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Sypris Solutions, Inc. reported financial results for its second quarter ended July 5, 2026.
Highlights:
- Orders increased 25% sequentially for the Company, driven by a 54% increase in bookings at Sypris Electronics for satellite and deep space programs, and subsea fiber-optic data network systems.
- Orders for energy products remained strong during the period, resulting in a 12% increase in bookings for the first half of 2026 when compared to the prior-year period.
- Revenue for Sypris Technologies increased 5.6% year over year and 19.9% sequentially, driven by the resurgent expansion of the commercial vehicle market and strong energy product sales.
- Gross profit for Sypris Technologies increased 28% year over year and 94% sequentially, reflecting an improvement in margins of 330 and 710 basis points, respectively.
- Revenue for Sypris Electronics increased 15.4% sequentially, with the outlook for the balance of the year poised for substantial additional growth driven by robust orders and improved material availability.
“The escalation of geopolitical conflicts in the Middle East has accelerated demand for inventory replenishment and critical technology upgrades, thereby placing a premium on rapid, efficient scaling,” commented Jeffrey T. Gill, President and Chief Executive Officer. “Sypris Electronics, with its advanced production capabilities, deep technical expertise and strong market position, is uniquely equipped to capitalize on these dynamics. While material availability and a series of temporary operational headwinds impacted our performance during the first half of 2026, we are actively resolving these challenges to unlock our full earnings potential going forward.
“Orders for our energy products increased 12% year over year in the first half of 2026, with strong backlog and expected orders on several large projects. Additional growth opportunities may emerge from new global initiatives addressing rising LNG demand and the massive surge in electricity required by AI-related data centers. Furthermore, we are actively pursuing applications for our products in adjacent markets including carbon capture and defense applications to further diversify our industry and customer portfolios.
“As we cross the midpoint of 2026, the North American commercial vehicle market has transitioned into what may prove to be an extended expansion cycle, reflecting increasing fleet profitability, accelerating freight rates and rising infrastructure demand.”
Second Quarter Results
The Company reported revenue of $30.3 million for the second quarter of 2026, compared to $31.4 million for the prior-year comparable period. Additionally, the Company reported a net loss of $3.1 million, or $0.14 per share, compared with a net loss of $2.1 million, or $0.09 per share, for the prior-year period. Results for the second quarter of 2026 included $2.1 million in abnormally high expenses for healthcare, unabsorbed overhead, foreign exchange variances, charges for scrap and accruals for excess and obsolete inventory as compared to the prior-year period.
For the six months ended July 5, 2026, the Company reported revenue of $56.2 million compared to $60.9 million for the first half of 2025. The Company reported a net loss of $7.2 million compared with a net loss of $3.0 million for the prior-year period. Results for the six months ended July 5, 2026, included $4.5 million in increased expenses for healthcare, unabsorbed overhead, foreign exchange variances, charges for scrap and accruals for excess and obsolete inventory as compared to the prior-year period.
Sypris Technologies
Revenue for Sypris Technologies was $14.9 million in the second quarter of 2026 compared to $14.1 million for the prior-year period, reflecting strong energy product sales. Additionally, the commercial vehicle market began to rebound during the second quarter from the cyclical decline experienced over the prior year. Gross profit for the second quarter of 2026 was $2.7 million, or 18.5% of revenue, compared to $2.1 million, or 15.2% of revenue, for the same period in 2025. Gross profit for the second quarter of 2026 was positively impacted by the increase in volumes, partially offset by a $0.5 million unfavorable impact from foreign currency exchange rates for our Mexican subsidiary.
Sypris Electronics
Revenue for Sypris Electronics was $15.5 million in the second quarter of 2026 compared to $17.3 million for the prior-year period as a result of material availability issues in addition to customer design changes on certain new programs, which pushed out delivery dates. Gross profit for the second quarter of 2026 was a loss of $0.8 million, or (4.9%) of revenue, compared to $0.4 million, or 2.5% of revenue, for the same period in 2025. Material availability issues have delayed certain customer deliveries, limited our ability to ramp up production in response to customer demand for certain products and have caused out-of-sequence manufacturing, which increases costs and decreases operational efficiency. Additionally, gross profit for the second quarter of 2026 reflected the impact of $0.7 million of charges for excess and obsolete inventory taken during the period.
Outlook
Commenting on the future, Mr. Gill added, “We expect the challenging operating environment to improve as we move through 2026. Backed by our robust backlog and recent program wins, we are optimistic that the balance of the year will reflect both accelerating top line growth and vastly improved operational performance.”
