SIFCO Industries, Inc. ("SIFCO") Announces First Quarter Fiscal 2026 Financial Results
MWN-AI** Summary
SIFCO Industries, Inc. (NYSE American: SIF) has released its financial results for the first quarter of fiscal 2026, marking a significant recovery compared to the same period last year. The company reported net sales of $24.0 million for the quarter ending December 31, 2025, which reflects a 14.8% increase from $20.9 million in the previous year. This boost in revenue corresponds with a turnaround in profitability, as SIFCO reported a net income from continuing operations of $1.8 million, or $0.29 per diluted share, compared to a net loss of $2.4 million, or $(0.40) per diluted share, for the first quarter of fiscal 2025.
Additionally, SIFCO's EBITDA surged to $3.6 million from a negative $0.8 million in the prior year, while Adjusted EBITDA showed a marked improvement, reaching $3.9 million compared to a loss of $0.2 million. Management attributed the positive performance to increased production throughput and reduced fixed costs, signaling strong demand for its products in both commercial and defense sectors.
The company noted that its order backlog remains stable, underscoring ongoing robust demand in the aerospace industry—both military and civilian. SIFCO emphasizes the importance of non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, as vital indicators of operational performance when comparing results historically and assessing future business potential.
In closing, SIFCO’s significant year-over-year improvements in sales and profitability indicate a solid recovery path, with positive momentum expected as demand for aerospace components continues to rise. Investors and stakeholders can monitor these developments as SIFCO navigates fiscal 2026.
MWN-AI** Analysis
SIFCO Industries, Inc. (NYSE American: SIF) has reported impressive first-quarter results for fiscal 2026, demonstrating a notable turnaround from previous periods. The 14.8% increase in net sales to $24.0 million compared to $20.9 million in Q1 fiscal 2025, alongside the transformation of a net loss of $2.4 million to a net income of $1.8 million, indicates an effective operational recovery. This performance was bolstered by enhanced production throughput and reduced fixed costs, essential elements for maintaining profitability in the competitive aerospace sector.
The company's EBITDA of $3.6 million, reversing from a negative figure in the previous year, further signifies operational efficiency, as does the adjusted EBITDA of $3.9 million. The solid earnings per share of $0.29 also suggest a resilient market position, particularly valuable amidst the ongoing uncertainties affecting the aerospace industry.
However, while SIFCO's performance is commendable, investors should consider some cautionary factors. Despite the positive momentum, the company's revenue growth is subjected to the volatile nature of the aerospace sector and broader economic conditions. SIFCO's reliance on commercial and defense markets introduces inherent risks that could affect future revenue streams.
Investors looking into SIFCO should weigh the positive operational results against these potential risk factors. Given the improved financial health, coupled with a strong order backlog, there may be a compelling case for buying into the stock, particularly if it can sustain its upward trajectory. Strategic investors might consider positioning themselves as the stock revisits pre-pandemic levels, while keeping an eye on macroeconomic indicators that could impact aerospace demand. A diversified investment approach, along with an awareness of sector dynamics, is advisable as SIFCO navigates its next growth phase.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its first quarter of fiscal 2026, which ended December 31, 2025.
First Quarter Results
- Net sales in the first quarter of fiscal 2026 increased 14.8% to $24.0 million, compared with $20.9 million for the same period in fiscal 2025.
- Net income from continuing operations for the first quarter of fiscal 2026 was $1.8 million, or $0.29 per diluted share, compared with net loss of $2.4 million, or $(0.40) per diluted share, in the first quarter of fiscal 2025. Results from discontinued operations for the first quarter of fiscal 2026 was $0.0 million, or $0.00 per diluted share, compared with net income from discontinued operations of $0.1 million, or $0.02 per diluted share, in the first quarter of fiscal 2025.
- EBITDA was $3.6 million in the first quarter of fiscal 2026, compared with $(0.8) million in the first quarter of fiscal 2025.
- Adjusted EBITDA in the first quarter of fiscal 2026 was $3.9 million, compared with Adjusted EBITDA of $(0.2) million in the first quarter of fiscal 2025.
Other Highlights
“SIFCO reported favorable results for the first quarter ending December 31, 2025. SIFCO provides engineered, high-quality forgings primarily for the commercial and military aerospace industries. Management indicated that increased production throughput and lower fixed costs were the main drivers of improved financial performance for the quarter. Strong demand continues for SIFCO’s products and the order backlog remains stable in both commercial and defense end markets.”
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.
Forward-Looking Language
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company’s Securities and Exchange Commission filings. For a discussion of such risk factors and uncertainties, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025 and other reports filed by the Company with the Securities & Exchange Commission.
The Company’s Form 10-K for the year ended September 30, 2025 and other reports filed with the Securities & Exchange Commission can be accessed through the Company’s website: www.sifco.com , or on the Securities and Exchange Commission’s website: www.sec.gov .
SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.
Consolidated Condensed Statements of Operations (Amounts in thousands, except per share data) (Unaudited) | |||||||
Three Months Ended December 31, | |||||||
2025 | 2024 | ||||||
Net sales | $ | 23,973 | $ | 20,883 | |||
Cost of goods sold | 18,784 | 19,955 | |||||
Gross profit | 5,189 | 928 | |||||
Selling, general and administrative expenses | 2,646 | 2,840 | |||||
Gain on disposal of operating assets | (20 | ) | — | ||||
Operating profit (loss) | 2,563 | (1,912 | ) | ||||
Interest expense, net | 352 | 469 | |||||
Foreign currency exchange gain, net | — | (2 | ) | ||||
Other expense, net | 16 | 38 | |||||
Income (loss) from continuing operations before income tax expense | 2,195 | (2,417 | ) | ||||
Income tax expense | 405 | 5 | |||||
Income (loss) from continuing operations | 1,790 | (2,422 | ) | ||||
Income from discontinued operations, net of tax | — | 106 | |||||
Net income (loss) | $ | 1,790 | $ | (2,316 | ) | ||
Basic earnings (loss) per share: | |||||||
Basic earnings (loss) per share from continuing operations | $ | 0.29 | $ | (0.40 | ) | ||
Basic earnings per share from discontinued operations | — | 0.02 | |||||
Basic earnings (loss) per share | $ | 0.29 | $ | (0.38 | ) | ||
Diluted earnings (loss) per share: | |||||||
Diluted earnings (loss) per share from continuing operations | $ | 0.29 | $ | (0.40 | ) | ||
Diluted earnings per share from discontinued operations | — | 0.02 | |||||
Diluted earnings (loss) per share | $ | 0.29 | $ | (0.38 | ) | ||
Weighted-average number of common shares (basic) | 6,079 | 6,016 | |||||
Weighted-average number of common shares (diluted) | 6,159 | 6,016 |
Consolidated Condensed Balance Sheets (Amounts in thousands, except per share data) (Unaudited) | |||||||
December 31, | September 30, | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,106 | $ | 491 | |||
Restricted cash | 1,081 | 1,553 | |||||
Receivables, net of allowance for credit losses of $128 and $151, respectively | 15,634 | 16,103 | |||||
Contract assets | 11,045 | 10,560 | |||||
Inventories, net | 6,561 | 4,192 | |||||
Prepaid expenses and other current assets | 2,338 | 2,192 | |||||
Total current assets | 37,765 | 35,091 | |||||
Property, plant and equipment, net | 20,896 | 21,794 | |||||
Operating lease right-of-use assets, net | 12,299 | 12,543 | |||||
Goodwill | 3,493 | 3,493 | |||||
Other assets | 488 | 473 | |||||
Total assets | $ | 74,941 | $ | 73,394 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt, net of unamortized debt issuance costs | $ | 2,461 | $ | 2,592 | |||
Revolver | 386 | 7,969 | |||||
Short-term operating lease liabilities | 978 | 959 | |||||
Accounts payable | 7,296 | 5,796 | |||||
Contract liabilities | 7,486 | 1,784 | |||||
Accrued liabilities | 3,386 | 3,140 | |||||
Total current liabilities | 21,993 | 22,240 | |||||
Long-term finance lease, net of short-term | 39 | 51 | |||||
Long-term operating lease liabilities, net of short-term | 11,977 | 12,230 | |||||
Deferred income taxes, net | 519 | 163 | |||||
Pension liability | 1,104 | 1,206 | |||||
Other long-term liabilities | 611 | 619 | |||||
Commitments and Contingencies | |||||||
Shareholders’ equity: | |||||||
Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at December 31, 2025 and September 30, 2025 | — | — | |||||
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,215 at December 31, 2025 and 6,180 at September 30, 2025 | 6,215 | 6,180 | |||||
Additional paid-in capital | 11,863 | 11,892 | |||||
Retained earnings | 18,942 | 17,152 | |||||
Accumulated other comprehensive income | 1,678 | 1,661 | |||||
Total shareholders’ equity | 38,698 | 36,885 | |||||
Total liabilities and shareholders’ equity | $ | 74,941 | $ | 73,394 |
Non-GAAP Financial Measures
Presented below is certain financial information based on the Company’s EBITDA and Adjusted EBITDA. References to “EBITDA” mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.
Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America (“GAAP”). The Company presents EBITDA and Adjusted EBITDA because management believes that they are useful indicators for evaluating operating performance, including the Company’s ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations. Therefore, reviewers of the Company’s financial information should not consider them in isolation, or as a substitute for analysis of the Company’s results of operations as reported in accordance with GAAP. Some of these limitations include:
- Neither EBITDA nor Adjusted EBITDA reflects the interest expense or the cash requirements necessary to service interest payments on indebtedness;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
- The omission of the amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
- Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.
The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:
Three Months Ended December 31, | |||||||
Dollars in thousands | 2025 | 2024 | |||||
Net income (loss) | $ | 1,790 | $ | (2,316 | ) | ||
Less: Income from discontinued operations, net of tax | — | 106 | |||||
Income (loss) from continuing operations | 1,790 | (2,422 | ) | ||||
Adjustments: | |||||||
Depreciation and amortization expense | 1,085 | 1,181 | |||||
Interest expense, net | 352 | 469 | |||||
Income tax expense | 405 | 5 | |||||
EBITDA | 3,632 | (767 | ) | ||||
Adjustments: | |||||||
Foreign currency exchange gain, net (1) | — | (2 | ) | ||||
Other (income) expense, net (2) | 16 | 38 | |||||
Gain on disposal of assets (3) | (20 | ) | — | ||||
Non-recurring severance expense adjustments (4) | — | (22 | ) | ||||
Equity compensation (4) | 66 | 21 | |||||
Transaction-related expense adjustments (5) | — | (17 | ) | ||||
LIFO impact (6) | 212 | 501 | |||||
Adjusted EBITDA | $ | 3,906 | $ | (248 | ) |
(1) | Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated. |
(2) | Represents miscellaneous non-operating income or expense, such as pension costs. |
(3) | Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books. |
(4) | Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures and executive severance. |
(5) | Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful attempt in which the Company was the acquisition target. |
(6) | Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out (“LIFO”) method. |
Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260211468121/en/
SIFCO Industries, Inc.
Jennifer Wilson, 216-881-8600
www.sifco.com
FAQ**
How does SIFCO Industries Inc. (SIF) plan to sustain its revenue growth following the 14.8% increase in net sales for Q1 FY 2026, and what measures are being taken to manage production throughput and fixed costs effectively?
What factors contributed to the significant improvement in net income from a loss of $2.4 million in Q1 FY 20to a profit of $1.8 million in Q1 FY 20for SIFCO Industries Inc. (SIF)?
How does SIFCO Industries Inc. (SIF) plan to navigate the potential risks and uncertainties associated with economic conditions and industry competition, particularly given the strong demand in the aerospace sector?
What strategic initiatives is SIFCO Industries Inc. (SIF) undertaking to convert its positive Adjusted EBITDA performance into sustainable profitability and cash flow growth in future periods?
**MWN-AI FAQ is based on asking OpenAI questions about SIFCO Industries Inc. (NYSE: SIF).
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