Sypris Solutions (SYPR) investor relations material

Executive summary

• Net revenue for the six months ended July 5, 2026, was $56.2M, down 7.8% year-over-year, with a net loss of $7.2M compared to a $3.0M loss in the prior year period.

• Orders rose 25% sequentially, led by a 54% increase in Sypris Electronics bookings for satellite, deep space, and subsea fiber-optic systems.

• Gross profit declined to $2.8M from $6.0M year-over-year, with gross margin dropping to 5.0% from 9.8%.

• Operating loss widened to $6.1M from $1.6M year-over-year, driven by lower volumes and higher costs.

• Energy product orders increased 12% year-over-year in the first half of 2026, with strong backlog and large project expectations.

Financial highlights

• Six-month revenue: $56.2M (down from $60.9M year-over-year); six-month net loss: $7.2M (vs. $3.0M prior year).

• Sypris Technologies revenue decreased 1.4% to $27.3M; Sypris Electronics revenue fell 13.2% to $28.9M for the six months.

• Gross profit for Sypris Technologies increased 28% year-over-year and 94% sequentially, with margin improvements of 330 and 710 basis points.

• Selling, general and administrative expenses increased 17.8% to $8.9M, mainly due to higher medical claims.

• Cash used in operating activities was $0.5M for the first six months, a significant improvement from $4.4M used in the prior year period.

Outlook and guidance

• Management expects supply chain pressures and inflationary cost increases to persist through 2026.

• Management expects operating conditions to improve in the second half of 2026, with accelerating top-line growth and better operational performance.

• The commercial vehicle market is forecasted to recover in the second half of 2026 and into 2027, with sequential increases in demand.

• Robust backlog and recent program wins support optimism for the remainder of the year.

• Growth opportunities anticipated from global LNG demand, AI-driven electricity needs, and expansion into adjacent markets like carbon capture and defense.