sif-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-05978

SIFCO Industries, Inc.

(Exact name of registrant as specified in its charter)


Ohio						34-0553950
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

970 East 64th Street, Cleveland Ohio						44103
(Address of principal executive offices)						(Zip Code)

(216) 881-8600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, “smaller reporting company”, and “emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares

SIF

NYSE American

The number of the Registrant’s Common Shares, par value $1.00, outstanding at March 31, 2025 was 6,190,388.

Part I. Financial Information

Item 1. Financial Statements

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Operations

(Unaudited)

(Amounts in thousands, except per share data)


	Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
Net sales	$	19,027	$	20,515	$	39,910	$	35,989
Cost of goods sold	17,457		19,021		37,412		35,040
Gross profit	1,570		1,494		2,498		949
Selling, general and administrative expenses	2,351		2,819		5,191		5,922


Loss on disposal of operating assets	—		4		—		4


Operating loss	(781)		(1,329)		(2,693)		(4,977)

Interest expense, net	428		818		897		1,160

Foreign currency exchange loss (gain), net	1		(3)		(1)		1
Other expense, net	37		83		75		153
Loss from continuing operations before income tax expense	(1,247)		(2,227)		(3,664)		(6,291)
Income tax expense	75		5		80		11
Loss from continuing operations	(1,322)		(2,232)		(3,744)		(6,302)
(Loss) income from discontinued operations, net of tax	(70)		642		36		1,289
Net loss	$	(1,392)	$	(1,590)	$	(3,708)	$	(5,013)

Basic and diluted earnings (loss) per share:
Basic and diluted loss per share from continuing operations	$	(0.22)	$	(0.38)	$	(0.62)	$	(1.05)
Basic and diluted (loss) earnings per share from discontinued operations	(0.01)		0.11		0.01		0.21
Basic and diluted loss per share	$	(0.23)	$	(0.27)	$	(0.61)	$	(0.84)





Weighted-average number of common shares (basic)	6,068		6,009		6,042		5,983
Weighted-average number of common shares (diluted)	6,068		6,009		6,042		5,983

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Comprehensive Income (Loss)

(Unaudited)

(Amounts in thousands)


	Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
Net loss	$	(1,392)	$	(1,590)	$	(3,708)	$	(5,013)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	—		(128)		—		125
Reclassification of foreign translation adjustments to net loss	—		—		5,554		—
Retirement plan liability adjustment, net of tax	22		43		45		86
Other	—		—		(2)		1
Comprehensive (loss) income	$	(1,370)	$	(1,675)	$	1,889	$	(4,801)

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets

(Unaudited)

(Amounts in thousands, except per share data)


	March 31, 2025		September 30, 2024

ASSETS
Current assets:
Cash and cash equivalents	$	1,922	$	1,714
Receivables, net of allowance for credit losses of $154 and $117, respectively	14,544		17,272

Contract assets	11,010		10,745
Inventories, net	6,198		6,230
Refundable income taxes	13		13

Prepaid expenses and other current assets	4,412		2,382

Current assets of discontinued operations	—		15,967
Total current assets	38,099		54,323
Property, plant and equipment, net	24,285		26,261
Operating lease right-of-use assets, net	12,897		13,326

Goodwill	3,493		3,493
Other assets	55		357
Noncurrent assets of discontinued operations	—		6,864
Total assets	$	78,829	$	104,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt, net of unamortized debt issuance costs	$	3,089	$	353
Promissory note — related party	—		3,510
Revolver	8,959		20,142
Short-term operating lease liabilities	905		879
Accounts payable	11,033		11,574
Contract liabilities	2,768		2,879

Accrued liabilities (related party — nil and $880, respectively)	3,637		4,615
Current liabilities of discontinued operations	—		10,058
Total current liabilities	30,391		54,010
Long-term debt, net of current maturities	74		—
Long-term operating lease liabilities, net of short-term	12,611		13,035
Deferred income taxes, net	292		154
Pension liability	2,355		2,465
Other long-term liabilities	739		645
Noncurrent liabilities of discontinued operations	—		3,890
Commitments and Contingencies (Note 11)
Shareholders’ equity:
Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at March 31, 2025 and September 30, 2024	—		—
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,190 at March 31, 2025 and 6,158 at September 30, 2024	6,190		6,158
Additional paid-in capital	11,796		11,775
Retained earnings	14,173		17,881
Accumulated other comprehensive income (loss)	208		(5,389)
Total shareholders’ equity	32,367		30,425
Total liabilities and shareholders’ equity	$	78,829	$	104,624

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Cash Flows

(Unaudited, Amounts in thousands)


	Six Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net loss	$	(3,708)	$	(5,013)
Income from discontinued operations, net of tax	36		1,289
Loss from continuing operations	(3,744)		(6,302)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization	2,370		2,412
Amortization of debt issuance costs	93		352
Gain on disposal of operating assets	—		4


