Executive Summary

Q2 FY2025 net sales were $19.0M, down 7.3% year over year; gross profit improved slightly to $1.6M with operating loss narrowing to $(0.8)M as the company focused on margin improvement and throughput .
Diluted EPS from continuing operations improved to $(0.22) vs. $(0.38) YoY; total net loss was $(1.4)M vs. $(1.6)M YoY .
Backlog grew to $129.2M, up from $121.9M in Q1 and $114.4M at FY2024 year-end, indicating sustained demand despite raw material sourcing challenges .
Management did not provide formal guidance; raw material sourcing constraints were the primary headwind, while pricing discussions remained favorable into subsequent quarter commentary .
Post-earnings, shares declined ~4.5% over the following week, a modest negative reaction despite improving loss trajectory .

What Went Well and What Went Wrong

What Went Well

Margin focus and throughput initiatives narrowed operating loss to $(0.8)M from $(1.3)M YoY; EBITDA turned positive to $0.4M from $(0.2)M YoY .
Backlog expanded to $129.2M, reinforcing demand visibility: “Our backlog has continued to grow and now stands at $129.2 million, showing strong on-going demand for our products.” — CEO George Scherff .
SG&A reduced YoY ($2.35M vs. $2.82M), aiding operating loss improvement despite lower sales .

What Went Wrong

Net sales declined 7.3% YoY to $19.0M due to raw material sourcing constraints that impacted shipments in the quarter .
Interest expense remained elevated ($0.43M), constraining bottom-line improvement; net loss was still $(1.4)M vs. $(1.6)M YoY .
Adjusted EBITDA slipped to $(0.2)M (from $0.2M YoY), with a significant negative LIFO impact of $(0.64)M in Q2 .

Financial Results

Income Statement and Profitability vs. Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$21.658	$20.883	$19.027
Gross Profit ($USD Millions)	$2.321	$0.928	$1.570
Operating Income ($USD Millions)	N/A*	$(1.912)	$(0.781)
Net Income (GAAP) ($USD Millions)	$(0.443)	$(2.316)	$(1.392)
Diluted EPS - Continuing Operations ($)	$(0.33)	$(0.40)	$(0.22)
EBITDA ($USD Millions)	$0.812	$(0.767)	$0.370
Gross Profit Margin %	10.7%*	4.4%*	8.3%*
EBITDA Margin %	3.7%*	(3.7%)*	1.9%*
EBIT Margin %	(4.0%)*	(9.1%)*	(4.1%)*
Net Income Margin %	(2.0%)*	(11.1%)*	(7.3%)*

Notes:

- Values retrieved from S&P Global.
Operating Income for Q4 2024 not disclosed in the quarter-level table of the 8-K; S&P Global figure not displayed.

Estimates vs. Actuals (Wall Street Consensus)

Metric	Period	Actual	Consensus	Surprise
Revenue ($USD Millions)	Q2 2025	$19.027	N/A	N/A
Primary EPS (Continuing Ops) ($)	Q2 2025	$(0.22)	N/A	N/A

Notes:

Wall Street consensus (S&P Global) for SIF was unavailable for Q2 FY2025; Actual revenue shown above was reported, not an estimate .

Non-GAAP and Adjustments

Metric	Q4 2024	Q1 2025	Q2 2025
Adjusted EBITDA ($USD Millions)	$0.786	$(0.248)	$(0.158)
Key Adjustments (Selected)	LIFO +$0.036; Strategic alternatives $(0.126)	LIFO +$0.501; Equity comp $0.021	LIFO $(0.637); Other expense $0.037; Equity comp $0.067

Balance Sheet Highlights

Metric	Sep 30, 2024	Dec 31, 2024	Mar 31, 2025
Revolver ($USD Millions)	$20.142	$12.633	$8.959
Total Shareholders’ Equity ($USD Millions)	$30.425	$33.676	$32.367
Cash & Equivalents ($USD Millions)	$1.714	$3.143	$1.922

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Backlog ($USD Millions)	$114.4	$121.9	$129.2

Segment breakdown: Not disclosed in the company’s Q2 FY2025 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025 / Q3-Q4	None	None	Maintained (no formal guidance)
Margins	FY2025 / Q3-Q4	None	None	Maintained (no formal guidance)
OpEx	FY2025 / Q3-Q4	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 reiterated margin improvement focus and throughput actions but provided no quantitative guidance ranges .

Earnings Call Themes & Trends

Note: No public Q2 FY2025 earnings call transcript found for SIF; themes are inferred from press releases .

Topic	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Margin improvement & throughput	“Focused on opportunities for margin improvement and increasing throughput at both plants”	“Focused on identifying opportunities for margin improvement and increasing throughput”	Consistent emphasis
Supply chain / Raw materials	Not highlighted in Q1 release	Raw material sourcing challenges negatively impacted Q2 sales	Headwind emerged
Demand / Backlog	Backlog $121.9M indicating strong demand	Backlog $129.2M showing strong ongoing demand	Strengthening
Pricing	Not discussed in Q1	Not discussed in Q2 release; noted as favorable in Q3 commentary	Improving in later quarter
Restructuring / Discontinued ops	Discontinued ops income $0.1M	Discontinued ops loss $(0.07)M	Mixed impact

Management Commentary

“Our second quarter was focused on identifying opportunities for margin improvement and increasing throughput at both plants.” — CEO George Scherff .
“While raw material sourcing challenges negatively impacted second-quarter sales, performance year-to-date continues to trend favorably compared to the prior year.” — CEO George Scherff .
“Our backlog has continued to grow and now stands at $129.2 million, showing strong on-going demand for our products.” — CEO George Scherff .

Q&A Highlights

No Q2 FY2025 earnings call transcript is available; no Q&A themes to report .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY2025 EPS and revenue was unavailable; results cannot be benchmarked against consensus this quarter. Values retrieved from S&P Global.
Given the actuals, sell-side models (where coverage exists) may need to reflect: Q2 revenue $19.0M, continuing EPS $(0.22), gross profit $1.6M, EBITDA $0.37M, and persistent raw material sourcing impacts .

Key Takeaways for Investors

Operational execution improved: SG&A down YoY and EBITDA positive, narrowing operating and net losses despite lower sales .
Visibility is robust: backlog rose to $129.2M, supporting multi-quarter demand across aerospace and energy end markets .
Working capital and leverage trending better: revolver balance reduced to $8.96M from $20.14M at FY-end, indicating deleveraging momentum .
Headwinds remain: raw material sourcing constrained shipments in Q2; continued monitoring of supply chain normalization is warranted .
Non-GAAP adjustments matter: Q2 Adjusted EBITDA of $(0.16)M was driven in part by $(0.64)M LIFO reserve impact; headline EBITDA of $0.37M masks underlying cost pressures .
No formal guidance: trading set-ups will hinge on backlog conversion, margin improvement cadence, and signs of supply chain relief rather than guidance beats .
Near-term sentiment: shares fell ~4.5% post-earnings; catalysts are likely tied to tangible progress on margins and material availability improvements .

Citations:

Q2 FY2025 press release and 8-K including tables .
Q1 FY2025 press release .
Q4 FY2024 8-K and tables .
Q3 FY2025 press release (pricing/margins commentary) .
Stock reaction .

S&P Global disclaimer: Metrics marked with an asterisk (*) are values retrieved from S&P Global.

SIFCO INDUSTRIES INC (SIF)·Q2 2025 Earnings Summary