What changed in this filing

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Item 1. Financial Statements

2025-05-15 compared with 2025-02-14 · 176 added, 66 removed, 447 unchanged (35% of the section changed)

5 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Net sales $ 19,027 $ 20,515 $ 39,910 $ 35,989

Cost of goods sold 17,457 19,021 37,412 35,040

Gross profit (loss) 928 ( 545 )

Gross profit 1,570 1,494 2,498 949

Selling, general and administrative expenses 2,351 2,819 5,191 5,922

Loss on disposal of operating assets — 4 — 4

Operating loss ( 781 ) ( 1,329 ) ( 2,693 ) ( 4,977 )

Interest expense, net 428 818 897 1,160

Foreign currency exchange (gain) loss, net ( 2 ) 4

Foreign currency exchange loss (gain), net 1 ( 3 ) ( 1 ) 1

Other expense, net 37 83 75 153

2 unchanged sentences

Loss from continuing operations ( 1,322 ) ( 2,232 ) ( 3,744 ) ( 6,302 )

Income from discontinued operations, net of tax 106 647

(Loss) income from discontinued operations, net of tax ( 70 ) 642 36 1,289

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

1 unchanged sentence

Basic and diluted loss per share from continuing operations $ ( 0.22 ) $ ( 0.38 ) $ ( 0.62 ) $ ( 1.05 )

Basic and diluted earnings per share from discontinued operations 0.02 0.10

Basic and diluted (loss) earnings per share from discontinued operations ( 0.01 ) 0.11 0.01 0.21

Basic and diluted loss per share $ ( 0.23 ) $ ( 0.27 ) $ ( 0.61 ) $ ( 0.84 )

7 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

1 unchanged sentence

Foreign currency translation adjustment, net of tax — ( 128 ) — 125

Reclassification of foreign translation adjustments to net loss — — 5,554 —

Retirement plan liability adjustment, net of tax 22 43 45 86

Other — — ( 2 ) 1

Comprehensive income (loss) $ 3,259 $ ( 3,126 )

Comprehensive (loss) income $ ( 1,370 ) $ ( 1,675 ) $ 1,889 $ ( 4,801 )

See notes to unaudited consolidated condensed financial statements.

37 unchanged sentences

Noncurrent liabilities of discontinued operations — 3,890

Commitments and Contingencies (Note 11 )

Shareholders’ equity:

Serial preferred shares, no par value, authorized 1,000 shares;

zero shares issued and outstanding at December 31, 2024 and September 30, 2024

zero shares issued and outstanding at March 31, 2025 and September 30, 2024

Common shares, par value $ 1 per share, authorized 10,000 shares;

issued and outstanding shares 6,147 at December 31, 2024 and 6,158 at September 30, 2024

issued and outstanding shares 6,190 at March 31, 2025 and 6,158 at September 30, 2024

Additional paid-in capital 11,796 11,775

8 unchanged sentences

(Unaudited, Amounts in thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

5 unchanged sentences

Amortization of debt issuance costs 93 352

Gain on disposal of operating assets — 4

LIFO effect ( 136 ) 351

1 unchanged sentence

Inventory valuation accounts 347 468

Deferred income taxes 138 ( 142 )

Interest added to promissory note - related party (paid-in-kind) 27 106

Other short-term liabilities 10 —

Other long-term liabilities 1 144

Deferred income taxes 65 ( 24 )

Changes in operating assets and liabilities:

11 unchanged sentences

Capital expenditures ( 263 ) ( 1,155 )

Net cash provided by (used for) investing activities ( 109 ) ( 482 )

Net cash used for investing activities ( 263 ) ( 1,155 )

Cash flows from financing activities:

15 unchanged sentences

Net cash provided by discontinued operations 13,506 413

Increase in cash and cash equivalents 420 2,838

(Decrease) increase in cash and cash equivalents ( 801 ) 379

Cash and cash equivalents at the beginning of the period 2,723 368

6 unchanged sentences

(Unaudited, Amounts in thousands)

Three Months Ended

Six Months Ended

Cash paid during the year:

Cash paid for interest $ ( 786 ) $ ( 677 )

Cash paid for income taxes, net ( 16 ) ( 19 )

Non-cash investing and financing activities:

10 unchanged sentences

Three Months Ended

December 31, 2024

March 31, 2025

Common Shares Additional

4 unchanged sentences

Shares Amount

Balance at September 30, 2024 6,158 $ 6,158 $ 11,775 $ 17,881 $ ( 5,389 ) $ 30,425

