SIFCO Industries, Inc. reported fiscal 2025 results that ended September 30, 2025, with net sales of $84.8 million and a net loss of $729 k. The company’s loss from continuing operations narrowed to $0.9 million from $8.6 million in fiscal 2024, driven by a $3.3 million benefit from the Employee Retention Credit and a $220 k gain on a forgiven loan that offset a $1.7 million interest expense. Backlog stood at $119.2 million, up from $87.3 million in fiscal 2024, underscoring robust demand for its aerospace forging and machining services.
The fourth‑quarter net sales rose to $22.8 million from $21.7 million year‑over‑year, while total fiscal‑year sales increased 6.5 % to $84.8 million from $79.6 million in 2024. Military revenue accounted for 56.5 % of total sales, up from 47.6 % in 2024, reflecting stronger fixed‑wing aerospace and defense contracts. Commercial revenue fell to 43.5 % of sales, a shift driven by a decline in commercial space product orders as a key customer managed excess inventory.
Gross profit for the year reached $10.6 million, up from $6.0 million in 2024, raising the gross margin to 12.5 % from 7.5 %. The margin expansion was largely due to higher sales volumes, improved pricing power in the military segment, and the ERC benefit that reduced cost of goods sold. The company also reported a fourth‑quarter gross profit of $5.9 million, a figure that aligns with the 26.7 % margin improvement seen in the third quarter.
Operating expenses were $10.4 million for the full year, a slight decline from $10.6 million in 2024, largely because of lower employee‑related costs and the ERC benefit. Selling, general and administrative expenses were flat quarter‑to‑quarter, indicating disciplined cost management. The company’s operating loss of $0.9 million reflects the combined effect of higher sales, margin gains, and controlled operating costs.
SIFCO plans to invest $0.5 million to $1.0 million in capital expenditures for the remainder of fiscal 2025 to enhance production capacity and reduce operating costs. The company’s divestiture of its European subsidiary, C Blade S.p.A., was completed on October 15, 2024, the first quarter of fiscal 2025, allowing SIFCO to focus on its core domestic aerospace forging business. Management projects a continued backlog growth of $87.3 million scheduled for fiscal 2026, supporting a positive outlook for revenue and margin expansion.
Investors responded positively to the results, citing the narrowing loss, improved gross margin, and strong backlog as evidence of a turnaround. Management emphasized that the backlog growth and focus on domestic aerospace forging position the company for sustained profitability, while acknowledging headwinds such as supply‑chain pressures, inflationary cost inputs, and cyclical demand in the aerospace sector.
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