Executive Summary

Q3 FY2025 delivered a sharp profitability inflection: net sales rose 0.5% to $22.1M and EPS from continuing operations swung to $0.54 from $(0.16) YoY, with EBITDA up to $5.3M from $1.2M YoY .
Operating margin and gross margin expanded materially versus both Q2 and prior year, supported by improved raw material availability and favorable pricing discussions, though some constraints persisted .
No formal quantitative guidance was provided; management indicated continued favorable pricing into Q4 and strong end-user demand .
Consensus estimates were unavailable from S&P Global for EPS/revenue (limited coverage). Values retrieved from S&P Global where marked with an asterisk.*

What Went Well and What Went Wrong

Margin recovery: Q3 gross profit rose to $5.9M and operating profit to $3.3M; EBITDA increased to $5.3M as raw material availability improved and pricing discussions were favorable .
Demand backdrop: “Demand for SIFCO’s products remained strong through the third quarter as end users increase production...Both sales and margins in Q3 reflected continued positive trends.” — management commentary .
Year-to-date improvement: Nine-month EBITDA turned positive at $4.9M vs $(1.5)M prior year; adjusted EBITDA to $4.0M vs $0.1M, highlighting sustained operational gains .

Supply constraints: Despite improvement, raw material constraints continued to affect shipments in Q3, limiting sales upside .
Discontinued operations drag: Q3 included a $0.1M loss from discontinued operations vs $1.0M income in prior year, modestly reducing total EPS .
Sequential volatility earlier in FY25: Q2 net sales fell 7.3% YoY to $19.0M with adjusted EBITDA at $(0.2)M, showing execution challenges before Q3 rebound .

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$20.883M	$19.027M	$22.095M
Gross Profit ($USD)	$0.928M	$1.570M	$5.895M
Operating Income ($USD)	$(1.912)M	$(0.781)M	$3.260M
Net Income from Continuing Ops ($USD)	$(2.422)M	$(1.322)M	$3.302M
Diluted EPS – Continuing Ops ($)	$(0.40)	$(0.22)	$0.54
EBITDA ($USD)	$(0.767)M	$0.370M	$5.275M
Gross Margin (%)	4.45% (calc from $0.928M/$20.883M)	8.25% (calc from $1.570M/$19.027M)	26.68% (calc from $5.895M/$22.095M)
Operating Margin (%)	(9.16)% (calc from $(1.912)M/$20.883M)	(4.11)% (calc from $(0.781)M/$19.027M)	14.76% (calc from $3.260M/$22.095M)
EBITDA Margin (%)	(3.67)% (calc from $(0.767)M/$20.883M)	1.94% (calc from $0.370M/$19.027M)	23.87% (calc from $5.275M/$22.095M)

Notes:

Segment breakdown: Not disclosed in the press releases/8-K filings for Q1–Q3 FY2025 .

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Backlog ($USD)	$121.9M	$129.2M	N/A (not disclosed)
Pricing Commentary	Backlog increasing; focus on margin improvement	Backlog grew; margin/op throughput initiatives	Pricing discussions “generally favorable,” expected into Q4
Supply Chain	Noted challenges	Raw material sourcing challenges impacted sales	Availability improved; constraints persisted

No formal quantitative guidance ranges (revenue/EPS/margins/OpEx/tax) were provided.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025/Q4	Not provided	Not provided	Maintained: No formal guidance
Pricing	Q4 2025	Not provided	“Pricing discussions with customers have generally been favorable and are expected to continue into the fourth quarter.”	Qualitative positive
Supply Chain	Q4 2025	Constraints impacting sales	Improved availability; some constraints remain	Improving

No earnings call transcript was available in the document system for Q3 FY2025; themes below reflect management’s press release commentary.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Demand/Backlog	Backlog rising to $121.9M; strong demand	Backlog grew to $129.2M; on‑going demand	Strong end-user demand; increased production	Improving/Strong
Pricing	Focus on margin improvement	Margin initiatives; throughput gains	Pricing discussions favorable; to continue into Q4	Positive
Raw Materials/Supply Chain	Challenges noted	Sourcing challenges impacted sales	Availability improved; some constraints remained	Improving, not fully resolved
Profitability	EBITDA negative; adjusted EBITDA $(0.248)M	EBITDA $0.370M; adjusted EBITDA $(0.158)M	EBITDA $5.275M; adj. EBITDA $4.378M	Strong inflection
Non-GAAP Use	EBITDA/Adj. EBITDA reconciliations provided	Reconciliations provided	Reconciliations provided	Consistent disclosure

“Demand for SIFCO’s products remained strong through the third quarter as end users increase production. While raw material availability has improved, some constraints continued to affect shipments during the period. Pricing discussions with customers have generally been favorable and are expected to continue into the fourth quarter. Both sales and margins in Q3 reflected continued positive trends.” — SIFCO press release, Aug 14, 2025 .
“Our second quarter was focused on identifying opportunities for margin improvement and increasing throughput at both plants…Our backlog has continued to grow and now stands at $129.2 million, showing strong on-going demand for our products.” — Q2 release .
“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, showing strong demand for our products.” — Q1 release .

Not available: An earnings call transcript for Q3 FY2025 was not found in the document system, and no Q&A transcript could be retrieved [List: earnings-call-transcript not found].

S&P Global consensus estimates for Q3 FY2025 EPS and revenue were unavailable due to limited coverage (EPS, revenue, target price fields were not populated). Values retrieved from S&P Global.*
Actuals vs estimates: Not applicable given lack of consensus coverage. Revenue actual $22.095M and EPS from continuing operations $0.54 reported by SIFCO .

Q3 marked a decisive profitability turn, with EBITDA of $5.3M and operating margin 14.8%, driven by improved material availability and favorable pricing; this materially improves the near-term trajectory versus the first half .
Sequential margin expansion and YoY EPS swing to positive suggest operational leverage as throughput and pricing initiatives take hold .
Demand remains robust (end-user production rising), while supply constraints, though improving, still present execution risk; watch Q4 shipment cadence .
Backlog strength in Q1/Q2 underpins visibility, but lack of formal guidance means investors should monitor qualitative updates on pricing and materials .
Non-GAAP adjustments are declining relative to prior quarters; sustained cash generation and working capital discipline will be key to de‑risk the story .
With limited sell-side coverage, price discovery may hinge on continued margin delivery and backlog-to-revenue conversion rather than estimate beats/misses (consensus unavailable).*
Near term: constructive on continued margin normalization; medium term: thesis centers on backlog conversion, pricing power, and supply chain normalization translating to durable EBITDA and positive EPS .

*Values retrieved from S&P Global.