TechPrecision Q3 2025 Earnings Report

TechPrecision EPS Results

• Actual EPS: -$0.08
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

TechPrecision Revenue Results

• Actual Revenue: $7.62 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

TechPrecision Announcement Details

• Quarter: Q3 2025
• Date: 4/8/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, April 8, 2025
• Conference Call Time: 4:30PM ET

TechPrecision (NASDAQ:TPCS), together with its subsidiaries, manufactures and sells precision, fabricated, and machined metal structural components and systems in the United States. The company operates through two segments, Ranor and Stadco. It provides custom components for ships, submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for medical systems. The company also provides support services to its manufacturing capabilities comprising manufacturing engineering, quality control, materials procurement, production control, and final assembly. Its finished products are used various markets, including defense, aerospace, nuclear, medical, and precision industrial. The company was founded in 1956 and is headquartered in Westminster, Massachusetts.

TechPrecision Q3 2025 Earnings Call Transcript

Key Takeaways

• TechPrecision appointed Philip Podgorski as Chief Financial Officer, replacing the interim team and reinforcing its focus on timely financial reporting.
• Consolidated Q3 revenue was $7.6 million, flat year-over-year, with Raynor posting a $1.05 million operating profit while STADCO incurred an $850 000 loss due to legacy pricing problems and an unfavorable project mix.
• The company’s backlog was $45.5 million as of 12/31/24—about equally split between its two subsidiaries—and is expected to drive revenue and margin expansion over the next 1–3 years.
• Management is diligently resolving pre-acquisition pricing issues at STADCO while also winning new contracts that are structured to be profitable, with work already under way.
• Raynor secured an additional $4 million in Navy grants—bringing its total to over $21 million—to upgrade its submarine manufacturing capacity, underscoring strong customer support for capital investments.

Presentation

[Operator]

Greetings. Welcome to today's conference call, TechPrecision Corporation Reports Fiscal Year twenty twenty five Third Quarter Financial Results. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded.

[Operator]

I will now turn the conference over to your host, Brett Maas, Managing Director at Hayden IR. Brett, you may begin.

[Brett Maas, Managing Partner at Hayden IR]

Thank you. On the call today is Alex Shen, Chief Executive Officer and Bobby Lilly, Principal Accounting Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward looking statements, which are subject to risks and uncertainties, and management may make additional forward looking statements in response to your questions. Therefore, the company claims the protection of the Safe Harbor from forward looking statements as contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore, refer you to a more detailed discussion of risks and uncertainties in the company's financial filings with the SEC.

[Brett Maas, Managing Partner at Hayden IR]

In addition, projections as to the company's future performance represents management's estimates as of today, 04/08/2025. TechPrecision assumes no obligation to revise or update these forward looking statements. With that out of the way, I'd to turn the call over to Alex Shen, Chief Executive Officer, to provide opening remarks. Alex, the floor is yours.

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you, Brett. Good afternoon to everyone, and thank you for joining us. On 03/31/2025, the company made an announcement that the board of directors appointed Philip Podgorski to serve as the chief financial officer of the company effective 03/31/2025. As a result, Bobby Lilly stepped down as the company's interim chief financial officer. Bobby retains her position as control.

[Alexander Shen, CEO, President & Director at TechPrecision]

Bobby will continue to serve as the company's principal accounting officer for a transition period. This transition period will end on the next business day following the filing of the company's 10 q for the fiscal quarter ended 12/31/2024. That's the end of the announcement. We filed the 10 q today, 04/08/2025. So tomorrow, 04/09/2025, Phil Podgorski will take over the functions of principal financial officer and principal accounting officer from Bobby Lilly.

[Alexander Shen, CEO, President & Director at TechPrecision]

Many thanks to Bobby Lilly for stepping in. Let me take a few minutes to share some information about Philip Podgorski. Since 2013, Phil was the Chief Financial Officer for RTRC. RTRC is the RTX Technology Research Center, a division of RTX Corporation, a public aerospace and defense company. While at RTX, Phil was responsible for all GAAP, SEC, and government accounting and reporting related aspects for the RTX Technology Research Center.

