Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors

You are looking at Sypris Solutions, Inc. (SYPR) and seeing a mixed signal-a classic industrial story right now-so let's cut through the noise: the near-term financial health is stabilizing, but it's heavily dependent on a one-time gain and a booming defense segment offsetting a cyclical bust. For the nine months ended September 28, 2025, total revenue fell to $89.6 million from $106.7 million in the prior year, resulting in a year-to-date net loss of $2.4 million, and honestly, the -$4.6 million in operating cash flow is a defintely a concern. But, the Q3 net income of $0.5 million was largely propped up by a $2.5 million gain from a sale-leaseback, while the Sypris Electronics segment is showing real momentum, with year-to-date orders up 65% and a 14% rise in backlog since year-end 2024, a clear sign that defense and communication programs are compensating for the $8.0 million drop in Sypris Technologies' Q3 revenue due to the commercial vehicle downturn. The real question is whether the tailwind from that defense backlog can outrun the cyclical headwind in their legacy business.

Revenue Analysis

You're looking at Sypris Solutions, Inc. (SYPR) and the first thing to understand is that the company's top-line story in 2025 is a tale of two segments. The direct takeaway is that while overall revenue is down significantly due to cyclical pressures in commercial vehicles, the defense-focused Sypris Electronics segment is holding up, which is defintely a key point for future valuation.

For the first nine months of 2025, Sypris Solutions, Inc. reported total revenue of $89.6 million, a sharp decline from the $106.7 million reported in the comparable period of 2024. Here's the quick math: that's a year-over-year revenue decrease of approximately 16.03%. This contraction is a signal that market headwinds are real, but also that the company's diversification strategy is being tested.

This revenue stream is primarily split between two core business segments: Sypris Technologies and Sypris Electronics. Sypris Technologies focuses on truck components and oil/gas pipeline components, while Sypris Electronics provides specialized manufacturing for aerospace and defense electronics.

For the nine months ended September 28, 2025, the contribution of each segment to the overall $89.6 million in revenue shows a clear shift in the company's internal weighting:

Sypris Electronics is now the primary revenue driver, contributing over half of the year-to-date sales.

The most significant change in the revenue streams is the pronounced weakness in Sypris Technologies. Revenue for this segment fell from $55.7 million in the first nine months of 2024 to just $39.2 million in 2025. This 29.6% drop reflects the anticipated cyclical downturn in the commercial vehicle market, plus the near-term impact of tariffs and operational shifts at the Mexican facility, which converted some shipments to a lower-revenue, value-add only sub-maquiladora basis.

But, the Sypris Electronics story is different. This segment is showing resilience, driven by strong demand in the electronic warfare and communications markets, securing follow-on contracts for high-reliability subsea communication networks and U.S. Department of War missile systems. While its nine-month revenue was slightly down from 2024, its Q3 2025 revenue actually increased to $17.1 million from $16.2 million in the prior-year quarter, signaling a ramp-up in program execution. Orders for this segment were up a massive 65% year-to-date, pushing the backlog up 14% from year-end 2024. That's a clear sign of future revenue stability.

What this estimate hides is the full-year guidance: management projects 2025 revenue to land between $125 million and $135 million. This range is below the 2024 revenue of $140.2 million, confirming that the commercial vehicle slump is a major headwind they can't fully offset this year. Your action item is to track the execution of the Sypris Electronics backlog, which is critical for future growth.

You can dive deeper into the full financial picture by reading the full post here: Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking for a clear signal on Sypris Solutions, Inc. (SYPR)'s financial health, and the profitability data for the 2025 fiscal year shows a mixed but improving picture. The company is still operating at a net loss, but operational efficiency is defintely trending in the right direction, especially in its higher-margin segments. This isn't a high-margin business, but they are making smart, tactical improvements.

The most recent trailing twelve months (TTM) data, which gives us the clearest look at the current full-year performance, shows a Gross Profit Margin of 13.32% and a Net Profit Margin of -1.86%. The TTM Operating Profit Margin stands at 1.12%, which means they are generating a small profit from core business operations before interest and taxes.

