What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2026-02-11 · 138 added, 75 removed, 388 unchanged (35% of the section changed)

5 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Net sales $ 26,444 $ 19,027 $ 50,417 $ 39,910

2 unchanged sentences

Selling, general and administrative expenses 2,985 2,351 5,631 5,191

Gain on disposal of operating assets ( 20 ) —

Loss (gain) on disposal of operating assets 15 — ( 5 ) —

Operating profit (loss) 2,661 ( 781 ) 5,224 ( 2,693 )

Interest expense, net 304 428 656 897

Foreign currency exchange gain, net — ( 2 )

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

Other expense, net 13 37 29 75

Income (loss) from continuing operations before income tax expense 2,345 ( 1,247 ) 4,540 ( 3,664 )

Income tax expense 405 5

Income tax (benefit) expense ( 306 ) 75 99 80

Income (loss) from continuing operations 2,651 ( 1,322 ) 4,441 ( 3,744 )

Income from discontinued operations, net of tax — 106

(Loss) income from discontinued operations, net of tax — ( 70 ) — 36

Net income (loss) $ 2,651 $ ( 1,392 ) $ 4,441 $ ( 3,708 )

1 unchanged sentence

Basic earnings (loss) per share from continuing operations $ 0.44 $ ( 0.22 ) $ 0.73 $ ( 0.62 )

Basic earnings per share from discontinued operations — 0.02

Basic earnings (loss) per share from discontinued operations — ( 0.01 ) — 0.01

Basic earnings (loss) per share $ 0.44 $ ( 0.23 ) $ 0.73 $ ( 0.61 )

1 unchanged sentence

Diluted earnings (loss) per share from continuing operations $ 0.43 $ ( 0.22 ) $ 0.72 $ ( 0.62 )

Diluted earnings per share from discontinued operations $ — $ 0.02

Diluted earnings (loss) per share from discontinued operations — ( 0.01 ) — 0.01

Diluted earnings (loss) per share $ 0.43 $ ( 0.23 ) $ 0.72 $ ( 0.61 )

7 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Net income (loss) $ 2,651 $ ( 1,392 ) $ 4,441 $ ( 3,708 )

Other comprehensive income (loss):

Foreign currency translation adjustment, net of tax — 5,554

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

Retirement plan liability adjustment, net of tax 16 22 33 45

Other — — — ( 2 )

Comprehensive income $ 1,807 $ 3,259

Comprehensive income (loss) $ 2,667 $ ( 1,370 ) $ 4,474 $ 1,889

See notes to unaudited consolidated condensed financial statements.

35 unchanged sentences

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

zero shares issued and outstanding at December 31, 2025 and September 30, 2025

zero shares issued and outstanding at March 31, 2026 and September 30, 2025

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

issued and outstanding shares 6,215 at December 31, 2025 and 6,180 at September 30, 2025

issued and outstanding shares 6,254 at March 31, 2026 and 6,180 at September 30, 2025

Additional paid-in capital 11,901 11,892

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 108 93

Gain on disposal of operating assets ( 20 ) —

Loss on disposal of operating assets ( 5 ) —

LIFO effect 1,182 ( 136 )

2 unchanged sentences

Deferred income taxes 12 138

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

Interest incurred but not yet paid 13 10

30 unchanged sentences

Net cash provided by discontinued operations — 13,506

Increase in cash, cash equivalents and restricted cash 143 420

Decrease in cash, cash equivalents and restricted cash ( 659 ) ( 801 )

Cash, cash equivalents and restricted cash at the beginning of the period 2,044 2,723

5 unchanged sentences

(Unaudited, Amounts in thousands)

Three Months Ended

Six Months Ended

Cash paid during the year:

Cash paid for interest $ 567 $ 786

Cash paid for income taxes, net 28 16

Non-cash investing activities:

9 unchanged sentences

Three Months Ended

December 31, 2025

March 31, 2026

Common Shares Additional

1 unchanged sentence

Earnings Accumulated

Comprehensive Income Total

Shareholders’

