SigmaTron International, Inc. (SGMA): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of SigmaTron International's business engine now that Transom Capital Group finalized its acquisition back in July 2025. Honestly, understanding the new private structure is key, especially when their Trailing Twelve Month (TTM) revenue hovers near \$0.31 Billion USD (as of Nov 2025) while they manage new financing costs, like the \$3.33 million interest expense reported in Q3 FY2025. This Business Model Canvas distills exactly how they plan to keep delivering on their One Source, Global Options® promise across their manufacturing footprint in the US, China, and Vietnam. Dive in below; we'll map out the key partnerships and cost structure that define their path forward.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Key Partnerships

You're looking at the backbone of SigmaTron International, Inc.'s operations post-take-private, which hinges on a few critical external relationships. These aren't just vendors; they are integral to the 'One Source, Global Options®' strategy.

Strategic Ownership by Transom Capital Group (completed July 2025)

The shift to private ownership was finalized on July 28, 2025. Transom Capital Group acquired SigmaTron International, Inc. at an enterprise valuation of approximately $83 million. The tender offer price was set at $3.02 per share in cash. A total of 71.9% of outstanding shares were validly tendered and accepted for payment. This partnership is explicitly aimed at enhancing sales, operations, and profitability, with Transom looking to drive growth through strategic Mergers and Acquisitions (M&A).

Global Network of Component and Materials Suppliers

Managing the supply chain is central, given the nature of Electronic Manufacturing Services (EMS). The company's International Procurement Office (IPO) in Taipei, Taiwan, coordinates with regional Purchasing teams. SigmaTron International, Inc.'s Supply Chain Management team actively vets mechanical part suppliers, for example, in China, to meet specific quality, volume, and pricing requirements. The cost structure reflects this reliance on materials and direct labor.

Here's a look at the cost basis from the Fiscal Year 2025 (ending April 30, 2025) results:

Metric	Amount / Percentage	Context
FY2025 Net Sales	$304.72 million	Total revenue for the fiscal year ending April 30, 2025.
FY2025 Cost of Products Sold	$277.40 million	Direct costs, heavily influenced by component sourcing.
FY2025 Gross Profit Margin	9.0%	Indicates the cost absorption relative to sales.
FY2025 Pretax Gain on Sale/Leaseback	$7,175,191	One-time event impacting liquidity for debt servicing.

Financial Institutions for Senior and Subordinated Credit Facilities

The company's liquidity has historically relied on cash and availability under credit agreements. Prior to the take-private, management was focused on de-leveraging the balance sheet with Lincoln International. A key transaction impacting debt obligations was the sale/leaseback of the Elk Grove Village property in December 2024, where $7,266,912 was held in escrow as of January 31, 2025, specifically for debt repayment under credit agreements. The company's compliance with covenants under its credit facilities was a near-term consideration.

Strategic Engineering Partners like Infinite Vision for Design Collaboration

SigmaTron International, Inc. engages in collaborative product development, which is a key value-add service. A documented example involves a partnership with Infinite Vision. This collaboration resulted in an innovative, manufacturable/testable design for an Internet of Things (IoT) pet-related product manufacturer. This shows the use of external engineering expertise to support New Product Introduction (NPI) for customers.

Logistics and Freight Carriers for Global Supply Chain Management

The physical movement of goods relies on a global footprint and carrier network. SigmaTron International, Inc. operates seven global manufacturing facilities, with five located in North America (including Illinois and California sites) and others in Mexico, China, and Vietnam. The strategy emphasizes 'Near shoring for logistics convenience' and product migration to lower-cost regions.

The operational network includes:

• Manufacturing Sites: 7 global facilities.
• North America Facilities: 5 sites.
• International Procurement Office (IPO): 1 location in Taipei, Taiwan.
• Design Services Center (DSC): 1 hub in Elk Grove Village, Illinois.

The centralized Supply Chain Management (SCM) utilizes real-time systems to track inventory globally, ensuring a consistent approach whether products are built in the U.S. or Asia.

