Servotronics, Inc. (NYSE American: SVT) reported its financial results for the three and nine months ended September 30, 2024, highlighting a notable increase in revenue alongside ongoing challenges in profitability. For the three-month period, total revenue reached $12,430,000, marking a 7.3% increase from $11,582,000 in the same quarter of 2023. For the nine-month period, revenue rose to $35,149,000, up 12.3% from $31,291,000 year-over-year. Domestic revenue contributed significantly to this growth, with figures of $9,221,000 for Q3 2024 (up from $7,930,000) and $26,181,000 for the nine-month period (up from $22,528,000).

Despite the revenue growth, the company reported a net loss of $(496,000) for the three months ended September 30, 2024, compared to a smaller loss of $(204,000) in the same period of 2023. The nine-month net loss also improved significantly to $(323,000) from $(11,252,000) in the prior year, indicating a substantial reduction in losses. The gross profit for the three months was $2,268,000, down from $2,499,000, while for the nine months, gross profit increased to $7,066,000 from $5,039,000, reflecting a 40.2% growth.

Operating expenses showed a decline, with selling, general, and administrative expenses for Q3 2024 at $1,979,000, down from $2,219,000 in 2023. However, total operating expenses for the three months increased to $2,549,000 from $2,219,000, primarily due to a legal settlement expense of $570,000, which was not present in the previous year.

The company’s strategic focus has shifted following the divestiture of its Consumer Products Group in 2023, allowing it to concentrate on its Advanced Technology Group operations. This strategic realignment aims to enhance profitability amid challenges in the commercial aerospace market, which is currently facing supply chain disruptions and labor shortages.

As of September 30, 2024, total assets increased to $37,663,000 from $36,587,000 at the end of 2023, while total current liabilities rose to $8,633,000 from $7,928,000. The company’s cash position decreased to $46,000 from $95,000, and the outstanding balance on its credit facility increased to $3,169,000 from $2,103,000.

Management is actively working to align production output with customer demand forecasts to improve profitability and is focused on managing costs and cash flow to enhance shareholder value.