Sypris Solutions Reports 11.5% Revenue Decline and Net Loss in Q2 2025

Sypris Solutions, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenue of $31.4 million, down 11.5% from $35.5 million in the same period of 2024. For the first half of 2025, revenue totaled $60.9 million, a decrease of 14.3% compared to $71.1 million in the prior year. The company experienced a net loss of $2.1 million for the quarter, compared to a slight profit of $16,000 in the previous year, and a loss of $2.95 million for the first six months of 2025, worsening from a loss of $2.2 million in the same period of 2024. The gross profit also fell significantly, with a gross margin of 8.2% for the quarter, down from 15.9% a year earlier.

The decline in revenue was primarily attributed to a cyclical downturn in the commercial vehicle market, which impacted Sypris Technologies, the company's segment focused on truck components. Revenue from Sypris Technologies decreased by 21% year-over-year for the quarter, while Sypris Electronics saw a smaller decline of 2%. The company noted that changes in customer delivery schedules and material availability issues contributed to the revenue drop in the electronics segment. Additionally, a new sub-maquiladora services agreement in Mexico resulted in reduced revenue recognition for Sypris Technologies, further impacting overall sales figures.

Operationally, Sypris Solutions reported a decrease in inventory levels, which provided a source of cash flow, but the company still faced liquidity challenges. As of June 29, 2025, cash and cash equivalents stood at $6.4 million, down from $9.7 million at the end of 2024. The company has been actively managing working capital and has received additional loans from Gill Family Capital Management, Inc. to support liquidity. The total liabilities decreased to $87.2 million from $99.8 million at the end of 2024, while stockholders' equity fell to $18.7 million from $19.6 million.

Looking ahead, Sypris Solutions anticipates continued challenges due to inflationary pressures, supply chain constraints, and geopolitical factors affecting the oil and gas markets. The company is focusing on diversifying its market presence to mitigate the cyclical nature of its revenue streams. In the electronics segment, ongoing demand for circuit card assembly is expected to stabilize revenue, although the company acknowledges potential delays in customer deliveries and production ramp-up. The management remains cautious about the economic environment and is prepared to implement cost-cutting measures if necessary to maintain financial stability.