TechPrecision Corporation Reports Mixed Financial Results with Revenue Decline and Increased Net Loss

TechPrecision Corporation reported its financial results for the three and nine months ended December 31, 2024, revealing a slight decline in revenue and continued operational challenges. The company generated revenue of $7.622 million for the third quarter, a decrease of $28, or less than 1%, compared to $7.650 million in the same period last year. For the nine-month period, revenue increased by 7% to $24.554 million, up from $22.991 million in the prior year. Despite this increase, the company recorded a net loss of $799,000 for the third quarter, compared to a loss of $865,000 in the same quarter of 2023. For the nine months, the net loss widened to $2.860 million from $1.921 million.

The financial performance reflects a mixed operational landscape, with the Ranor segment showing a slight revenue increase of 1% to $4.310 million, while the Stadco segment experienced a 2% decline in revenue to $3.312 million. The overall gross profit for the third quarter fell to $991,000, down from $1.161 million a year earlier, primarily due to increased production costs and under-absorbed overhead at Stadco. The gross margin for the quarter was 13%, down from 15% in the previous year. The company’s total liabilities decreased to $24.059 million from $26.944 million, while total stockholders' equity increased to $8.101 million from $7.803 million.

Strategically, TechPrecision faced significant challenges, including the termination of its planned acquisition of Votaw Precision Technologies, which resulted in a breakup fee paid in shares. The company issued 320,000 shares as part of this fee, reflecting ongoing efforts to manage its capital structure. Additionally, TechPrecision has been actively working to improve its liquidity position, with total available liquidity reported at approximately $330,000 as of December 31, 2024, down from $677,000 at the end of the previous fiscal year. The company is exploring various financing options to address its liquidity needs and ensure compliance with its debt covenants.

Operationally, TechPrecision's workforce remained stable, with 9,751,825 shares outstanding as of March 31, 2025. The company continues to focus on its core markets in defense and precision industrial sectors, with a backlog of $45.522 million as of December 31, 2024. However, the company acknowledged substantial doubt about its ability to continue as a going concern, primarily due to recurring operating losses and the need for alternative financing solutions. The management is committed to enhancing operational efficiency and profitability, particularly at its Stadco subsidiary, to mitigate these risks.

Looking ahead, TechPrecision aims to renew its revolver loan by April 30, 2025, or seek alternative financing to support its operations. The company is also focused on improving its manufacturing processes and increasing utilization of its capacity to drive profitability. Despite the challenges, TechPrecision remains committed to its strategic objectives and is actively monitoring its financial position to navigate the current market conditions.