SIFCO Industries, Inc. (NYSE:SIF) today announced financial results for its first quarter of fiscal 2026, which ended December 31, 2025.

First Quarter Results

Net sales in the first quarter of fiscal 2026 increased 14.8% to $24.0 million, compared with $20.9 million for the same period in fiscal 2025.
Net income from continuing operations for the first quarter of fiscal 2026 was $1.8 million, or $0.29 per diluted share, compared with net loss of $2.4 million, or $(0.40) per diluted share, in the first quarter of fiscal 2025. Results from discontinued operations for the first quarter of fiscal 2026 was $0.0 million, or $0.00 per diluted share, compared with net income from discontinued operations of $0.1 million, or $0.02 per diluted share, in the first quarter of fiscal 2025.
EBITDA was $3.6 million in the first quarter of fiscal 2026, compared with $(0.8) million in the first quarter of fiscal 2025.
Adjusted EBITDA in the first quarter of fiscal 2026 was $3.9 million, compared with Adjusted EBITDA of $(0.2) million in the first quarter of fiscal 2025.

Other Highlights

"SIFCO reported favorable results for the first quarter ending December 31, 2025. SIFCO provides engineered, high-quality forgings primarily for the commercial and military aerospace industries. Management indicated that increased production throughput and lower fixed costs were the main drivers of improved financial performance for the quarter. Strong demand continues for SIFCO's products and the order backlog remains stable in both commercial and defense end markets."

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company's performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Forward-Looking Language

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company's Securities and Exchange Commission filings. For a discussion of such risk factors and uncertainties, see Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2025 and other reports filed by the Company with the Securities & Exchange Commission.

The Company's Form 10-K for the year ended September 30, 2025 and other reports filed with the Securities & Exchange Commission can be accessed through the Company's website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.

SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining.

Consolidated Condensed Statements of Operations (Amounts in thousands, except per share data) (Unaudited)
	Three Months Ended December 31,
		2025			2024
Net sales	$	23,973		$	20,883
Cost of goods sold		18,784			19,955
Gross profit		5,189			928
Selling, general and administrative expenses		2,646			2,840
Gain on disposal of operating assets		(20	)		—
Operating profit (loss)		2,563			(1,912	)
Interest expense, net		352			469
Foreign currency exchange gain, net		—			(2	)
Other expense, net		16			38
Income (loss) from continuing operations before income tax expense		2,195			(2,417	)
Income tax expense		405			5
Income (loss) from continuing operations		1,790			(2,422	)
Income from discontinued operations, net of tax		—			106
Net income (loss)	$	1,790		$	(2,316	)

Basic earnings (loss) per share:
Basic earnings (loss) per share from continuing operations	$	0.29		$	(0.40	)
Basic earnings per share from discontinued operations		—			0.02
Basic earnings (loss) per share	$	0.29		$	(0.38	)
Diluted earnings (loss) per share:
Diluted earnings (loss) per share from continuing operations	$	0.29		$	(0.40	)
Diluted earnings per share from discontinued operations		—			0.02
Diluted earnings (loss) per share	$	0.29		$	(0.38	)

Weighted-average number of common shares (basic)		6,079			6,016
Weighted-average number of common shares (diluted)		6,159			6,016

Consolidated Condensed Balance Sheets (Amounts in thousands, except per share data) (Unaudited)
	December 31, 2025		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	1,106	$	491
Restricted cash		1,081		1,553
Receivables, net of allowance for credit losses of $128 and $151, respectively		15,634		16,103
Contract assets		11,045		10,560
Inventories, net		6,561		4,192
Prepaid expenses and other current assets		2,338		2,192
Total current assets		37,765		35,091
Property, plant and equipment, net		20,896		21,794
Operating lease right-of-use assets, net		12,299		12,543
Goodwill		3,493		3,493
Other assets		488		473
Total assets	$	74,941	$	73,394
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt, net of unamortized debt issuance costs	$	2,461	$	2,592
Revolver		386		7,969
Short-term operating lease liabilities		978		959
Accounts payable		7,296		5,796
Contract liabilities		7,486		1,784
Accrued liabilities		3,386		3,140
Total current liabilities		21,993		22,240
Long-term finance lease, net of short-term		39		51
Long-term operating lease liabilities, net of short-term		11,977		12,230
Deferred income taxes, net		519		163
Pension liability		1,104		1,206
Other long-term liabilities		611		619
Commitments and Contingencies
Shareholders' equity:
Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at December 31, 2025 and September 30, 2025		—		—
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,215 at December 31, 2025 and 6,180 at September 30, 2025		6,215		6,180
Additional paid-in capital		11,863		11,892
Retained earnings		18,942		17,152
Accumulated other comprehensive income		1,678		1,661
Total shareholders' equity		38,698		36,885
Total liabilities and shareholders' equity	$	74,941	$	73,394

Non-GAAP Financial Measures

Presented below is certain financial information based on the Company's EBITDA and Adjusted EBITDA. References to "EBITDA" mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to "Adjusted EBITDA" mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.

Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America ("GAAP"). The Company presents EBITDA and Adjusted EBITDA because management believes that they are useful indicators for evaluating operating performance, including the Company's ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations. Therefore, reviewers of the Company's financial information should not consider them in isolation, or as a substitute for analysis of the Company's results of operations as reported in accordance with GAAP. Some of these limitations include:

Neither EBITDA nor Adjusted EBITDA reflects the interest expense or the cash requirements necessary to service interest payments on indebtedness;
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
The omission of the amortization expense associated with the Company's intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company's calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.

The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:

	Three Months Ended December 31,
Dollars in thousands		2025			2024
Net income (loss)	$	1,790		$	(2,316	)
Less: Income from discontinued operations, net of tax		—			106
Income (loss) from continuing operations		1,790			(2,422	)
Adjustments:
Depreciation and amortization expense		1,085			1,181
Interest expense, net		352			469
Income tax expense		405			5
EBITDA		3,632			(767	)
Adjustments:
Foreign currency exchange gain, net ⁽¹⁾		—			(2	)
Other (income) expense, net ⁽²⁾		16			38
Gain on disposal of assets ⁽³⁾		(20	)		—
Non-recurring severance expense adjustments ⁽⁴⁾		—			(22	)
Equity compensation ⁽⁴⁾		66			21
Transaction-related expense adjustments ⁽⁵⁾		—			(17	)
LIFO impact ⁽⁶⁾		212			501
Adjusted EBITDA	$	3,906		$	(248	)

⁽¹⁾	Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated.
⁽²⁾	Represents miscellaneous non-operating income or expense, such as pension costs.
⁽³⁾	Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books.
⁽⁴⁾	Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures and executive severance.
⁽⁵⁾	Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful attempt in which the Company was the acquisition target.
⁽⁶⁾	Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out ("LIFO") method.

Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.

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SIFCO Industries, Inc.

Jennifer Wilson, 216-881-8600

www.sifco.com

SIFCO Industries, Inc. ("SIFCO") Announces First Quarter Fiscal 2026 Financial Results