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Shares of Sypris Solutions, Inc. SYPR have declined 3.6% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 2% decline over the same time frame. Over the past month, the stock has declined 3% compared with the S&P 500’s 4.3% decrease.
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For the fourth quarter of 2024, Sypris Solutions reported net earnings per share of 1 cent against a net loss of 5 cents per share in the fourth quarter of 2023.
The company reported revenues of $33.4 million, down 3.7% from $34.7 million in the same period a year earlier. Despite the decline in top-line revenues, it swung to a net profit of $0.1 million against a net loss of $1.1 million in the fourth quarter of 2023.
Gross profit increased 23.1% year over year, reaching $5.4 million, with gross margin improving by 350 basis points.
Sypris Solutions, Inc. Price, Consensus and EPS Surprise
Sypris Solutions, Inc. price-consensus-eps-surprise-chart | Sypris Solutions, Inc. Quote
Segment Performance and Key Metrics
Sypris Technologies posted quarterly revenue of $19.5 million, a 2.7% increase from $19 million a year ago, driven by robust energy product shipments. Gross profit for the segment rose 41.6% to $4.4 million, resulting in a gross margin of 22.5%, up from 16.3% in the prior-year period. The improvement reflected favorable exchange rates and product mix alongside ongoing productivity enhancements.
In contrast, Sypris Electronics reported revenues of $13.9 million, down 11.5% from $15.7 million in the year-ago quarter. The segment faced temporary shipment delays caused by material and supplier quality issues. Gross profit dropped to $1 million or 7.1% of revenues compared to $1.3 million or 8.1% a year earlier. Higher labor and overhead costs on programs ramping up production also weighed on profitability.
Management Commentary
President and CEO Jeffrey T. Gill emphasized the positive momentum in Sypris Technologies, citing a year-over-year increase in energy product sales and a broader order book. He pointed to growing global demand for LNG and power infrastructure driven by the expansion of AI data centers as supportive of future growth.
Regarding Sypris Electronics, Gill noted that demand remains strong in key end markets, including electronic warfare, avionics, radar, and subsea communications. Despite short-term delays, the business maintains a robust backlog exceeding $90 million, much of which is backed by customer funding under multi-year purchase orders, expected to support operations well into 2025.