sif-20250630

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 June 30, 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 June 30, 2025 was 6,180,388.

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 June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Net sales	$	22,095	$	21,986	$	62,005	$	57,975
Cost of goods sold	16,200		19,274		53,612		54,314
Gross profit	5,895		2,712		8,393		3,661
Selling, general and administrative expenses	2,635		2,565		7,826		8,487


Loss on disposal of operating assets	—		—		—		4


Operating profit (loss)	3,260		147		567		(4,830)

Interest expense, net	391		905		1,289		2,065

Foreign currency exchange loss (gain), net	5		(1)		4		—
Other (income) expense, net	(479)		160		(404)		313
Income (loss) from continuing operations before income tax expense	3,343		(917)		(322)		(7,208)
Income tax expense	41		—		120		11
Income (loss) from continuing operations	3,302		(917)		(442)		(7,219)
Income from discontinued operations, net of tax	106		989		142		2,279
Net income (loss)	$	3,408	$	72	$	(300)	$	(4,940)

Basic and diluted earnings (loss) per share:
Basic and diluted earnings (loss) per share from continuing operations	$	0.54	$	(0.16)	$	(0.07)	$	(1.20)
Basic and diluted income earnings per share from discontinued operations	0.02		0.17		0.02		0.38
Basic and diluted earnings (loss) per share	$	0.56	$	0.01	$	(0.05)	$	(0.82)





Weighted-average number of common shares (basic)	6,068		6,009		6,050		5,991
Weighted-average number of common shares (diluted)	6,138		6,105		6,050		5,991

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 June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Net income (loss)	$	3,408	$	72	$	(300)	$	(4,940)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	—		(73)		—		52
Reclassification of foreign translation adjustments to net loss	—		—		5,554		—
Retirement plan liability adjustment, net of tax	23		104		68		190
Other	—		(5)		(2)		(5)
Comprehensive income (loss)	$	3,431	$	98	$	5,320	$	(4,703)

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)


	June 30, 2025		September 30, 2024

ASSETS
Current assets:
Cash and cash equivalents	$	1,978	$	1,714
Receivables, net of allowance for credit losses of $108 and $117, respectively	14,223		17,272

Contract assets	12,681		10,745
Inventories, net	7,404		6,230
Refundable income taxes	13		13

Prepaid expenses and other current assets	1,800		2,382

Current assets of discontinued operations	—		15,967
Total current assets	38,099		54,323
Property, plant and equipment, net	22,860		26,261
Operating lease right-of-use assets, net	12,784		13,326

Goodwill	3,493		3,493
Other assets	53		357
Noncurrent assets of discontinued operations	—		6,864
Total assets	$	77,289	$	104,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt, net of unamortized debt issuance costs	$	2,951	$	353
Promissory note — related party	—		3,510
Revolver	8,372		20,142
Short-term operating lease liabilities	941		879
Accounts payable	8,949		11,574
Contract liabilities	2,061		2,879

Accrued liabilities (related party — nil and $880, respectively)	2,372		4,615
Current liabilities of discontinued operations	—		10,058
Total current liabilities	25,646		54,010
Long-term finance lease, net of short-term	62		—
Long-term operating lease liabilities, net of short-term	12,476		13,035
Deferred income taxes, net	333		154
Pension liability	2,300		2,465
Other long-term liabilities	627		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 June 30, 2025 and September 30, 2024	—		—
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,180 at June 30, 2025 and 6,158 at September 30, 2024	6,180		6,158
Additional paid-in capital	11,853		11,775
Retained earnings	17,581		17,881
Accumulated other comprehensive income (loss)	231		(5,389)
Total shareholders’ equity	35,845		30,425
Total liabilities and shareholders’ equity	$	77,289	$	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)


	Nine Months Ended June 30,
	2025		2024
Cash flows from operating activities:
Net loss	$	(300)	$	(4,940)
Income from discontinued operations, net of tax	142		2,279
Loss from continuing operations	$	(442)	$	(7,219)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization	3,912		3,607
Amortization of debt issuance costs	148		753
Gain on disposal of operating assets	—		4