Balance at January 1, 2025 6,147 $ 6,147 $ 11,778 $ 15,565 $ 186 $ 33,676

Comprehensive (loss) income — — — ( 1,392 ) 22 ( 1,370 )

1 unchanged sentence

Share transactions under equity-based plans 43 43 ( 49 ) — — ( 6 )

Balance at December 31, 2024 6,147 $ 6,147 $ 11,778 $ 15,565 $ 186 $ 33,676

Balance at March 31, 2025 6,190 $ 6,190 $ 11,796 $ 14,173 $ 208 $ 32,367

Three Months Ended

December 31, 2023

March 31, 2024

Common Shares Additional

1 unchanged sentence

Earnings Accumulated

Comprehensive Income (Loss) Total

Shareholders’

Shares Amount

Balance at January 1, 2024 6,160 $ 6,160 $ 11,609 $ 19,842 $ ( 6,364 ) $ 31,247

Comprehensive loss — — — ( 1,590 ) ( 85 ) ( 1,675 )

Performance and restricted share expense — — 84 — — 84

Share transactions under equity-based plans 30 30 ( 30 ) — — —

Balance at March 31, 2024 6,190 $ 6,190 $ 11,663 $ 18,252 $ ( 6,449 ) $ 29,656

Six Months Ended

March 31, 2025

Common Shares Additional

Capital Retained

Earnings Accumulated

Comprehensive

1 unchanged sentence

Shares Amount

Balance at September 30, 2023 6,105 $ 6,105 $ 11,626 $ 23,264 $ ( 6,660 ) $ 34,335

Balance at October 1, 2024 6,158 $ 6,158 $ 11,775 $ 17,881 $ ( 5,389 ) $ 30,425

Comprehensive (loss) income — — — ( 3,708 ) 5,597 1,889

1 unchanged sentence

Share transactions under equity-based plans 32 32 ( 66 ) — — ( 34 )

Balance at December 31, 2023 6,160 $ 6,160 $ 11,609 $ 19,842 $ ( 6,364 ) $ 31,247

Balance at March 31, 2025 6,190 $ 6,190 $ 11,796 $ 14,173 $ 208 $ 32,367

Six Months Ended

March 31, 2024

Common Shares Additional

Capital Retained

Earnings Accumulated

Comprehensive

Shareholders’

Shares Amount

Balance at October 1, 2023 6,105 $ 6,105 $ 11,626 $ 23,264 $ ( 6,660 ) $ 34,335

Comprehensive (loss) income — — — ( 5,012 ) 211 ( 4,801 )

Performance and restricted share expense — — 171 — — 171

Share transactions under equity-based plans 85 85 ( 134 ) — — ( 49 )

Balance at March 31, 2024 6,190 $ 6,190 $ 11,663 $ 18,252 $ ( 6,449 ) $ 29,656

See notes to unaudited consolidated condensed financial statements.

7 unchanged sentences

and its wholly-owned subsidiaries (collectively, the “Company”).

All significant intercompany accounts and transactions have been eliminated in consolidation.

In October 2024, the Company sold its European operations in order to streamline operational synergies and refocus on its core aerospace forging business.

All intercompany accounts and transactions have been eliminated in consolidation.

In October 2024, the Company sold its European operations in order to streamline operations and refocus on its core aerospace forging business.

SIFCO Irish Holdings, Ltd., a wholly-owned subsidiary of the Company, entered into a Share Purchase Agreement (the “SPA”) pursuant to which it sold 100 % of the share capital of C Blade S.p.A.

24 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Loss from continuing operations $ ( 1,322 ) ( 2,232 ) $ ( 3,744 ) ( 6,302 )

Income from discontinued operations, net of tax 106 647

(Loss) income from discontinued operations, net of tax ( 70 ) 642 36 1,289

Net loss $ ( 1,392 ) $ ( 1,590 ) $ ( 3,708 ) $ ( 5,013 )

7 unchanged sentences

None applicable.

Impact of Newly Issued Accounting Standards

In January 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date” (“ASU 2025-01”).

ASU 2025-01 outlines the effective date of ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses” (“ASU 2024-03”), as the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption of ASU 2024-03 is still permitted.

