Company: SIF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000090168-25-000032
Chunk: 22

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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. The decrease in SG& A expenses was primarily due to lower employee-related expenses, resulting from reduced headcount due to deferred backfill of certain positions and a $0.5 million benefit recognized from ERC. These decreases were partially offset by approximately $0.7 million in legal and professional fees related to the ERC submission process. In addition, SG& A expenses in the prior-year period included a one-time credit of $0.6 million from a vendor pertaining to the fiscal 2023 cybersecurity incident and $0.4 million severance cost, which did not recur in the current period.

Interest Expense, Net

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first nine months of both fiscal 2025 and 2024:

  (Dollars in millions)                          Weighted Average                Weighted Average                                          
                                                    Interest Rate                Outstanding Balance                                       
                                       Nine Months Ended June 30,                Nine Months Ended June 30,                                
                                                             2025      2024      2025                                      2024            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revolving credit agreement                                  9.7       8.0      $                               11.7      $         16.8  
  Term loan                                                  10.2         —      $                                2.6      $            —  
  Other debt                                                  4.3       0.6      $                                0.4      $          0.3  
  Promissory note (related party)                               —       8.9      $                                  —      $          3.3  

Income Taxes

The Company’s effective tax rate through the first nine months of fiscal 2025 was (37.2)%, compared with (0.2)% 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. The effective tax rate differs from the U. S. federal statutory rate due primarily to the valuation allowance against the Company’s U. S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U. S. statutory tax rate.

Loss from Continuing Operations

Loss from continuing operations was $0.4 million during the first nine months of fiscal 2025, compared with $7.2 million