TechPrecision (TPCS 15.42%), a precision manufacturer serving the defense and aerospace sectors, released its Q4 FY2025 results on July 29, 2025. The company reported significant improvements in profitability and gross margin (GAAP), with revenue rising to $9.5 million, up from $8.6 million in the prior-year quarter. Earnings per share reached $0.01, up from a loss of $0.59 a year earlier. There were no analyst estimates available. Overall, the quarter marked a clear operational improvement for the company, especially as cost controls and margin gains offset past weaknesses at its Stadco subsidiary.
| Metric | Q4 FY2025 | Q4 FY2024 | Y/Y Change |
|---|---|---|---|
| Revenue | $9.5 million | $8.6 million | 10.2% |
| Gross Profit | $2.1 million | $1.2 million | 75.0% |
| EBITDA (Non-GAAP) | $0.96 million | ($1.8 million) | $2.9 million |
Business Overview and Key Focus Areas
TechPrecision specializes in producing large, precision-machined metal components for the defense and aerospace industries. Its products play a crucial role in mission-critical programs, particularly those involving U.S. Navy submarines and military aircraft. The business operates primarily through two subsidiaries: Ranor and Stadco, both designed to meet strict government standards.
The company’s recent strategic efforts have focused on expanding specialty manufacturing capabilities, maintaining strict compliance with defense standards, and controlling operational costs. TechPrecision holds ISO 9001:2015 certification and complies with International Traffic in Arms Regulations (ITAR). Customer concentration is also significant: ten customers accounted for 96% of total revenue, with the largest contributing 23% in FY2025.
Quarter Highlights: Financial and Operational Performance
Revenue (GAAP) rose by 10.2% in Q4 FY2025 compared to the same period last year. Gross profit jumped 70%, a result of improved operating performance at both Ranor and Stadco. Gross margin (GAAP) reached 22% compared to 14% in the prior year, indicating the company is capturing more value from its manufacturing activities. Operating income was $0.4 million, up from a $2.5 million operating loss in the prior year. EBITDA for the quarter ended March 31, 2025, was $0.96 million, compared to a loss of $1.79 million in the prior year.
The Ranor subsidiary contributed $4.7 million in revenue, up 3% year over year. Its gross profit increased 51%, reflecting an improved project mix and better operating efficiency. Ranor continued to deliver consistent profitability, with its gross margin increasing to 13% from 10% the prior year. Stadco, previously a source of annual losses, saw revenue increase by 5% to $4.9 million (GAAP). Importantly, Stadco swung from a loss to an operating profit. However, Stadco recorded a negative gross margin for FY2025, underscoring that a single quarter does not resolve ongoing challenges at the segment.
Cost control played a large role in the company’s improved results. Selling, general, and administrative (SG&A) expenses dropped to $1.7 million, a 53% reduction from the quarter a year ago. This decline in SG&A was driven primarily by the absence of costs associated with the now-terminated Votaw acquisition. Private placement proceeds of $2.3 million and new equipment financing provided incremental liquidity during FY2025.
The company’s order backlog, a measure of future contracted but undelivered work, stood at $48.6 million as of March 31, 2025 (FY2025). Management called out “high customer confidence” but did not report growth in new orders, suggesting that incoming demand is stable but not increasing. The backlog provides a cushion of work projected for delivery over the next one to three fiscal years, supporting management’s expectations for continued gross margin expansion during that period.
Product Lines, Certifications, and Customer Trends
Ranor focuses on large, high-precision metal components for U.S. defense customers, providing a full suite of services from raw material handling through final inspection. Stadco manufactures similarly complex parts for defense and aerospace programs, including using specialized electron beam welding and nondestructive testing technology. Both subsidiaries meet government and industry quality assurance standards, giving them ongoing access to critical defense contracts. Additionally, Stadco’s AS9100 D and NADCAP certifications support its ability to serve military aircraft projects.
Defense remains the central market, with over 99% of total company revenue coming from defense contracts in FY2025. Both Ranor and Stadco’s efforts to maintain strong compliance and technical capability enable them to stay qualified for prime contract work—an essential requirement for participation in this sector. While this focus offers durability and high barriers to entry, it also sharpens the risk from major client concentration, as one customer alone accounts for nearly a quarter of sales.
Customer concentration continued to shape the business, with the ten largest clients contributing 96% of total revenue in FY2025, creating exposure if any major program or contractor changes occur. This risk profile makes ongoing contract renewals and defense budget trends crucial figures to watch. No litigation or regulatory actions were cited as new risks.
Strategically, the aborted acquisition of Votaw illustrates a challenge in growing through takeovers, but the sharp drop in due diligence costs benefited the company’s bottom line. Ongoing attention to cost control and disciplined execution remain key themes, especially with balance sheet pressure from negative working capital and debt covenants.
Outlook and What to Watch
Management did not issue formal guidance for fiscal 2026 or the next quarter. The only forward-looking statement was an expectation for gross margin expansion as the existing backlog is delivered over the next one to three fiscal years. No financial projections for revenue, profitability, or capital spending were offered in the release or discussed in commentary.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
