SIFCO Industries Reports 6.5% Net Sales Increase to $84.8 Million for Fiscal Year 2025

SIFCO Industries, Inc. reported a net sales increase of 6.5% for the fiscal year ending September 30, 2025, reaching $84.8 million compared to $79.6 million in the previous year. The growth was primarily driven by a $9.6 million increase in sales of fixed-wing aircraft components, reflecting heightened demand across various programs. However, the company experienced a decline in commercial space product sales, which fell by $8.2 million due to reduced procurement activity from a key customer managing excess inventory. Military sales rose significantly, contributing to 56.5% of total revenues, up from 47.6% in the prior year.

The company's cost of goods sold (COGS) increased slightly to $74.2 million, representing 87.5% of net sales, down from 92.5% in the previous year, which allowed gross profit to rise to $10.6 million, or 12.5% of sales, compared to $6.0 million, or 7.5%, in fiscal 2024. Selling, general, and administrative expenses decreased to $10.4 million, reflecting lower employee-related costs and a one-time credit from a vendor in the prior year. Despite these improvements, SIFCO reported a loss from continuing operations of $0.9 million, an improvement from the $8.6 million loss in fiscal 2024.

In a strategic move to streamline operations, SIFCO sold its European operations, specifically CBlade S.p.A., in October 2024. This divestiture was aimed at refocusing on its core aerospace forging business and resulted in the classification of CBlade's financials as discontinued operations. The sale generated approximately $14.4 million in cash, which was utilized to reduce outstanding debt and support operational needs. The company’s total backlog as of September 30, 2025, increased to $119.2 million, up from $114.4 million the previous year, indicating a positive outlook for future sales driven by recovery in the commercial airline industry and new content awarded.

SIFCO's workforce grew from approximately 244 to 259 employees during the fiscal year, excluding those from the sold CBlade operations. The company continues to face challenges related to supply chain disruptions and inflationary pressures affecting raw material costs. However, SIFCO believes it can mitigate these risks through contractual agreements that allow for cost pass-throughs. Looking ahead, the company anticipates that its streamlined operations will enhance focus on domestic growth opportunities, although it acknowledges the uncertainty surrounding market conditions and customer demand in the aerospace and energy sectors.