Shares Amount

Balance at January 1, 2026 6,215 $ 6,215 $ 11,863 $ 18,942 $ 1,678 $ 38,698

Comprehensive income — — — 2,651 16 2,667

Performance and restricted share expense — — 77 — — 77

Share transactions under equity-based plans 39 39 ( 39 ) — — —

Balance at March 31, 2026 6,254 $ 6,254 $ 11,901 $ 21,593 $ 1,694 $ 41,442

Three Months Ended

March 31, 2025

Common Shares Additional

Capital Retained

Earnings Accumulated

Comprehensive Income Total

Shareholders’

Shares Amount

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

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

Performance and restricted share expense — — 67 — — 67

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

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

Six Months Ended

March 31, 2026

Common Shares Additional

Capital Retained

Earnings Accumulated

Comprehensive

5 unchanged sentences

Share transactions under equity-based plans 74 74 ( 134 ) — — ( 60 )

Balance at December 31, 2025 6,215 $ 6,215 $ 11,863 $ 18,942 $ 1,678 $ 38,698

Three Months Ended

December 31, 2024

Balance at March 31, 2026 6,254 $ 6,254 $ 11,901 $ 21,593 $ 1,694 $ 41,442

Six Months Ended

March 31, 2025

Common Shares Additional

2 unchanged sentences

Comprehensive

Income (Loss) Total

(Loss) Income Total

Shareholders’

4 unchanged sentences

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

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

See notes to unaudited consolidated condensed financial statements.

11 unchanged sentences

For these operations, all gains and losses from completed currency transactions are included in income (loss).

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025 (the “2025 Annual Report”).

The year-end consolidated condensed balance sheet contained in these financial statements was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the U.S.

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the “2025 Annual Report”).

The year-end consolidated condensed balance sheet contained in these unaudited consolidated condensed financial statements was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the U.S.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) and disclosures considered necessary for a fair presentation have been included.

8 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Income (loss) from continuing operations $ 2,651 ( 1,322 ) $ 4,441 ( 3,744 )

Income from discontinued operations, net of tax — 106

(Loss) income from discontinued operations, net of tax — ( 70 ) — 36

Net income (loss) $ 2,651 $ ( 1,392 ) $ 4,441 $ ( 3,708 )

4 unchanged sentences

Weighted-average common shares outstanding (diluted) 6,186 6,068 6,173 6,042

Net earnings (loss) per share – basic and diluted:

Net earnings (loss) per share – basic:

Continuing operations $ 0.44 $ ( 0.22 ) $ 0.73 $ ( 0.62 )

1 unchanged sentence

Net earnings (loss) per share $ 0.44 $ ( 0.23 ) $ 0.73 $ ( 0.61 )

Net earnings (loss) per share – diluted:

Continuing operations $ 0.43 $ ( 0.22 ) $ 0.72 $ ( 0.62 )

Discontinued operations — ( 0.01 ) — 0.01

Net loss per share – diluted:

$ 0.43 $ ( 0.23 ) $ 0.72 $ ( 0.61 )

Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share — 156 8 152

Recent Accounting Standards Adopted

guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of Topic 718 or another accounting standard.

In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-01, “Compensation—Stock Compensation - Scope Application of Profits Interest and Similar Awards,” which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of Topic 718 or another accounting standard.

The Company adopted the ASU during the first quarter of fiscal year 2026.

2 unchanged sentences

Accounting Pronouncements - Issued and Not Effective

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

In December 2025, the FASB issued ASU No.

2025-11, “Interim Reporting (Topic 270):

30 unchanged sentences

In October 2024, upon regulatory approval, the Company completed the CBlade Sale and received cash consideration of approximately $ 14,408 , net of transaction costs of $ 530 .

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

CBlade (i.e., cash proceeds received less net assets transferred), and the release of accumulated other comprehensive income (loss) attributable to the Company's European operations.

The Company has not had any significant involvement with CBlade after the sale.

All operating activities prior to the disposal date were included in the Company's financial statements separately as discontinued operations, including income before income tax provision, gain from the sale CBlade (i.e., cash proceeds received less net assets transferred), and the release of accumulated other comprehensive income (loss) attributable to the Company's European operations.

Due to the CBlade Sale, the Company ceased manufacturing operations within the European market, as CBlade represented the last remaining facility in this region.

