TechPrecision Corporation Reports Q2 2025 Financial Results with Revenue Decline and Improved Gross Profit

TechPrecision Corporation reported its financial results for the three months ended June 30, 2025, revealing a revenue of $7.379 million, an 8% decrease from $7.986 million in the same period last year. The company experienced a gross profit of $1.030 million, significantly up from $239,000 a year earlier, reflecting a gross margin increase from 3% to 14%. The net loss for the quarter was $597,000, or $0.06 per share, compared to a net loss of $1.460 million, or $0.16 per share, in the prior year. This improvement in profitability was attributed to a reduction in costs of revenue, which fell by 18% to $6.349 million, primarily due to lower loss provisions.

In terms of operational performance, TechPrecision's subsidiary Ranor generated $4.297 million in revenue, a slight decline of 2% year-over-year, while Stadco's revenue decreased by 8% to $3.332 million. Despite the revenue declines, both subsidiaries reported strong backlogs, with Ranor's backlog increasing to $24.402 million from $18.759 million, and Stadco's backlog rising to $25.712 million from $22.406 million. The company noted an increase in direct labor hours at both subsidiaries, contributing to improved throughput and gross profit margins.

TechPrecision's total assets as of June 30, 2025, were $32.142 million, down from $33.527 million at the end of the previous fiscal year. The company reported total liabilities of $23.930 million, a decrease from $24.787 million, primarily due to a reduction in long-term debt. However, the company is facing challenges with its liquidity, as it reported a total available liquidity of $1.856 million, which includes $1.949 million in undrawn capacity under its revolver loan and $143,000 in cash. The company’s working capital was negative due to the reclassification of long-term debt to current liabilities.

Looking ahead, TechPrecision is exploring various strategies to strengthen its liquidity position and ensure compliance with its debt financing covenants. The company is focused on making Stadco operations profitable, renewing its revolver loan, and potentially seeking alternative financing options. The management has expressed concerns about the company's ability to continue as a going concern for at least one year from the date of the financial statements due to ongoing operating losses and the need for financing. The company plans to closely monitor expenses and may implement cost reductions to enhance liquidity.