurrent assets			122				122
Total assets		$	33,843			$	33,527
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable		$	3,122			$	2,437
Accrued expenses			3,268				3,685
Contract liabilities			1,442				1,040
Customer deposits			1,631				1,631
Current portion of long-term lease liability			782				770
Current portion of long-term debt, net			7,199				7,353
Total current liabilities			17,444				16,916
Long-term equipment financing			-				3
Long-term lease liability			3,246				3,638
Other noncurrent liability			4,046				4,230
Total liabilities			24,736				24,787
Stockholders' Equity:
Common stock - par value $.0001 per share, 50,000,000 shares authorized: Shares issued and outstanding: September 30, 2025 - 9,952,950 and 9,947,950, respectively. Shares issued and outstanding: March 31, 2025 - 9,761,825 and 9,751,825, respectively.			1				1
Additional paid in capital			19,024				18,885
Accumulated deficit			(9,918	)			(10,146	)
Total stockholders' equity			9,107				8,740
Total liabilities and stockholders' equity		$	33,843			$	33,527

TECHPRECISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended September 30,								Six Months Ended September 30,
(in thousands, except per share data)		2025				2024				2025				2024
Revenue		$	9,086			$	8,946			$	16,465			$	16,932
Cost of revenue			6,628				7,932				12,977				15,679
Gross profit			2,458				1,014				3,488				1,253
Selling, general and administrative			1,516				1,502				3,009				3,082
Income (loss) from operations			942				(488	)			479				(1,829	)
Other income			1				---				2				13
Interest expense			(118	)			(113	)			(253	)			(245	)
Total other expense			(117	)			(113	)			(251	)			(232	)
Income (loss) before income taxes			825				(601	)			228				(2,061	)
Income tax expense			---				---				---				---
Net income (loss)		$	825			$	(601	)		$	228			$	(2,061	)
Net income (loss) per share - basic and diluted		$	0.08			$	(0.06	)		$	0.02			$	(0.22	)
Weighted average shares outstanding: basic			9,874,627				9,568,660				9,816,556				9,279,967
diluted			10,155,565				9,568,660				10,029,167				9,279,967

TECHPRECISION CORPORATION
REVENUE, COST OF REVENUE, GROSS PROFIT BY SEGMENT

Three months ended:		September 30, 2025								September 30, 2024								Changes
						Percent of								Percent of
(dollars in thousands)		Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor		$	4,373				48	%		$	4,790				54	%		$	(417	)			(9	)%
Stadco			4,819				53	%			4,223				47	%			596				14	%
Intersegment elimination			(106	)			(1	)%			(67	)			(1	)%			(39	)			(58	)%
Consolidated Revenue		$	9,086				100	%		$	8,946				100	%		$	140				2	%
Cost of revenue
Ranor		$	2,271				25	%		$	3,272				37	%		$	(1,001	)			(31	)%
Stadco			4,463				49	%			4,727				53	%			(264	)			(6	)%
Intersegment elimination			(106	)			(1	)%			(67	)			(1	)%			(39	)			(58	)%
Consolidated Cost of revenue		$	6,628				73	%		$	7,932				89	%		$	(1,304	)			(16	)%
Gross profit
Ranor		$	2,208				24	%		$	1,585				17	%		$	623				39	%
Stadco			250				3	%			(571	)			(6	)%			821				144	%
Consolidated Gross profit		$	2,458				27	%		$	1,014				11	%		$	1,444				143	%

