TechPrecision (TPCS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was $7.4 million, down 8% year-over-year, with both Ranor and Stadco segments experiencing modest declines in sales volume.

• Gross margin improved to 14% from 3% year-over-year, with consolidated gross profit rising to $1.0 million, driven by improved production efficiencies and favorable project mix.

• Net loss narrowed to $0.6 million ($0.06 per share) from $1.5 million ($0.16 per share) in the prior year, reflecting better margins and lower operating losses at Stadco.

• Backlog reached a record $50.1 million as of June 30, 2025, with strong customer confidence and expected delivery over the next one to three fiscal years.

• Substantial doubt exists about the ability to continue as a going concern due to recurring losses at Stadco, debt covenant violations, and the need to renew or replace the revolver loan by August 29, 2025.

Financial highlights

• Gross profit increased to $1.0 million, up 331% year-over-year, with gross margin rising to 14% from 3%.

• SG&A expenses fell 6% year-over-year, mainly due to the absence of a prior-year breakup fee.

• Net loss for the quarter was $0.6 million, or $0.06 per share, improved from $1.5 million loss in the prior year.

• EBITDA improved by $0.9 million year-over-year, reaching $0.2 million.

• Cash and cash equivalents at quarter-end were $143,000; total available liquidity was $1.86 million.

Outlook and guidance

• Management expects to deliver the $50.1 million backlog over the next one to three fiscal years, with anticipated gross margin expansion.

• The company must renew its revolver loan or secure alternative financing by August 29, 2025, to continue operations.

• New business opportunities are being pursued in defense, with a focus on organic growth and improved contract pricing.

• A third of future revenue could come from new or expanded programs over the next 2–3 years.