Finance: draft post-acquisition working capital target by Monday.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Key Activities

You're looking at the core engine of SigmaTron International, Inc. (SGMA) operations as of late 2025, grounded in the financial reality of the recent reporting periods. The activities here directly translate to the top-line performance, which, for the trailing twelve months (TTM) ending near November 2025, stood at approximately $0.31 Billion USD.

Manufacturing of Printed Circuit Board Assemblies (PCBAs)

The manufacturing of intricate and surface mount PCBAs remains central to the service offering, catering to demanding sectors like medical devices, defense, and industrial automation. The output volume directly impacts revenue, which for the three months ended January 31, 2025, was $71.1 million.

Here's a look at the recent revenue context:

Period Ended	Revenue Amount	Year-over-Year Change
January 31, 2025 (Q3 FY2025)	$71.1 million	-26 percent
January 31, 2024 (Q3 Prior Year)	$95.9 million	N/A
Nine Months Ended January 31, 2025	$230.6 million	-21 percent

End-to-end product lifecycle management and box-build assembly

SigmaTron International, Inc. manages the full process, from initial assembly to complete box-build and final assembly for its Original Equipment Manufacturer (OEM) clientele. This comprehensive approach is reflected in the profitability metrics, even when revenue dips. For the third quarter of fiscal 2025, net income reached $3.9 million, a significant improvement from $0.6 million in the same quarter the prior year.

The operational results for the nine-month period ending January 31, 2025, showed a net loss of $8.9 million, compared to a net income of $0.9 million for the same period in the prior year. Basic and diluted income per share for that nine-month period was a loss of $1.44.

Global supply chain management via the Taipei IPO

While the search results confirm a strategic global footprint, including facilities in the United States, Mexico, and China, specific financial data tied directly to a Taipei IPO is not present in the latest reports. The activity here centers on managing logistics across this footprint to optimize supply chain dynamics for international customers. The company was valued at approximately $83 million upon its acquisition completion in July 2025.

The operational locations supporting this activity include:

• Facilities in the United States
• Facilities in Mexico
• Facilities in China

Design services and New Product Introduction (NPI) support

A key activity involves proactive engagement during product development, offering Design for Manufacturability (DFM) and Design for Testability (DFT) consultation. This upstream support is critical for ensuring efficient and cost-effective manufacturing for new products. The net income for the three-month period ended January 31, 2025, was $3.9 million, which was helped by a one-time gain of approximately $7.2 million related to a sale/leaseback transaction for the Elk Grove Village facility during that quarter.

Inventory reduction and working capital optimization efforts

The company has been actively focusing on improving its balance sheet through inventory management. This focus is a direct response to the broader economic softness seen across the Electronic Manufacturing Services (EMS) sector. The basic and diluted income per share for the three-month period ended January 31, 2025, was $0.63.

Key financial outcomes related to balance sheet actions include:

• $7.2 million gain recorded from a sale/leaseback transaction in Q3 FY2025.
• Net loss of $8.9 million for the nine months ended January 31, 2025.
• Revenue for the nine-month period was $230.6 million.

Finance: draft 13-week cash view by Friday.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Key Resources

You're looking at the foundational assets SigmaTron International, Inc. used to run its Electronic Manufacturing Services (EMS) business leading up to its July 2025 acquisition by Transom Capital Group. These resources underpin their global operational capability.

Global Manufacturing Footprint and Capacity

SigmaTron International, Inc. operated under the philosophy of One Source, Global Options®, supported by a network of manufacturing sites across North America and Asia. This physical infrastructure is a primary Key Resource, allowing for nearshore and offshore production flexibility.