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Net sales $ — $ — $ — $ 622

2 unchanged sentences

Income from discontinued operations before income tax expense and gain on sale — — — 214

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

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

Income tax expense from discontinued operations — — — 167

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

(Loss) income from discontinued operations, net of tax $ — $ ( 70 ) $ — $ 36

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 63 % and 40 % of the Company’s inventories as of December 31, 2025 and September 30, 2025, respectively, use the LIFO method.

Approximately 62 % and 40 % of the Company’s inventories as of March 31, 2026 and September 30, 2025, 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.

Interim LIFO calculations are based on year-to-date changes in inventory levels.

In performing these calculations, the Company excludes the effects of any decrements expected to be reinstated by year-end.

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 $ 11,109 and $ 10,897 higher than reported as of December 31, 2025 and September 30, 2025, respectively.

If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $ 12,078 and $ 10,897 higher than reported as of March 31, 2026 and September 30, 2025, 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, 2025 and September 30, 2025, our inventory valuation allowances were $ 6,002 and $ 5,919 , respectively.

As of March 31, 2026 and September 30, 2025, the inventory valuation allowances were $ 5,386 and $ 5,919 , respectively.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive loss are as follows:

The components of accumulated other comprehensive income are as follows:

2026 September 30,

1 unchanged sentence

Total accumulated other comprehensive income $ 1,694 $ 1,661

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.

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.

Debt consists of:

19 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, 2025, the Company held $ 1,081 in compensating balances, which were included in restricted cash in the consolidated condensed balance sheets.

As of March 31, 2026 and September 30, 2025, the Company maintained compensating balances of $ 1,081 and $1,553, respectively, which were included in restricted cash 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 was paid 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, 2025.

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, 2026.

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;

3 unchanged sentences

The Loan Agreement contains a $ 2,000 availability block that reduces the borrowing base until the later of the (i) the first anniversary date of the closing date and (ii) date on which the Company achieves a FCCR of at least 1.05 to 1.00, measure on a trailing twelve-month basis, at which point the availability block will be eliminated.

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, 2025.

As of December 31, 2025, the Company was in compliance with its FCCR covenant.

As of December 31, 2025, total availability under the Revolver was $ 16,063 , and no letters of credit were outstanding.

As of December 31, 2025 and September 30, 2025, the Company had effective interest rates of 10.5 % and 9.8 %, 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, 2026.

As of March 31, 2026, the Company was in compliance with its FCCR covenant.

As of March 31, 2026, total availability under the Revolver wa s $ 17,236 , and no letters of credit were outstanding.

As of March 31, 2026 and September 30, 2025, the Company had effective interest rates of 15.7 % and 9.8 %, respectively, under its revolving credit agreements.

The effective interest rate for the current period presented was impacted by a provision in the Loan Agreement requiring interest to be calculated on a specified minimum borrowing level, regardless of actual outstanding borrowings.

As a result, the Company incurred interest expense on amounts in excess of its actual borrowings, which increased the effective interest rate.

Debt issuance costs

As of December 31, 2025 and September 30, 2025, the Company had debt issuance costs related to its outstanding revolving credit agreement of $ 556 , respectively, which is included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $ 216 and $ 170 , respectively.

As of December 31, 2025 and September 30, 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 $ 41 and $ 33 , respectively.

As of March 31, 2026 and September 30, 2025, the Company had debt issuance costs related to its outstanding revolving credit agreement of $ 556 , which is included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $ 263 and $ 170 , respectively.

As of March 31, 2026 and September 30, 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 $ 48 and $ 33 , respectively.

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, 2025 and September 30, 2025, the Company had outstanding balances under the ED Loan of $ 157 and $ 147 , respectively.

As of March 31, 2026 and September 30, 2025, the Company had outstanding balances under the ED Loan of $ 160 and $ 147 , respectively.

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

2 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 2026 was 18.5 %, compared with ( 0.2 )% for the same period of fiscal 2025.

The Company’s effective tax rate through the first six months of fiscal 2026 was 2.2 %, compared with ( 2.2 )% for the same period of fiscal 2025.

The increase in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2026 compared with the same period of fiscal 2025 along with the Company's transition from a pre-tax loss to a pre-tax income position.

3 unchanged sentences

statutory tax rate.

The Company analyzes the need for a valuation allowance on a quarterly basis and has determined that a full valuation allowance on the U.S.

net deferred tax assets as of the second quarter of fiscal 2026 is appropriate.

It is reasonably possible that sufficient positive evidence required to release all, or a portion of the U.S valuation allowance will exist within the next 12 months.

The Company is subject to income taxes in the U.S.

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2026 2025 2026 2025

Service cost $ 32 $ 43 $ 64 $ 87

3 unchanged sentences

Net periodic pension cost $ 16 $ 37 $ 32 $ 75

During the three months ended December 31, 2025 and 2024, the Company made $ 104 and $ 42 in cash contributions to its defined benefit pension plans.

During the six months ended March 31, 2026 and 2025, the Company made $ 241 and $ 95 in cash contributions to its defined benefit pension plans.

The Company anticipates making $ 160 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2026.

2 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 2026, the Company granted 50 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $ 6.73 per share.

In the first six months of fiscal 2026, the Company granted 47 ti me-based restricted shares under the 2016 Plan to non-employee directors with a grant date fair value of $ 6.50 per share.

The awards vest over one year .

In the first six months of fiscal 2026, the Company granted two separate awards under the 2016 Plan to certain key employees, 50 time-based restricted shares with a grant date fair value of $ 6.73 per share and 10 time-based restricted shares with a grant date fair value of $ 5.76 per share.

The awards vest over three years .

There were 17 shares forfeited during the three months ended December 31, 2025.

No performance-based shares were granted during the three months ended December 31, 2025.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 342 shares that remain available for award as of December 31, 2025.

There were 35 shares forfeited during the six months ended March 31, 2026.

No performance-based shares were granted during the six months ended March 31, 2026.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 303 shares that remain available for award as of March 31, 2026.

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 $ 66 and $ 21 during the first three months of fiscal 2026 and 2025, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of December 31, 2025, there was $ 357 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 $ 143 and $ 88 during the first six months of fiscal 2026 and 2025, respectively, and $ 77 and $ 67 during the three months ended March 31, 2026 and 2025, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations.

As of March 31, 2026, there was $ 571 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 1.7 years.

17 unchanged sentences

Three Months Ended

March 31, 2026 Six Months Ended

March 31, 2026

2026 2025 2026 2025

Commercial revenue $ 8,438 $ 8,321 $ 17,116 $ 19,477

3 unchanged sentences

Three Months Ended

March 31, 2026 Six Months Ended

2026 2025 2026 2025

Aerospace components for:

6 unchanged sentences

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

In addition to the disaggregated revenue information provided above, approximately 66 % and 53 % of total net sales for the three months ended December 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.

In addition to the disaggregated revenue information provided above, approximately 69 % and 57 % of total net sales for the six months ended March 31, 2026 and 2025, 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 three months ended December 31, 2025 and 2024:

2025 December 31,

The following table contains a roll forward of contract assets and contract liabilities for the six months ended March 31, 2026 and 2025:

2026 March 31,

Contract assets — beginning balance

4 unchanged sentences

$ 12,216 $ 11,010

2025 December 31,

2026 March 31,

Contract liabilities — beginning balance

3 unchanged sentences

Contract liabilities — ending balance $ 6,229 $ 2,768

During the three months ended December 31, 2025, the Company recognized revenues of approximately $ 916 , that was included in contract liabilities at the beginning of fiscal year 2026.

During the three months ended December 31, 2024, the Company recognized revenues of approximately $ 935 , that was included in contract liabilities at the beginning of fiscal year 2025.

Accounts receivable were $ 17,272 and $ 16,848 as of September 30, 2024 and December 31, 2024, respectively.

There were certain contracts that met the criteria for loss recognition, a loss contract reserve of $ 461 and $ 325 was recorded as of December 31, 2025 and September 30, 2025, respectively.

During the three and six months ended March 31, 2026, the Company recognized revenues of approximately $ 49 and $ 656 , respectively, that were included in contract liabilities at the beginning of fiscal year 2026.

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

Accounts receivable were $ 17,272 and $ 14,544 as of September 30, 2024 and March 31, 2025, respectively.

There were certain contracts that met the criteria for loss recognition, a loss contract reserve of $ 313 and $ 325 was recorded as of March 31, 2026 and September 30, 2025, respectively.

Remaining performance obligations

As of December 31, 2025, the Company has $ 139,454 of remaining performance obligations, of which $ 87,905 are anticipated to be complete within the next 12 months, and the remaining thereafter.

