EX-99.1 2 tm2531195d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

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  

 

FOR IMMEDIATE RELEASE

 

TechPrecision Corporation Reports Fiscal Year 2026 Second Quarter Financial Results

 

FY26 Q2 net income increases by $1.4 million year-over-year to $0.08 per share

 

Westminster, MA – November 13, 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 second quarter ended September 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 improved gross margins and gross profit in the second quarter,” stated Alexander Shen, TechPrecision’s Chief Executive Officer. “We improved consolidated gross margin to 27% on $9.1 million in revenue in the second quarter of fiscal 2026, and consolidated gross profit totaled $2.5 million. Cost of revenue was lower at both Ranor and Stadco as a direct result of favorable mix at both segments.”

 

“Customer confidence remains high with our backlog reaching $47.8 million as of September 30, 2025,” Mr. Shen continued. “We expect to deliver this backlog over the next one to three fiscal years with expectations for gross margin improvement throughout the period.”

 

The following summary compares the three and six months ended September 30, 2025 to the same prior year period:

 

Consolidated Financial Results - Fiscal 2026 Three Months Ended September 30, 2025

 

· Revenue was $9.1 million, a 2% increase primarily on higher revenue at Stadco.
· Cost of revenue was $6.6 million, or a 16% decrease primarily on favorable product mix at Ranor and Stadco.
· Gross profit was $2.5 million, an increase of $1.4 million driven by improved operating performance at both Ranor and Stadco.
· SG&A was $1.5 million or 1% higher, as an increase in compensation slightly offset a decrease in advisory costs.
· Operating income was $0.9 million in the second quarter of fiscal 2026, compared to a loss of $0.5 million in the same period a year ago, primarily due to improved margin drop-through.
· Interest expense increased by 12%, due primarily to interest costs for our revolver loan borrowings.
· Net income was $0.8 million, compared with net loss $0.6 million in the same period a year ago.  

 

 

 

 

Consolidated Financial Results - Fiscal 2026 Six Months Ended September 30, 2025

 

· Revenue was $16.5 million, a 3% decrease primarily on lower revenue at Ranor.
· Cost of revenue was $13.0 million, or a 17% decrease primarily on favorable product mix at Ranor and Stadco.
· Gross profit was $3.5 million, an increase of $2.2 million driven by improved operating performance at both Ranor and Stadco.
· SG&A was $3.0 million or 2% lower, primarily on a decrease in outside advisory costs.
· Operating income was $0.5 million compared to a loss of $1.8 million in the same period a year ago, primarily due to improved margin drop-through.
· Interest expense increased by 3%, due primarily to interest costs for our revolver loan borrowings.
· Net income was $0.2 million, compared with net loss $2.1 million in the same period a year ago.  

 

Financial Position

 

On September 30, 2025 and March 31, 2025, the Company had approximately $0.2 million and $0.2 million in cash and cash equivalents, respectively. Working capital was $0.3 million on September 30, 2025 and debt totaled $7.3 million. Working capital was negative $1.7 million and total debt was $7.4 million on March 31, 2025.

 

Conference Call

 

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Thursday, November 13, 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 305080.

 

A replay will be available until November 27, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 53138.

 

The call will also be available over the Internet and accessible at: https://www.webcaster5.com/Webcast/Page/2198/53138.

 

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.

 

 

 

 

TECHPRECISION CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   (Unaudited)     
   September 30,   March 31, 
(in thousands, except per share data)  2025   2025 
ASSETS          
Current assets:          
Cash and cash equivalents  $220   $195 
Accounts receivable, less allowances of $0 and $22, on September 30 and March 31, 2025   3,102    2,192 
Contract assets   10,132    9,587 
Raw materials   2,525    1,800 
Work-in-process   1,197    1,082 
Other current assets   552    490 
Total current assets   17,728    15,346 
Property, plant and equipment, net   12,091    13,791 
Right of use asset, net   3,902    4,268 
Other noncurrent assets   122    122 
Total assets  $33,843   $33,527 
LIABILITIES AND STOCKHOLDERS’ EQUITY:          
Current liabilities:          
Accounts payable  $3,122   $2,437 
Accrued expenses   3,268    3,685 
Contract liabilities   1,442    1,040 
Customer deposits   1,631    1,631 
Current portion of long-term lease liability   782    770 
Current portion of long-term debt, net   7,199    7,353 
Total current liabilities   17,444    16,916 
Long-term equipment financing       3 
Long-term lease liability   3,246    3,638 
Other noncurrent liability   4,046    4,230 
Total liabilities   24,736    24,787 
Stockholders’ Equity:          
Common stock - par value $.0001 per share, 50,000,000 shares authorized: Shares issued and outstanding: September 30, 2025 – 9,952,950 and 9,947,950, respectively. Shares issued and outstanding: March 31, 2025 – 9,761,825 and 9,751,825, respectively.   1    1 
Additional paid in capital   19,024    18,885 
Accumulated deficit   (9,918)   (10,146)
Total stockholders’ equity   9,107    8,740 
Total liabilities and stockholders’ equity  $33,843   $33,527 

 

 

 

 