Region	Facility/Location Type	Approximate Square Footage (sf)	Key Certifications Noted
United States	Midwest Operations (Elk Grove Village, IL)	124,300	ISO 9001:2015, ISO 27001:2022
United States	West Coast Operations (Union City, CA)	117,000	ISO 9001:2015, ISO 13485:2016, FDB Certification
Mexico	Tijuana Operations	112,100	ISO 9001:2015, ISO 13485:2016, IATF 16949:2016
Mexico	Chihuahua Operations	113,000	ISO 13485:2016, ISO 9001:2015, IATF 16949:2016
Mexico	Acuña Operations	133,000	ISO 9001:2015
China	Suzhou Operations	202,000	ISO 9001:2015, ISO 13485:2016, ISO 14001:2015
Vietnam	Biên Hòa City Operations	26,479	ISO 9001:2015, ISO 14001:2015

The total number of manufacturing facilities across these regions is cited as seven.

International Procurement Office (IPO) in Taipei, Taiwan

Centralized sourcing and compliance functions were managed through Taiwan.

• Taiwan Purchasing Office: 4,685 sf.
• Taiwan Information Technology (IT) Office: 1,650 sf.

Technical Expertise in High-Reliability, Regulated Sectors

SigmaTron International, Inc.'s capability to serve demanding sectors is evidenced by specific quality and regulatory certifications held across its sites.

• Expertise supports Medical/Life Sciences, Defense and Aerospace, and Industrial Automation markets.
• Certifications include ISO 13485:2016 (Medical Devices Quality Management System).
• Certifications include IATF 16949:2016 (Automotive Quality Management System).
• Certifications include ISO 9001:2015 (General Quality Management System).
• Certifications include ISO 14001:2015 (Environmental Management System).

Global Workforce Size

The human capital base is a critical resource for executing complex manufacturing and testing services. The latest reported figure for the global workforce was:

Approximately 2,750 employees as of April 30, 2024.

To give you a sense of the operational scale these resources supported, here are some recent financial metrics leading up to the late 2025 timeframe:

Metric	Amount/Period	Date Reference
Trailing Twelve Month (TTM) Revenue	$0.31 Billion USD	As of November 2025
Revenue (9 Months Ended)	$230.6 million	January 31, 2025
Revenue (Q2 Fiscal 2025)	$74.7 million	Quarter ended October 31, 2024
Net Income (Q3 Fiscal 2025)	$3.9 million	Quarter ended January 31, 2025

Finance: draft 13-week cash view by Friday.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Value Propositions

You're looking at the core promises SigmaTron International, Inc. makes to its customers-the reasons they choose them over the massive contract manufacturers. It's about precision and flexibility, not just scale.

One Source, Global Options® for flexible nearshore/offshore production

This proposition centers on giving you options across their network. They aren't putting all your eggs in one geopolitical basket. This flexibility is supported by a physical footprint designed for regional sourcing strategies.

SigmaTron International, Inc. maintains facilities across key regions to support this global reach:

• U.S. location(s)
• Mexico location(s)
• China location(s)
• Vietnam location(s)

Here's a quick look at the scale of their operational base as of late 2025, even while navigating a tough market where their Trailing Twelve Months (TTM) revenue stood at approximately $0.31 Billion USD as of November 2025.

Metric	Value/Count	Context Year/Period
TTM Revenue	$0.31 Billion USD	As of November 2025
Total Manufacturing Space	Over 830,000 square feet	As of FY20
SMT Lines	Over 49 lines	To date
Active Customers	Over 168	Recent data

High-reliability manufacturing for mission-critical applications

SigmaTron International, Inc. doesn't chase every low-margin consumer widget; they focus on sectors where failure isn't an option. This means building products for demanding industries.

They serve a broad spectrum of markets that require this high-reliability focus:

• Medical/Life Sciences Devices
• Defense and Aerospace Programs
• Industrial Electronics and Automation
• Automotive and Telecommunications

The commitment to this level of quality is backed by their investment in people; their workforce has grown by 155% in 10 years to 2,800+ employees, many of whom are trained in advanced methodologies.

Full product lifecycle support from design to post-manufacturing

This value proposition means they partner with you from the very start, not just when the design is finalized. They integrate their expertise early to save you headaches later.

