SIFCO Industries (SIF) reported QQ2 2024 revenue of $26.543 million, up 37.94% year-over-year and 26.08% quarter-over-quarter, with gross profit of $2.686 million and a gross margin of 10.12%. EBITDA stood at $0.926 million, while operating income was negative $0.498 million and net income declined to negative $1.59 million, translating to an EPS of −$0.26. The improvement in revenue and EBITDA indicates higher activity in aerospace forgings, yet the business remains unprofitable on a net basis due to persistent fixed costs, higher interest expense, and non-cash adjustments. Cash burn persists with cash from operating activities of −$3.211 million and a negative free cash flow of −$4.029 million, contributing to a cash balance of $0.747 million at quarter-end and a net debt position of about $44.92 million.
From a balance sheet perspective, total assets approximated $104.19 million against total liabilities of $74.53 million and shareholders’ equity of $29.66 million. Liquidity metrics remain precarious: current ratio near 1.0 (0.976), quick ratio 0.714, and cash ratio 0.0142, signaling tight short-term liquidity despite a relatively modest cash cushion. Leverage remains elevated with total debt to capitalization around 60.6% and a debt-to-equity ratio of 1.54. While revenue growth supports a narrative of demand stabilization in aerospace/defense forgings, profitability hinges on converting top-line gains into meaningful operating and free cash flow improvements.
Given the absence of a formal earnings call transcript in the provided data, management commentary and quotes could not be incorporated. Investors should monitor quarterly progress on margin discipline, working capital optimization, and debt refinancing, as these are the primary levers for unlocking earnings quality and cash flow resilience in the near term.