EX-99.1 2 tm2522009d1_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 2025 Fourth Quarter and Year End Financial Results

 

Reported fourth quarter net income of $0.1 million, customer confidence remains high

Management to host conference call at 4:30 p.m. ET on Wednesday, July 30, 2025

 

Westminster, MA – July 29, 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 fourth quarter and fiscal year ended March 31, 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.

 

Management will host a conference call on Wednesday, July 30, 2025 at 4.30 p.m. ET, to discuss our financial results for the fiscal year ended March 31, 2025.

 

“Fourth quarter consolidated revenue was $9.5 million or 10% higher when compared to $8.6 million in the fiscal 2024 fourth quarter,” stated Alexander Shen, TechPrecision’s Chief Executive Officer. “Methodical execution of several long-term initiatives to continuously resecure customer confidence at both Ranor and Stadco segments yielded positive impacts to fourth quarter revenue and net income. Consolidated gross margin expanded in the fourth quarter, and consolidated gross profit totaled $2.1 million, or 70% higher when compared with the fourth quarter of fiscal 2024. Net income was $0.1 million or $0.01 per share.”

 

“Fiscal 2025 full year consolidated revenue was $34.0 million,” continued Mr. Shen, “an increase of 8% when compared to the fiscal 2024. Our Ranor segment executed on a favorable project mix enabling sustained operating profitability. Our Stadco segment reported an overall operating loss for the fiscal year, with the fourth quarter showing profitability. Customer confidence remains high with our backlog at $48.6 million on March 31, 2025; we expect to deliver our backlog over the course of the next one to three fiscal years with gross margin expansion.”

 

The following summary compares the fourth quarter and twelve months ended March 31, 2025 to the same prior year period:

 

Consolidated Financial Results - Fiscal 2025 Fourth Quarter Ended March 31, 2025

 

· Revenue was $9.5 million, a 10% increase on higher revenue at both Ranor and Stadco.
· Cost of revenue was $7.4 million, less than 1% higher than the same period a year ago.
· Gross profit was $2.1 million, or a 70% increase on improved operating performance at both Ranor and Stadco.
· SG&A was $1.7 million or 53% lower, due primarily to the absence of due diligence costs for the terminated Votaw acquisition.
· Operating income was $0.4 million in the fourth quarter of fiscal 2025, compared to a loss of $2.5M in the same period a year ago, and primarily due to improved margin drop-through and lower SG&A costs.
· Interest expense decreased by 12%, due primarily to lower amortization for our revolver loan renewals.
· Net income was $0.1 million, compared with net loss $5.1 million in the same period a year ago.  

 

 

 

 

Consolidated Financial Results - Fiscal 2025 Twelve Months Ended March 31, 2025

 

· Revenue was $34.0 million, an 8% increase on revenue growth at both Ranor and Stadco.
· Cost of revenue was $29.7 million, an increase of 8%, due primarily to higher production costs at Stadco.
· Gross profit was $4.3 million, and increase of 5%, as Ranor gross profit more than offset losses at Stadco.
· SG&A was $6.5 million or a 27% decrease, due primarily to the absence of due diligence costs for acquisitions.
· Operating loss was $2.2 million, a 53% decrease, due primarily to the absence of due diligence costs.
· Interest expense increased by 4%, due primarily to higher borrowing costs under the revolver loan.
·

Net loss was $2.7 million, compared with net loss of $7.0 million in fiscal 2024.

 

Financial Position

 

On March 31, 2025 and 2024, the Company had approximately $0.2 million and $0.1 million in cash and cash equivalents, respectively. Working capital was negative $1.6 million on March 31, 2025 and debt totaled $7.4 million. Working capital was negative $2.9 million and total debt was $7.6 million on March 31, 2024. Negative working capital was due primarily to the reclassification of our long-term debt because of debt covenant violations.

 

Conference Call

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Wednesday, July 30, 2025. To participate in the live conference call, please dial 1-888-506-0062 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-973-528-0011. When prompted, reference TechPrecision and enter code 406038.