Key support services include:

• Design for Manufacturability (DFM) and Design for Testability (DFT) Consultation
• Robust Component Sourcing and Supply Chain Management
• Post-Manufacturing Solutions

Their supply chain management leverages regional Purchasing teams utilizing real-time systems to track inventory globally. This end-to-end service is what keeps them relevant, even when the top-line numbers are pressured, such as the nine-month fiscal 2025 revenue ending January 31, 2025, which was $230.6 million, down 21 percent year-over-year.

Customized, high-mix, medium-volume solutions for OEMs

They position themselves as the right size for Original Equipment Manufacturers (OEMs) needing complexity over sheer volume. They aren't trying to be the biggest; they aim to be the most adaptable partner for specific needs.

This customization is evident in their operational philosophy. While Q3 fiscal 2025 revenue (ended January 31, 2025) was $71.1 million, down 26 percent, the structure allows them to manage a high mix of programs for their customer base, which includes over 168 active customers.

Adherence to stringent quality standards (e.g., ISO 9001:2015)

Quality isn't a department; it's an embedded system. They ensure superior quality through a combination of well-trained people and robust systems, led by a Corporate Director of Quality and Compliance.

The commitment is formalized through numerous registrations:

• Over 7 quality certifications and registrations maintained.
• Deployment of Six Sigma Black Belts throughout the organization.
• Use of Six Sigma tools to drive improvement in manufacturing and administrative processes.

This focus on process control is critical, especially for their medical device customers who require industry-specific registrations like ISO 13485, which they possess. This operational rigor is what they promise, regardless of the quarterly financial noise, such as the Q3 fiscal 2025 net income of $3.9 million, which was significantly boosted by a $7.2 million one-time gain.

Finance: draft 13-week cash view by Friday.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Customer Relationships

You're looking at how SigmaTron International, Inc. manages the crucial link to its clients, which is especially important given the recent financial environment. Honestly, the relationship strategy has to be rock-solid when TTM revenue is around $0.31 Billion USD as of late 2025.

Dedicated account management for small to medium-sized OEMs

SigmaTron International, Inc. positions itself as being large enough to handle big commercialization efforts but small enough to customize service mixes for each client. This suggests a tailored approach, which often means dedicated attention, even for smaller Original Equipment Manufacturers (OEMs). The company's global footprint-seven manufacturing facilities across the United States, Mexico, China, and Vietnam-is the operational backbone supporting this localized relationship management.

High-touch, consultative relationship for complex, regulated products

For certain client segments, the relationship moves beyond simple transaction processing. Medical device and life science customers, for example, require maintaining superior product quality in a highly regulated environment while keeping costs competitive. This necessity drives a high-touch, consultative approach. The company's focus on end-to-end product lifecycle management for sectors like medical devices and defense requires deep integration into the customer's quality and compliance processes.

Long-term contracts and recurring business model

While specific contract terms are proprietary, the EMS model inherently relies on recurring business tied to product lifecycles. The company's operational structure, centered around its 'One Source, Global Options®' philosophy, is designed to foster long-term partnerships by offering supply chain flexibility. One specific contract mentioned in prior filings was set to expire on April 30, 2025, indicating the typical term structures in play. The near-term focus on inventory normalization and gradual demand recovery suggests management is working to secure future volume based on these established relationships.

Collaborative design and New Product Introduction (NPI) support

SigmaTron International, Inc. views New Product Introduction (NPI) as an opportunity to embed production-ready processes from the start. This is a highly collaborative function, offering product improvement recommendations like Design for Manufacturing (DFM) and Design for Test (DFT). The Elgin facility, for instance, led system-wide NPI capabilities in the prior fiscal year, expanding its DFx assessment and custom test development benefits across multiple industrial submarkets.

