Executive Summary
TechPrecision reported QQ2 2025 consolidated revenue of $8.946 million, up 12% year over year and 12% quarter over quarter, driven by Ranor (approximately $4.8 million) and Stadco (approximately $4.2 million). Gross profit was $1.014 million, yielding a gross margin of about 11.3%. The company recorded an operating loss of $0.488 million and a net loss of $0.601 million for the quarter, translating to an EPS of −$0.06. Management attributes the Stadco shortfall to non-recurring cost pressures—including high manufacturing costs on one-off projects, legacy pricing on core work, machine breakdowns, and under-absorbed overhead—while Ranor generated a positive operating profit of about $1.0 million on favorable project mix. The six-month period ended September 30, 2024 (as presented for context) shows revenue of $16.9 million (+10% YoY) with continued profitability pressure from Stadco; net loss for the period was $2.1 million as Stadco bears recurring losses. The quarterly and semi-annual cash flow picture remains negative: CFO about −$0.532 million, capex about −$1.421 million, and free cash flow roughly −$1.953 million, with cash at period-end of $132 thousand and revolver availability of $1.1 million. Backlog stood at $48.6 million as of September 30, 2024, providing multi-year revenue visibility and an avenue for margin expansion as the programs mature. A series of governance and leadership changes—most notably the CFO transition in February 2025—and liquidity initiatives (a July private placement adding about $1.8 million) frame a challenging near term but improving long‑term trajectory. Management contends that backlog execution and gross-margin expansion can unlock improved profitability over the next 1–3 fiscal years, supported by government-funded capacity upgrades and supplier-development programs aimed at alleviating Ranor bottlenecks and expanding Stadco’s execution framework.
Key Performance Indicators
QoQ: 324.85% | YoY:-2.01%
QoQ: 58.84% | YoY:-13.75%
Key Insights
Revenue (Q2 2025): 8.946 million USD; YoY +12.24%, QoQ +12.02%
Gross Profit: 1.014 million USD; Gross Margin 11.33% (1Q2 2025 revenue basis)
Operating Income: -0.488 million USD; Operating Margin -5.45%
Net Income: -0.601 million USD; Net Margin -6.72%
EPS: -0.06 USD; Diluted EPS -0.06 USD
EBITDA: -0.488 million USD; EBITDA Margin -5.45%
Six-month revenue (YTD): 16.9 million USD; YoY +10%
Net Loss (H1 2025): -2.1 million USD
Cash from Operations (CFO): -0.532 million USD; Free Cash Flow (FCF): -...
Financial Highlights
Revenue (Q2 2025): 8.946 million USD; YoY +12.24%, QoQ +12.02%
Gross Profit: 1.014 million USD; Gross Margin 11.33% (1Q2 2025 revenue basis)
Operating Income: -0.488 million USD; Operating Margin -5.45%
Net Income: -0.601 million USD; Net Margin -6.72%
EPS: -0.06 USD; Diluted EPS -0.06 USD
EBITDA: -0.488 million USD; EBITDA Margin -5.45%
Six-month revenue (YTD): 16.9 million USD; YoY +10%
Net Loss (H1 2025): -2.1 million USD
Cash from Operations (CFO): -0.532 million USD; Free Cash Flow (FCF): -1.953 million USD
Capital Expenditures: -1.421 million USD
Cash and Cash Equivalents: 0.132 million USD; Revolver Availability: 1.1 million USD
Total Debt: 11.836 million USD; Net Debt: 11.704 million USD
Backlog: 48.6 million USD (as of 2024-09-30)
Current Ratio: 0.912x; Quick Ratio: 0.912x; Cash Ratio: 0.0076x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.95M |
12.24% |
12.02% |
| Gross Profit |
1.01M |
-2.01% |
324.85% |
| Operating Income |
-488.00K |
18.31% |
63.61% |
| Net Income |
-601.00K |
-13.75% |
58.84% |
| EPS |
-0.06 |
0.99% |
62.50% |
Key Financial Ratios
operatingProfitMargin
-5.45%
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.2
Management Commentary
Key themes from the QQ2 2025 earnings call include: 1) Strategic turnaround focus at Stadco and continued cash management discipline across the combined entity; 2) Stadco’s profitability challenge tied to one-offs, legacy pricing issues, and machine downtime, with ongoing efforts to reduce unabsorbed overhead and to improve front-end project scoping; 3) Ranor contributing positive operating profit on favorable project mix and pace of supplier-capacity improvements; 4) Backlog at $48.6 million signaling multi-year revenue visibility, with management aiming for gross-margin expansion as execution stabilizes; 5) Growth catalysts from U.S. defense programs (F-15EX, CH-53K) and supplier-development funding intended to increase Ranor capacity and offer backup options; 6) Financing activities including a July private placement that raised approximately $1.8 million to bolster liquidity and address covenant-driven working-capital constraints; 7) The CFO resignation effective February 14, 2025, prompting ongoing leadership transition and governance considerations.
"The quick answer is yes. How are we doing it? We're doing it very carefully because you can't just look at one sliver in time where we're not doing well."
— Alex Shen
"Proceeds from a private placement in July provided $1.8 million."
— Richard Roomberg
Forward Guidance
Management guidance centers on converting the substantial backlog into revenue over the next 1–3 fiscal years with an anticipated gross-margin expansion as Stadco reclaims profitability and Stadco/Ranor operate with improved efficiency. Key factors and targets include:
- Backlog execution: $48.6 million remains a multi-year revenue stream; steady progress toward margin uplift is expected as one-off projects decline and core programs (e.g., F-15EX, CH-53K) stabilize.
- Stadco turnaround: Management signals ongoing efforts to accelerate profitability, targeting breakeven in the near term (a quarter or two, per CEO commentary) with continued cost control, better forecasting, and tighter project-management discipline.
- Capacity expansion: Supplier development funding (three tranches, with the third underway) to expand Ranor capacity and provide redundancy to mitigate upstream bottlenecks, potentially reducing unabsorbed overhead over time.
- Margin expansion: Anticipated gross-margin improvement as throughput scales and overhead is better absorbed; price dynamics and discipline on one-off projects remain a risk.
- Liquidity and capital management: Continued emphasis on cash management and balance-sheet strengthening, supported by additional equity proceeds and prudent working-capital management; potential need for future financing if covenant issues persist.
Overall, the achievability of the guidance hinges on Stadco’s turnaround cadence, the pace of CH-53K/F-15EX program ramps, and the effectiveness of the supplier-capacity initiatives. Investors should monitor backlog conversion rate, Stadco’s quarterly profitability, absorption of overhead as capacity expands, and any changes to credit facilities or covenant compliance.