In This Story
SIFCO Industries Inc. (SIF+0.20%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing details that SIFCO Industries, an Ohio corporation established in 1916, is engaged in manufacturing forgings and machined components primarily for the Aerospace and Energy markets. The company operates in a single business segment and primarily serves the Aerospace and Defense, Energy, and Commercial Space markets.
In October 2024, SIFCO sold its European operations, specifically its wholly-owned subsidiary C Blade S.p.A. Forging & Manufacturing, to streamline operations and focus on its core aerospace forging business. The financial results of these operations have been presented as discontinued operations in the filing.
The company reported net sales of $79.6 million for fiscal 2024, an increase from $66.1 million in fiscal 2023. This growth was driven by higher demand in the commercial space market and increased shipments across most markets.
Cost of goods sold increased by $10.9 million to $73.7 million in fiscal 2024, primarily due to increased volume and higher labor and manufacturing costs. Gross profit for the year was $6.0 million, compared to $3.3 million in the previous year.
Selling, general, and administrative expenses decreased to $11.1 million from $12.3 million, attributed to lower costs related to a prior cybersecurity incident.
The company reported a net loss of $8.6 million from continuing operations, compared to a net loss of $10.5 million in the previous year. The improvement was due to higher sales volumes and lower administrative expenses.
The filing also discusses a cybersecurity incident that occurred in December 2022, which impacted domestic operations. The company has since completed data recovery and restoration.
SIFCO's total backlog increased to $114.4 million as of September 30, 2024, with orders for fiscal 2025 scheduled at $85.0 million. The company notes the backlog increase is due to timing of annual awards and recovery within the commercial airline industry.
The company highlights risks related to its business, including the cyclical nature of the aerospace and energy industries, government spending priorities, and potential impacts of cybersecurity threats.
SIFCO's liquidity and capital resources are primarily supported by cash flows from operations and borrowings under its debt agreements. The company recently refinanced its credit facilities and expects to meet its financial obligations for the foreseeable future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SIFCO Industries Inc. annual 10-K report dated December 26, 2024. To report an error, please email earnings@qz.com.