TECHPRECISION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Three Months Ended September 30,   Six Months Ended September 30, 
(in thousands, except per share data)  2025   2024   2025   2024 
Revenue  $9,086   $8,946   $16,465   $16,932 
Cost of revenue   6,628    7,932    12,977    15,679 
Gross profit   2,458    1,014    3,488    1,253 
Selling, general and administrative   1,516    1,502    3,009    3,082 
Income (loss) from operations   942    (488)   479    (1,829)
Other income   1    ---    2    13 
Interest expense   (118)   (113)   (253)   (245)
Total other expense   (117)   (113)   (251)   (232)
Income (loss) before income taxes   825    (601)   228    (2,061)
Income tax expense   ---    ---    ---    --- 
Net income (loss)  $825   $(601)  $228   $(2,061)
Net income (loss) per share - basic and diluted  $0.08   $(0.06)  $0.02   $(0.22)
Weighted average shares outstanding: basic   9,874,627    9,568,660    9,816,556    9,279,967 
diluted   10,155,565    9,568,660    10,029,167    9,279,967 

 

 

 

 

TECHPRECISION CORPORATION

REVENUE, COST OF REVENUE, GROSS PROFIT BY SEGMENT

 

Three months ended:  September 30, 2025   September 30, 2024   Changes 
       Percent of       Percent of         
(dollars in thousands)  Amount   Revenue   Amount   Revenue   Amount   Percent 
Revenue                        
Ranor  $4,373    48%  $4,790    54%  $(417)   (9)%
Stadco   4,819    53%   4,223    47%   596    14%
Intersegment elimination   (106)   (1)%   (67)   (1)%   (39)   (58)%
Consolidated Revenue  $9,086    100%  $8,946    100%  $140    2%
Cost of revenue                              
Ranor  $2,271    25%  $3,272    37%  $(1,001)   (31)%
Stadco   4,463    49%   4,727    53%   (264)   (6)%
Intersegment elimination   (106)   (1)%   (67)   (1)%   (39)   (58)%
Consolidated Cost of revenue  $6,628    73%  $7,932    89%  $(1,304)   (16)%
Gross profit                              
Ranor  $2,208    24%  $1,585    17%  $623    39%
Stadco   250    3%   (571)   (6)%   821    144%
Consolidated Gross profit  $2,458    27%  $1,014    11%  $1,444    143%

 

Six months ended:  September 30, 2025   September 30, 2024   Changes 
       Percent of       Percent of         
(dollars in thousands)  Amount   Revenue   Amount   Revenue   Amount   Percent 
Revenue                        
Ranor  $8,670    53%  $9,172    54%  $(502)   (5)%
Stadco   8,151    49%   7,827    46%   324    4%
Intersegment elimination   (356)   (2)%   (67)   ---%   (289)   (431)%
Consolidated Revenue  $16,465    100%  $16,932    100%  $(467)   (3)%
Cost of revenue                              
Ranor  $5,215    32%  $6,417    38%  $(1,202)   (19)%
Stadco   8,118    49%   9,329    55%   (1,211)   (13)%
Intersegment elimination   (356)   (2)%   (67)   %   (289)   (431)%
Consolidated Cost of revenue  $12,977    79%  $15,679    93%  $(2,702)   (17)%
Gross profit                              
Ranor  $3,562    21%  $2,822    16%  $740    26%
Stadco   (74)   ---%   (1,569)   (9)%   1,495    95%
Consolidated Gross profit  $3,488    21%  $1,253    7%  $2,235    179%

 

 

 

 

TECHPRECISION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Six Months Ended September 30, 
(in thousands, except per share data)  2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income (loss)  $228   $(2,061)
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Depreciation and amortization   1,404    1,391 
Amortization of debt issue costs   38    38 
Change in fair value of stock acquisition termination fee   ---    419 
Stock based compensation expense   139    18 
Change in contract loss provision   (136)   223 
Changes in operating assets and liabilities:          
Accounts receivable   (910)   (16)
Contract assets   (545)   (1,018)
Work-in-process and raw materials   (840)   (110)
Other current assets   (62)   105 
Accounts payable   685    1,741 
Accrued expenses   (655)   208 
Contract liabilities   402    (1,271)
Other noncurrent liabilities   (184)   (92)
Net cash used in operating activities   (436)   (425)
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchases of property, plant, and equipment   (2,245)   (1,622)
Reimbursements for purchases of property, plant and equipment   2,907    1,000 
Net cash provided by (used in) investing activities   662    (622)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from private placement   ---    1,801 
Private placement fees   ---    (213)
Debt issue costs   (30)   (48)
Revolver loan borrowings   8,940    6,746 
Revolver loan payments   (8,770)   (6,931)
Payments of principal for leases   (5)   (5)
Repayments of long-term debt   (336)   (309)
Net cash (used in) provided by financing activities   (201)   1,041 
Net increase (decrease) in cash and cash equivalents   25    (6)
Cash and cash equivalents, beginning of period   195    138 
Cash and cash equivalents, end of period  $220   $132 

 

EBITDA Non-GAAP Financial Measure

 

   Three Months ended September 30,   Six Months ended September 30, 
(dollars in thousands)  2025   2024   Change   2025   2024   Change 
Net income (loss)  $825   $(601)  $1,427   $228   $(2,061)  $2,289 
Income tax expense   ---    ---    ---    ---    ---    --- 
Interest expense (1)   118    113    5    253    245    8 
Depreciation and amortization   701    697    4    1,404    1,391    13 
EBITDA  $1,644   $209   $1,435   $1,885   $(425)  $2,310 

 

(1)Includes amortization of debt issue costs.