[Alexander Shen, CEO, President & Director at TechPrecision]

He was also responsible for strategic and scenario planning in collaboration with other stakeholders at RPX, including long range plans and annual operating budgets. Phil has an MBA and bachelor of science degree in accounting from Western New England University. From my perspective, Phil is a seasoned CFO with public company experience in the defense sector and with a proven track record in financial strategy, scenario planning, and operations. Timely reporting is one of our fundamentals. The successful addition of Phil to TechPrecision is a major step to achieve and consistently maintain compliance to this fundamental requirement.

[Alexander Shen, CEO, President & Director at TechPrecision]

I'm very happy to welcome Phil to TechPrecision as our chief financial officer. Okay. With that portion complete, we return to our earnings call format. Third quarter consolidated revenue was $7,600,000, a decrease of less than 1% when compared to the fiscal twenty twenty four third quarter. Every fiscal third quarter is seasonally characterized with higher under absorbed overhead, primarily due to Thanksgiving and year end holidays, as well as paid time off days around those holidays and also around hunting season.

[Alexander Shen, CEO, President & Director at TechPrecision]

Third quarter Raynor revenue was $4,300,000, a slight increase when compared to the same quarter a year ago. Our Raynor segment had operating profit of $1,050,000. Raynor experienced a favorable project mix, enabling us to counter the seasonally higher under absorbed overhead and successfully sustained operating profitability. Third quarter STADCO revenue was $3,300,000, a slight decrease of 2% compared to the same quarter one year ago. Our STADCO segment had operating loss of 850,000.00.

[Alexander Shen, CEO, President & Director at TechPrecision]

STADCO is continuing to work through remaining legacy pricing problems on core business and experienced an unfavorable project mix for the quarter, which did not help to counter the seasonally higher under absorbed overhead. We remain highly focused on aggressive daily cash management, a critical piece of risk mitigation. We continue to manage and control expenses, capital expenditures, customer advances, progress billings, and final invoicing at shipment. Customer confidence remained high as our consolidated backlog was $45,500,000 at 12/31/2024. We expect to deliver our strong backlog over the course of the next one to three fiscal years with gross margin expansion.

[Alexander Shen, CEO, President & Director at TechPrecision]

Now I'm gonna turn the call over to our Principal Accounting Officer, Bobby Lilly, to continue with the review of our third quarter results. Bobby?

[Barbara Lilley, Principal Accounting Officer at TechPrecision]

Thank you, Alex. As Alex just mentioned, our second quarter revenue of 7,600,000.0 or less than 1% lower than the same period a year ago. Consolidated cost of revenue was $6,600,000 or 2% higher than the same quarter a year ago, due primarily to a higher production cost at STADCO. Third quarter cost of revenue was 7% higher at STADCO, as higher production costs due to legacy pricing problems on core business and under absorbed overhead dampened the gross margin. Consolidated gross profit was $1,000,000 or 15% lower when compared to the same quarter a year ago, primarily the result of the higher production costs at STAGCO.

[Barbara Lilley, Principal Accounting Officer at TechPrecision]

Consolidated SG and A was $1,700,000 for the third quarter or $500,000 lower, primarily due to the absence of expenses for due diligence work on the terminated Votar acquisition, which was evident in the same quarter prior year. Consolidated operating loss was 700,000 or 30% lower than the same quarter a year ago as the absence of expenses for due diligence work on the terminated Voto acquisition more than offset STAGCO operating losses in the current year third quarter. Third quarter interest expense was up 28% due to increased borrowing under our revolver loan. Net loss was $800,000 or $08 per share basic and fully diluted. For the nine months ended, consolidated revenue was $24,600,000 or $1,600,000 higher than the same period a year ago, due primarily to an increase of $1,200,000 in revenue at STADCO.

[Barbara Lilley, Principal Accounting Officer at TechPrecision]

Consolidated cost of revenue was $22,300,000 an increase of $2,200,000 when compared to the same period a year ago, primarily due to higher production costs at STADCO. Consolidated gross profit was $2,200,000 a decrease of 22% compared with the same period a year ago, primarily the result of higher production costs at STABCO. Consolidated SG and A totaled $4,800,000 or 6% lower than the same period a year ago due to the absence of expenses in connection with due diligence work on the terminated Vota acquisition, which was evident in the same period a year ago. Consolidated operating loss was 2,500,000.0 for the nine months ended or a sixteen percent increase due primarily to the operating losses at STADCO. Interest expense was up 9% due to an increase in borrowing under the revolver loan.