As of March 31, 2026, the Company has $ 157,719 of remaining performance obligations, of which $ 95,322 are anticipated to be complete within the next 12 months, and the remaining thereafter.

Commitments and Contingencies

4 unchanged sentences

however, it is possible that the Company’s future operating results could be affected by future costs of litigation.

On October 3, 2025, the Company received written notice of potential violations of the Clean Water Act and California’s General Industrial Storm Water Permit occurring at Quality Aluminum Forge, LLC’s facilities located at 820 North Cypress

Street & 794 North Cypress Street, Orange, California 92867.

On December 23, 2025, the Company received written Notice of Violations and Intent to File Suit Under the Federal Water Pollution Control Act regarding potential violations of the Clean Water Act and California’s General Industrial Storm Water Permit occurring at Quality Aluminum Forge, LLC’s facilities located at 820 North Cypress Street & 794 North Cypress Street, Orange, California 92867.

The Company is currently reviewing the aforementioned notices, validating the violations alleged therein, and, to the extent applicable, determining the extent of remediation efforts that may be required in connection therewith, and has engaged an environmental consultant to assist with analyzing fees, penalties and legal costs that could potentially be assessed.

The Company may be subject to late shipping charges under certain customer arrangements if delivery timelines are not met.

As of March 31, 2026, the Company has not accrued any amounts related to such potential charges, as the likelihood of incurring material penalties is not considered probable.

The Company will continue to monitor this matter and will record an accrual if and when it becomes probable that a liability has been incurred and the amount can be reasonably estimated.

Environmental Compliance Matter - Orange, California Facility

The Company received written Notice of Violations and Intent to File Suit Under the Federal Water Pollution Control Act, dated December 23, 2025, regarding potential violations of the Clean Water Act and California’s General Industrial Storm Water Permit occurring at Quality Aluminum Forge, LLC’s facilities located at 820 North Cypress Street & 794 North Cypress Street, Orange, California 92867.

The foregoing notices resulted in a lawsuit filed on February 23, 2026, in the United States District Court, Central District of California, captioned:

Orange County Coastkeeper v.

Quality Aluminum Forge, LLC, SIFCO Industries, Inc.

and Private Investments, LLC.

The Company has not yet been officially served with this suit and is engaged in efforts described below to resolve this matter.

The suit makes claims that generally repeats the claims from the December 23, 2025 notice described above and requests injunctive relief, storm water compliance actions, and plaintiffs’ costs.

The Company is currently reviewing the aforementioned notices and resulting lawsuit, validating the violations alleged therein, and, to the extent applicable, determining the extent of remediation efforts that may be required in connection therewith, and has engaged an environmental consultant to assist with analyzing fees, penalties and legal costs that could potentially be assessed.

While the Company records reserves for legal disputes and regulatory matters in accordance to U.S.

GAAP, the ultimate resolution of such matters are inherently uncertain, and actual results may differ significantly from current estimates.

Based on the foregoing, the Company recorded an estimate for these contingent liabilities of $ 156 as of December 31, 2025.

Based on the foregoing, the Company recorded an estimate for these contingent liabilities of $ 291 , which is included within accrued liabilities as of March 31, 2026.

The Company recorded expense of $ 236 and $ 391 related to these matters during the three months and six months ended March 31, 2026.

Segment Information

3 unchanged sentences

As such, the CODM reviews the income (loss) from continuing operations as a measure of segment profit or loss, as well as segment expense included in the below table, to evaluate operating performance, generate future operating plans and make strategic decisions.

The CODM also uses these measures in monitoring plan versus actual results.

The CODM also uses these measures in monitoring plan versus actual

The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets.

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2026 2025 2026 2025

Net sales $ 26,444 $ 19,027 $ 50,417 $ 39,910

3 unchanged sentences

Income (Loss) from continuing operations $ 2,651 $ ( 1,322 ) $ 4,441 $ ( 3,744 )

¹ Other items include gain on disposal of operating assets, interest expense, gain on forgiven loan, foreign currency exchange loss (gain), other (income) expense, and income tax expense.

¹ Other items include gain on disposal of operating assets, interest expense, foreign currency exchange (gain) loss, other expense, net, and income tax (benefit) expense.

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