Gross, Operating, and Net Margins: The 2025 Snapshot

Sypris Solutions, Inc.'s profitability in the first half of 2025 highlights the segment-specific challenges and successes. For the first six months of the year, the company reported a total revenue of $60.9 million and a net loss of $3.0 million. This half-year performance translates to a net loss margin of roughly -4.9%, which is wider than the TTM figure due to Q2's performance.

Here's the quick math on the first half of 2025 margins:

• Q1 2025 Gross Profit: $3.4 million on $29.5 million revenue, yielding an 11.5% margin.
• Q2 2025 Gross Profit: $2.5 million on $31.4 million revenue, yielding an approximately 8.0% margin.
• Q1 2025 Operating Loss: $130,000, a major improvement from the prior year's $1.4 million loss.

The Q2 gross margin decline is a near-term risk to watch, largely attributed to material availability issues affecting Sypris Electronics and tariff impacts on Sypris Technologies.

Profitability Trends and Operational Efficiency

The trend in profitability is one of careful operational improvement, even as revenue faces headwinds from cyclical market declines in commercial vehicles and a shift to a value-add sub-maquiladora model in Mexico. Management is focused on cost management, and it shows in the guidance for the full 2025 fiscal year.

Sypris Solutions, Inc. projects a full-year 2025 revenue range between $125 million and $135 million. More importantly, they anticipate a gross margin expansion in the range of 150 to 175 basis points over 2024, with gross profit expected to grow 10% to 15%. This projected growth in gross profit, despite a modest decline in revenue guidance, signals effective cost of goods sold (COGS) control and a favorable product mix shift toward higher-margin defense and energy products.

The operational efficiency gains are most visible in the segment performance, which is a key driver for your investment thesis:

Industry Comparison and Actionable Insights

When you compare Sypris Solutions, Inc.'s profitability to the broader industry, the numbers require context. The company's TTM Gross Margin of 13.32% is below the five-year average industry gross margin of 19.45%. However, the TTM Operating Margin of 0.59% and Net Profit Margin of -1.86% compare favorably to the five-year industry averages of -10.25% and -29.05%, respectively. This suggests that while they lag on core product margins, their selling, general, and administrative (SG&A) costs are much better controlled than many peers, helping them contain losses.

Sypris Solutions, Inc. is a small-cap player in a complex space, so their ability to secure a $47 million increase in orders for Sypris Electronics, boosting the backlog by 26% from the end of 2024, is a powerful indicator. This backlog is the foundation for future revenue and margin expansion. To be fair, a small backlog can be volatile, but this one is driven by strong demand in electronic warfare and defense contracts.

Next step: Dig into the capital structure, because profitability is only one part of the story. Exploring Sypris Solutions, Inc. (SYPR) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You need to know how Sypris Solutions, Inc. (SYPR) funds its operations, because that tells you how much financial risk you're taking on as an investor. The short answer is that the company leans more on shareholder capital than external debt, but its debt is highly concentrated with a related party, which is a key consideration.

As of September 27, 2025, Sypris Solutions, Inc. reports total debt of approximately $13.6 million against total shareholder equity of about $20.0 million. This modest debt load is a good sign for stability, especially in the cyclical manufacturing and defense sectors where the company operates.

Here's the quick math on the leverage profile:

• Total Debt-to-Equity (D/E) Ratio is roughly 0.68 (68.2%).
• The industry average for Aerospace & Defense is significantly lower, around 0.38.

Sypris Solutions, Inc.'s ratio of 0.68 is higher than the core industry average, suggesting a slightly more aggressive use of debt to finance assets compared to its peers. Still, a D/E ratio below 1.0 is defintely manageable, meaning equity holders still own more of the assets than creditors do.

The company's debt structure is split between short-term and long-term obligations, but the long-term component dominates and is tied to a single source. As of March 30, 2025, the current portion of long-term debt and finance lease obligations (the short-term debt component) was just $2.340 million. The real story is in the long-term financing.

The primary debt is a related-party note payable, which totaled $12.0 million in principal as of March 30, 2025. This note, with an interest rate of 9.25%, is owed to Gill Family Capital Management, Inc., an entity controlled by the company's CEO and a director.

