TechPrecision reported financial results for the fiscal year ended March 31, 2026, highlighting a strategic shift in project mix that drove a 300 basis point expansion in consolidated gross margin. The company, a custom manufacturer of precision components for the defense and precision industrial markets, posted a net loss of $1.6 million for the full year, an improvement of more than $1 million compared to the prior year. For the fourth quarter, revenue decreased 15% to $8.1 million due to a changing project mix, resulting in net income of $0.4 million compared to net income of $0.1 million in the same period a year ago. Quarterly earnings per share were $0.04, an increase from earnings of $0.01 per share in the prior year.

Fiscal 2026 Financial Performance

Consolidated revenue for the fiscal year decreased 7% to $31.6 million. Gross profit increased 15% to $5.0 million, driven by improved operating performance and a favorable project mix. Cost of revenue decreased 10% to $26.7 million. Selling, general and administrative expenses decreased 7% to $6.0 million. The company reported an operating loss of $1.1 million, a narrowing from the previous year. Interest expense decreased by 10% to $0.5 million.

Segment Performance

The Ranor segment executed a favorable project mix with improved gross margin, while Stadco reduced its cost of revenue by more than $1.0 million year-over-year. Stadco's strategic drive to improve customer and project mix resulted in reduced revenue with higher margin drop-through. Ranor generated approximately 54% of total revenue, while Stadco accounted for 48%. In the fourth quarter, Stadco reported revenue of $4.2 million with gross profit of $28,000, impacted by delays in customer-furnished materials and analysis. Ranor reported Q4 revenue of $3.9 million with gross profit of $1.1 million.

Balance Sheet and Cash Flow

As of March 31, 2026, the company held $0.2 million in cash, compared to $0.4 million in the prior year. Working capital was negative $0.4 million, reflecting the required classification of all debt obligations as current due to debt covenant violations. Total debt stood at $6.9 million, down from $7.4 million at the end of fiscal 2025. The company's funded backlog reached $52.1 million, with approximately $25 million in additional unfunded purchase orders.

Fiscal 2027 Guidance

TechPrecision projects double-digit revenue growth for fiscal 2027, with consolidated revenue expected to be between $35.0 million and $37.0 million. The company anticipates EBITDA between $3.0 million and $4.0 million, representing significant growth driven by the continued execution of its strategic customer and project mix plan.