The NPI services include specific turnaround times to support rapid customer development:

• Quick-turn service: 1-3 days
• Standard service: 3-5 days
• Dedicated NPI lines and process team availability
• Testing options with minimal programming/tooling cost

The scale of operations managed through these relationships is reflected in the recent financial performance, which underscores the importance of maintaining high utilization across their global footprint:

Financial Metric (as of Late 2025)	Amount
Trailing Twelve Month (TTM) Revenue	$0.31 Billion USD
Q3 Fiscal 2025 Revenue	$71.1 million
Nine-Month Fiscal 2025 Revenue	$230.6 million
Q3 Fiscal 2025 Net Income (Including One-Time Gain)	$3.9 million
Q3 Fiscal 2025 Operating Loss (Underlying Operations)	$(0.8) million
Q3 Fiscal 2025 Gross Margin	7.8%
Q3 Fiscal 2025 Interest Expense	$3.33 million

Finance: draft the Q4 2025 revenue forecast based on backlog commentary by next Tuesday.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Channels

You're looking at how SigmaTron International, Inc. gets its Electronic Manufacturing Services (EMS) to the customer, which is all about a global, integrated physical footprint. The company's channel strategy hinges on being physically present where their Original Equipment Manufacturer (OEM) clients need them, supporting that with centralized procurement.

Direct sales force targeting Original Equipment Manufacturers (OEMs)

SigmaTron International, Inc. channels its services directly to OEMs, meaning there aren't layers of distributors or resellers in the primary sales path. This direct engagement is managed by a dedicated sales organization, led by roles like the Vice President of Sales, who focuses on building and managing those core customer relationships. This approach is necessary because the services-intricate PCB assembly, box build, and testing-require deep, early-stage collaboration, often starting with Design for Manufacturability (DFM) consultation. The scale of this direct channel is supported by the company's workforce, which stood at approximately 2,750 employees as of July 2025.

The company's philosophy, often described as One Source, Global Options®, is the backbone of this channel, allowing a customer to initiate a program in the U.S. and scale it seamlessly into Asia. This direct-to-OEM model is designed to capture the full value of their vertically integrated services.

Global network of seven manufacturing facilities

The physical delivery channel is built around a strategic global network. SigmaTron International, Inc. operates a total of seven manufacturing facilities to provide geographic diversification and risk mitigation for its international customer base. This physical presence allows for localized support and optimized supply chain dynamics for clients across various markets, including industrial automation and medical devices.

Here's a breakdown of the known locations that form this delivery network:

Region	Facility Location(s)	Known Operational Role
United States	Elk Grove Village, Illinois; Union City, California	Manufacturing, Design Services Center (DSC)
Mexico	Acuna, Chihuahua; Tijuana	Manufacturing
China	Suzhou	Manufacturing
Vietnam	Biên Hòa City	Manufacturing

The output from this network generated revenues of $71.1 million in the third quarter of fiscal 2025, showing the direct financial output of this physical channel.

International Procurement Office (IPO) for centralized sourcing

While manufacturing facilities handle the physical build, the sourcing channel is centralized to drive cost-efficiency. SigmaTron International, Inc. maintains an International Procurement Office (IPO), which also functions as its Compliance and Sustainability Center, located in Taipei, Taiwan. This office centralizes sourcing activities to help manage supply chain spend and deliver competitive pricing, which is a critical part of the value proposition to the OEM customer.

Direct fulfillment and logistics services to customer end-markets

The final step in the channel involves getting the finished product to the customer's required destination. SigmaTron International, Inc. provides direct fulfillment capabilities, managing the logistics from its manufacturing sites to the customer end-markets. This is integrated into their service offering, which includes full product lifecycle management. The company's focus on on-time delivery is a key performance indicator for this channel. The company is actively working on reducing inventory, which stood at $106.98 million as of January 31, 2025, to streamline working capital and improve the efficiency of this fulfillment pipeline.

The effectiveness of this channel strategy is reflected in the company's guidance, where management expected Q4 fiscal 2025 revenue to be higher than Q3 fiscal 2025 revenue based on the current backlog.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Customer Segments

SigmaTron International, Inc. provides electronic manufacturing services (EMS) to customers across several distinct end-user markets, a mix that was being actively rebalanced as of late 2025.

Industrial Electronics and Automation manufacturers

This segment represented a significant portion of the business, showing strong historical growth. For Fiscal Year 2023, industrial programs grew by 13.8% year-over-year and accounted for 67% of total revenues for that year. The company emphasizes offering complex, complete build printed circuit board assembly (PCBA) programs to these clients.