[Barbara Lilley, Principal Accounting Officer at TechPrecision]

Net loss for the nine months ended 12/31/2024 was $2,900,000 or $0.30 per share basic and fully diluted. Moving on to our financing position, we continue to actively and aggressively manage our cash flow. Financing activities provided $1,200,000 in cash through the nine months ended on 12/31/2024, primarily from proceeds from our private placement offering in July of twenty twenty four. We used cash in operating and investing activities of $1,000,000 and $200,000 respectively. Our total debt was $7,400,000 on 12/31/2024, compared to $7,600,000 on 03/31/2024.

[Barbara Lilley, Principal Accounting Officer at TechPrecision]

Cash balance on 12/31/2024 was $165,000 compared to $138,000 on 03/31/2024. Working capital was negative on 12/31/2024, as all of our long term debt is classified as current because of certain debt covenant violations. With that, I will now turn the call over to Alex.

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you, Bobby. For those on the call who may not be very familiar with our company, TechPrecision is a custom manufacturer of precision large scale fabricated components and precision large scale machined components. The components that we manufacture are customer designed. We sell to customers in two main industry sectors, defense and precision industrial markets, predominantly defense. We do most of our work in industries that are highly sensitive to confidentiality, which preclude us from speaking publicly about many things that a company not operating in TechPrecision's specific environment I discuss.

[Alexander Shen, CEO, President & Director at TechPrecision]

Please understand there are real limits as to what I can discuss, and sometimes those limits do change. TechPrecision is proud and honored to serve The United States defense industry, specifically naval submarine manufacturing through our Raynor subsidiary and military aircraft manufacturing through our STADCO subsidiary. We aim to secure and maintain enduring partnerships with our customers. Overall, at both the Raynor and the STADCO subsidiaries, we continue to see meaningful opportunities in our defense sector as evidenced by the strength of our backlog. We are encouraged, highly encouraged by the prospects for growing our revenue and increasing profitability in future quarters. Operator, please open the line for q and a.

[Operator]

Certainly. At this time, we'll be conducting a question and answer session. Session. Charles, your line is live.

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

Thanks. So I understand that the losses at STADCO are due to previously underpriced or mispriced contracts. So that opens up a series of other questions, not mainly how much longer is it going to take to work through those previously mispriced contracts. And secondly, they're working on previously mispriced contracts but are they working on any do they get any new business? Is there additional profitable business that they're working on?

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

That is just not it's more than offset by the previously mispriced contracts. If you could fill us in a little more about what's actually going going on out there, I would appreciate it.

[Alexander Shen, CEO, President & Director at TechPrecision]

Okay. That was kind of a combination question. So let me parse this down to the elements, if you don't mind. I'll probably need some verification that I'm parsing it correctly. Thank you for your questions.

[Alexander Shen, CEO, President & Director at TechPrecision]

How much longer is this going to take? Well, I think if I really knew how to forecast this, I would openly be transparent in telling all of us. I don't know. But also, I think I carefully said that we are working on the remaining problems with legacy pricing. So, I also don't classify this as mispriced, but I I classify it as a problem with legacy pricing.

[Alexander Shen, CEO, President & Director at TechPrecision]

So over the since we completed our, acquisition of STATCO, which was, in the August, September time frame of 2021, we've steadily been working to eliminate these problems with legacy pricing. We have some success and have not finished our work, and we we would like to get this behind us just as soon as we can. Having said that, why is it taking so long? Well, some of these things are pretty complicated, and, we're dealing with companies that are large and slow in the defense community. How long is it going to take?

[Alexander Shen, CEO, President & Director at TechPrecision]

I really don't know a very good answer, but, I'll continue to report out. But I do, want to point out that I carefully report out and, tell all of us that I'm working on the remainder of the legacy pricing problems on core business. So that's one answer for the first part of the question. I think the second part of the question was talking about, are we securing additional contracts that are profitable? The quick answer is absolutely yes.

[Alexander Shen, CEO, President & Director at TechPrecision]

Bear in mind that we are, more, you know, a custom fab and machining shop, both at Raynor and at the STATCO subsidiary. As such, when we secure new business that's a one off business, it's pretty difficult to price every single one to be profitable every single time. There are, also factors that work a little bit against us. The business is quite lumpy. And when when we have this lumpiness, and the different project mix, sometimes it works in our favor, and sometimes it does not work in our favor as we can see, how the quarters reacted differently for Raynor contrasted to STADCO.

