TechPrecision (TPCS) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue was $7.1 million, down 7% year-over-year, mainly due to Stadco's underperformance from delayed customer materials, unfavorable project mix, and higher contract loss provisions.

• Net loss for Q3 was $1.5 million, or $0.15 per share, reflecting ongoing operational challenges at Stadco; nine-month net loss was $1.2 million, or $0.13 per share.

• Ranor segment maintained stable performance with $4.4 million revenue and $1.5 million operating profit, while Stadco posted a $1.2 million operating loss on $2.9 million revenue.

• The company remains focused on cash management, expense control, and securing strategic customer confidence, especially in defense sectors.

• Achieved significant productivity gains year-to-date, with cost of revenue down 12% and gross profit up 72% compared to the prior year period.

Financial highlights

• Consolidated gross profit for Q3 was $0.4 million, down 62% year-over-year; nine-month gross profit was $3.9 million, up 72% year-over-year.

• Nine-month consolidated revenue was $23.6 million, down 4% year-over-year; cost of revenue decreased by $2.6 million due to favorable mix and productivity gains.

• Q3 SG&A increased 3% to $1.7 million, mainly from higher stock-based compensation; nine-month SG&A decreased 1%.

• Interest expense declined due to lower costs on term loans and revolver; Q3 interest expense down 18%, nine-month down 5%.

• Q3 EBITDA was negative $0.7 million; for nine months, negative $0.4 million, improved from negative $1.6 million prior year.

Outlook and guidance

• Management expects to deliver the $46 million backlog over the next one to three fiscal years, targeting gross margin expansion.

• New business awards and improved pricing, especially with key customers like Sikorsky, are expected to support future revenue and profitability growth.

• Leadership is focused on eliminating loss-making legacy contracts and shifting toward repeat, long-term programs.

• Substantial doubt exists about the ability to continue as a going concern due to recurring losses at Stadco, covenant breaches, and the need to renew or replace the revolver loan by May 15, 2026.

• Management is focused on improving Stadco profitability, increasing manufacturing utilization, and reducing costs.