SIF · SIFCO Industries, Inc.

SIFCO Industries delivered a strong turnaround in its second quarter and first half of fiscal 2026, with net sales surging 39% to $26.4 million in Q2 driven by robust demand in aerospace and energy markets where the company produces forgings and machined components. Gross profit expanded dramatically to $5.7 million from $1.6 million year-over-year, reflecting improved efficiency, cost controls, and throughput as highlighted in the Exhibit 99.1 press release. Operating profit flipped to $2.7 million from a $0.8 million loss, supported by disciplined SG&A at $3.0 million and lower interest expense. Management credits engineering, quality initiatives, and workforce improvements for these gains despite skilled labor constraints. EBITDA rose to $3.7 million and Adjusted EBITDA to $4.8 million in Q2, with adjustments including LIFO impact of $970 thousand, equity compensation, and other items. For the six-month period, sales reached $50.4 million, net income from continuing operations $4.4 million, and Adjusted EBITDA $8.7 million. Balance sheet shows total assets at $78.2 million, with revolver debt reduced to $2.8 million from $8.0 million at fiscal year-end, though cash dipped to $0.3 million. Strong backlog supports ongoing growth amid global uncertainty, positioning SIFCO for continued operational progress.