[Alexander Shen, CEO, President & Director at TechPrecision]

I hope that gives you some idea of what we are doing. I I won't be able to talk about specific customers on specific parts, though.

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

That's alright. I wasn't asking about that. So you said you've secured new profitable business at STATCO. Are you actually engaged in working on those contracts or is this something that's going to be worked on in the future? Do you have the capacity to deal with the, as you call it, problem legacy pricing business as well as new profitable business?

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

Or do we have to wait until the old stuff gets taken care of? What's the story there?

[Alexander Shen, CEO, President & Director at TechPrecision]

Okay. I think you asked four questions there. So, have we secured business that we've already worked on and shipped? Yes. Are we continuing to secure business in the future that's profitable that we're going to work on and ship?

[Alexander Shen, CEO, President & Director at TechPrecision]

Yes. Are we currently working on a new business that we've secured since the acquisition? It's yes to all three. I hope that answers your Yep.

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

Thank you.

[Alexander Shen, CEO, President & Director at TechPrecision]

Yep. And then, I think the other part of the question was really directed at the legacy pricing problems as we work through them. We don't wanna wait till we're done working through them. We we want to, counteract them and really continue to work with the customer to get us to the right place. The defense industry needs us.

[Alexander Shen, CEO, President & Director at TechPrecision]

It needs both the the RAINOR subsidiary, which is, highly focused on submarine manufacturing, and the defense industry also really needs STADCO to supply the parts and the fixtures to make the parts that are very critical to the defense industry. We're, single sourced on some items and, being the single source, it's not a a good idea to let us fall apart. So we have a very good, track record of making good parts and delivering on time. These legacy pricing, problems that remain are being worked on and have been diligently worked on on a daily and weekly basis. I request some more patients, but also I'm not very patient with myself and my subordinates, and we're going to do better.

[Alexander Shen, CEO, President & Director at TechPrecision]

I just don't have a very good time frame and forecast of when is this going to finish. They're going to diligently get us there.

[Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC]

Thanks.

[Operator]

Thank you. The next question is from Ross Taylor from ARS Investment Partners. Ross, your line is live.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Thank you. Alex, are the problems that STADCO, the legacy pricing issues you referenced, are they linked to specific production lots? Are they programs? And will moving from one production lot to another by itself improve profitability for STATCOM?

[Alexander Shen, CEO, President & Director at TechPrecision]

Let me ask the the two questions one at a time. Are are they linked to a specific customer? They're they're

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

linked to Production production lots. You have you have two primary programs, we believe, f 15 e x and c h 53 k. Are they linked to specific production lots of one or both of those programs?

[Alexander Shen, CEO, President & Director at TechPrecision]

They were linked to both, and now the remaining one needs to get worked on. Are they linked to production lots? Yes, sir. They are.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Okay. So when the service that is your end customer, when you move from one production lot to another, will the movement from the one lot to the other improve your profitability? In essence, have you been able to build greater profitability into contracts for new lots?

[Alexander Shen, CEO, President & Director at TechPrecision]

That's part of the complicated problem when it morphs from one lot to another lot. And, we've been able to get some traction, and I should be able to report better results. I just don't know when exactly yet.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Okay.

[Alexander Shen, CEO, President & Director at TechPrecision]

I'm not trying to evade your question. I would like to give more color where I can.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

And it would be appreciated. Patience with regard to STATCO is, I think, one of the world's rarest commodities from your investment.

[Alexander Shen, CEO, President & Director at TechPrecision]

Yes, sir. It's my I'm running out of, a lot of the patients myself, and I have been directly engaging, internally and externally on a weekly basis.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

That is great. Right now, the Marine Corps, the military is projected to take, I think it's something like 56 CH 53 airframes delivery of 56 over the next twenty one months. I think it's like eight to Israel and the balance to the US Marine Corps. Will you have any problems delivering your what work you do on that program at the volumes that are needed over those next twenty one months if indeed they do demand and need that 56 airframe additional 56 airframe?