Medical/Life Sciences device companies

SigmaTron International, Inc. serves the Medical/Life Sciences industry. The company's commitment to common real-time systems across global facilities supports the superior product quality and regulatory compliance required by these highly regulated markets.

Defense and Aerospace programs

The focus on superior product quality and regulatory compliance, supported by system-wide approaches, positions SigmaTron International, Inc. to serve programs in the aerospace and defense sectors.

Automotive and Telecommunications equipment producers

While the company serves diverse end-user markets, specific, segment-level revenue contribution figures for Automotive and Telecommunications equipment producers for the latest fiscal periods were not explicitly broken out in the same detail as the Industrial segment.

Small to medium-sized Original Equipment Manufacturers (OEMs)

SigmaTron International, Inc. positions itself as a total solutions provider, offering services from engineering to fulfillment, which is designed to support a broad base of customers, including smaller OEMs seeking flexible manufacturing options through the company's global network.

The overall revenue context for late 2025, reflecting market softness, shows the scale against which these segments are currently operating:

Metric	Value	Date/Period
Revenue (TTM)	$311.71 Million USD	Trailing Twelve Months ending January 31, 2025
Revenue (9 Months)	$230.6 Million USD	Nine months ended January 31, 2025
Revenue (Q3)	$71.1 Million USD	Fiscal Quarter ended January 31, 2025
Industrial Segment Revenue Contribution (FY2023)	67% of Total Revenues	Fiscal Year 2023

The company markets its services through independent manufacturers' representative organizations. Following the completion of the Transom Capital acquisition in July 2025, the strategic focus on these customer segments is subject to the new ownership's direction.

• The company offers services including printed circuit board assemblies (PCBAs) and completely assembled (box-build) electronic products.
• The global network includes facilities in the United States, Mexico, China, and Vietnam.
• The company's approach is branded as One Source, Global Options®.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Cost Structure

The cost structure for SigmaTron International, Inc. (SGMA) is heavily influenced by the direct costs associated with its manufacturing operations, alongside significant financing expenses due to recent debt restructuring.

Cost of Goods Sold (COGS) for materials and components represents the single largest component of SigmaTron International, Inc.'s cost base. This cost category directly reflects the fluctuating prices and availability of raw materials and electronic components used in the assembly of their products. For the three-month period ended January 31, 2025, the Cost of products sold was $65,514,800, which was 92.1% of the $71.1 million in net sales for that quarter. Over the nine-month period ending January 31, 2025, this cost totaled $211,701,740.

Manufacturing labor and overhead costs across multiple geographies are embedded within the Cost of Products Sold. While a specific breakdown isn't provided, the overall gross margin compression suggests ongoing pressure on these operational costs relative to revenue. For instance, the gross margin for Q3 FY2025 compressed to 7.8%, indicating that direct manufacturing costs, including labor and overhead, consumed the vast majority of sales revenue. Management has been actively reducing the cost structure, reporting an operating profit in January 2025, which suggests some success in controlling these variable and fixed manufacturing expenses.

The financial structure introduced notable non-operating costs. Elevated interest expense was a clear factor, rising to $3.33 million in the third quarter of fiscal year 2025 (the three months ended January 31, 2025). This increase is directly tied to the financing arrangements SigmaTron International, Inc. put in place.

The costs related to debt modification and financing structure were significant in the preceding quarter. Approximately $3.3 million of expenses were recorded during the second quarter of fiscal 2025 related to debt modification, expensing of deferred financing costs, and lender warrants after remeasurement. Furthermore, an additional approximately $5.0 million noncash deferred tax charge was taken in that same period. These actions were necessary following amendments to credit agreements, which included waivers for covenant noncompliance.