LIFO effect	(136)		351
Share transactions under company stock plan, net	54		122

Inventory valuation accounts	347		468


Deferred income taxes	138		(142)
Interest added to promissory note - related party (paid-in-kind)	27		106
Other short-term liabilities	10		—
Other long-term liabilities	1		144
Changes in operating assets and liabilities:
Receivables	2,728		962
Contract assets	(264)		115
Inventories	(179)		(4,404)

Prepaid expenses and other current assets	(1,873)		379
Other assets	286		(18)
Accounts payable	(533)		2,907
Accrued liabilities	(181)		(440)
Contract liabilities	(110)		160
Accrued income tax and other	(4)		(84)

Net cash used for operating activities	(970)		(2,908)
Cash flows from investing activities:


Capital expenditures	(263)		(1,155)

Net cash used for investing activities	(263)		(1,155)
Cash flows from financing activities:

Payments on long-term debt	—		—
Proceeds from term loan	3,000		—
Payments on term loan	(250)		(61)
Proceeds from revolving credit agreement	54,589		44,319
Repayments of revolving credit agreement	(65,772)		(43,090)
Payment of debt issuance costs	(203)		(139)
Principal payments on capital lease obligations	(21)		—

Proceeds from promissory note — related party	—		3,000
Repayments of promissory note and related fees — related party	(4,417)		—



Net cash (used for) provided by financing activities	(13,074)		4,029
Cash flows from discontinued operations:
Net cash used for operating activities	(57)		(2,441)
Net cash provided by (used for) investing activities	13,242		(1,906)
Net cash provided by financing activities	356		4,754
Effects of exchange rate changes on cash and cash equivalents	(35)		6
Net cash provided by discontinued operations	13,506		413
(Decrease) increase in cash and cash equivalents	(801)		379
Cash and cash equivalents at the beginning of the period	2,723		368

Less: Cash and cash equivalents from discontinued operations at the end of the period	—		529
Cash and cash equivalents from continuing operations at the end of the period	$	1,922	$	218

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Supplemental Disclosure of Cash Flow Information

(Unaudited, Amounts in thousands)


	Six Months Ended March 31,
	2025		2024
Cash paid during the year:
Cash paid for interest	$	(786)	$	(677)
Cash paid for income taxes, net	(16)		(19)
Non-cash investing and financing activities:
Additions to property, plant & equipment — incurred but not yet paid	$	—	$	136
Debt issuance costs — incurred but not yet paid	115		—
Accrued guaranty fees — related party	—		760
Origination fees capitalized to promissory note principal — related party	—		150
Interest added to promissory note — related party (paid-in-kind)	27		106

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Shareholders’ Equity

(Unaudited, Amounts in thousands)


	Three Months Ended March 31, 2025
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount









Balance at January 1, 2025	6,147	$	6,147	$	11,778	$	15,565	$	186	$	33,676

Comprehensive (loss) income	—	—		—		(1,392)		22		(1,370)


Performance and restricted share expense	—	—		67		—		—		67
Share transactions under equity-based plans	43	43		(49)		—		—		(6)
Balance at March 31, 2025	6,190	$	6,190	$	11,796	$	14,173	$	208	$	32,367


	Three Months Ended March 31, 2024
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount









Balance at January 1, 2024	6,160	$	6,160	$	11,609	$	19,842	$	(6,364)	$	31,247

Comprehensive loss	—	—		—		(1,590)		(85)		(1,675)


Performance and restricted share expense	—	—		84		—		—		84
Share transactions under equity-based plans	30	30		(30)		—		—		—
Balance at March 31, 2024	6,190	$	6,190	$	11,663	$	18,252	$	(6,449)	$	29,656


	Six Months Ended March 31, 2025
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Amount









Balance at October 1, 2024	6,158	$	6,158	$	11,775	$	17,881	$	(5,389)	$	30,425

Comprehensive (loss) income	—	—		—		(3,708)		5,597		1,889


Performance and restricted share expense	—	—		87		—		—		87
Share transactions under equity-based plans	32	32		(66)		—		—		(34)
Balance at March 31, 2025	6,190	$	6,190	$	11,796	$	14,173	$	208	$	32,367


	Six Months Ended March 31, 2024
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Amount









Balance at October 1, 2023	6,105	$	6,105	$	11,626	$	23,264	$	(6,660)	$	34,335

Comprehensive (loss) income	—	—		—		(5,012)		211		(4,801)


Performance and restricted share expense	—	—		171		—		—		171
Share transactions under equity-based plans	85	85		(134)		—		—		(49)
Balance at March 31, 2024	6,190	$	6,190	$	11,663	$	18,252	$	(6,449)	$	29,656

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Notes to Unaudited Consolidated Condensed Financial Statements

(Amounts in thousands, except per share data)

SEC Form 10-Q filed by SIFCO Industries Inc.