[Alexander Shen, CEO, President & Director at TechPrecision]

That one I can give you very definite answers. We will be able to deliver to the capacity required. Absolutely. And we're delivering it now.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Okay. So obviously, you sit somewhere in the production cycle. So the fact is that some of those some of your components have already been supplied. A lot more will need to be supplied as we roll forward. But that would seem to me to be I mean, if I look back, think they've only delivered a relative handful of those airframes so far.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

So that would be a should result in a substantial boost to revenues at STADCO just from that program alone. Correct?

[Alexander Shen, CEO, President & Director at TechPrecision]

If I can solve the remaining legacy pricing problem, we'll be in much better shape. And I think it's gonna be in tranches. It won't be solved in one fell swoop, but, we just need to keep the pressure on and get the company there so we can add value back to both the customers and our shareholders. Absolutely.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Yeah. I'm trying to so one would expect you to see a substantial kick up in revenues as we push forward, which should help absorb your overhead. So that alone should make you more profitable in STATCO. The second question, looking at what you just said, is that it strikes me as what you're really saying is the CH-fifty three program was originally I think that contract was signed well before you guys acquired So that might go back to 2019, '20 '20, a rather different world.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

And it does sound like what you're running into are problems that were built into that the original particular contract. Is that correct?

[Alexander Shen, CEO, President & Director at TechPrecision]

I'm trying not to only talk about that one customer. But yes, you're correct on the overall timing. The the legacy was created essentially before we made the acquisition. And we've been, struggling with that to, reverse that. It's we we are making headway.

[Alexander Shen, CEO, President & Director at TechPrecision]

The traction has been established, and it's taken a while to really get the ear of the customer and have them look at the facts. And it's been working. It's, we're getting closer and closer. I just don't know when. I I wish I did. I'd be able to tell you then.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Yeah.

[Alexander Shen, CEO, President & Director at TechPrecision]

Well And I need the I I need Go ahead. I need the numbers to bear us out. Excuse me, Ross. I didn't mean to talk over you.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

No. It's alright. And I was gonna say, I'm glad you're involved. You're getting directly involved more directly involved in it. Two, obviously, your customer needs to understand and your customer is trying to build up an industrial base to support many programs and so therefore they need to understand that the private sector, particularly a small public company needs to actually be able to make money doing what it's doing.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

You're not supplying Walmart, you're supplying the U. S. Military and so therefore quality is an issue. Moving away from the CH-fifty three ks we're about or we're seeing a should be seeing a significant ramp up in the other major program you appear to have at STATCO? And I only talk about STATCO because quite honestly, I think it's best described as a sucking chest wound for shareholders since the acquisition.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

I actually think you probably between the purchase costs, the expenses around the acquisition and the losses incurred probably have sunk more money into this than you have market cap currently. Solving STATCO solves TechPrecision's problems as I see it. So looking at this, the F-15EX is about to, you know, also meaningfully ramp production. Same question. Any difficulties, any issues that you would have with being able to meet those demands?

[Alexander Shen, CEO, President & Director at TechPrecision]

Well, currently, no. At, at the last earnings call for the previous quarter, we talked a little bit about machine breakdowns that were affecting us. And those machine breakdowns, currently have been aggressively beat down to a very minor disruption to throughput, and we are we're doing well on our delivery timing. That is one very good stride forward that we've been able to hold our ground and, continue to deliver. And with on time delivery comes a lot more opportunity.

[Alexander Shen, CEO, President & Director at TechPrecision]

And the f 15 EX program for us is very good for absorbing overhead. And, yeah, it's in good shape.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

It's good. I hope you do more than absorb overhead with it as we move up.

[Alexander Shen, CEO, President & Director at TechPrecision]

Absolutely.

[Alexander Shen, CEO, President & Director at TechPrecision]

And that's why I added the comment that it's in good shape.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Thank you. Real quick before I move to another, line is Boeing one, the NGAD, are you in any way, do you expect in any way to benefit from NGAD? I'll take no comment as a yes.

[Alexander Shen, CEO, President & Director at TechPrecision]

That would be great. Thank you.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Okay. So you're gonna say no comment?

[Alexander Shen, CEO, President & Director at TechPrecision]

I'm trying to figure out how to comment without Not yet. Right. Exactly. I did want to address probably the, other question is, are we pursuing new programs that will be, significant as far as, tactical priority and Mhmm. Strategic priority to The US defense market.

