TechPrecision (TPCS) Q3 2026 earnings summary

Executive summary

• Fiscal 2026 Q3 consolidated revenue was $7.1 million, down 7% year-over-year, mainly due to lower Stadco revenue and increased operating losses from delays, unfavorable project mix, higher loss provisions, and equipment downtime.

• Net loss for Q3 was $1.5 million, or $0.15 per share, reflecting ongoing operational challenges at Stadco; nine-month net loss was $1.2 million, or $0.13 per share.

• Ranor segment maintained stable performance with $4.4 million revenue and $1.5 million operating profit, while Stadco posted a $1.2 million operating loss on $2.9 million revenue.

• Backlog reached $46 million as of December 31, 2025, expected to be delivered over the next 1–3 years, with management focused on margin expansion and improved contract selection.

• Significant productivity gains year-to-date, with cost of revenue down 12% and gross profit up 72% compared to the prior year period.

Financial highlights

• Q3 revenue was $7.1 million, down from $7.6 million year-over-year; nine-month revenue was $23.6 million, down from $24.6 million.

• Q3 gross profit was $0.4 million, down 62% year-over-year; nine-month gross profit rose to $3.9 million, up 72% year-over-year.

• Q3 net loss was $1.5 million, compared to $0.8 million loss a year ago; nine-month net loss improved to $1.2 million from $2.9 million a year ago.

• Q3 SG&A increased 3% to $1.7 million, mainly from higher stock-based compensation; nine-month SG&A decreased 1%.

• Interest expense declined for both the quarter and nine months.

Outlook and guidance

• Management expects to deliver the $46 million backlog over the next 1–3 years with gross margin expansion.

• Substantial doubt exists about the ability to continue as a going concern due to recurring losses at Stadco, covenant breaches, and the need to renew or replace the revolver loan by May 15, 2026.

• New business is being added to the backlog at improved pricing, especially with key customers like Sikorsky.

• The company is targeting a revenue run rate above the $7–$9 million quarterly range, but timing remains uncertain.

• Management is focused on improving Stadco profitability, increasing manufacturing utilization, and reducing costs.