Executive Summary

Net sales rose 35.0% year over year to $20.9M, while diluted loss per share (total) improved to $(0.38) from $(0.57); Adjusted EBITDA narrowed to $(0.2)M from $(1.9)M, reflecting meaningful operating improvement despite remaining below break-even .
Sequentially, revenue softened versus a strong Q4 ($21.7M → $20.9M), and gross margin compressed to 4.4% (from 10.7%), indicating mix and cost pressures; EBITDA declined sequentially from $0.8M to $(0.8)M .
Backlog increased to $121.9M (vs. $114.4M at FY-end), supporting demand visibility; management emphasized actions to improve margins and throughput across plants .
Wall Street consensus (S&P Global) was unavailable for Q1 2025 at the time of analysis; therefore, estimate comparisons and beats/misses cannot be determined.

What Went Well and What Went Wrong

What Went Well

Strong top-line growth: Net sales +35.0% YoY to $20.9M, turning gross profit positive YoY and improving operating loss and EPS metrics .
Significant improvement in Adjusted EBITDA: $(0.2)M vs. $(1.9)M YoY, aided by operating progress and inventory LIFO adjustment of $0.5M within non-GAAP reconciliation .
Demand visibility: Backlog increased to $121.9M, with CEO highlighting margin improvement initiatives and higher throughput as priorities (“focused on opportunities for margin improvement and increasing throughput… backlog… $121.9 million”) .

What Went Wrong

Profitability remains negative: Operating loss was $(1.9)M and EBITDA $(0.8)M; interest expense rose YoY to $0.47M, continuing to weigh on bottom-line results .
Margin pressure: Gross margin of ~4.4% in Q1 vs. ~10.7% in Q4 and ~15.5% in Q3 indicates compressed conversion and/or cost headwinds vs. recent quarters .
Sequential deterioration: Revenue, margin, and EBITDA declined vs. Q4 despite back-half FY 2024 strength, signaling continued operational normalization from the unusually strong Q3/Q4 performance .

Financial Results

Quarterly Trend (Sequential: Q3 2024 → Q4 2024 → Q1 2025)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Sales ($USD Millions)	$29.259	$21.658	$20.883
Gross Profit ($USD Millions)	$4.534	$2.321	$0.928
Gross Margin (%)	15.5% (derived from $4.534/$29.259)	10.7% (derived from $2.321/$21.658)	4.4% (derived from $0.928/$20.883)
EBITDA ($USD Millions)	$2.705	$0.812	$(0.767)
Adjusted EBITDA ($USD Millions)	$3.366	$0.786	$(0.248)
Diluted EPS (Total) ($USD)	$0.01	$(0.08)	$(0.38)
Diluted EPS - Continuing Ops ($USD)	N/A	$(0.33)	$(0.40)

Year-over-Year (Q1 2024 → Q1 2025)

Metric	Q1 2024	Q1 2025
Net Sales ($USD Millions)	$15.474	$20.883
Gross Profit ($USD Millions)	$(0.545)	$0.928
Gross Margin (%)	(3.5)% (derived from $(0.545)/$15.474)	4.4% (derived from $0.928/$20.883)
Operating Loss ($USD Millions)	$(3.648)	$(1.912)
Interest Expense ($USD Millions)	$0.342	$0.469
EBITDA ($USD Millions)	$(2.489)	$(0.767)
Adjusted EBITDA ($USD Millions)	$(1.851)	$(0.248)
Diluted EPS (Total) ($USD)	$(0.57)	$(0.38)
Diluted EPS - Continuing Ops ($USD)	$(0.67)	$(0.40)

Segment Breakdown

Not disclosed in Q1 press materials or 8-K .

