Sifco Industries (SIF), a precision components manufacturer serving the aerospace and energy sectors, released its fiscal third quarter results on August 14, 2025. The company reported a dramatic swing into profitability, with earnings per share from continuing operations surging to $0.54 (GAAP) in Q3 fiscal 2025, compared to a $(0.16) loss in the previous year’s quarter. Revenue (GAAP) rose modestly to $22.1 million, essentially flat compared to the prior year. There were no published analyst estimates for the quarter. Management described ongoing strong demand in key end-markets and clear gains in operational execution. The period was marked by significant improvements in margins and bottom-line results, signaling a transitional quarter for the company.
| Metric | Q3 2025 | Q3 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $0.54 | $0.01 | 5,300.0 % |
| EPS from Continuing Operations (GAAP) | $0.54 | ($0.16) | NM |
| Revenue | $22.1 million | $22.0 million | 0.5% |
| Adjusted EBITDA | $4.4 million | $1.8 million | 144.4% |
| EBITDA | $5.3 million | $1.2 million | 341.7 % |
Business Overview and Strategic Focus
Sifco Industries manufactures forged, heat-treated, and machined components, serving critical needs in the aerospace and energy industries. Its parts are crucial for aircraft engines, landing gear, industrial gas and steam turbines, and similar applications that require high reliability and precision.
The company’s recent focus has been on maintaining its technological expertise in forging, heat-treating, and machining. These processes are essential for producing high-quality components that meet the strict standards of its core markets. Sifco’s ability to deliver reliable products and maintain compliance with regulatory requirements is central to its ongoing business success.
Financial and Operational Highlights for the Quarter
The quarter saw profitability leap, with net income and Adjusted EBITDA both increasing compared to the prior year. Sifco reported a positive net income of $3.3 million from continuing operations (GAAP), compared with a $(0.9) million loss a year earlier. Adjusted EBITDA, a metric that removes non-recurring items to measure core operational profitability, surged to $4.4 million from $1.8 million one year ago. These improvements came even as sales grew just 0.5% (GAAP), indicating stronger cost controls and better pricing.
Gross profit (GAAP) more than doubled compared to the year-ago period, rising from $2.7 million (12.3% of sales) in Q3 fiscal 2024 to $5.9 million (26.7% of sales) in Q3 fiscal 2025. Management confirmed during the release that “Both sales and margins in Q3 reflected continued positive trends.” While selling, general, and administrative expenses (GAAP) remained flat, the company’s reduced cost of goods sold drove much of the profit increase.
Management pointed to ongoing strong demand in aerospace and energy, though it acknowledged, “some constraints continued to affect shipments during the period.” Raw material availability improved in the quarter, but supply chain issues still limited the company’s ability to recognize more robust revenue growth. Inventory levels (GAAP) increased by $1.2 million from September 30, 2024, to June 30, 2025.
Results from discontinued operations were minimal, with net income of $0.1 million. As of June 30, 2025, the company’s balance sheet showed cash of $2.0 million and debt of $11.3 million, which includes lower revolver usage. Shareholder equity (GAAP) climbed to $35.8 million. SIF does not currently pay a dividend.
Looking Ahead
Management did not provide a detailed quantitative outlook for the coming quarter or the rest of fiscal 2025. Instead, it commented generally that the business expects strong demand and favorable pricing to persist, though acknowledged that supply-side constraints, mainly in raw materials, could still impact shipments. There was no formal guidance regarding future revenue, earnings, or margin expectations.
For investors watching Sifco Industries, continued monitoring of shipment volumes, raw material availability, and progress on operational improvements will be important. SIF does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
