Sypris Solutions, Inc. reported a net revenue of $35.7 million for the three months ended September 29, 2024, reflecting a 6.2% increase from $33.6 million in the same period of the previous year. For the nine months ended September 29, 2024, total net revenue reached $106.7 million, up 5.2% from $101.5 million in the prior year. The revenue growth was driven by the Sypris Electronics segment, which saw a 19.9% increase in revenue to $51.1 million, while Sypris Technologies experienced a decline of 5.5% to $55.7 million.

Gross profit for the third quarter increased significantly to $6.0 million, a 48.0% rise from $4.0 million year-over-year. Operating income also improved, reaching $1.7 million compared to a loss of $0.1 million in the prior year. However, the company reported a net income of $0.4 million for the third quarter, a turnaround from a net loss of $0.6 million in the same quarter of 2023. For the nine-month period, the net loss widened to $1.8 million from a loss of $0.5 million in the previous year.

The company’s cash and cash equivalents increased to $8.2 million as of September 29, 2024, compared to $7.9 million at the end of 2023. Accounts receivable rose significantly to $12.4 million, while inventory decreased to $67.3 million. Total current assets decreased to $99.4 million, down from $103.9 million at the end of 2023. Current liabilities also decreased to $78.8 million from $86.5 million.

Sypris Solutions has been managing liquidity through secured promissory notes, with obligations totaling $9.0 million from Gill Family Capital Management, up from $6.5 million at the end of 2023. The company has also entered into financing arrangements for equipment and machinery, with outstanding obligations of $2.6 million and $1.5 million, respectively.

Strategically, the company is navigating challenges posed by global economic conditions, including inflation and supply chain constraints. Sypris Technologies is diversifying into automotive and off-highway markets to mitigate revenue volatility. The Sypris Electronics segment is experiencing high demand, particularly in electronic circuit card assembly, which is expected to continue despite inflationary pressures.

Recent developments include a settlement agreement related to a lawsuit concerning a defective product, funded entirely by insurance. The company is also preparing for potential changes in forecasts by implementing cost reduction initiatives and adjusting operating expenses as necessary.