KPIs and Balance Sheet Indicators

KPI	Q3 2024	Q4 2024	Q1 2025
Backlog ($USD Millions)	$139.2	$114.4	$121.9
Cash & Equivalents ($USD Millions)	N/A	$1.714	$3.143
Revolver Balance ($USD Millions)	$19.693	$20.142	$12.633
Weighted-Average Diluted Shares (Millions)	6.105	5.996	6.016

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	None	None	Maintained (no formal guidance)
Gross Margin	FY2025	None	None	Maintained (no formal guidance)
OpEx	FY2025	None	None	Maintained (no formal guidance)
EPS	FY2025	None	None	Maintained (no formal guidance)
Tax Rate	FY2025	None	None	Maintained (no formal guidance)
Segment Guidance	FY2025	None	None	Maintained (no formal guidance)
Dividends	FY2025	None	None	Maintained (no formal guidance)

Management articulated operational actions (margin improvement and throughput), but provided no numeric guidance ranges .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in the document corpus; themes are inferred from press releases.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Demand/Backlog	“Backlog… $139.2M; revenues +34% YoY”	“Backlog… $114.4M; strong demand in commercial space & aerospace”	“Backlog… $121.9M; strong demand”	Sustained demand; backlog stable-to-growing
Margin/Throughput Initiatives	Not explicitly highlighted	“Increased production… support customers’ needs”	“Focused on margin improvement and increasing throughput”	Ongoing operational focus
Cost/Inventory (LIFO) & Non-GAAP items	IT incident, LIFO, severance adjustments supported Adj. EBITDA	LIFO, IT incident credits/charges, strategic alt. costs	LIFO $0.501M; severance, equity comp, other small items	Non-GAAP adjustments continue to influence Adj. EBITDA
Macro/End Markets	Strength in commercial aerospace	Continued demand in aerospace markets	Continued demand noted (no detailed end-market split)	Positive demand backdrop
Cybersecurity/IT Incident	Costs and recovery noted	Net benefit/expense items included	No material Q1 charges noted	Issue largely residual

Management Commentary

“Our first quarter was focused on opportunities for margin improvement and increasing throughput at both plants… Our backlog continues to increase and now stands at $121.9 million” — CEO George Scherff .
“Strong demand in the commercial space and aerospace markets… backlog… $114.4 million at the end of fiscal 2024” — CEO George Scherff .
“Revenues rose 34%… Third quarter EBITDA more than doubled… backlog… $139.2 million” — CEO George Scherff .

Q&A Highlights

No Q1 2025 earnings call transcript available; no Q&A disclosures identified in the filing set [List: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable at the time of analysis; we attempted retrieval but could not obtain values. As a result, beats/misses vs. estimates cannot be assessed this quarter.

Key Takeaways for Investors

Q1 delivered strong YoY sales growth (+35%) with improved EPS and Adjusted EBITDA, but profitability remains negative and margins compressed sequentially; near-term actions focus on margin and throughput .
Backlog at $121.9M provides demand visibility; coupled with rising cash and lower revolver usage vs. FY-end, liquidity positioning improved sequentially in Q1 .
Non-GAAP adjustments (notably a $0.5M LIFO impact) materially affected Adjusted EBITDA; investors should track the sustainability of improvements ex adjustments .
Sequential margin/EBITDA declines vs. Q4 and the step-down from an unusually strong Q3 suggest normalization; watch conversion rates and cost discipline into upcoming quarters .
With no formal guidance and no consensus available, the backlog trajectory and operational execution (throughput and margin initiatives) are the core narrative drivers near term .
If management demonstrates consistent gross margin recovery toward double digits (as seen in Q4), shares could react favorably; conversely, continued interest expense and low margins remain key constraints .
Monitor raw material and sourcing dynamics referenced in subsequent Q2 comments as potential ongoing headwinds, even amid improved YoY performance .

Sources: Q1 2025 press release and 8-K (including full financial statements and non-GAAP reconciliations) ; Q4 FY2024 8-K press release ; Q3 FY2024 press release ; Q2 FY2025 press release (backlog trend/headwinds context) .

SIFCO INDUSTRIES INC (SIF)·Q1 2025 Earnings Summary