ASU 2024-03 requires both interim and annual disclosures pertaining to expense captions on the face of the income statement within continuing operations containing the following amounts:

(i) purchases of inventory, (ii) employee compensation, (iii) depreciation, (iv) intangible asset amortization, and (v) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption.

This disaggregated information will be required to be disclosed with other disaggregated amounts under other U.S.

GAAP guidance, such as revenue and income taxes.

Additionally, a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and total selling expenses and a definition of such costs (in annual reporting periods only) should be disclosed.

More granular information about cost of sales and selling, general, and administrative expenses (SG&A) would assist a reader of the Company's consolidated financial statements in better understanding an entity’s cost structure and forecasting future cash flows.

The amendments in ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of the ASU or (2) retrospectively to any or all prior periods presented in the financial statements.

The Company is currently assessing the impact of this standard on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures”, that would enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC 280.

ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations.

The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses.

Currently, Topic 280 requires that a public entity disclose certain information about its reportable segments.

For example, a public entity is required to report a measure of segment profit or loss that the CODM uses to assess segment performance and make decisions about allocating resources.

ASC 280 also requires other specified segment items and amounts such as depreciation, amortization and depletion expense to be disclosed under certain circumstances.

The amendments in ASU 2023-07 do not change or remove those disclosure requirements.

The amendments in ASU 2023-07 also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

A public entity should apply the amendments in ASU 2023-07 retrospectively to all prior periods presented in the financial statements.

The Company does not anticipate the adoption of ASU 2023-07 to have a significant impact on the consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures”.

ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures.

The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information.

Early adoption is permitted.

A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024.

The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.

Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.

The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.

Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1 - Quoted market prices in active markets for identical assets or liabilities

Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data

Level 3 - Unobservable inputs that are not corroborated by market data

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The book value of cash equivalents, accounts receivable, and accounts payable are considered to be representative of their fair values because of their short maturities.

The carrying value of debt is considered to approximate the fair value based on the borrowing rates currently available to us for loans with similar terms and maturities.

Fair value measurements of non-financial assets and non-financial liabilities are primarily used in goodwill, other intangible assets and long-lived assets impairment analysis, the valuation of acquired intangibles and in the valuation of assets held for sale.

Goodwill and intangible assets are valued using Level 3 inputs.

Defined benefit plans can be valued using Level 1, Level 2, Level 3 or a combination of Level 1, 2 and 3 inputs.

Refer to Note 9 — Retirement Benefit Plans of the 2024 Annual Report for further discussion.

Reclassifications

Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications.

For the three months ended December 31, 2024, the Company revised its classification within the consolidated condensed statements of cash flows by moving the prior period amount for contract liabilities from accrued liabilities to contract liabilities to conform to current period presentation.

For the six months ended March 31, 2024, the Company revised its classification within the consolidated condensed statements of cash flows by moving the prior period amount for contract liabilities from accrued liabilities to contract liabilities to conform to current period presentation.

Discontinued Operations

The Company committed to the plan to sell CBlade in August 2024 in order to streamline operational synergies and refocus on its core aerospace forging entities.

The Company committed to sell CBlade in August 2024 in order to streamline operations and refocus on its core aerospace forging entities.

On August 1, 2024, the Company’s Board of Directors approved and authorized the execution of a share purchase agreement (the “SPA”), under which SIFCO Irish Holdings, Ltd., a wholly owned subsidiary of the Company, entered into an agreement to sell 100 % of the share capital of CBlade to TB2 S.r.l.

1 unchanged sentence

The Company determined that CBlade met the criteria for classification as assets held for sale and discontinued operations upon the aforementioned events, and, based on the significance of the disposed operations (i.e., strategic shift), CBlade represented discontinued operations upon classification of the CBlade assets and liabilities as held for sale.

In October 2024, upon regulatory approval, the Company completed the sale of CBlade and received cash consideration of approximately $ 14,586 , net of transaction costs of $ 352 .

In October 2024, upon regulatory approval, the Company completed the CBlade Sale and received cash consideration of approximately $ 14,516 , net of transaction costs of $ 422 .

The Company does not expect to have any significant continuing involvement with CBlade after the sale.

3 unchanged sentences

With the disposal of CBlade, the Company determined that its European operations represented a substantially complete liquidation.

Therefore, $ 5,851 of cumulative translation adjustment loss attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90 % of the assets of the Company's European operations.

Therefore, $ 5,851 of cumulative translation adjustment loss

attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90 % of the assets of the Company's European operations.