 

A replay will be available until August 13, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 52711.

 

The call will also be available over the Internet and accessible at:
https://www.webcaster4.com/Webcast/Page/2198/52711.

 

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 60% 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

CONSOLIDATED BALANCE SHEETS

 

   March 31,   March 31, 
(in thousands, except per share data)  2025   2024 
ASSETS          
Current assets:          
Cash and cash equivalents  $195   $138 
Accounts receivable, less allowances of $53 and $22, on March 31, 2025 and 2024   2,192    2,371 
Contract assets   9,587    8,527 
Raw materials   1,800    1,827 
Work-in-process   1,082    1,423 
Other current assets   490    564 
Total current assets   15,346    14,850 
Property, plant and equipment, net   13,791    14,798 
Right of use asset, net   4,268    4,977 
Other noncurrent assets   122    122 
Total assets  $33,527   $34,747 
LIABILITIES AND STOCKHOLDERS’ EQUITY:          
Current liabilities:          
Accounts payable  $2,437   $1,408 
Accrued expenses   3,685    4,263 
Contract liabilities   1,040    2,104 
Customer deposits   1,631    1,684 
Current portion of long-term lease liability   770    736 
Current portion of long-term debt, net   7,353    7,559 
Total current liabilities   16,916    17,754 
Long-term equipment financing   3     
Long-term lease liability   3,638    4,408 
Other noncurrent liability   4,230    4,782 
Total liabilities   24,787    26,944 
Stockholders’ Equity:          
Common stock - par value $.0001 per share, 50,000,000 shares authorized:  Shares issued and outstanding: March 31, 2025 – 9,761,825 and 9,751,825, respectively. Shares issued and outstanding March 31, 2024 – 8,777,432   1    1 
Additional paid in capital   18,885    15,200 
Accumulated deficit   (10,146)   (7,398)
Total stockholders’ equity   8,740    7,803 
Total liabilities and stockholders’ equity  $33,527   $34,747 

 

 

 

 

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

                 
   Three Months Ended March 31,   Twelve Months Ended March 31, 
(in thousands, except per share data)  2025   2024   2025   2024 
Revenue  $9,477   $8,600   $34,031   $31,591 
Cost of revenue   7,392    7,372    29,702    27,473 
Gross profit   2,085    1,228    4,329    4,118 
Selling, general and administrative   1,718    3,687    6,487    8,750 
Income (loss) from operations   367    (2,459)   (2,158)   (4,632)
Other (expense) income, net   (108)   2    (51)   43 
Interest expense   (149)   (169)   (541)   (521)
Total other (expense) income, net   (257)   (166)   (592)   (478)
Income (loss) before income taxes   110    (2,625)   (2,750)   (5,110)
Income tax benefit (expense)   (2)   2,496    (2)   1,932 
Net income (loss)  $112   $(5,121)  $(2,748)  $(7,042)
Net income (loss) per share - basic and diluted  $0.01   $(0.59)  $(0.29)  $(0.81)
Weighted average shares outstanding:                     
basic   9,671,658    8,720,603    9,459,164    8,717,160 
diluted   9,877,432    8,720,603    9,459,164    8,717,160 

 

 

 

 

TECHPRECISION CORPORATION

REVENUE, COST OF REVENUE, GROSS PROFIT BY SEGMENT

(dollars in thousands)

 

Three Months Ended

 

   March 31, 2025   March 31, 2024   Changes 
       Percent of       Percent of         
   Amount   Revenue   Amount   Revenue   Amount   Percent 
Revenue                              
Ranor  $4,684    49%  $4,529    56%  $155    3%
Stadco   4,859    51%   4,625    44%   234    5%
Intersegment elimination   (67)   ---%   (554)   --%   487    88%
Consolidated Revenue  $9,476    100%  $8,600    100%  $876    10%
Cost of revenue                              
Ranor  $3,408    35%  $3,685    41%  $(277)   (8)%
Stadco   4,050    43%   4,241    45%   191    (5)%
Intersegment elimination   (67)   ---%   (554)   --%   487    88%
Consolidated Cost of revenue  $7,393    78%  $7,372    86%  $21    ---%
Gross profit                              
Ranor  $1,275    13%  $845    10%  $430    51%
Stadco   810    9%   383    4%   427    111%
Consolidated Gross profit  $2,085    22%  $1,228    14%  $857    70%

