SIFCO Industries Reports Improved Net Loss and Increased Revenue for December 2024 Quarter

SIFCO Industries, Inc. reported a net loss of $2.3 million for the three months ended December 31, 2024, an improvement from a net loss of $3.4 million during the same period in 2023. The company’s comprehensive income for the quarter was $3.3 million, compared to a comprehensive loss of $3.1 million in the prior year, largely due to a foreign currency translation adjustment of $5.6 million following the sale of its European operations. Revenue for the quarter increased to $20.9 million, up from $15.5 million in the previous year, driven by higher demand in both commercial and military sectors.

The company experienced significant changes in its financial position compared to the previous fiscal period. Total current assets decreased to $38.9 million from $54.3 million, primarily due to the reclassification of assets related to discontinued operations following the sale of its European subsidiary, CBlade. Current liabilities also saw a reduction, falling to $31.0 million from $54.0 million, reflecting the repayment of debt and the impact of the sale. As of December 31, 2024, SIFCO's total assets stood at $81.0 million, down from $104.6 million at the end of the previous fiscal year.

Strategically, SIFCO completed the sale of its European operations in October 2024, a move aimed at streamlining operations and refocusing on its core aerospace forging business. This divestiture has allowed the company to concentrate on domestic growth opportunities, although it has also resulted in the cessation of manufacturing operations in Europe. The company’s backlog of orders as of December 31, 2024, was $121.9 million, with $90.1 million expected to be completed within the next 12 months, indicating a positive outlook for future revenue.

Operationally, SIFCO reported an increase in sales across various sectors, with aerospace components for fixed-wing aircraft generating $12.8 million, up from $9.9 million in the prior year. The company’s gross profit improved to $0.9 million from a gross loss of $0.5 million, attributed to increased sales volume and a favorable product mix. Selling, general, and administrative expenses decreased to $2.8 million, reflecting cost management efforts. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, SIFCO Industries anticipates continued growth driven by recovery in the aerospace markets and increased demand for its products. The company plans to leverage its streamlined operations to enhance domestic production capabilities and capitalize on market opportunities. However, management acknowledges potential risks, including fluctuations in demand and the need for additional funding to support growth initiatives. The company remains committed to managing its liquidity and capital resources effectively to navigate these challenges.