The principal components of the assets and liabilities related to discontinued operations classified as held for sale as of September 30, 2024 were as follows:

20 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Net sales $ — $ 6,028 $ 622 $ 11,606

3 unchanged sentences

Income tax expense from discontinued operations — 43 167 87

Gain on sale of discontinued operations before income tax expense 58 —

Income tax expense on gain from sale of discontinued operations — —

Income from discontinued operations, net of tax $ 106 $ 647

Loss on sale of discontinued operations before income tax expense ( 70 ) — ( 11 ) —

(Loss) income from discontinued operations, net of tax $ ( 70 ) $ 642 $ 36 $ 1,289

Inventories consist of:

5 unchanged sentences

For a portion of the Company’s inventory, cost is determined using the last-in, first-out (“LIFO”) method.

Approximately 37 % and 30 % of the Company’s inventories as of December 31, 2024 and September 30, 2024, respectively, use the LIFO method.

Approximately 40 % and 30 % of the Company’s inventories as of March 31, 2025 and September 30, 2024, respectively, use the LIFO method.

An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time.

Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs.

Because the actual results may vary from these estimates, the annual results may differ

from interim results as they are subject to adjustments based on the differences between the estimates and the actual results.

Because the actual results may vary from these estimates, the annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results.

The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value (“NRV”).

If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $ 10,997 and $ 10,496 higher than reported as of December 31, 2024 and September 30, 2024, respectively.

If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $ 10,360 and $ 10,496 higher than reported as of March 31, 2025 and September 30, 2024, respectively.

Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation.

The Company estimates net realizable value, excess and obsolescence and shrink reserves for its inventory based upon historical experience, historical and projected sales trends and the age of inventory on hand.

As of December 31, 2024 and September 30, 2024, our inventory valuation allowances were $ 3,054 and $ 2,733 , respectively.

As of March 31, 2025 and September 30, 2024, our inventory valuation allowances were $ 3,081 and $ 2,733 , respectively.

Accumulated Other Comprehensive Income (Loss)

4 unchanged sentences

Interest rate swap agreement, net of tax — 2

Total accumulated other comprehensive loss $ 186 $ ( 5,389 )

During the three months ended December 31, 2024, the Company reclassified $ 5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of the CBlade and the substantially complete liquidation of operations in Europe.

Total accumulated other comprehensive income (loss) $ 208 $ ( 5,389 )

During the six months ended March 31, 2025, the Company reclassified $ 5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of the CBlade and the substantially complete liquidation of operations in Europe.

The components of lease expense were as follows:

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Finance lease expense:

5 unchanged sentences

The following table presents the impact of leasing on the consolidated condensed balance sheet.

Classification in the consolidated condensed balance sheets December 31,

Classification in the consolidated condensed balance sheets March 31,

2025 September 30,

10 unchanged sentences

Supplemental cash flow and other information related to leases were as follows:

Three Months Ended

Six Months Ended

Other Information

13 unchanged sentences

Operating leases 5.9 % 5.9 %

Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows:

Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

Finance Leases Operating Leases

33 unchanged sentences

however, availability under the Letter of Credit Sub-facility will be dependent upon the maintenance of such compensating balances.

As of December 31, 2024, the Company held $ 1,559 in compensating balances, which were included in cash and cash equivalents in the consolidated condensed balance sheets.

As of March 31, 2025, the Company held $ 1,553 in compensating balances, which were included in cash and cash equivalents in the consolidated condensed balance sheets.

In consideration of the execution and delivery by Siena of the Loan Agreement, the Company agreed pursuant to the fee letter to pay a closing fee in the amount of $ 230 (of which $ 115 was paid on the closing date and $ 115 is payable on the first anniversary of the closing date, with the remaining amount (if any) of the closing fee to be paid in full on the maturity date).

2 unchanged sentences

In addition, an unused line fee accrues with respect to the unused amount of the Revolver at an annual rate of 0.5 %.

All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of December 31, 2024.

All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of March 31, 2025.

Borrowings under the Credit Facility are secured by (a) a continuing first priority lien on and security interest in and to substantially all of the assets of the Company and other loan parties identified therein;

2 unchanged sentences

The Loan Agreement provides that the Company must maintain compliance with a minimum fixed charge coverage ratio, determined in accordance with the Loan Agreement.

The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type.

The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans

and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type.

Additionally, the Loan Agreement contains provisions for a lockbox arrangement and a subjective acceleration clause related to the appraised value of collateralized property, plant, and equipment;

hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of December 31, 2024.