[Alexander Shen, CEO, President & Director at TechPrecision]

And the question to that, the answer to that question would be yes. We're, getting traction on new programs that we were never on before. So new programs to STANCO. And then new new programs as a whole, not just NGAD, but other new programs coming on. It's, we're finally getting some traction, and it it shall be profitable traction.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

That's great. And are these new types of programs, are they, airframes? Are they missiles? Are they space? Do you see you know, where are we looking for?

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

What, you know, what is the opportunity as you see it for us?

[Alexander Shen, CEO, President & Director at TechPrecision]

I I think I think the opportunity and some of the, synergy that we're really seeing now between Raynor and STATCO on some of the shared, customers is, where some of the synergy is beginning to yield some results. So I think there's some A portion of it is going to be in the Navy area and a portion of it is in, stuff that flies.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Okay. That's really cool. Great, great color. Also, with regard to your customers and your own industrial base, have you you've in the past talked about receiving aid to buy the equipment you need. Where do we stand with that?

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

How much money have you received either from your direct customer, perhaps, you know, Sikorsky or Boeing or whatever? How much, if any, have you received from the services themselves or the Pentagon itself to fund new capital equipment? And are those is that an area we should expect to see more activity from you, in in the future where you can use someone else's balance sheet to actually allow you to improve your your industrial capacity and your production capacity?

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you very much for the question. So, we recently got funded 4,000,000 more, and this is all Raynor centric and none for STATCO, which brings our grand total of funded completely funded, grant money to $21,000,000 in excess of $21,000,000.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Basically, you've been granted a dollar amount equivalent to your market cap.

[Alexander Shen, CEO, President & Director at TechPrecision]

Yes. You can say that. Yes. Yes.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

That's just pretty wild. Okay. We haven't received anything for stat. Is there a reason why that is?

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

And would you anticipate being able to use these types of programs, or is it just that there's you know, they're not you're not seeing these programs that in national end of the business?

[Alexander Shen, CEO, President & Director at TechPrecision]

If I can characterize the grants, these are navy grants targeted towards, submarine and Okay. Marine industrial base.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

Cool. Okay. Okay. Well, I will let someone else ask questions. What I will say is, obviously, I'm excited about the opportunities.

[Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC]

The last couple of years have been a little bit of a clown show for a lot of reasons. I think that, you know, it seems that you've gotten focused, you've got your energy. Honestly, Alex, you sound a lot better, a lot more upbeat than you have in a long time. And it sounds like we should be looking at a lot of things working our way as we push forward because, obviously, as I said, if you can solve bad co profitability, then that itself will cross a major Rubicon for this company. Thank you.

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you.

[Operator]

Thank you. And the next question will be from Richard Gulick from REG Capital Advisors. Richard, your line is live.

[Richard Greulich, President & CEO at REG Capital Advisors]

Hi. Thanks. I think my attention was turned away when you mentioned what the backlog was. Could you repeat that, please?

[Alexander Shen, CEO, President & Director at TechPrecision]

$45,500,000 is our consolidated backlog as of 12/31/2024.

[Richard Greulich, President & CEO at REG Capital Advisors]

How does that break down between Raynor and STATCO?

[Alexander Shen, CEO, President & Director at TechPrecision]

I think you can think of it as about $50.50. It varies a little bit when the ebbs and flows of the business, but it's it's basically pretty even split between the two subsidiaries.

[Richard Greulich, President & CEO at REG Capital Advisors]

I I think you put that in your 10 q before. I I'm assuming it'll be there again. That's all. Thank you.

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you.

[Operator]

Thank you. There were no other questions at this time. I would now like to hand the call back to Alex Chin for closing remarks.

[Alexander Shen, CEO, President & Director at TechPrecision]

Thank you, everyone. Have a great day.

[Operator]

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Alexander Shen, CEO, President & Director
• Barbara Lilley, Principal Accounting Officer

Analysts

• Brett Maas, Managing Partner at Hayden IR
• Charles Neuhauser, Managing Principal at Mainwall Investment Management LLC
• Ross Taylor, Partner and Portfolio Manager at ARS Investment Partners, LLC
• Richard Greulich, President & CEO at REG Capital Advisors