TechPrecision reported QQ1 2026 consolidated revenue of $7.38 million, down 8% year-over-year from $8.00 million in the year-ago period, while gross profit rose to $1.03 million, lifting gross margin to roughly 13.96%. The two-segment result showed a notable divergence: Ranor generated $4.30 million in revenue with a positive operating profit of $1.50 million, while Stadco delivered $3.30 million in revenue but incurred an operating loss of $1.20 million. Stadco’s YoY gross margin improved by 14 percentage points, driven by pricing actions and productivity gains, but a legacy-contract burden and first-article costs kept Stadco in the red for the quarter. Management framed the results within a broader defense-led growth narrative, underscored by a $50.1 million backlog as of June 30, 2025, and ongoing efforts to renegotiate unprofitable legacy contracts (roughly 30-40% of affected revenue acknowledged by management). The company emphasizes disciplined cash and working capital management, with operating cash flow of $0.646 million and a free cash flow of −$0.604 million for the quarter; however, negative working capital remains a near-term constraint due to covenant-related debt classification. Looking forward, TechPrecision targets backlog-driven revenue visibility and gross-margin expansion over the next 1–3 fiscal years, supported by grant-funded Navy programs, potential new defense opportunities in air defense and submarine segments, and a ramp in capacity (including a contemplated second shift) to accelerate top-line growth if pricing and program execution hurdles are resolved.”,