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Sypris Stock Rises 5% Despite Incurring a Wider Y/Y Loss in Q1
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Shares of Sypris Solutions, Inc. (SYPR - Free Report) have gained 4.7% since the company reported results for the quarter ended April 5, 2026, outperforming the S&P 500 index, which rose 0.6% over the same period. However, the stock has underperformed the broader market over the past month, declining 20.4% against the S&P 500’s 4.5% gain.
Sypris incurred a first-quarter 2026 net loss of 18 cents per share, wider than a loss of 4 cents per share a year earlier.
Revenues of $25.8 million denoted a 12.5% decline from $29.5 million in the prior-year quarter, reflecting weaker sales across both its Technologies and Electronics segments.
The company incurred a net loss of $4.1 million, wider than a net loss of $0.9 million a year earlier. Management said results were negatively affected by higher healthcare expenses, unabsorbed overhead, foreign exchange variances, scrap and rework charges, and accruals for excess and obsolete inventory.
Sypris Solutions, Inc. Price, Consensus and EPS Surprise
Sypris Technologies generated first-quarter revenues of $12.4 million, down from $13.6 million a year earlier, primarily due to weakness in the commercial vehicle market and customer inventory adjustments tied to OEM production schedules. Gross profit in the segment fell to $1.4 million from $2.1 million, pressured by lower production volumes and unfavorable foreign exchange rates.
Sypris Electronics posted revenue of $13.4 million compared with $15.9 million in the year-ago period. The segment recorded a gross loss of $0.6 million versus a gross profit of $1.3 million last year. Management attributed the decline to material availability constraints and customer design changes that delayed deliveries and disrupted manufacturing efficiency.
Despite weaker quarterly financial results, order activity improved significantly. Orders for Sypris Electronics rose 28% year over year and 269% sequentially, supported by bookings tied to missile programs, defense aviation systems and subsea fiber-optic network applications. Orders for energy products increased 31% year over year and 38% sequentially, reflecting demand tied to liquefied natural gas exports, natural gas transmission and utility conversions to cleaner fuels.
Management Commentary
President and chief executive officer Jeffrey T. Gill said escalating conflict in the Middle East has increased demand for defense-related inventory replenishment and technology upgrades, creating opportunities for Sypris Electronics. He noted that while short-term operational issues and material shortages affected first-quarter performance, management expects conditions to improve over the remainder of 2026.
Gill also pointed to continuing strength in energy infrastructure demand and highlighted potential opportunities linked to rising electricity needs from AI-related data centers. In addition, the company is pursuing applications in adjacent markets such as carbon dioxide capture to broaden its customer and industry exposure.
Within Sypris Technologies, management indicated that weakness in transportation-related markets experienced during the second half of 2025 and into early 2026 may be stabilizing, with inventory replenishment expected to accelerate later this year.
Operational and Financial Factors
Gross profit declined sharply to $0.8 million from $3.4 million in the prior-year quarter. Selling, general and administrative expenses increased to $4.4 million from $3.5 million, contributing to a wider operating loss of $3.6 million compared with $0.1 million a year ago.
Cash and cash equivalents totaled $4.8 million at the quarter’s end, down from $6.8 million at Dec. 31, 2025. Net cash used in operating activities improved to $2.3 million from $5.5 million in the prior-year period. Inventory levels remained elevated at approximately $52.5 million.
Management cited out-of-sequence manufacturing caused by component shortages as a major operational challenge during the quarter, noting that the issue increased costs and reduced production efficiency.
Outlook
Management said it expects the operating environment to improve as 2026 progresses, supported by a strong backlog and recently secured program wins. The company did not provide formal financial guidance but stated that it remains confident in its ability to navigate near-term headwinds while benefiting from strengthening demand trends in defense, energy and transportation markets.
Other Developments
During the quarter, Sypris Electronics secured a follow-on contract to produce and test space-grade circuit card assemblies for NASA’s Artemis Orion spacecraft program, with production expected to continue through 2027.
Sypris Technologies also announced a long-term sole-source agreement with a global truck OEM to supply components for an advanced automated manual transmission program in North America beginning in 2027. In addition, the company extended a long-term sole-source contract to provide drivetrain components to a tier-one manufacturer serving North American heavy truck and all-terrain vehicle markets.
