Sypris Reports Third Quarter Results

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Sypris Solutions, Inc. reported financial results for its third quarter ended September 28, 2025.

Highlights:

• The Company’s third quarter revenue decreased compared to the prior-year quarter primarily due to the near-term impact of tariffs, which reduced demand from certain transportation-related customers and necessitated the conversion of certain shipments from our facility in Mexico to a value-add only sub-maquiladora.
• Year-to-date orders for Sypris Electronics increased 65% as compared to the prior year comparable period, driving backlog up 14% from year-end 2024.
• Backlog for our energy products rose 59% from year-end 2024.
• During the quarter, Sypris Electronics announced that it had secured follow-on contract awards to manufacture and test electronic power supply modules for multiple high-reliability subsea communication networks, with production currently underway and expected to continue through 2026.
• Sypris Electronics also announced that it had received a follow-on award to produce and test electronic interface modules for a U.S. Department of War missile weapons system as part of an ongoing modernization program. Production is expected to begin in 2026.
• During the quarter, the Company completed a sale-leaseback transaction for its manufacturing facility located in Louisville, Kentucky, generating net proceeds of approximately $2.9 million and recognized a gain of $2.5 million.

“The past few months have been demanding, as we navigate the impact of tariffs on the economy and our customers,” commented Jeffrey T. Gill, President and Chief Executive Officer. “While the economic headwinds and disruptions in the quarter had an impact on our results, we continue to focus on operational excellence to drive the timely and efficient execution of the rapidly growing demand at Sypris Electronics. Customer funding has already been secured for a portion of the key programs, which enables us to procure inventory under multi-year purchase orders to mitigate future supply chain issues.

“We have experienced a meaningful decrease in demand from customers in some of our transportation-related markets. The combination of tariff concerns and regulatory uncertainty has driven a material reduction of inventory in the supply chain. We believe that this drawdown is nearing an end; however, we expect the replenishment cycle to take hold as we move through the coming year.

“Orders for our energy products remained steady during the period, with open quotes still outstanding on several large projects. Additional opportunities for growth may exist with new global projects to meet increasing LNG demand, including support for the projected steep increase in electricity demand from AI-related data centers. We are also actively pursuing applications for our products in adjacent markets including CO2 capture to further diversify our industry and customer portfolios.”

Third Quarter Results

The Company reported revenue of $28.7 million for the third quarter of 2025, compared to $35.7 million for the prior-year comparable period. Additionally, the Company reported net income of $0.5 million, or $0.02 per diluted share, compared with $0.4 million, or $0.02 per diluted share, for the prior-year period.

For the nine months ended September 28, 2025, the Company reported revenue of $89.6 million compared to $106.7 million for the first nine months of 2024. The Company reported a net loss of $2.4 million compared with a net loss of $1.8 million for the prior-year period. Results for the three and nine months ended September 28, 2025, include a gain of $2.5 million from the sale of assets.