TechPrecision (TPCS) Q3 2025 earnings summary

Executive summary

• Q3 revenue was $7.6M, nearly flat year-over-year, with Ranor profitable and Stadco facing ongoing legacy pricing and project mix issues; nine-month revenue rose 7% to $24.6M.

• Net loss for Q3 was $0.8M ($0.08/share), improved from $1.1M loss prior year; nine-month net loss widened to $2.9M ($0.30/share) from $1.9M.

• Backlog stood at $45.5M as of December 31, 2024, expected to be delivered over 1–3 years with anticipated gross margin expansion.

• Focus remains on compliance, timely reporting, and strengthening financial leadership.

• Company operates in defense and precision industrial markets, with a strong emphasis on defense sector opportunities.

Financial highlights

• Q3 consolidated revenue was $7.6M (down <1% YoY); cost of revenue $6.6M (up 2% YoY); gross profit $1.0M (down 15% YoY); SG&A $1.7M (down 22% YoY); operating loss $0.7M (improved from $1.0M loss YoY).

• Q3 net loss was $0.8M ($0.08/share); nine-month net loss was $2.9M ($0.30/share).

• Nine-month revenue was $24.6M (up 7% YoY); cost of revenue $22.3M (up 11% YoY); gross profit $2.2M (down 22% YoY).

• Ranor Q3 operating income was $1.0M (up 3% YoY); Stadco Q3 operating loss was $0.9M (up 66% YoY).

• Cash at period end was $165K; total debt $7.4M, all classified as current due to covenant breaches.

Outlook and guidance

• Management expects to deliver the $45.5M backlog over the next one to three years, with gross margin expansion anticipated.

• 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 April 30, 2025.

• Management is focused on improving Stadco's profitability, increasing capacity utilization, and reducing costs to enhance liquidity.

• The company is exploring alternative financing options and may reduce operating costs if required.