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Sypris Stock Rises 5% Despite Incurring a Wider Y/Y Loss in Q1
Shares of Sypris Solutions, Inc. (SYPR - Free Report) have gained 4.7% since the company reported results for the quarter ended April 5, 2026, outperforming the S&P 500 index, which rose 0.6% over the same period. However, the stock has underperformed the broader market over the past month, declining 20.4% against the S&P 500’s 4.5% gain.
Sypris incurred a first-quarter 2026 net loss of 18 cents per share, wider than a loss of 4 cents per share a year earlier.
Revenues of $25.8 million denoted a 12.5% decline from $29.5 million in the prior-year quarter, reflecting weaker sales across both its Technologies and Electronics segments.
The company incurred a net loss of $4.1 million, wider than a net loss of $0.9 million a year earlier. Management said results were negatively affected by higher healthcare expenses, unabsorbed overhead, foreign exchange variances, scrap and rework charges, and accruals for excess and obsolete inventory.
Sypris Solutions, Inc. Price, Consensus and EPS Surprise
Sypris Solutions, Inc. price-consensus-eps-surprise-chart | Sypris Solutions, Inc. Quote
Segment Performance and Orders
Sypris Technologies generated first-quarter revenues of $12.4 million, down from $13.6 million a year earlier, primarily due to weakness in the commercial vehicle market and customer inventory adjustments tied to OEM production schedules. Gross profit in the segment fell to $1.4 million from $2.1 million, pressured by lower production volumes and unfavorable foreign exchange rates.
Sypris Electronics posted revenue of $13.4 million compared with $15.9 million in the year-ago period. The segment recorded a gross loss of $0.6 million versus a gross profit of $1.3 million last year. Management attributed the decline to material availability constraints and customer design changes that delayed deliveries and disrupted manufacturing efficiency.
Despite weaker quarterly financial results, order activity improved significantly. Orders for Sypris Electronics rose 28% year over year and 269% sequentially, supported by bookings tied to missile programs, defense aviation systems and subsea fiber-optic network applications. Orders for energy products increased 31% year over year and 38% sequentially, reflecting demand tied to liquefied natural gas exports, natural gas transmission and utility conversions to cleaner fuels.
Management Commentary
President and chief executive officer Jeffrey T. Gill said escalating conflict in the Middle East has increased demand for defense-related inventory replenishment and technology upgrades, creating opportunities for Sypris Electronics. He noted that while short-term operational issues and material shortages affected first-quarter performance, management expects conditions to improve over the remainder of 2026.
Gill also pointed to continuing strength in energy infrastructure demand and highlighted potential opportunities linked to rising electricity needs from AI-related data centers. In addition, the company is pursuing applications in adjacent markets such as carbon dioxide capture to broaden its customer and industry exposure.
Within Sypris Technologies, management indicated that weakness in transportation-related markets experienced during the second half of 2025 and into early 2026 may be stabilizing, with inventory replenishment expected to accelerate later this year.
Operational and Financial Factors
Gross profit declined sharply to $0.8 million from $3.4 million in the prior-year quarter. Selling, general and administrative expenses increased to $4.4 million from $3.5 million, contributing to a wider operating loss of $3.6 million compared with $0.1 million a year ago.
Cash and cash equivalents totaled $4.8 million at the quarter’s end, down from $6.8 million at Dec. 31, 2025. Net cash used in operating activities improved to $2.3 million from $5.5 million in the prior-year period. Inventory levels remained elevated at approximately $52.5 million.
Management cited out-of-sequence manufacturing caused by component shortages as a major operational challenge during the quarter, noting that the issue increased costs and reduced production efficiency.
Outlook
Management said it expects the operating environment to improve as 2026 progresses, supported by a strong backlog and recently secured program wins. The company did not provide formal financial guidance but stated that it remains confident in its ability to navigate near-term headwinds while benefiting from strengthening demand trends in defense, energy and transportation markets.
Other Developments
During the quarter, Sypris Electronics secured a follow-on contract to produce and test space-grade circuit card assemblies for NASA’s Artemis Orion spacecraft program, with production expected to continue through 2027.
Sypris Technologies also announced a long-term sole-source agreement with a global truck OEM to supply components for an advanced automated manual transmission program in North America beginning in 2027. In addition, the company extended a long-term sole-source contract to provide drivetrain components to a tier-one manufacturer serving North American heavy truck and all-terrain vehicle markets.