Latest news with #Sypris
Business Wire
3 days ago
- Business
- Business Wire
Sypris Receives New Award Under Electronic Warfare Program
TAMPA, Fla.--(BUSINESS WIRE)--Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc. (Nasdaq/GM: SYPR), today announced it has received a follow-on award to support continued production of critical electronic assemblies first announced in 2022. Under the new order, Sypris will manufacture and test electronic assemblies for an additional four systems to be delivered to a U.S. Department of Defense contractor, with deliveries scheduled to begin in 2026. Terms of the award were not disclosed. The modules to be produced by Sypris will be integrated into an electronic warfare improvement program for the U.S. Navy. According to news sources, the upgrade will provide the capability to actively jam incoming missiles that threaten a warship, cue decoys and adapt quickly to evolving threats. The improvements to the electronic attack portion will provide integrated countermeasures against radio frequency-guided threats, according to the U.S. Navy. The U.S. Naval Institute reported that the system's capability for non-kinetic electronic attack options can be further deployed in additional critical areas. From advanced communications to multi-role waveforms, the multi-function applications of the system will provide enhanced mission capabilities to the U.S. Navy Fleet while presenting opportunities for future reductions in cost, size, weight, and power. 'We are pleased to receive this award and to continue our strong partnership with this key customer,' said Mike Sedgwick, Vice President & General Manager of Sypris Electronics. 'Our team has supported this critical program for many years, beginning with the Engineering and Manufacturing Development phase, advancing through Low-Rate Initial Production, and now into Full-Rate Production. We are proud to expand our role on this strategic, long-term program in support of the U.S. Navy.' Sypris Electronics is a trusted provider of engineering and manufacturing services for complex, mission-critical electronic solutions for customers in the Defense, Space, Deep Sea Communications, and Industrial markets. Backed by over 50 years of experience, the Company specializes in producing electronics for high-cost-of-failure applications. For more information, please visit Forward-Looking Statements This press release contains 'forward-looking' statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; the termination or non-renewal of existing contracts by customers; our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources or require us to sell assets to fund operating losses; volatility of our customers' forecasts and our contractual obligations to meet current scheduling demands and production levels, which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; cost, quality and availability or lead times of raw materials such as steel, component parts (especially electronic components), natural gas or utilities including increased cost relating to inflation, as well as the impact of proposed or imposed tariffs by the U.S. government on imports to the U.S. and/or the imposition of retaliatory tariffs by foreign countries; our reliance on a few key customers, third party vendors and sub-suppliers; risks of foreign operations, including foreign currency exchange rate risk exposure, which could impact our operating results; our failure to successfully complete final contract negotiations with regard to our announced contract 'orders', 'wins' or 'awards'; significant delays or reductions due to a prolonged continuing resolution or U.S. government shutdown reducing the spending on products and services that Sypris Electronics provides; the cost, quality, timeliness, efficiency and yield of our operations and capital investments, including the impact of inflation, tariffs, product recalls or related liabilities, employee training, working capital, production schedules, cycle times, scrap rates, injuries, wages, overtime costs, freight or expediting costs; inventory valuation risks including excessive or obsolescent valuations or price erosions of raw materials or component parts on hand or other potential impairments, non-recoverability or write-offs of assets or deferred costs; adverse impacts of new technologies or other competitive pressures which increase our costs or erode our margins; the costs and supply of insurance on acceptable terms and with adequate coverage; unanticipated or uninsured product liability claims, disasters, public health crises, losses or business risks; breakdowns, relocations or major repairs of machinery and equipment, especially in our Toluca Plant; the costs of compliance with our auditing, regulatory or contractual obligations; pension valuation, health care or other benefit costs; dependence on, retention or recruitment of key employees and highly skilled personnel and distribution of our human capital; our reliance on revenues from customers in the oil and gas and automotive markets, with increasing consumer pressure for reductions in environmental impacts attributed to greenhouse gas emissions and increased vehicle fuel economy; our failure to successfully win new business or develop new or improved products or new markets for our products; war, geopolitical conflict, terrorism, or political uncertainty, or disruptions resulting from the Russia-Ukraine war or the Israel and Gaza conflict, including arising out of international sanctions, foreign currency fluctuations and other economic impacts; labor relations; strikes; union negotiations; disputes or litigation involving governmental, supplier, customer, employee, creditor, stockholder, premises liability, personal injury, product liability, warranty or environmental claims; failure to adequately insure or to identify product liability, environmental or other insurable risks; costs associated with environmental or other claims relating to properties previously owned; our inability to patent or otherwise protect our inventions or other intellectual property rights from potential competitors or fully exploit such rights which could materially affect our ability to compete in our chosen markets; changes in licenses, security clearances, or other legal rights to operate, manage our work force or import and export as needed; cyber security threats and disruptions, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which may become more pronounced in the event of geopolitical conflicts and other uncertainties, such as the conflict in Ukraine; our ability to maintain compliance with the Nasdaq listing standards minimum closing bid price; risks related to owning our common stock, including increased volatility; possible public policy response to a public health emergency, including U.S. or foreign government legislation or restrictions that may impact our operations or supply chain; or unknown risks and uncertainties. We undertake no obligation to update our forward-looking statements, except as may be required by law.
