TPCS Reports Q4 Earnings

Techprecision (NASDAQ: TPCS ) held its fourth-quarter earnings conference call on Monday.

Below is the complete transcript from the call.

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Access the full call at Summary Techprecision's fiscal year 2026 fourth-quarter revenue decreased by 15% to $8.1 million, mainly due to lower revenue from both Ranor and Stadco segments.

The company experienced a 47% drop in gross profit to $1.1 million in Q4 2026, attributed to delays in customer-furnished materials and analysis at Stadco.

Strategic initiatives include improving customer and project mix for gross margin expansion, and ongoing equipment installation funded by US Navy grants for submarine programs.

The company has a strong backlog of $52 million in funded customer orders, with an additional $25 million in unfunded orders, expected to be fulfilled over the next one to three fiscal years.

Techprecision provided guidance for fiscal year 2027, projecting revenue between $35 million to $37 million and EBITDA between $3 million to $4 million.

Consolidated SGA expenses decreased by 24% in Q4 2026, and the company reported a net income of $400,000 for the quarter.

Management emphasized ongoing efforts in cash management, risk mitigation, and maintaining customer confidence, aiming for revenue growth and increased profitability.

Full Transcript Alex Brett, thank you.

Good afternoon to everyone and thank you for joining us.

Fiscal Year 2026 Fourth quarter consolidated revenue was $8.1 million or 15% lower when compared to $9.5 million in the fiscal year 2025.

Fourth quarter consolidated gross profit totaled 1.1 million or 47% lower when compared to the fourth quarter of fiscal 2025 primarily due to lower revenue and resulting margin drop through at Stadco.

Fourth quarter Stadco revenue was $4.2 million with gross profit of 28,000.

Two factors drove the low gross profit 1.

Delays in receiving customer furnished materials 2.

Delays in customer analysis and disposition of nonconformances.

We are actively working with our customers to shorten the delays to improve our throughput.

Fiscal year 2026 fourth quarter Ranor revenue was $3.9 million with gross profit of $1.1 million or 16% lower when compared with the prior year fourth quarter results.

We continue to strategically improve both our customer and project mix towards gross margin expansion.

At Stadco, we remain highly focused on aggressive daily cash management, a critical piece of risk mitigation.

We continue to manage and control expenses, capital expenditures, customer advances, progress billings and final invoicing at shipment.

Our tactical execution focus and success enables us to continuously re-secure strategic customer confidence at both segments.

Our RANOR segment continues to execute and install the new equipment funded by the $24 million plus in grants from our US Navy submarine programs related customers.

This sustained cadence of new equipment procurement, delivery and installation will enable a reliable, robust and resilient manufacturing capacity dedicated to submarine programs.

At both Stadco and Ranor, our customers have expressed their strong confidence as we continue to maintain on-time delivery of quality components.

This delivery performance is leading both Stadco and Ranor to new quoting opportunities in air defense and submarine defense sectors with the same customers that already know and trust our capabilities.

Both subsidiaries are continuing to experience meaningful new capture of business awards from these same customers adding to our strong $52 million backlog.

This $52 million backlog only includes the funded portions of customer purchase orders with an additional approximately $25 million additional of unfunded purchase orders.

We expect to deliver this $52 million backlog over the course of the next one to three fiscal years with gross margin expansion.

With that said, we are providing guidance for fiscal year 2027.

The company is projecting 2027 full year revenue to be 35 million to $37 million.

We are projecting EBITDA to be 3 million to $4 million.

Now I will turn the call over to our Chief Financial Officer Phil Podgorski to continue with the review of our fourth quarter and twelve months ended fiscal 2026 results.