 

 

 

 

Twelve Months Ended

 

   March 31, 2025   March 31, 2024   Changes 
       Percent of       Percent of         
   Amount   Revenue   Amount   Revenue   Amount   Percent 
Revenue                              
Ranor  $18,165    53%  $17,821    56%  $344    2%
Stadco   15,998    47%   14,567    46%   1,431    10%
Intersegment elimination   (132)   ---%   (797)   (2)%   665    83%
Consolidated Revenue  $34,031    100%  $31,591    100%  $2,440    8%
Cost of Revenue                              
Ranor  $12,623    37%  $13,273    42%  $(650)   (5)%
Stadco   17,211    50%   14,997    47%   2,214    15%
Intersegment elimination   (132)   ---%   (797)   (2)%   665    83%
Consolidated Cost of Revenue  $29,702    87%  $27,473    87%  $2,229    8%
Gross Profit (Loss)                              
Ranor  $5,674    16%  $4,548    14%  $1,126    25%
Stadco   (1,345)   (3)%   (430)   (1)%   (915)   (213)%
Consolidated Gross profit  $4,329    13%  $4,118    13%  $211    5%

 

 

 

 

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

         
   Years Ended March 31, 
(dollars in thousands)  2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(2,748)  $(7,042)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:          
Depreciation and amortization   2,796    2,429 
Amortization of debt issue costs   103    107 
Loss (gain) on disposal of equipment   1    (39)
Stock based compensation   103    285 
Change in contract loss provision   170    190 
Change in allowance for doubtful accounts   (31)   --- 
Deferred income taxes   ---    1,931 
Stock based acquisition termination fee   419    1,117 
Changes in operating assets and liabilities:          
Accounts receivable   210    (35)
Contract assets   (1,060)   421 
Work-in-process and raw materials   368    (837)
Other current assets   74    (214)
Accounts payable   1,029    (816)
Accrued expenses   (364)   388 
Contract liabilities and customer deposits   (1,117)   1,454 
Other noncurrent liabilities   (552)   1,389 
Net cash (used in) provided by operating activities   (599)   728 
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchases of property, plant, and equipment   (4,122)   (3,230)
Proceeds from fixed assets insurance settlement   ---    62 
Reimbursements for purchases of fixed assets   3,041    577 
Net cash used in investing activities   (1,081)   (2,591)
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from revolver loan   13,876    7,160 
Repayment of revolver loan   (13,511)   (5,025)
Proceeds from private placement   2,299    --- 
Private placement fees   (247)   --- 
Proceeds from equipment financing   65    --- 
Debt issuance costs   (82)   (51)
Principal payments for leases   (9)   (17)
Repayment of long-term debt   (654)   (600)
Net cash provided by financing activities   1,737    1,467 
Net increase (decrease) in cash and cash equivalents   57    (396)
Cash and cash equivalents, beginning of period   138    534 
Cash and cash equivalents, end of period  $195   $138 

 

 

 

 

EBITDA Non-GAAP Financial Measure

 

   Three Months ended March 31,   Twelve Months ended March 31, 
(dollars in thousands)  2025   2024   Change   2025   2024   Change 
Net income (loss)  $112   $(5,121)  $5,233   $(2,748)  $(7,042)  $4,294 
Income tax (benefit) expense   (2)   2,496    (2,498)   (2)   1,932    (1,934)
Interest expense (1)   149    169    (20)   541    521    20 
Depreciation and amortization   703    670    33    2,796    2,429    367 
EBITDA  $962   $(1,786)  $2,748   $587   $(2,160)  $2,747 

 

(1) Includes amortization of debt issue costs.