Servotronics, Inc. reported a revenue increase of 3.0% for the fiscal year ending December 31, 2024, reaching $44.9 million compared to $43.6 million in 2023. The company’s gross profit also improved, rising by 5.9% to $8.3 million, resulting in a gross margin of 18.4%, up from 17.9% the previous year. Despite these gains, Servotronics experienced an operating loss of $1.0 million, a significant improvement from the $2.1 million loss reported in 2023. The net loss from continuing operations was $1.5 million, compared to a loss of $3.5 million in the prior year, indicating a positive trend in financial performance.
The company underwent a strategic transformation in 2023, divesting its Consumer Products Group (CPG) segment to focus solely on its servo-control business, which serves the aerospace, government, medical, and industrial markets. This shift has allowed Servotronics to streamline operations and concentrate on high-performance servo-control valves. The divestiture was part of a broader effort to enhance operational efficiency and align the company’s resources with its core competencies in aerospace.
Operationally, Servotronics faced challenges in the latter half of 2024, as customer demand shifted, leading to increased inventory levels and delivery delays. The company reported a decrease in foreign sales, which fell from $12.1 million in 2023 to $11.4 million in 2024, a decline of 6.1%. However, the company maintained a workforce of 262 employees, with 88% engaged in production and engineering roles, reflecting a commitment to retaining talent and improving employee engagement, which has reportedly increased from 60% in 2022 to nearly 90% in 2024.
Looking ahead, Servotronics remains optimistic about its growth prospects, citing strong underlying demand for its products and a solid backlog of orders. The company plans to enhance its operational efficiencies and continue investing in research and development to drive innovation. Management believes that as the aerospace industry recovers and builds rates increase in 2025, Servotronics is well-positioned to capitalize on these opportunities and achieve profitable growth. The company’s strategic focus on expanding its market presence in both commercial and defense sectors is expected to further bolster its performance in the coming years.
About SERVOTRONICS INC /DE/
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