LIFO effect	(606)		826
Share transactions under company stock plan, net	101		194

Inventory valuation accounts	548		269


Deferred income taxes	179		(142)
Interest added to promissory note - related party (paid-in-kind)	27		216
Interest added to other current maturities of long-term debt	13		—
Other long-term liabilities	(144)		270
Changes in operating assets and liabilities:
Receivables	3,049		(2,332)
Contract assets	(1,936)		36
Inventories	(1,116)		(4,514)

Prepaid expenses and other current assets	693		834
Other assets	287		(126)
Accounts payable	(2,673)		870
Accrued liabilities	(1,818)		96
Contract liabilities	(817)		2,705
Accrued income tax and other	(4)		148

Net cash used for operating activities	(599)		(3,505)
Cash flows from investing activities:


Capital expenditures	(324)		(1,712)

Net cash used for investing activities	(324)		(1,712)
Cash flows from financing activities:


Proceeds from term loan	3,000		—
Payments on term loan	(400)		(61)
Proceeds from revolving credit agreement	76,644		70,706
Repayments of revolving credit agreement	(88,413)		(67,302)
Payment of debt issuance costs	(203)		(139)
Principal payments on capital lease obligations	(32)		—

Proceeds from promissory note — related party	—		3,000
Repayments of promissory note and related fees — related party	(4,030)		—



Net cash (used for) provided by financing activities	(13,434)		6,204
Cash flows from discontinued operations:
Net cash used for operating activities	(57)		(1,461)
Net cash provided by (used for) investing activities	13,348		(2,078)
Net cash provided by financing activities	356		3,898
Effects of exchange rate changes on cash and cash equivalents	(35)		(17)
Net cash provided by discontinued operations	13,612		342
(Decrease) increase in cash and cash equivalents	(745)		1,329
Cash and cash equivalents at the beginning of the period	2,723		367

Less: Cash and cash equivalents from discontinued operations at the end of the period	—		690
Cash and cash equivalents from continuing operations at the end of the period	$	1,978	$	1,006

See notes to unaudited consolidated condensed financial statements.

SIFCO Industries, Inc. and Subsidiaries

Supplemental Disclosure of Cash Flow Information

(Unaudited, Amounts in thousands)


	Nine Months Ended June 30,
	2025		2024
Cash paid during the year:
Cash paid for interest	$	(1,521)	$	(1,064)
Cash paid for income taxes, net	(16)		(19)
Non-cash investing activities:
Additions to property, plant & equipment — incurred but not yet paid	$	48	$	38
Non-cash financing activities:
Debt issuance costs — incurred but not yet paid	115		—
Accrued guaranty fees — related party	—		880
Origination fees capitalized to promissory note principal — related party	—		150

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 June 30, 2025
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount









Balance at April 1, 2025	6,190	$	6,190	$	11,796	$	14,173	$	208	$	32,367

Comprehensive income	—	—		—		3,408		23		3,431


Performance and restricted share expense	—	—		47		—		—		47
Share transactions under equity-based plans	(10)	(10)		10		—		—		—
Balance at June 30, 2025	6,180	$	6,180	$	11,853	$	17,581	$	231	$	35,845


	Three Months Ended June 30, 2024
	Common Shares			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount









Balance at April 1, 2024	6,190	$	6,190	$	11,663	$	18,252	$	(6,449)	$	29,656

Comprehensive income	—	—		—		72		26		98


Performance and restricted share expense	—	—		72		—		—		72
Share transactions under equity-based plans	(10)	(10)		10		—		—		—
Balance at June 30, 2024	6,180	$	6,180	$	11,745	$	18,324	$	(6,423)	$	29,826


	Nine Months Ended June 30, 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	—	—		—		(300)		5,620		5,320


Performance and restricted share expense	—	—		134		—		—		134
Share transactions under equity-based plans	22	22		(56)		—		—		(34)
Balance at June 30, 2025	6,180	$	6,180	$	11,853	$	17,581	$	231	$	35,845


	Nine Months Ended June 30, 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	—	—		—		(4,940)		237		(4,703)

SEC Form 10-Q filed by SIFCO Industries Inc.