Yahoo
20-05-2025
- Business
- Yahoo
SYPR's Q1 Loss Narrows Y/Y on Margin Gains, Electronics Backlog Growth
Shares of Sypris Solutions, Inc. SYPR have slipped 0.6% since the company reported earnings for the first quarter of 2025, trailing the S&P 500's 1.4% growth over the same period. Over the past month, the stock has also declined 0.6%, sharply underperforming the broader market's robust 15.4% climb. For the quarter ended March 30, 2025, Sypris incurred a net loss of 4 cents per share, which narrowed from 10 cents per share a year earlier. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company reported revenue of $29.5 million, marking a 17% year-over-year decline from $35.6 million in the prior-year period. The revenue dip was attributed to a downturn in the commercial vehicle market, shipment delays at Sypris Electronics, and the shift to a sub-maquiladora operating model in Mexico, which reduced recognized revenue. Despite the revenue contraction, Sypris narrowed its net loss to $0.9 million from a net loss of $2.2 million a year earlier, reflecting improved operational efficiencies and a better gross margin profile. Sypris Solutions, Inc. price-consensus-eps-surprise-chart | Sypris Solutions, Inc. Quote Gross profit increased 16.7% year over year to $3.4 million, up from $2.9 million, while consolidated gross margin rose by 330 basis points. The Electronics segment was a notable driver, with gross profit surging 51.1% to $1.3 million due to a more favorable program mix and cost efficiencies on ramped contracts. Gross margin in this segment improved 310 basis points to 7.9%. Meanwhile, Sypris Technologies maintained flat gross profit at $2.1 million, but its margin jumped 430 basis points to 15.5%, buoyed by favorable foreign exchange in Mexico. CEO Jeffrey T. Gill emphasized the company's commitment to operational excellence, noting that Sypris Electronics now boasts a backlog exceeding $80 million, more than a year's worth of sales for the segment. A portion of these contracts is already funded, allowing the company to place long-lead inventory orders and mitigate supply chain risk. Gill also acknowledged macroeconomic headwinds, particularly tariff-related uncertainty, and stated that despite a modest decline in production volumes for the commercial vehicle market, diversified end-market exposure should cushion the impact. The drop in revenues for both business segments was largely cyclical and operational. For Sypris Technologies, revenue fell to $13.6 million from $18.4 million, reflecting both end-market weakness and a $1.6 million impact from its transition to sub-maquiladora operations in Mexico. Nevertheless, foreign exchange tailwinds helped maintain profitability. Sypris Electronics saw revenues decline to $15.9 million from $17.2 million, primarily due to customer delivery timing. However, a $0.6 million equitable adjustment tied to a scope modification in a major contract positively affected profitability. Given macroeconomic uncertainty, particularly the unclear ramifications of new tariffs, management has withdrawn its full-year 2025 guidance initially issued on March 27, 2025. The company stated it would suspend future guidance until greater visibility emerges. While acknowledging an expected modest revenue decline due to the Mexican shipment conversion and softer commercial vehicle demand, Gill pointed to the electronics backlog and robust energy product orders as potential offsets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sypris Solutions, Inc. (SYPR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
