Sypris Solutions (SYPR) Q3 2026 earnings summary

Executive summary

• Net revenue for the nine months ended September 28, 2025, declined 16% year-over-year to $89.6 million, with Sypris Technologies down 29.6% and Sypris Electronics down 1.3%.

• Third quarter revenue declined year-over-year due to tariffs impacting transportation-related demand and a shift in shipment structure from Mexico to a value-add sub-maquiladora basis.

• Net income for the quarter was $0.5 million, or $0.02 per diluted share, up from $0.4 million in the prior-year quarter, but the nine-month period saw a net loss of $2.4 million.

• Year-to-date orders for Sypris Electronics rose 65% year-over-year, increasing backlog by 14% from year-end 2024; energy product backlog increased 59%.

• A sale-leaseback of the Louisville facility generated $2.9 million in proceeds and a $2.5 million gain, partially offsetting operating losses.

Financial highlights

• Third quarter revenue was $28.7 million, down from $35.7 million year-over-year; nine-month net revenue was $89.6 million, down 16%.

• Gross profit for the quarter was $2.1 million, down from $6.0 million in the prior-year quarter; gross profit for the nine months was $8.0 million, down 44.8%.

• Net loss for the nine months was $2.4 million, or $(0.11) per share.

• Operating cash flow was negative $4.6 million for the nine months, compared to negative $0.3 million in the prior year.

• Cash and cash equivalents at period end: $8.4 million.

Outlook and guidance

• Sypris Technologies expects continued cyclical decline in the commercial vehicle market, with industry production forecasted to drop 28% in 2025 and another 14% in 2026 before a recovery in 2027.

• Sypris Electronics anticipates stable revenue supported by backlog, but faces supply chain challenges and potential impacts from U.S. government budget uncertainty and shutdowns.

• Challenging operating environment expected to persist into early next year due to tariffs and macroeconomic uncertainty.

• Strong backlog and new program wins in Sypris Electronics and energy products expected to partially offset revenue declines.

• Management believes current liquidity is sufficient for the next twelve months, but is prepared to implement further cost reductions or seek additional financing if needed.