Shares of SIFCO Industries, Inc. (SIF Quick QuoteSIF - Free Report) have gained 21.5% since the company reported its earnings for the year ended June 30, 2025. This compares to the S&P 500 Index’s 1.1% loss over the same period. Over the past month, the stock gained an impressive 40.5%, significantly outpacing the S&P 500’s 1.5% rise.

SIF’s Earnings Snapshot

In the third quarter of fiscal 2025, SIFCO’s net sales inched up 0.5% to $22.1 million from $21.9 million a year ago. More notably, the company swung from a net loss from continuing operations of $0.9 million, or $(0.16) per diluted share, in the prior-year period to a net income of $3.3 million, or $0.54 per diluted share. Including discontinued operations, net income came in at $3.4 million compared with $72,000 in the year-ago quarter. EBITDA surged to $5.3 million from $1.2 million a year earlier, while adjusted EBITDA jumped to $4.4 million from $1.8 million.

For the first nine months of fiscal 2025, net sales rose 6.9% year over year to $62 million from $57.9 million. The net loss from continuing operations narrowed sharply to $0.4 million, or $(0.07) per diluted share, from $7.2 million, or $(1.20) per share, a year earlier. EBITDA swung to a positive $4.9 million from a negative $1.5 million a year earlier, while adjusted EBITDA improved to $3.9 million from $0.1 million.

SIFCO’s Other Key Business Metrics

Gross profit for the fiscal third quarter reached $5.9 million, surging 117.4% from $2.7 million in the prior-year quarter. This improvement stemmed largely from reduced cost of goods sold, which fell 15.9% to $16.2 million from $19.3 million a year earlier. Operating profit came in at $3.3 million, a substantial improvement from $147,000 in the prior-year quarter.

On the balance sheet side, as of June 30, 2025, SIFCO reported total assets of $77.3 million, down from $104.6 million at the end of fiscal 2024, reflecting the impact of discontinued operations and reduced receivables. Shareholders’ equity, however, strengthened to $35.8 million from $30.4 million, aided by the current year’s profitability.

SIF’s Management Commentary

Management emphasized that demand for SIFCO’s forgings and machined components remained strong through the quarter as aerospace and energy end users continued to increase production. While raw material availability improved compared to earlier periods, some supply chain constraints still weighed on shipments. Importantly, SIF noted that pricing discussions with customers were generally favorable and are expected to continue into the fiscal fourth quarter. Both sales and margins in the fiscal third quarter reflected these positive trends.

Factors Influencing SIFCO’s Results

Several operational and financial factors drove the results. The sharp improvement in profitability came despite only a marginal rise in sales, underscoring substantial cost control. Interest expenses declined 56.8% to $0.4 million from $0.9 million a year earlier, while other income benefited from favorable non-operating items. Cost reductions were evident in selling, general and administrative expenses, which were relatively flat at $2.6 million, despite higher sales volumes. Moreover, gross margin increased to 26.7% from 12.3% year over year, signaling improved efficiency in production and pricing.

SIF’s Guidance

SIFCO did not provide explicit financial guidance in its fiscal third-quarter earnings. However, management’s comments regarding favorable customer pricing dynamics and sustained demand trends suggest a cautiously optimistic outlook heading into the final quarter of fiscal 2025.

SIFCO’s Other Developments

SIFCO reported no acquisitions, divestitures, or major restructuring actions during the quarter. Prior-year discontinued operations results had reflected divestitures, but for the current fiscal year, activity from discontinued operations was minimal.