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Earnings analysis · 10-Q

SIF earnings analysis

Filed August 10, 2026 · Our reading of the company's report

The latest report

SIFCO delivered strong year-to-date growth, with nine-month revenue up $14.557 million to $76.562 million and continuing-operations income of $4.401 million versus a $0.442 million loss. However, third-quarter…

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SIFCO delivered strong year-to-date growth, with nine-month revenue up $14.557 million to $76.562 million and continuing-operations income of $4.401 million versus a $0.442 million loss. However, third-quarter profitability deteriorated sharply as gross margin fell to 13.1% from 26.7% and diluted EPS declined to negative $0.01 from $0.56, primarily due to a $3.2 million LIFO expense increase and the absence of a $2.4 million ERC benefit. Military and rotorcraft demand, backlog of $164.2 million and improved operating cash flow were positives, but elevated inventory, minimal cash, high borrowing costs and environmental litigation remain material concerns.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

27% Gross margin Operating margin May 2025 Aug 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $87 Operating expenses $12 Left as operating profit $1

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Fixed-wing aircraft 38.3% Rotorcraft 23.1% Customer type 21.1% Commercial products and other 17.2% Commercial space 0.3% Other segments 0.0%

Shares of the segments disclosed in this filing, largest first.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2025 Aug 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$-0.01

What stood out

  • Revenue grew 18.3% year over year

    Third-quarter net sales increased to $26.145 million from $22.095 million, a $4.050 million or 18.3% year-over-year increase. Management attributed the growth to higher production volumes and favorable pricing.

  • Nine-month profitability turned positive

    Nine-month net sales increased to $76.562 million from $62.005 million, while income from continuing operations improved to $4.401 million from a $0.442 million loss. Nine-month gross profit increased to $14.272 million from $8.393 million.

  • Military demand remained strong

    Military revenue rose to $19.161 million from $13.407 million, an increase of $5.7 million, driven by munitions, V-22 Osprey and UH-60 Black Hawk programs. Military revenue represented 73.3% of third-quarter sales.

  • Rotorcraft sales increased

    Rotorcraft revenue increased to $7.638 million from $5.215 million, up $2.4 million year over year, primarily due to order timing for V-22 Osprey and UH-60 Black Hawk programs.

  • Backlog expanded 25.9%

    Backlog reached $164.2 million at June 30, 2026, compared with $130.4 million at June 30, 2025. Of the $164.160 million of remaining performance obligations, $99.184 million is anticipated to be completed within 12 months.

  • Operating cash flow improved

    Operating cash flow was $3.366 million for the first nine months, compared with cash used of $0.599 million in the prior-year period. Capital expenditures were $0.548 million, or approximately 16.3% of operating cash flow.

What to watch

  • LIFO and ERC effects compressed margins

    Third-quarter gross margin fell to 13.1% from 26.7% and operating margin fell to 1.1% from 14.8% year over year. COGS increased to $22.723 million, or 86.9% of sales, including a $3.2 million increase in LIFO expense and the absence of a prior-year $2.4 million ERC benefit.

  • Working capital absorbed cash

    Inventory increased to $10.066 million from $4.192 million at September 30, 2025, while receivables increased to $19.145 million from $16.103 million and contract assets increased to $11.844 million from $10.560 million. Management said working capital consumed approximately $8.3 million of cash during the first nine months.

  • Environmental litigation exposure

    The company disclosed a Clean Water Act lawsuit involving its Orange, California facility and recorded $175 thousand for estimated remaining contingent liabilities after settling one notice for $65 thousand. The company recognized $412 thousand of related expense during the first nine months.

  • Limited cash and costly debt

    Cash and cash equivalents declined to $77 thousand from $491 thousand at September 30, 2025, while total debt remained $7.042 million. The revolver's effective interest rate was 13.9% for the first nine months, and the company incurred interest based on a specified minimum borrowing level.

  • Debt classified as current

    All $7.027 million of debt was classified as current maturities at June 30, 2026 because of a subjective acceleration clause and lockbox provisions. Revolver availability was $15.156 million, and the company was in compliance with its minimum fixed charge coverage covenant.

Management's outlook

No explicit revenue or EPS guidance was provided. Management anticipates remaining fiscal 2026 capital expenditures of $0.5 million to $0.7 million and believes existing cash and available credit lines will be sufficient for operations and planned capital expenditures for the next 12 months.

Earlier filings 4

10-Q · May 8, 2026

SIFCO Industries demonstrated strong growth in Q2 2026, with revenue increasing to $26.4 million, up $7.4 million from $19.0 million in Q2 2025. Gross profit rose considerably to $5.7 million from $1.6 million a year…

10-Q · February 11, 2026

SIFCO Industries reported a strong turnaround for Q1 2026, achieving revenue of $24 million and net income of $1.8 million, a significant improvement from a loss of $2.4 million during the same period last year. Gross…

10-K · December 22, 2025

SIFCO Industries reported a slight increase in revenue in fiscal year 2025, with total net sales growing by 6.5% to $84.8 million from $79.6 million in the previous year, driven primarily by increased military aerospace…

10-Q · August 14, 2025

SIFCO Industries reported Q3 2025 net sales of $22.1 million, a slight increase from $22.0 million in Q3 2024, with gross profit significantly up to $5.9 million, driven by a favorable product mix and Employee Retention…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.