Six months ended:		September 30, 2025								September 30, 2024								Changes
						Percent of								Percent of
(dollars in thousands)		Amount				Revenue				Amount				Revenue				Amount				Percent
Revenue
Ranor		$	8,670				53	%		$	9,172				54	%		$	(502	)			(5	)%
Stadco			8,151				49	%			7,827				46	%			324				4	%
Intersegment elimination			(356	)			(2	)%			(67	)			---	%			(289	)			(431	)%
Consolidated Revenue		$	16,465				100	%		$	16,932				100	%		$	(467	)			(3	)%
Cost of revenue
Ranor		$	5,215				32	%		$	6,417				38	%		$	(1,202	)			(19	)%
Stadco			8,118				49	%			9,329				55	%			(1,211	)			(13	)%
Intersegment elimination			(356	)			(2	)%			(67	)			-	%			(289	)			(431	)%
Consolidated Cost of revenue		$	12,977				79	%		$	15,679				93	%		$	(2,702	)			(17	)%
Gross profit
Ranor		$	3,562				21	%		$	2,822				16	%		$	740				26	%
Stadco			(74	)			---	%			(1,569	)			(9	)%			1,495				95	%
Consolidated Gross profit		$	3,488				21	%		$	1,253				7	%		$	2,235				179	%

TECHPRECISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		Six Months Ended September 30,
(in thousands, except per share data)		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	228			$	(2,061	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			1,404				1,391
Amortization of debt issue costs			38				38
Change in fair value of stock acquisition termination fee			---				419
Stock based compensation expense			139				18
Change in contract loss provision			(136	)			223
Changes in operating assets and liabilities:
Accounts receivable			(910	)			(16	)
Contract assets			(545	)			(1,018	)
Work-in-process and raw materials			(840	)			(110	)
Other current assets			(62	)			105
Accounts payable			685				1,741
Accrued expenses			(655	)			208
Contract liabilities			402				(1,271	)
Other noncurrent liabilities			(184	)			(92	)
Net cash used in operating activities			(436	)			(425	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment			(2,245	)			(1,622	)
Reimbursements for purchases of property, plant and equipment			2,907				1,000
Net cash provided by (used in) investing activities			662				(622	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from private placement			---				1,801
Private placement fees			---				(213	)
Debt issue costs			(30	)			(48	)
Revolver loan borrowings			8,940				6,746
Revolver loan payments			(8,770	)			(6,931	)
Payments of principal for leases			(5	)			(5	)
Repayments of long-term debt			(336	)			(309	)
Net cash (used in) provided by financing activities			(201	)			1,041
Net increase (decrease) in cash and cash equivalents			25				(6	)
Cash and cash equivalents, beginning of period			195				138
Cash and cash equivalents, end of period		$	220			$	132

EBITDA Non-GAAP Financial Measure

		Three Months ended September 30,												Six Months ended September 30,
(dollars in thousands)		2025				2024				Change				2025				2024				Change
Net income (loss)		$	825			$	(601	)		$	1,427			$	228			$	(2,061	)		$	2,289
Income tax expense			---				---				---				---				---				---
Interest expense (1)			118				113				5				253				245				8
Depreciation and amortization			701				697				4				1,404				1,391				13
EBITDA		$	1,644			$	209			$	1,435			$	1,885			$	(425	)		$	2,310

1. Includes amortization of debt issue costs.

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

SOURCE: TechPrecision Corporation

View the original press release on ACCESS Newswire

FAQ

What were TechPrecision (TPCS) Q2 FY26 revenues and gross margin?

TechPrecision reported Q2 FY26 revenue of $9.1M with a consolidated gross margin of 27%.

Did TechPrecision (TPCS) report a profit for Q2 ended September 30, 2025?

Yes. Net income for Q2 FY26 was $0.8M (EPS $0.08), compared with a net loss in the same period last year.

How large is TechPrecision's (TPCS) backlog and expected delivery window?

Backlog was $47.8M as of September 30, 2025, expected to be delivered over the next one to three fiscal years.

What drove gross profit improvement at TechPrecision (TPCS) in Q2 FY26?

Improved product mix and lower cost of revenue at both Ranor and Stadco drove the Q2 gross profit increase of $1.4M year‑over‑year.

What is TechPrecision's (TPCS) cash and debt position as of September 30, 2025?

Cash and cash equivalents were approximately $0.2M and total debt was $7.3M on September 30, 2025.

When is TechPrecision (TPCS) holding its Q2 FY26 conference call?

The company held a conference call on November 13, 2025 at 4:30 p.m. ET, with a replay available through November 27, 2025.