As of December 31, 2024, the Company was in compliance with all covenants under the Loan Agreement.

As of December 31, 2024, total availability under the Revolver was $ 3,859 , and no letters of credit were outstanding.

As of December 31, 2024 and September 30, 2024, the Company had effective interest rates of 9.6 % and 8.1 %, respectively, under its revolving credit agreements.

hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of March 31, 2025.

As of March 31, 2025, the Company was in compliance with all covenants under the Loan Agreement.

As of March 31, 2025, total availability under the Revolver was $ 2,595 , and no letters of credit were outstanding.

As of March 31, 2025 and September 30, 2024, the Company had effective interest rates of 9.7 % and 8.0 %, respectively, under its revolving credit agreements.

Debt issuance costs

As of December 31, 2024 and September 30, 2024, the Company had debt issuance costs related to its outstanding revolving credit agreements of $ 556 and $ 461 , respectively, which are included in the consolidated condensed balance sheets as a

deferred charge in other current assets, net of amortization of $ 31 and nil , respectively.

As of December 31, 2024, the Company had debt issuance costs related to the Term Loan of $ 83 , which are included net of debt in the consolidated condensed balance sheets, net of amortization of $ 6 .

As of March 31, 2025 and September 30, 2024, the Company had debt issuance costs related to its outstanding revolving credit agreements of $ 556 and $ 461 , respectively, which are included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $ 77 and nil , respectively.

As of March 31, 2025, the Company had debt issuance costs related to the Term Loan of $ 83 , which are included net of debt in the consolidated condensed balance sheets, net of amortization of $ 15 .

In April 2019, the Company entered into an economic development loan in the amount of $ 864 with FirstEnergy Corporation (“FirstEnergy”) through its Ohio Electric Security Plan (“ESP”) in effect at that time (the “ED Loan”).

2 unchanged sentences

Prime Rate plus 1.0 %.

As of December 31, 2024 and September 30, 2024, the Company had outstanding balances under the ED Loan of $ 140 and $ 133 , respectively.

As of March 31, 2025 and September 30, 2024, the Company had outstanding balances under the ED Loan of $ 142 and $ 133 , respectively.

Beginning on October 1, 2019, FirstEnergy invoiced the Company on a quarterly basis and payments were made accordingly.

6 unchanged sentences

The VPI Loan matures in five years with a final balloon payment of all outstanding principal and interest and is forgivable in full contingent upon the Company creating a minimum number of new jobs and maintaining minimum employment levels during the term of the loan.

As of both December 31, 2024 and September 30, 2024, the Company had amounts outstanding under the VPI Loan of $ 220 .

As of both March 31, 2025 and September 30, 2024, the Company had amounts outstanding under the VPI Loan of $ 220 .

Due to the effects of the worldwide pandemic, the Company experienced declines in demand for its products and sales, which hindered the Company's ability to grow its workforce and maintain it at or above the required levels.

5 unchanged sentences

This estimated effective rate is used in providing for income taxes on a year-to-date basis.

The Company’s effective tax rate through the first three months of fiscal 2025 was ( 0.21 )%, compared with ( 0.15 )% for the same period of fiscal 2024.

The Company’s effective tax rate through the first six months of fiscal 2025 was ( 2.16 )%, compared with ( 0.17 )% for the same period of fiscal 2024.

The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024.

9 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Service cost $ 43 $ 45 $ 87 $ 90

3 unchanged sentences

Net periodic pension cost $ 37 $ 99 $ 75 $ 197

During the three months ended December 31, 2024 and 2023, the Company made $ 42 and $ 9 in cash contributions, and zero and $ 86 in non-cash contributions utilizing carryover balance, respectively, to its defined benefit pension plans.

During the six months ended March 31, 2025 and 2024, the Company made $ 95 and $ 18 in cash contributions, and zero and $ 86 in non-cash contributions utilizing carryover balance, respectively, to its defined benefit pension plans.

The Company anticipates making $ 187 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2025, and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2025.

3 unchanged sentences

The Company has outstanding equity awards under the Company’s 2007 Long-Term Incentive Plan (the “2007 Plan”) and the Company’s 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the “2016 Plan”), and awards performance and restricted shares under the 2016 Plan.

In the first three months of fiscal 2025, the Company granted 10 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $ 4.14 per share.

