SigmaTron Reports Financial Results for Q3 of Fiscal 2025

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SigmaTron International, Inc., an electronic manufacturing services company, reported revenues and earnings for the fiscal quarter ended January 31, 2025.

For the three month period ended January 31, 2025, revenues decreased $24.8 million, or 26 percent, to $71.1 million compared to $95.9 million for the same quarter in the prior year. Net income for the three month period ended January 31, 2025 was $3.9 million compared to $0.6 million for the same period in the prior year. A gain of approximately $7.2 million was recorded during the third quarter related to the sale/leaseback transaction for the facility located in Elk Grove Village, Illinois. Basic and diluted income per share for the three month period ended January 31, 2025 was $0.63, compared to $0.10 for the same period in the prior year.

For the nine month period ended January 31, 2025, revenues decreased $62.1 million, or 21 percent, to $230.6 million, compared to $292.7 million for the same period in the prior year. Net income/(loss) for the nine month period ended January 31, 2025, was a net loss of $8.9 million, compared to net income of $0.9 million for the same period in the prior year. Approximately $3.3 million of expenses were recorded during the second quarter related to debt modification, expensing of deferred financing costs and lender warrants after remeasurement and another approximately $5.0 million noncash deferred tax charge was taken at that time. A gain of approximately $7.2 million was recorded during the third quarter related to the sale/leaseback transaction for the facility located in Elk Grove Village, Illinois. Basic and diluted income/(loss) per share for the nine month period ended January 31, 2025 was a loss of $1.44, compared to basic and diluted income per share of $0.15 and $0.14, respectively, for the same period in the prior year.

Commenting on the Company’s third quarter fiscal 2025 results, Gary R. Fairhead, Chief Executive Officer and Chairman of the Board, said, “As we discussed in our press release for the second quarter of FY2025, our revenue levels in the third quarter remained depressed and ended up slightly below that of the second quarter. The third quarter is historically weaker than the others due to the holiday period and we believe that the lower revenue was in part due to that. As mentioned above, we are reporting a profit for the third quarter, but that was helped by the sale/leaseback of our building in Elk Grove Village, Illinois that we completed in December 2024. Atypical items have now moved in both directions during the past two quarters.

Throughout this entire period of revenue decline, we have been reducing our cost structure and we believe that we are seeing the benefits of those efforts. To that point, we posted an operating profit in January 2025, and we believe that we have positioned the Company for significant upside of the operations going forward, both at a historical level of revenue and even at the recent lower revenue level. Like everyone else, we are tied to the general economic conditions, and we are starting to see some positive signs. The electronic component marketplace has started to normalize in terms of being consistent with shorter lead times and stable pricing and we have seen modest increases in demand from several of our customers. It is too early to call this a recovery, but we believe that we have reached the bottom of the revenue downturn and are starting the slow path upwards. We also believe that much of our customer’s excess inventory has been consumed and that should lead to less volatility on the revenue side. Based on our current backlog, we expect the revenue for the fourth quarter to be higher than the third quarter, which is encouraging. Also, on the operations side, we continue to focus on reducing inventory and successfully did that in the third quarter.

Given the nature of our business and our international footprint, we remain subject to the existing trade issues as well as those threatened by a potential new tariff policy. Changes in tariff policies are creating volatility that we are dealing with. We are working closely with our customers and supply chain on this issue and are hopeful that it will be resolved favorably for all parties involved. Finally, as previously disclosed, we continue to work with Lincoln International on strategic initiatives. We appreciate the support from our customers and the new opportunities we are working on with them, as well as our continuing good relationships with our supply chain.”