This is how the company balances its funding-it relies on internal or related-party debt financing rather than issuing new public equity or seeking traditional bank loans, which can be an efficient way to secure capital when market conditions are tight. In January 2025, the company amended this promissory note, extending the maturity date with staggered payments from 2026 to 2029. This refinancing provides critical near-term liquidity support. Plus, a recent sale-leaseback of the Louisville, KY facility generated net cash proceeds of approximately $2.9 million, further shoring up cash without issuing equity.

Here is a snapshot of the debt composition:

The reliance on related-party financing is a double-edged sword: it shows management's commitment but also introduces potential conflicts of interest that you must monitor closely in the SEC filings. For a deeper dive into the company's long-term direction, review the Mission Statement, Vision, & Core Values of Sypris Solutions, Inc. (SYPR).

Next step: Check the cash flow statement for Q4 2025 to see if the $2.9 million from the sale-leaseback was used for debt reduction or working capital.

Liquidity and Solvency

You need to know if Sypris Solutions, Inc. (SYPR) can cover its short-term bills, especially with the current economic headwinds. The direct takeaway is that while the company's Current Ratio looks solid at a glance, its Quick Ratio signals a heavy reliance on inventory, which is a key liquidity risk you must track.

Assessing Sypris Solutions, Inc.'s Liquidity Positions

Liquidity is about cash on hand and assets easily convertible to cash. Sypris Solutions, Inc.'s balance sheet as of September 28, 2025, shows a mixed picture. The company's Current Ratio-current assets divided by current liabilities-is a healthy 1.54 ($84.386 million / $54.742 million). This means for every dollar of short-term debt, they have $1.54 in assets due within a year. That's defintely above the 1.0 benchmark, but the Quick Ratio (or acid-test ratio) tells a more cautious story.

The Quick Ratio strips out inventory, which can be slow to convert to cash. Here's the quick math: Current Assets of $84.386 million minus Inventory of $57.270 million, divided by Current Liabilities of $54.742 million, results in a Quick Ratio of just 0.50. A ratio below 1.0 is a warning sign; it means Sypris Solutions, Inc. would struggle to pay off its current liabilities if sales stalled and they couldn't move their inventory quickly. They are banking on those inventory sales.

• Current Ratio: 1.54 (Looks good).
• Quick Ratio: 0.50 (A liquidity concern).
• Working Capital: $29.644 million (Positive buffer).

Working Capital and Cash Flow Trends

Sypris Solutions, Inc.'s Working Capital (Current Assets minus Current Liabilities) is a positive $29.644 million as of Q3 2025. This positive buffer is good, but the trend in cash flow from operations (CFO) is where the real risk lies. For the nine months ended September 28, 2025, the company used $4.613 million in cash for its operating activities. This negative CFO means the core business is consuming cash, not generating it, which puts pressure on the working capital over time. This is the single most important number to watch.

To offset this, the Investing and Financing sections of the cash flow statement show actions taken to boost liquidity:

The $2.920 million net cash from the sale-leaseback of their Louisville, Kentucky facility and the existence of a $12.0 million related-party note payable (at 9.25% interest) are clear signs the company is actively managing its capital structure to shore up its cash position, which stood at $8.443 million at the end of Q3 2025. These are necessary, but non-core, activities to maintain liquidity.

What this estimate hides is the sustainability of their cash generation. The negative operating cash flow, coupled with a low Quick Ratio, means they are relying on inventory conversion and external financing to cover short-term needs. For a deeper dive into the market's perspective on these moves, you should read Exploring Sypris Solutions, Inc. (SYPR) Investor Profile: Who's Buying and Why?

Action: Monitor the Q4 2025 operating cash flow statement closely; it must show a move toward positive generation to alleviate the current liquidity concerns.

Valuation Analysis

You're asking the core question for any investor: Is Sypris Solutions, Inc. (SYPR) overvalued or undervalued right now? Based on the latest available data through the 2025 fiscal year, the valuation metrics point to a complex, high-multiple picture, suggesting the market is pricing in significant future growth or is defintely overvaluing the current fundamentals.

The direct takeaway is that Sypris Solutions, Inc. appears highly valued on a trailing basis, mostly because of its thin profitability, but the stock has delivered strong price performance over the last year. One analyst consensus is a 'Sell,' so be cautious.

