TechPrecision (TPCS) investor relations material

Executive summary

• Consolidated revenue for fiscal 2027 Q1 rose 23% year-over-year to $9.1 million, driven by growth at both Ranor and Stadco and improved project fulfillment.

• Gross profit increased 36% to $1.4 million, with gross margin improving to 15.4% from 14.0% year-over-year.

• Net loss narrowed to $153,000, or $0.02 per share, from $597,000, or $0.06 per share, in the prior year quarter, reflecting higher gross profit and reduced operating losses at Stadco.

• EBITDA improved to $651,000 from $239,000 in the prior year quarter, reflecting operational efficiencies.

• Strong customer confidence and on-time delivery led to a funded backlog of $52.7 million and $22 million in unfunded orders.

Financial highlights

• Consolidated revenue up 23% year-over-year to $9.1 million; gross profit up 36% to $1.4 million.

• Operating loss improved to $45,000 from $463,000 in the prior year.

• SG&A expenses decreased 3% due to lower professional fees and office costs.

• Interest expense fell 21% due to reduced loan balances and lower amortization of debt costs.

• Total debt reduced to $5 million from $7 million sequentially; cash balance at quarter-end was $279,000.

Outlook and guidance

• On track to meet fiscal 2027 guidance provided in June 2026, with management expecting double-digit revenue and EBITDA growth.

• Guidance for FY 2027: Revenue growth of +10% to $35.0M–$37.0M and EBITDA growth of +80% to $3.0M–$4.0M.

• Expectation to deliver $52 million backlog over the next one to three fiscal years with gross margin expansion.

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

• Management is focused on improving Stadco’s profitability, increasing manufacturing utilization, and reducing costs to enhance liquidity.