Sypris Solutions Reports $29.5 Million Revenue in Q1 2025, 17% Decline Year-Over-Year

Sypris Solutions, Inc. reported a net revenue of $29.5 million for the first quarter of 2025, a decline of 17% compared to $35.6 million in the same period of 2024. The decrease was primarily attributed to a 26% drop in revenue from its Sypris Technologies segment, which fell to $13.6 million, driven by a cyclical decline in the commercial vehicle market and a reduction in energy product sales. Conversely, Sypris Electronics saw a smaller revenue decrease of 7.4%, totaling $15.9 million, largely due to changes in customer delivery schedules.

Despite the revenue decline, Sypris Solutions achieved a gross profit of $3.4 million, up from $2.9 million year-over-year. This improvement was supported by favorable foreign exchange rates for its Mexican subsidiary, which contributed an additional $0.6 million to gross profit. The overall gross margin increased to 11.4% from 8.1% in the prior year. The company reported an operating loss of $130,000, a significant improvement from a loss of $1.4 million in the previous year, indicating better cost management and operational efficiency.

In terms of strategic developments, Sypris Solutions has begun operating under a sub-maquiladora services agreement with a customer in Mexico, which has altered its revenue recognition approach. This agreement allows the customer to retain ownership of inventory, resulting in a decrease in revenue recognized for the value-added portion of services. The company also reported a decrease in selling, general, and administrative expenses to $3.5 million, down from $4.3 million, reflecting reduced consulting costs and headcount.

Operationally, Sypris Solutions continues to face challenges related to supply chain constraints and inflationary pressures, which are expected to persist throughout 2025. The company is actively managing its working capital to improve liquidity, having reported a cash balance of $6.6 million as of March 30, 2025. The company has also received additional loans from Gill Family Capital Management, totaling $3 million in the first quarter of 2025, to support its liquidity needs. Looking ahead, Sypris Solutions anticipates that ongoing demand in the electronic circuit card assembly industry and a stable order backlog in Sypris Electronics will help maintain revenue levels, although uncertainties in the commercial vehicle market and geopolitical factors may impact overall performance.