Operating expenses for sales, general, and administrative (SG&A) have seen slight reductions as the company focuses on cost discipline. Here's a comparison of the SG&A line item:

Period Ended	SG&A Expense Amount	As Percentage of Net Sales (where available)
January 31, 2025 (Q3 FY2025)	$6,378,141	9.0%
January 31, 2024 (Q3 FY2024)	$6,683,488	7.0%
October 31, 2024 (Q2 FY2025, 3 months)	$6,370,511	N/A
October 31, 2024 (6 months)	$12,994,377	N/A

The reduction in SG&A for the three months ended January 31, 2025, compared to the prior year's quarter, was primarily due to a decrease in bonus expense and miscellaneous items.

The financing structure also involves ongoing obligations tied to the debt amendments:

• Revolving commitment reduction from $70 million to $55 million.
• Requirement to pay a cash amendment fee and monthly ticking fees until certain financial ratios are met or exceeded.
• Agreement to pursue a Replacement Transaction by September 30, 2025, unless a Total Debt to EBITDA Ratio of less than or equal to 4.25:1.0 is achieved by the end of August 2025.
• Issuance of warrants to purchase shares of common stock as part of the agreement.

Net debt and covenant pressures continue, with debt largely classified as current, repeating a going concern risk pending covenant compliance or the Replacement Transaction by September 2025.

SigmaTron International, Inc. (SGMA) - Canvas Business Model: Revenue Streams

You're looking at how SigmaTron International, Inc. brings in the cash, which is pretty straightforward for an electronic manufacturing services (EMS) provider. The core of the revenue comes from Electronic Manufacturing Services (EMS) contracts, which covers the assembly and production work you expect from a company like SigmaTron International, Inc. This also bundles in revenue from value-added services like design and testing, which are integrated into those larger manufacturing agreements.

To give you a sense of the scale as of early 2025, the trailing twelve-month (TTM) revenue, covering the period up to January 31, 2025, stood at $311.71 Million USD. That's just shy of the $0.31 Billion mark you mentioned, but it's the hard number from the latest full TTM period reported. Honestly, the near-term picture shows some softness, but management is looking for a gradual upturn.

Let's look at the most recent quarterly snapshot. For the three-month period ended January 31, 2025, which is the third quarter of fiscal year 2025 (Q3 FY2025), SigmaTron International, Inc. reported total revenues of $71.1 million. That was a year-over-year decrease of 26 percent from the prior year's Q3. You can see the sequential pressure too: revenue dropped from $84.8 million in Q1 to $74.7 million in Q2, ending at $71.1 million in Q3.

Now, here's a critical point for your analysis: the reported net income for Q3 FY2025 was significantly boosted by a non-operating item. SigmaTron International, Inc. recorded a one-time non-operating gain of approximately $7.2 million during that quarter, which came from a sale/leaseback transaction for their facility in Elk Grove Village, Illinois. Without that gain, the underlying operations showed weakness, with the quarter posting an operating loss of $\$(0.8)M$ and the gross margin compressing to 7.8%.

Here's a quick look at those key financial figures from the recent reporting period:

Metric	Amount/Value	Period/Context
Trailing Twelve-Month Revenue	$311.71 Million USD	Period ending January 31, 2025
Q3 FY2025 Revenue	$71.1 million	Three months ended January 31, 2025
Nine-Month Period Revenue	$230.6 million	Period ended January 31, 2025
Sale/Leaseback Non-Operating Gain	Approximately $7.2 million	Q3 FY2025
Q3 FY2025 Gross Margin	7.8%	Three months ended January 31, 2025

The revenue streams are fundamentally tied to the volume of EMS work secured. You should keep an eye on the backlog, as management suggested it points toward Q4 revenue being higher than the Q3 figure of $71.1 million, though they characterized the recovery as gradual. The reliance on these large contracts means revenue recognition can be lumpy, so that one-time gain really highlights the difference between reported net income and operational performance.

The core revenue generation activities include:

• Revenue from Electronic Manufacturing Services (EMS) contracts.
• Revenue from integrated value-added services like design and testing.
• One-time, non-recurring cash inflow from asset realization events, such as the Q3 FY2025 sale/leaseback.

Finance: draft 13-week cash view by Friday.