Core Valuation Multiples (FY 2025)

When a company is still in a turnaround or highly cyclical, traditional valuation metrics can get messy. Sypris Solutions, Inc. is a perfect example of this. Since the company reported a negative trailing twelve months (TTM) Earnings Per Share (EPS) of -$0.11, the Price-to-Earnings (P/E) ratio is technically 'Not Applicable' (n/a). You can't divide a price by a negative number to get a meaningful multiple.

However, the Price-to-Book (P/B) ratio sits at a high 4.78, meaning investors are willing to pay nearly five times the company's net asset value. That's a premium, suggesting optimism about their intangible assets or future earnings power, particularly in the defense and aerospace segments. Here's the quick math on the key multiples:

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is the most striking, clocking in at an astronomical 296.31x on a trailing twelve-month basis. This figure is a huge red flag; it tells you that the market capitalization of approximately $47.21 million, plus debt, is valued at nearly 300 times the company's core operating cash flow proxy (EBITDA). What this estimate hides is that the EBITDA itself is likely very small, making the multiple disproportionately large.

Stock Performance and Analyst View

Despite the high valuation multiples, the stock price action has been strong. As of November 2025, the stock trades around $2.10 per share. Over the last 12 months, the stock has increased by approximately 50.74%. That's a substantial gain, but you have to remember the volatility: the 52-week range runs from a low of $1.34 to a high of $3.72.

The company does not pay a dividend, so you won't get any income from a dividend yield, and the payout ratio is 0%. This is common for companies focused on reinvesting capital for growth or managing a turnaround.

The analyst consensus is also a strong signal to consider. Wall Street analysts currently have a consensus rating of Sell for Sypris Solutions, Inc. This is based on at least one analyst issuing a sell rating in the last year, with a corresponding price target of $0.00. This is a rare, stark warning from the Street.

• Stock price is up over 50% in the last 12 months.
• 52-week price range shows high volatility: $1.34 to $3.72.
• Analyst consensus is a rare Sell rating.

If you want to dig deeper into the company's strategic direction to understand the analyst's bearish view better, you should review their Mission Statement, Vision, & Core Values of Sypris Solutions, Inc. (SYPR).

Risk Factors

You're looking at Sypris Solutions, Inc. (SYPR) and seeing a complex picture-a company with a strong defense backlog but facing real headwinds in its legacy markets. The core takeaway for you is this: while the Sypris Electronics segment shows promise, the cyclical and regulatory pressures on Sypris Technologies are currently driving the overall financial health, leading to a year-to-date net loss of $2.4 million as of the third quarter of 2025.

The biggest near-term risk is the weakness in the commercial vehicle market, which is a major customer for Sypris Technologies. This cyclical downturn, combined with the impact of tariffs, caused Sypris Technologies' Q3 2025 revenue to plummet to $11.5 million, down significantly from $19.5 million in the prior-year period. That's a huge drop, and it directly affects the bottom line. Honestly, the core demand is softer right now.

Operational and Financial Risks

The company's financial health is defintely strained by internal operational issues and the need for external financing. For the first nine months of 2025, the company's total revenue fell to $89.6 million from $106.7 million in the same period of 2024. This revenue decline, plus production inefficiencies, hit gross margins hard, especially in Sypris Electronics, where gross profit fell to just 2.5% of revenue in Q2 2025, down from 16.5% a year earlier.

Here's the quick math on liquidity: cash from operations was a use of $4.613 million year-to-date through Q3 2025. To support this, they executed a sale-leaseback of their Louisville, KY facility, generating a one-time gain of $2.506 million and about $2.920 million in net cash proceeds. While this provided a necessary boost, it masked an underlying operating loss.

• Profitability Challenge: Failure to achieve and maintain consistent profitability remains a primary strategic risk.
• Supply Chain Pressure: Material availability issues have caused out-of-sequence manufacturing, driving up costs and decreasing operational efficiency.
• Debt Structure: Liquidity is supported by a related-party note payable totaling $12.0 million in principal, bearing 9.25% interest as of September 28, 2025.

