SIFCO Industries Reports $4.4 Million Net Income and 23.5% Revenue Growth for Nine Months Ended June 30, 2026

SIFCO Industries, Inc. reported a net income of $4.4 million for the nine months ended June 30, 2026, a significant turnaround from a net loss of $300,000 during the same period in the previous fiscal year. The company's revenue for the nine months increased by 23.5% to $76.6 million, compared to $62.0 million in the prior year. This growth was primarily driven by increased demand in military programs, particularly for rotorcraft, which saw a revenue increase of $12.6 million. However, sales in the commercial space sector declined by $2.2 million, reflecting reduced procurement activity.

In the third quarter alone, SIFCO's net sales rose to $26.1 million, up from $22.1 million in the same quarter of the previous year. The increase was attributed to higher production volumes and favorable pricing, although it was partially offset by the impact of customer-supplied raw materials, which do not contribute to reported sales figures. Military sales accounted for 73.3% of total net sales in the third quarter, up from 60.7% in the prior year, indicating a strategic shift towards defense-related contracts.

Operationally, SIFCO's total backlog as of June 30, 2026, was $164.2 million, a notable increase from $130.4 million a year earlier, reflecting a recovery in the aerospace market. The company also reported a significant increase in inventories, which rose to $10.1 million from $4.2 million, indicating preparations for anticipated demand. The workforce remained stable, with a slight increase in employee headcount, supporting the company's operational capacity.

The company’s cost of goods sold (COGS) increased to $62.3 million for the nine months, representing 81.4% of net sales, compared to 86.5% in the previous year. This improvement in the COGS percentage was attributed to better overhead absorption from higher production volumes and pricing actions. However, the company faced challenges with increased LIFO expenses due to rising inventory costs. Selling, general, and administrative expenses also rose to $8.7 million, driven by higher incentive compensation and environmental reserve costs.

Looking ahead, SIFCO Industries anticipates continued growth driven by military contracts and a recovery in the aerospace sector. The company is focused on leveraging its operational efficiencies and expanding its market presence, particularly in defense and aerospace applications. The management remains optimistic about maintaining sufficient liquidity to support ongoing operations and capital expenditures, with cash and cash equivalents reported at $0.1 million as of June 30, 2026.