TechPrecision (TPCS) investor relations material

Executive summary

• Revenue for Q1 FY2026 was $7.4M, down 8% year-over-year, with both Ranor and Stadco experiencing modest declines in sales volume.

• Gross margin improved to 14% from 3% year-over-year, with gross profit rising to $1M, driven by better overhead absorption and production efficiencies.

• Net loss narrowed to $0.6M ($0.06 per share), down from $1.5M in the prior year, reflecting improved margins and lower operating losses at Stadco.

• Backlog reached a record $50.1M as of June 30, 2025, with strong customer confidence and expected delivery over the next one to three years.

• Substantial doubt exists about the ability to continue as a going concern due to recurring losses at Stadco, debt covenant violations, and the need to renew or replace the revolver loan by August 29, 2025.

Financial highlights

• Consolidated cost of revenue decreased 18% to $6.3M, reflecting productivity gains.

• SG&A expenses fell 6% year-over-year, mainly due to the absence of a prior-year breakup fee.

• EBITDA improved by $0.9M year-over-year, reaching $0.2M.

• Cash and cash equivalents at quarter-end were $143K, with total available liquidity of $1.86M.

• Total debt declined to $5.8M from $7.4M sequentially; all debt is classified as current due to covenant violations.

Outlook and guidance

• Management expects to deliver the $50.1M backlog over the next one to three years, with anticipated gross margin expansion.

• Ongoing focus on renegotiating legacy contracts, especially at Stadco, with 35-40% already addressed and improved.

• The company must renew its revolver loan or secure alternative financing by August 29, 2025, to continue operations.

• New business pursuits in air and submarine defense are expected to drive future growth, with potential for a third of revenue from new programs in 2-3 years.

• Plans to improve Stadco's profitability and manufacturing efficiency, and to closely monitor and potentially reduce operating costs.