Mitigation and Strategic Offsets

Sypris Solutions, Inc. is not just sitting still. They have clear mitigation strategies, primarily by leaning heavily on their defense-focused Sypris Electronics segment. The backlog for Sypris Electronics exceeds $90 million and is expected to support growth through 2025 and beyond. Also, remaining performance obligations, largely within this segment, stood at $76.946 million as of Q3 2025.

To be fair, they are actively working to offset the commercial vehicle weakness and supply chain issues:

• Tariff Mitigation: They converted their Mexican facility shipments to a value-add only sub-maquiladora model, which reduces reported revenue but mitigates the tariff impact on transportation customers.
• Supply Chain Control: The company is procuring inventory under multi-year purchase orders for key programs to mitigate future supply chain issues.
• Market Diversification: They are aggressively pursuing new markets for Sypris Technologies, including applications in CO2 capture and supporting the steep increase in electricity demand from data centers for AI, which should help diversify their industry portfolio.

The strategic move into energy-related products is a smart pivot, but the success of this diversification must be monitored closely to see if it can truly offset the cyclical declines in commercial vehicles. For a deeper dive into the company's valuation, you should review the full analysis at Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors.

Growth Opportunities

Sypris Solutions, Inc. (SYPR) is navigating a difficult year, with consolidated year-to-date revenue down, but the future growth story is clearly split: strong demand in defense electronics is offsetting a deep cyclical slump in commercial vehicle components. Your focus should be on the backlog in the Sypris Electronics segment, which is the defintive engine for near-term growth.

The company's initial 2025 revenue guidance was between $125 million and $135 million, but the actual nine-month (YTD) revenue through September 28, 2025, hit only $89.61 million, showing the headwinds are real. Still, management expects gross profit to grow between 10% and 15% for the full year, a testament to operational changes like converting some Mexican facility shipments to a sub-maquiladora basis to manage tariffs.

The Two-Speed Growth Engine

Sypris Solutions' growth prospects are a tale of two segments, with Sypris Electronics carrying the load. This segment's YTD orders are up an impressive 65%, boosting the overall backlog by 14% since the end of 2024. That's a clean one-liner: Defense is driving the bus.

Here's the quick math on where the growth is coming from:

• Product Innovations: Sypris Electronics secured follow-on contracts for electronic power supply modules in high-reliability subsea communication networks, with production extending through 2026. They also won a contract for a classified missile avionics program and embedded circuit card assemblies for the U.S. Army's Key Management System, both starting production in 2026.
• Market Expansions: Sypris Technologies is actively diversifying away from the cyclical commercial vehicle market, which is projected to see production down 28% from 2024 levels. They are pursuing new opportunities in adjacent energy markets like CO2 capture and Liquefied Natural Gas (LNG) demand, plus adding programs in the automotive, sport-utility, and off-highway sectors.
• Energy Backlog: The backlog for energy products, which includes the Tube Turns® brand, rose 59% in the year-to-date period of 2025, showing real traction in the diversification effort.

Competitive Moat and Financial Reality

The company's competitive advantage (or 'moat') is rooted in its specialization in complex, high-cost-of-failure applications, particularly within Sypris Electronics. This means they provide mission-critical electronic solutions for defense, space, and deep sea communications, often under multi-year, sole-source contracts with government agencies. This specialization creates a high barrier to entry for competitors and provides revenue stability, even as the Sypris Technologies segment faces a cyclical downturn.

To be fair, the overall financial picture for 2025 is still a struggle. While Q3 2025 showed a net income of $0.5 million, this was largely helped by a one-time $2.506 million gain from a sale-leaseback of their Louisville, KY facility. The YTD net loss is still $2.43 million.

Here's a snapshot of the core financial performance for the first nine months of 2025:

What this estimate hides is the timing lag: the significant Electronics contract wins and the increase in energy backlog won't fully translate to revenue until 2026, so you need to look past the immediate YTD loss.

For a deeper dive into the organizational foundation driving these segments, you can review the Mission Statement, Vision, & Core Values of Sypris Solutions, Inc. (SYPR).

Your next step is to track the Q4 2025 earnings release for a final revenue number and any updates on the 2026 production ramp-up in Sypris Electronics.