Sypris Solutions (SYPR) investor relations material

Executive summary

• Net revenue for Q1 2026 was $25.8 million, down 12.5% year-over-year, with both Sypris Technologies and Sypris Electronics experiencing declines due to market and supply chain challenges.

• The company reported a net loss of $4.1 million for Q1 2026, compared to a net loss of $0.9 million in Q1 2025, driven by lower volumes, higher costs, and increased SG&A expenses.

• Operating loss widened to $3.6 million from $0.1 million year-over-year, reflecting margin compression and inefficiencies.

Financial highlights

• Gross profit fell 75.6% to $0.8 million, with gross margin dropping to 3.2% from 11.4% year-over-year.

• SG&A expenses increased 26.5% to $4.4 million, mainly due to higher medical claims.

• Cash used in operating activities improved to $2.3 million from $5.5 million in Q1 2025.

• Cash and cash equivalents stood at $4.8 million as of April 5, 2026.

Outlook and guidance

• Supply chain pressures and inflationary cost increases are expected to persist through 2026, potentially impacting results.

• Sypris Technologies anticipates a slight market recovery in 2026–2027, with diversification efforts expected to reduce revenue volatility.

• Sypris Electronics faces ongoing material shortages and extended lead times, but order backlog supports stable revenue for the remainder of 2026.