Key Points from the Report

• Revenue Decline: Fourth quarter 2025 revenue fell to \$30.3 million from \$33.4 million in the prior-year period.
• Net Loss: Q4 2025 net loss was \$3.9 million (\$0.17/share), compared to net income of \$0.1 million (\$0.01/share) in Q4 2024.
• Full-Year Performance: FY2025 revenue dropped to \$119.9 million from \$140.2 million in FY2024. Net loss widened to \$6.3 million (\$0.28/share) vs. \$1.7 million (\$0.08/share) in the prior year.
• Operational Challenges: Management cited tariffs, regulatory uncertainty, and electronic component shortages as major headwinds.
• Customer Funding Secured: Advance funding for key programs allows inventory procurement to mitigate future supply chain issues.
• Annual Meeting: Board scheduled the 2026 Annual Meeting of Stockholders for June 16, 2026, at 11:00 a.m. ET in Louisville, Kentucky.

Detailed Financial Results

Management Commentary & Outlook

President & CEO Jeffrey T. Gill:

“The past few months have been demanding as we navigate the impact of tariffs, regulatory uncertainty and the availability of electronic components. While the economic headwinds and disruptions in the quarter had an impact on our results, we continue to focus on operational excellence to drive the timely and efficient execution of the rapidly growing demand at Sypris Electronics. Customer funding has already been secured for a significant portion of the key programs, which enables us to procure inventory in advance to mitigate future supply chain issues.”

“We expect the challenging operating environment to improve as we move through 2026. With a strong backlog and new program wins, we are positioned for growth once supply chain and economic conditions stabilize.”

Shareholder-Relevant & Price-Sensitive Information

• Significant Revenue and Earnings Decline: The drop in revenue and the widening losses are likely to be viewed negatively by investors and may impact share price.
• Supply Chain Mitigation: Advance customer funding for key programs could improve operational resilience and future margins, potentially supporting share value if execution follows.
• Backlog and Program Wins: Management’s outlook for improved conditions and new business may offer a positive narrative for shareholders, but results are pending stabilization.
• Nasdaq Listing Compliance: The company notes risks regarding maintaining compliance with Nasdaq’s minimum closing bid price, which could affect trading and investor sentiment.
• Annual Meeting Announcement: The 2026 Annual Meeting is scheduled for June 16, 2026, in Louisville, KY. Shareholders should note the date for voting and governance decisions.

Balance Sheet Highlights

The company has no preferred stock or dividends declared in the periods. Share count is stable around 23 million shares outstanding.

Cash Flow Overview

Risks and Forward-Looking Statements

• Risks include tariffs, regulatory uncertainty, component shortages, cybersecurity threats, and compliance with Nasdaq listing standards.
• Management expects improvement in operating environment through 2026, but results depend on macroeconomic and supply chain conditions.
• Unknown risks and uncertainties may impact future performance. Investors should monitor updates and company filings for changes.