In the first six months of fiscal 2025, the Company granted 47 time-based restricted shares under the 2016 Plan to non-employee directors with a grant date fair value of $ 3.70 per share.

The awards vest over one year .

In the first six months of fiscal 2025, the Company granted 10 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $ 4.14 per share.

The awards vest over three years .

There were 30 shares forfeited during the three months ended December 31, 2024.

No performance-based shares were granted during the three months ended December 31, 2024

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 405 shares that remain available for award as of December 31, 2024.

There were 32 shares forfeited during the six months ended March 31, 2025.

No performance-based shares were granted during the six months ended March 31, 2025.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 360 shares that remain available for award as of March 31, 2025.

If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 150 % of such target, then a fewer number of shares would be available for award.

Stock-based compensation expense under the 2016 Plan was $ 21 and $ 86 during the first three months of fiscal 2025 and 2024, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of December 31, 2024, there was $ 172 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan.

Stock-based compensation expense under the 2016 Plan was $ 88 and $ 171 during the first six months of fiscal 2025 and 2024, respectively, and $ 67 and $ 84 during the three months ended March 31, 2025 and 2024, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of March 31, 2025, there was $ 273 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan.

The Company expects to recognize this cost over the next 1.2 years.

8 unchanged sentences

government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation (“FAR”).

The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.

The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires

the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.

• For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company’s use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin.

6 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Commercial revenue $ 8,321 $ 11,348 $ 19,477 $ 19,010

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Three Months Ended

March 31, Six Months Ended

2025 2024 2025 2024

Aerospace components for:

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All revenue based on selling locations originated from the Company’s U.S.

In addition to the disaggregated revenue information provided above, approximately 53 % and 57 % of total net sales for the three months ended December 31, 2024 and 2023, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time.

In addition to the disaggregated revenue information provided above, approximately 57 % and 53 % of total net sales for the six months ended March 31, 2025 and 2024, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time.

Contract Balances

The following table contains a roll forward of contract assets and contract liabilities for the periods presented:

2024 December 31,

The following table contains a roll forward of contract assets and contract liabilities for the six months ended March 31, 2025 and 2024:

2025 March 31,

Contract assets — beginning balance

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$ 11,010 $ 9,976

2024 December 31,

2025 March 31,

Contract liabilities — beginning balance

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Contract liabilities — ending balance $ 2,768 $ 891

Accounts receivable were $ 15,638 and $ 12,421 as of September 30, 2023 and December 31, 2023, respectively.

There were no material impairment losses recorded on contract assets as of December 31, 2024 and September 30, 2024.

During the three and six months ended March 31, 2025, the Company recognized revenues of approximately $ 730 and $ 1,665 , respectively, that were included in contract liabilities at the beginning of fiscal year 2025.

During the three and six months ended March 31, 2024, the Company recognized revenues of approximately $ 1,523 and $ 1,523 , respectively, that were included in contract liabilities at the beginning of fiscal year 2024.

Accounts receivable were $ 15,638 and $ 14,677 as of September 30, 2023 and March 31, 2024, respectively.

There were no material impairment losses recorded on contract assets as of March 31, 2025 and September 30, 2024.

Remaining performance obligations

As of December 31, 2024, the Company has $ 121,900 of remaining performance obligations (including contract assets), the majority of which are anticipated to be completed within the next twelve months .

As of March 31, 2025, the Company has $ 129,218 , of which $ 98,883 are anticipated to be complete within the next 12 months, of remaining performance obligations (including contract assets).

Commitments and Contingencies

10 unchanged sentences

See Note 6 — Debt for further information.

Business Information

The Company is a party to collective bargaining agreements (“CBA”) with certain employees located in Cleveland, which has two bargaining units.

The Company’s Cleveland bargaining unit 1 ratified its CBA in fiscal 2020 and it expired on May 15, 2025.

On May 9, 2025, t he Company reached an agreement on a new CBA with the International Association of Machinists (“IAM”) and its employee members.

The new CBA takes effect on May 15, 2025 and contains substantially similar terms and conditions as the previous agreement.

The second bargaining unit, under its new representative the International Brotherhood of Boilermakers (“IBB”), was ratified in fiscal 2022 and expired on March 31, 2025.

The Company is in negotiations with the IBB and its employee members, who continue to work under the terms of the expired agreement.

The Company anticipates ratification of a new agreement during the third quarter of fiscal 2025 with substantially similar terms and conditions as the previous agreement.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements