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TechPrecision Corporation Reports Fiscal Year 2026 First Quarter Financial Results

accessnewswire.com

Backlog reaches $50 million, driven by strong customer confidence

Gross margin expands to double-digits as production efficiencies improve

WESTMINSTER, MA / ACCESS Newswire / August 21, 2025 / TechPrecision Corporation (NASDAQ:TPCS) ("TechPrecision" or "the Company"), a custom manufacturer of precision, large-scale fabrication components and precision, large-scale machined metal structural components, today reported financial results for the first quarter ended June 30, 2025. The components that we manufacture are customer designed and sold to customers in the defense and precision industrial markets. We have two wholly owned subsidiaries that are each reportable segments, Ranor and Stadco.

"Both Ranor and Stadco executed on a favorable project mix and expanded gross margins and gross profit in the first quarter, despite a decline in revenue," stated Alexander Shen, TechPrecision's Chief Executive Officer. "Consolidated gross margin expanded to 14% on $7.4 million in revenue in the first quarter of fiscal 2026, and consolidated gross profit totaled $1.0 million. Cost of revenue was lower at both Ranor and Stadco as both segments experienced productivity gains."

"Customer confidence remains high with our backlog reaching $50.1 million as of June 30, 2025," Mr. Shen continued. "We expect to deliver this backlog over the next one to three fiscal years with expectations for gross margin expansion throughout the period."

The following summary compares the first quarter ended June 30, 2025 to the same prior year period:

Consolidated Financial Results - Fiscal 2026 First Quarter Ended June 30, 2025

Revenue was $7.4 million, an 8% decrease primarily on lower revenue at Stadco.

Cost of revenue was $6.3 million, or a 18% decrease primarily on lower cost of revenue at Stadco.

Gross profit was $1.0 million, an increase of $0.8 million driven by improved operating performance at both Ranor and Stadco.

SG&A was $1.5 million or 6% lower, due primarily to the absence of a breakup fee for the terminated Votaw acquisition which was evident in the same period a year ago.

Operating loss was $0.5 million in the first quarter of fiscal 2026, compared to a loss of $1.3 million in the same period a year ago, primarily due to improved margin drop-through and lower SG&A costs.

Interest expense increased by 2%, due primarily to fee amortization on our revolver loan renewals.

Net loss was $0.6 million, compared with net loss $1.5 million in the same period a year ago.

Financial Position

On June 30, 2025 and March 31, 2025, the Company had approximately $0.1 million and $0.2 million in cash and cash equivalents, respectively. Working capital was negative $0.7 million on June 30, 2025 and debt totaled $5.8 million. Working capital was negative $1.7 million and total debt was $7.4 million on March 31, 2025. Negative working capital was due primarily to the reclassification of our long-term debt due to non-compliance with debt covenants.

Conference Call

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Thursday, August 21, 2025. To participate in the live conference call, please dial 1-877-545-0523 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-973-528-0016. When prompted, reference TechPrecision and enter code 650863.

A replay will be available until September 4, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 52891.

The call will also be available over the Internet and accessible at:

https://www.webcaster4.com/Webcast/Page/2198/52891

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Stadco, The manufacturing operations of our Ranor subsidiary are situated on approximately 65 acres in North Central Massachusetts. Leveraging our 145,000 square foot facilities, Ranor provides a full range of custom solutions to transform material into precision finished welded components and precision finished machined components up to 100 tons: manufacturing engineering, materials management and traceability, high-precision heavy fabrication (in-house fabrication operations include cutting, press and roll forming, welding, heat treating, assembly, blasting and painting), heavy high-precision machining (in-house machining operations include CNC programming, finishing, and assembly), QC inspection including portable CMM, NonDestructive Testing, and final packaging.

All manufacturing at Ranor is performed in accordance with customer requirements. Ranor is an ISO 9001:2015 certificate holder. Ranor is a US defense-centric company with over 95% of its revenue in the defense sector. Ranor is registered and compliant with ITAR.

The manufacturing operations of our Stadco subsidiary are situated in an industrial self-contained multi-building complex comprised of approximately 183,000 square feet under roof in Los Angeles, California. Stadco manufactures large mission-critical components on several high-profile military aircraft, military helicopter, and military space programs. Stadco has been a critical supplier to a blue-chip customer base that includes some of the largest OEMs and prime contractors in the defense and aerospace industries. Stadco also manufactures tooling, molds, fixtures, jigs and dies used in the production of defense-centric aircraft components.

Our Stadco subsidiary, similar to Ranor, provides a full range of custom solutions: manufacturing engineering, materials management and traceability, high-precision fabrication (in-house fabrication operations include waterjet cutting, press forming, welding, and assembly) and high-precision machining (in-house machining operations include CNC programming, finishing, and assembly), QC inspection including both fixed and portable CMM NonDestructive Testing, and final packaging. In addition, Stadco features a large electron beam welding cell, and two NonDestructive Testing work cells, a unique mission-critical technology set.

All manufacturing at Stadco is performed in accordance with customer requirements. Stadco is an AS 9100 D and ISO 9001:2015 certificate holder and a NADCAP NonDestructive Testing certificate holder. Stadco is a US defense-centric company with over 95% of its revenue in the defense sector. Stadco is registered and compliant with ITAR.

To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "prospects," "will," "should," "would" and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from: our reliance on individual purchase orders, rather than long-term contracts, to generate revenue; our ability to balance the composition of our revenues and effectively control operating expenses; external factors that may be outside our control, including health emergencies, like epidemics or pandemics, the conflicts in Eastern Europe and the Middle East, price inflation, interest rate increases and supply chain inefficiencies; the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity; our ability to receive contract awards through competitive bidding processes; our ability to maintain standards to enable us to manufacture products to exacting specifications; our ability to enter new markets for our services; our reliance on a small number of customers for a significant percentage of our business; competitive pressures in the markets we serve; changes in the availability or cost of raw materials and energy for our production facilities; restrictions in our ability to operate our business due to our outstanding indebtedness; government tariffs, regulations and requirements; pricing and business development difficulties; changes in government spending on national defense; our ability to make acquisitions and successfully integrate those acquisitions with our business; our failure to maintain effective internal controls over financial reporting; general industry and market conditions and growth rates; and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( www.sec.gov). Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law. Investors should evaluate any statements made by us in light of these important factors.

Company Contact:

Investor Relations Contact:

Phillip Podgorski

Hayden IR

Chief Financial Officer

Brett Maas

TechPrecision Corporation

Phone: 646-536-7331

Phone: 978-874-0591

Email: brett@haydenir.com

Email: podgorskip@Ranor.com

Website: www.haydenir.com

Website: www.TechPrecision.com

TECHPRECISION CORPORATION

CONSOLIDATED BALANCE SHEETS

March 31,

2025

2025

$

143

$

195

2,794

2,192

9,077

9,587

1,899

1,800

1,320

1,082

405

490

15,638

15,346

12,296

13,791

4,086

4,268

122

122

$

32,142

$

33,527

$

2,615

$

2,437

3,688

3,685

1,962

1,040

1,631

1,631

776

770

5,714

7,353

16,386

16,916

---

3

3,443

3,638

4,101

4,230

23,930

24,787

1

1

18,954

18,885

(10,743

)

(10,146

)

8,212

8,740

$

32,142

$

33,527

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30,

2025

2024

$

7,379

$

7,986

6,349

7,747

1,030

239

1,493

1,580

(463

)

(1,341

)

1

13

(135

)

(132

)

(134

)

(119

)

(597

)

(1,460

)

---

-

$

(597

)

$

(1,460

)

$

(0.06

)

$

(0.16

)

9,757,846

8,983,970

TECHPRECISION CORPORATION

REVENUE, COST OF REVENUE, GROSS PROFIT BY SEGMENT

June 30, 2025

June 30, 2024

Changes

Percent of

Percent of

Amount

Revenue

Amount

Revenue

Amount

Percent

$

4,297

58

%

$

4,382

55

%

$

(85

)

(2

)%

3,332

45

%

3,604

45

%

(272

)

(8

)%

(250

)

(3

)%

-

-

%

(250

)

Nm

%

$

7,379

100

%

$

7,986

100

%

$

(607

)

(8

)%

$

2,804

39

%

$

3,145

39

%

$

(341

)

(11

)%

3,795

52

%

4,602

58

%

(807

)

(18

)%

(250

)

(5

)%

-

-

%

(250

)

Nm

%

$

6,349

86

%

$

7,747

97

%

$

(1,398

)

(18

)%

$

1,493

35

%

$

1,237

28

%

$

256

21

%

(463

)

(14

)%

(998

)

(28

)%

535

54

%

$

1,030

14

%

$

239

3

%

$

791

331

%

nm - not meaningful

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,

2025

2024

$

(597

)

$

(1,460

)

701

694

29

17

---

419

69

9

(250

)

160

(602

)

(1,168

)

510

(233

)

(337

)

(417

)

85

66

178

2,209

67

(114

)

922

(759

)

(129

)

684

646

107

(1,250

)

(201

)

2,226

170

976

(31

)

(17

)

(11

)

2,755

2,778

(4,241

)

(2,781

)

(2

)

(2

)

(169

)

(154

)

(1,674

)

(170

)

(52

)

(94

)

195

138

$

143

$

44

EBITDA Non-GAAP Financial Measure

June 30,

June 30,

Change

2025

2024

Amount

$

(597

)

$

(1,460

)

$

863

-

-

---

135

132

3

701

694

7

$

239

$

(634

)

$

873

(1) Includes amortization of debt issue costs.

SOURCE: TechPrecision Corporation