Sypris Solutions, Inc. reported a net loss of $6.3 million for the fiscal year ending December 31, 2025, a significant increase from a loss of $1.7 million in 2024. The company's total net revenue decreased by 14.5% to $119.9 million, down from $140.2 million the previous year. This decline was primarily driven by a 31.2% drop in revenue from the Sypris Technologies segment, which fell to $51.7 million due to a cyclical downturn in the commercial vehicle market, where production of Class 8 trucks decreased by 24%. In contrast, Sypris Electronics saw a revenue increase of 4.9%, reaching $68.1 million, attributed to ramping production on new programs despite the completion of shipments under a long-term contract.
The company's gross profit also suffered, decreasing by 52.8% to $9.4 million, with gross margins falling from 14.2% in 2024 to 7.8% in 2025. The decline in gross profit was largely due to reduced volumes and lower absorption of fixed overhead costs in the Sypris Technologies segment, which reported a gross profit of $6.4 million, down from $12.8 million. Sypris Electronics experienced a similar trend, with gross profit dropping to $3.0 million from $7.1 million, impacted by an unfavorable mix of programs and increased costs related to engineering modifications.
Operationally, Sypris Solutions faced challenges with inventory management, leading to a liquidity shortfall that began in late 2023 and persisted through 2025. The company reported cash used in operations of $5.7 million for the year, and its net inventory increased significantly due to delays in shipments to customers. To address liquidity issues, Sypris received loans totaling $5.5 million from Gill Family Capital Management, Inc., a related party, and successfully negotiated amended payment terms with suppliers.
Looking ahead, Sypris Solutions anticipates continued challenges in the commercial vehicle market, with expectations of a slight revenue decrease in 2026 due to ongoing market volatility. However, the company is optimistic about potential growth in the energy sector and plans to expand its product offerings. The outlook for Sypris Electronics remains positive, supported by a strong order backlog and anticipated increases in defense spending, although the company acknowledges that federal budget uncertainties may impact future performance.
About SYPRIS SOLUTIONS INC
Sypris Solutions, Inc. is a diversified manufacturer providing truck components, energy pipeline parts, and aerospace and defense electronics. Its core segments include Sypris Technologies, producing forged and machined steel parts for automotive and energy markets, and Sypris Electronics, specializing in high-reliability electronic systems for aerospace and defense. The company focuses on long-term customer relationships, technological innovation, and manufacturing excellence in North America and Mexico.
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