Techprecision (NASDAQ:TPCS) reported fiscal 2027 first-quarter revenue of $9.1 million, up 23% from $7.4 million in the prior-year quarter, as both of its operating segments posted higher sales. The company recorded a net loss of approximately $153,000, or $0.02 per share, while reducing total debt to $5 million from $7 million at the end of the prior fiscal year.
Chief Executive Officer Alex Shen said consolidated gross profit rose 36% year over year to $1.4 million, supported by higher revenue and improved gross margins. The company said it remains on track to meet the fiscal 2027 guidance it issued in June.
Segment Revenue and Margin Progress
Stadco, which serves military aircraft manufacturing customers, reported revenue of $4.1 million, up 22% year over year. Podgorski said Stadco’s gross profit increased by $300,000, or 65%, from the prior-year quarter, reflecting higher revenue and improved throughput.
“We continue to execute on our strategy to improve both customer project mix and gross margin expansion,” Shen said regarding Stadco’s results.
Consolidated cost of revenue increased 21%, generally in line with revenue growth. Selling, general and administrative expenses declined 3% to $1.4 million, primarily due to lower professional fees and services. Interest expense fell 21%, which Podgorski attributed to lower interest on loans and lower amortization of debt issuance costs.
Cash Flow and Debt Reduction
TechPrecision reported $1.9 million of net cash flow provided by operating and investment activities for the three months ended June 30, 2026. Net cash used in financing activities was $2 million, primarily for principal payments on its revolver and term loans.
The company’s debt declined to $5 million as of June 30 from $7 million as of March 31. Cash totaled $279,000 at quarter-end, compared with $431,000 at the end of the previous quarter.
Shen said the company remains focused on daily cash management, including expense controls, capital expenditures, customer advances, progress billings and final invoicing upon shipment.
Backlog, Defense Programs and Capacity Investments
TechPrecision reported a funded backlog of $52 million, which Shen said is expected to be delivered over the next one to three fiscal years with gross-margin expansion. The backlog excludes approximately $22 million of unfunded purchase orders.
Ranor continues to install equipment funded by more than $24 million in grants from customers related to U.S. Navy submarine programs, according to Shen. He said the equipment investments are intended to build manufacturing capacity dedicated to submarine programs and cited continued customer confidence in the company’s delivery of quality components on time.
Shen said that performance has led to additional business awards and quoting opportunities for both Ranor and Stadco from existing defense customers as well as prospective new customers in air-defense and submarine-defense markets. He highlighted Stadco’s electron beam welding capability as a specialized capability that has generated interest from potential customers.
The company also said it is pursuing potential customer-supported capacity investments at Stadco, although Shen said he could not provide specifics. “We’re making progress,” he said, while Podgorski added that the progress was not yet visible.
Stadco Contract Review and Pricing Actions
During the question-and-answer session, management discussed its efforts to improve profitability on Stadco contracts, particularly older programs and first-article work. Shen said the company has made progress across multiple programs by reviewing manufacturing costs and approaches and, when warranted, submitting pricing adjustment requests to customers.
“When they’re warranted and adjudicated as such, they do come back with resolution in our favor,” Shen said of the pricing adjustments. “That has happened well the last quarter.”
Shen said less than half of Stadco’s business is affected by the legacy contract issues, though he did not provide a precise percentage because the business mix changes from quarter to quarter. He said newer orders are receiving greater scrutiny during quoting and execution, with additional internal checkpoints established through delivery.
Podgorski said the company has implemented a more robust estimate-to-complete process designed to identify potential issues earlier, particularly on first-article projects. Management also said that defects in customer-furnished materials can interrupt production and raise costs, requiring the company to work with customers on resolutions.
Shen said TechPrecision continues to see opportunities for revenue growth and improved profitability but acknowledged that further work is needed at Stadco. “We have more work to do with our Stadco subsidiary to get into the black,” he said.
About Techprecision (NASDAQ:TPCS)
TechPrecision, Inc (NASDAQ:TPCS) specializes in the design, engineering and manufacture of high-precision automated machinery and turnkey production solutions. The company’s core offerings include assembly, test and inspection equipment, servo-electric press systems and custom packaging machines tailored for industries with stringent quality and regulatory requirements. TechPrecision’s products support medical device, pharmaceutical, consumer goods and industrial applications, delivering end-to-end services from concept development and prototyping to full-scale production and after-market support.
Founded in 1987 and headquartered in Fredericksburg, Virginia, TechPrecision operates two primary manufacturing facilities: its U.S.
