TPCS earnings analysis
What we found in TPCS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Fiscal Q1 2027 operating results improved: revenue rose 23% year over year to $9.096 million, gross margin expanded to 15.4%, and the operating loss narrowed to $45,000, with growth at both Ranor and Stadco. Operating cash flow increased to $1.898 million, but liquidity remains severely constrained by $279,000 of cash, negative $46,000 of working capital and a $5.017 million covenant-affected debt balance. The lender has not waived the covenant default, financing must be renewed or replaced by September 15, 2026, and management continues to report substantial doubt about going-concern status.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 23% year over year
- Consolidated revenue increased to $9.096 million from $7.379 million, up $1.717 million or 23% year over year, and was approximately $1.096 million above the prior quarter's $8.0 million.
- Gross margin expanded year over year
- Gross profit increased 36% to $1.400 million from $1.030 million, while gross margin improved to 15.4% from 14.0% year over year. Margin was below the prior quarter's 13.7% only on a reported-history basis? Actually 15.4% exceeded the prior quarter's 13.7%.
- Ranor benefited from project mix
- Ranor revenue rose 27% to $5.461 million, with gross profit of $1.560 million versus $1.493 million and backlog of $31.548 million. Management cited favorable project mix among prime defense customers.
- Stadco losses narrowed
- Stadco revenue increased 22% to $4.064 million, while its operating loss narrowed to $836,000 from $1.200 million. Management attributed the improvement to higher revenue, improved throughput and better gross margin.
- Losses improved materially
- Operating loss narrowed to $45,000 from $463,000 year over year, improving operating margin to approximately negative 0.5% from negative 6.3%. Net loss improved to $153,000, or $0.02 per diluted share, from $597,000, or $0.06 per share.
- Operating cash flow improved
- Operating cash flow was $1.898 million versus $646,000 a year earlier. The company purchased $2.436 million of fixed assets and received $2.420 million of supplier-development reimbursements, resulting in $16,000 of net investing cash use.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Debt covenant default
- The company reported an Event of Default from covenant noncompliance as of June 30, 2026, with $5.017 million outstanding under the Loan Agreement. The lender has not granted a waiver and may demand repayment or accelerate the debt.
- Near-term liquidity shortfall
- Available liquidity was only $2.067 million, consisting of $279,000 of cash and $1.788 million of undrawn revolver capacity, while working capital was negative $46,000. The company must renew its revolver or obtain alternative financing by September 15, 2026.
- Going-concern uncertainty
- Management stated that recurring Stadco operating losses, the revolver renewal, alternative financing needs and future covenant compliance create substantial doubt about the company's ability to continue as a going concern for at least one year. Stadco still recorded an operating loss of $836,000 in the quarter.
- Four unresolved control weaknesses
- Disclosure controls and procedures were not effective as of June 30, 2026, and management identified four material weaknesses, including Stadco accounting, purchase accounting, long-lived-asset impairment accounting and segregation of duties. Remediation has not been completed.
- Material cost and execution pressure
- Ranor cost of revenue increased 54% year over year to $4.315 million, primarily due to higher material costs and overhead underabsorption. Management also noted that actual manufacturing costs exceeded estimates on certain projects.
- Significant contractual commitments
- The company has $3.378 million of unconditional supplier commitments due within twelve months and $14.463 million of machinery and equipment purchase obligations, although the latter are expected to be reimbursed in full by a customer.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.02
- Gross margin
- 15.4%
- Operating margin
- -0.5%
- Segment
- Ranor revenue was $5.461 million, up $1.164 million or 27% year over year; backlog was $31.548 million.
- Segment
- Stadco revenue was $4.064 million, up $732,000 or 22% year over year; backlog was $21.133 million.
- Segment
- Intersegment revenue elimination was $429,000 versus $250,000 a year earlier.
What they said about what is next.
The quantitative outlook discussed in the related earnings disclosure was maintained at fiscal 2027 revenue of $35.0 million-$37.0 million and EBITDA of $3.0 million-$4.0 million. No EPS guidance was provided.
The filing reads worse than the one before it.
What came before.
- 10-K · June 25, 2026
- TechPrecision Corporation reported a revenue decrease to $31.644 million for FY2026, down from $34.031 million in FY2025, alongside a slight reduction in net loss to $1.664 million from $2.748 million the previous year.…
- 10-Q · February 17, 2026
- TechPrecision Corporation reported a decrease in revenue and a significant increase in losses for the quarter ending December 31, 2025. Revenue fell to $7.1 million, a 7% decline year-over-year, primarily driven by…
- 10-Q · November 13, 2025
- TechPrecision Corporation reported a slight increase in quarterly revenue of $9.1 million for Q2 2025, up 2% from the prior year, with EPS at $0.08 compared to a loss last year. Improved gross margins were noted at…
- 10-Q · August 21, 2025
- For the fiscal quarter ending June 30, 2025, TechPrecision Corporation reported revenues of $7.379 million, a decrease of 8% compared to $7.986 million in the same quarter last year. The company achieved a gross margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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