Company: SIF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000090168-25-000032
Chunk: 18

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 18
---
 compared with $22.0 million in the comparable period of fiscal 2024. Fixed wing sales increased $2.6 million compared with the same period last year, primarily due to higher demand across most programs. Rotorcraft sales declined compared with the same period last year primarily due to the timing of orders in the H60 program. Commercial space products decreased by $2.7 million year-over-year due to reduced procurement activity in the commercial space market. One key customer, significantly scaled back orders as they manage excess inventory. Net sales for the energy components for power generation units decreased slightly by $0.2 million. Commercial products and other revenue increased $0.7 million compared with the same period last year mostly due to the timing of orders related to munitions programs.

Commercial net sales and military net sales were 39.3% and 60.7%, respectively, of total net sales in the third quarter of fiscal 2025, compared with 53.9% and 46.1%, respectively, in the comparable period in fiscal 2024. Commercial net sales decreased $3.2 million to $8.7 million in the third quarter of fiscal 2025, compared with $11.9 million in the comparable period of fiscal 2024, primarily due to reduced procurement activity in the commercial space market, partially offset by higher demand in the commercial aerospace market. Military net sales increased by $3.3 million to $13.4 million in the third quarter of fiscal 2025, compared with $10.1 million in the comparable period of fiscal 2024, primarily due to increased demand across multiple programs.

Cost of Goods Sold

Cost of goods sold (“ COGS”) decreased by $3.1 million, or 16.2%, to $16.2 million, or 73.3% of net sales, during the third quarter of fiscal 2025, compared with $19.3 million, or 87.7% of net sales, in the comparable period of fiscal 2024. The decrease is primarily due to the Employee Retention Credit (“ ERC”) benefit of $2.4 million recognized and favorable mix of products sold in our fixed wing aircraft sector, partially offset by sales volume.

Gross Profit

Gross profit increased by $3.2 million to $5.9 million in the third quarter of fiscal 2025, compared with $2.7 million gross profit in the comparable period of fiscal 2024, primarily due to the ERC benefit of