Company: SIF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000090168-25-000032
Chunk: 19

Company: SIFCO INDUSTRIES INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 $2.4 million.

Selling, General and Administrative Expenses

Selling, general and administrative (“ SG& A”) expenses were $2.6 million, or 11.9% of net sales, during the third quarter of fiscal 2025, compared with $2.6 million, or 11.7% of net sales, in the comparable period of fiscal 2024. While total SG& A expenses remained flat, the composition of costs changed year-over-year. The third quarter of fiscal 2025 included a $0.5 million benefit recognized from the ERC and lower employee-related expenses resulting from reduced headcount due to deferred backfill of certain positions. These decreases were partially offset by approximately $0.7 million in legal and professional fees related to the ERC claim 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 a $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 agreements in the third quarter of fiscal 2025 and 2024:

  (Dollars in millions)                           Weighted Average                Weighted Average                                           
                                                     Interest Rate                Outstanding Balance                                        
                                       Three Months Ended June 30,                Three Months Ended June 30,                                
                                                              2025      2024      2025                                       2024            
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revolving credit agreement                                   9.9      8.1       $                                10.0      $         18.0  
  Term loan                                                   10.1      —         $                                 2.7      $            —  
  Other debt                                                   2.3      —         $                                 0.4      $          0.3  
  Promissory note (related party)                                —      13.3      $                                   —      $          3.3  

Income Taxes

The Company’s effective tax rate through the third quarter of fiscal 2025 was 1.2%, compared with 0.0% for the same period of fiscal 2024. The increase in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal