Sifco Industries Inc 10-Q for FY2026 Q3
Sifco Industries Inc (SIF)
10-Q
2026-08-10
For: 2026-06-30
View Original
Added on
August 10, 2026
About this 10-Q
Sifco Industries Inc filed this 10-Q on August 10, 2026, covering the quarter ended June 30, 2026 (FY2026 Q3).
Headline figures
Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $26.15M
- up 18.3% from $22.1M a year earlier
- Net loss
- $40K
- compared with net income of $3.41M a year earlier
- Diluted EPS
- -$0.01
- compared with $0.56 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number 001-05978
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, “smaller reporting company”, and “emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
| ☒ | Smaller reporting company | ||||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The number of the Registrant’s Common Shares, par value $1.00, outstanding at June 30, 2026 was 6,254,128 .
Part I. Financial Information
Item 1. Financial Statements
SIFCO Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
(Amounts in thousands, except per share data)
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | $ | $ | $ | |||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Loss on disposal of operating assets | |||||||||||||||||||||||
| Operating profit | |||||||||||||||||||||||
| Interest expense, net | |||||||||||||||||||||||
| Foreign currency exchange loss (gain), net | ( | ||||||||||||||||||||||
| Other expense (income), net | ( | ( | |||||||||||||||||||||
| Income (loss) from continuing operations before income tax expense | ( | ( | |||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Income (loss) from continuing operations | ( | ( | |||||||||||||||||||||
| Income from discontinued operations, net of tax | |||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Basic earnings (loss) per share: | |||||||||||||||||||||||
| Basic earnings (loss) per share from continuing operations | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Basic earnings per share from discontinued operations | |||||||||||||||||||||||
| Basic earnings (loss) per share | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Diluted earnings (loss) per share: | |||||||||||||||||||||||
| Diluted earnings (loss) per share from continuing operations | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Diluted earnings per share from discontinued operations | |||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Weighted-average number of common shares (basic) | |||||||||||||||||||||||
| Weighted-average number of common shares (diluted) | |||||||||||||||||||||||
See notes to unaudited consolidated condensed financial statements.
2
SIFCO Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Comprehensive Income (Loss)
(Unaudited)
(Amounts in thousands)
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Reclassification of foreign translation adjustments to net loss | |||||||||||||||||||||||
| Retirement plan liability adjustment, net of tax | |||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||
| Comprehensive income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
See notes to unaudited consolidated condensed financial statements.
3
SIFCO Industries, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited)
(Amounts in thousands, except per share data)
| June 30, 2026 | September 30, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
Receivables, net of allowance for credit losses of $ | |||||||||||
| Contract assets | |||||||||||
| Inventories, net | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Operating lease right-of-use assets, net | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt, net of unamortized debt issuance costs | $ | $ | |||||||||
| Revolver | |||||||||||
| Short-term operating lease liabilities | |||||||||||
| Accounts payable | |||||||||||
| Contract liabilities | |||||||||||
| Accrued liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Long-term finance lease, net of short-term | |||||||||||
| Long-term operating lease liabilities, net of short-term | |||||||||||
| Deferred income taxes, net | |||||||||||
| Pension liability | |||||||||||
| Other long-term liabilities | |||||||||||
| Shareholders’ equity: | |||||||||||
Serial preferred shares, no par value, authorized | |||||||||||
Common shares, par value $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive income | |||||||||||
| Total shareholders’ equity | |||||||||||
| Total liabilities and shareholders’ equity | $ | $ | |||||||||
See notes to unaudited consolidated condensed financial statements.
4
SIFCO Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited, Amounts in thousands)
| Nine Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | $ | ( | ||||||||
| Income from discontinued operations, net of tax | |||||||||||
| Income (loss) from continuing operations | $ | $ | ( | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Amortization of debt issuance costs | |||||||||||
| Loss on disposal of operating assets | |||||||||||
| LIFO effect | ( | ||||||||||
| Share transactions under company stock plan, net | |||||||||||
| Inventory valuation accounts | ( | ||||||||||
| Deferred income taxes | ( | ||||||||||
| Interest added to promissory note - related party (paid-in-kind) | |||||||||||
| Interest incurred but not yet paid | |||||||||||
| Other expenses | ( | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | ( | ||||||||||
| Contract assets | ( | ( | |||||||||
| Inventories | ( | ( | |||||||||
| Prepaid expenses and other current assets | ( | ||||||||||
| Other assets | |||||||||||
| Accounts payable | ( | ||||||||||
| Accrued liabilities | ( | ||||||||||
| Contract liabilities | ( | ||||||||||
| Accrued income tax | ( | ||||||||||
| Net cash provided by (used for) operating activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Proceeds from disposal of operating assets | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Net cash used for investing activities | ( | ( | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from term loan | |||||||||||
| Payments on term loan | ( | ( | |||||||||
| Proceeds from revolving credit agreement | |||||||||||
| Repayments of revolving credit agreement | ( | ( | |||||||||
| Payment of debt issuance costs | ( | ( | |||||||||
| Principal payments on capital lease obligations | ( | ( | |||||||||
| Repayments of promissory note and related fees — related party | ( | ||||||||||
| Net cash used for financing activities | ( | ( | |||||||||
| Cash flows from discontinued operations: | |||||||||||
| Net cash used for operating activities | ( | ||||||||||
| Net cash provided by investing activities | |||||||||||
| Net cash provided by financing activities | |||||||||||
| Effects of exchange rate changes on cash and cash equivalents | ( | ||||||||||
| Net cash provided by discontinued operations | |||||||||||
| Decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | |||||||||||
| Cash, cash equivalents and restricted cash from continuing operations at the end of the period | $ | $ | |||||||||
See notes to unaudited consolidated condensed financial statements.
5
SIFCO Industries, Inc. and Subsidiaries
Supplemental Disclosure of Cash Flow Information
(Unaudited, Amounts in thousands)
| Nine Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash paid during the year: | |||||||||||
| Cash paid for interest | $ | $ | |||||||||
| Cash paid for income taxes, net | |||||||||||
| Non-cash investing activities: | |||||||||||
Additions to property, plant & equipment — incurred but not yet paid | |||||||||||
| Non-cash financing activities: | |||||||||||
Debt issuance costs — incurred but not yet paid | |||||||||||
See notes to unaudited consolidated condensed financial statements.
6
SIFCO Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Shareholders’ Equity
(Unaudited, Amounts in thousands)
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance at April 1, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Comprehensive (loss) income | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||
| Performance and restricted share expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance at April 1, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Performance and restricted share expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share transactions under equity-based plans | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Nine Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance at October 1, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Performance and restricted share expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share transactions under equity-based plans | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Nine Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance at October 1, 2024 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
| Comprehensive (loss) income | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
| Performance and restricted share expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share transactions under equity-based plans | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated condensed financial statements.
7
SIFCO Industries, Inc. and Subsidiaries
Notes to Unaudited Consolidated Condensed Financial Statements
(Amounts in thousands, except per share data)
1.Summary of Significant Accounting Policies
A.Principles of Consolidation
The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.
The U.S. dollar is the functional currency for all of the Company’s operations in the United States (“U.S.”) and its non-operating, non-U.S. subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income (loss).
These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the “2025 Annual Report”). The year-end consolidated condensed balance sheet contained in these unaudited consolidated condensed financial statements was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) and disclosures considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.
B.Accounting Policies
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s 2025 Annual Report.
C.Net Earnings (Loss) per Share
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Income (loss) from continuing operations | $ | ( | $ | ( | |||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | |||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Weighted-average common shares outstanding (basic) | |||||||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| Restricted shares | |||||||||||||||||||||||
| Performance shares | |||||||||||||||||||||||
| Weighted-average common shares outstanding (diluted) | |||||||||||||||||||||||
| Net earnings (loss) per share – basic: | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Discontinued operations | |||||||||||||||||||||||
| Net earnings (loss) per share | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Net earnings (loss) per share – diluted: | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Discontinued operations | |||||||||||||||||||||||
| Net earnings (loss) per share | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | |||||||||||||||||||||||
8
D.Recent Accounting Standards Adopted
In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-01, “Compensation—Stock Compensation - Scope Application of Profits Interest and Similar Awards,” which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of Topic 718 or another accounting standard. The Company adopted the ASU during the first quarter of fiscal year 2026. This guidance did not have a material impact on the Company’s consolidated condensed financial statements.
E.Impact of Newly Issued Accounting Standards
Accounting Pronouncements - Issued and Not Effective
In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements,” which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU No. 2025-11 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently assessing the impact of this standard on our consolidated condensed financial statements and related disclosures.
In January 2025, the FASB issued ASU 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date” (“ASU 2025-01”). ASU 2025-01 outlines the effective date of ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), as the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is still permitted. ASU 2024-03 requires both interim and annual disclosures pertaining to expense captions on the face of the income statement within continuing operations containing the following amounts: (i) purchases of inventory, (ii) employee compensation, (iii) depreciation, (iv) intangible asset amortization, and (v) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. This disaggregated information will be required to be disclosed with other disaggregated amounts under other U.S. GAAP guidance, such as revenue and income taxes. Additionally, a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and total selling expenses and a definition of such costs (in annual reporting periods only) should be disclosed. More granular information about cost of sales and selling, general, and administrative expenses (SG&A) would assist a reader of the Company's consolidated financial statements in better understanding an entity’s cost structure and forecasting future cash flows. The amendments in ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of the ASU or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently assessing the impact of this standard on our consolidated condensed financial statements and related disclosures.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company will first apply this guidance, on an annual basis, for the current fiscal year. This guidance will expand our annual income tax disclosures, but will not affect our consolidated condensed financial statements.
F. Employee Retention Credit
Under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Employee Retention Credit (“ERC”) is a refundable payroll tax credit available to eligible businesses and tax-exempt organizations impacted by the COVID-19 pandemic. Businesses qualified if they experienced a full or partial government-ordered suspension of operations or a "significant" decline in gross receipts.
9
During the three and nine months ended June 30, 2025, the Company recognized a total gross benefit of $3,373 2,859 514
•$2,406
•$453
•$514
2.Discontinued Operations
The Company committed to sell CBlade in August 2024 in order to streamline operations and refocus on its core aerospace forging entities. On August 1, 2024, the Company’s Board of Directors approved and authorized the execution of a share purchase agreement (the “SPA”), under which SIFCO Irish Holdings, Ltd., a wholly owned subsidiary of the Company, entered into an agreement to sell 100 % of the share capital of CBlade to TB2 S.r.l. (the “Buyer”) at an enterprise value of €20,000 , less debt, for cash consideration of €13,800 in net equity value at closing, subject to adjustments for changes in working capital and certain other items (the “CBlade Sale”). The Company determined that CBlade met the criteria for classification as assets held for sale and discontinued operations upon the aforementioned events, and, based on the significance of the disposed operations (i.e., strategic shift), CBlade represented discontinued operations upon classification of the CBlade assets and liabilities as held for sale.
In October 2024, upon regulatory approval, the Company completed the CBlade Sale and received cash consideration of approximately $14,408 , net of transaction costs of $530 . The Company has not had any significant involvement with CBlade after the sale. All operating activities prior to the disposal date were included in the Company's financial statements separately as discontinued operations, including income before income tax provision, gain from the sale CBlade (i.e., cash proceeds received less net assets transferred), and the release of accumulated other comprehensive income (loss) attributable to the Company's European operations.
Due to the CBlade Sale, the Company ceased manufacturing operations within the European market, as CBlade represented the last remaining facility in this region. Prior to the transaction, CBlade was directly owned by SIFCO Irish Holdings Inc., a wholly-owned subsidiary of the Company incorporated in Ireland (“Irish Holdings”), which historically acted as the holding company for the Company's international operations. With the disposal of CBlade, the Company determined that its European operations represented a substantially complete liquidation. Therefore, $5,851 of cumulative translation adjustment loss attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90 % of the assets of the Company's European operations.
A summary of the operating results for the discontinued operations is as follows:
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Interest expense, net | |||||||||||||||||||||||
| Income from discontinued operations before income tax (benefit) expense and loss on sale | |||||||||||||||||||||||
| Loss on sale of discontinued operations before income tax expense | ( | ||||||||||||||||||||||
| Income tax (benefit) expense from discontinued operations | ( | ||||||||||||||||||||||
| Income from discontinued operations, net of tax | $ | $ | $ | $ | |||||||||||||||||||
10
3.Inventories
Inventories consist of:
| June 30, 2026 | September 30, 2025 | ||||||||||
| Raw materials and supplies | $ | $ | |||||||||
| Work-in-process | |||||||||||
| Finished goods | |||||||||||
| Total inventories, net | $ | $ | |||||||||
For a portion of the Company’s inventory, cost is determined using the last-in, first-out (“LIFO”) method. Approximately 74 % and 40 % of the Company’s inventories as of June 30, 2026 and September 30, 2025, respectively, use the LIFO method. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Interim LIFO calculations are based on year-to-date changes in inventory levels. In performing these calculations, the Company excludes the effects of any decrements expected to be reinstated by year-end. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value (“NRV”). If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $14,897 and $10,897 higher than reported as of June 30, 2026 and September 30, 2025, respectively. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The Company estimates net realizable value, excess and obsolescence and shrink reserves for its inventory based upon historical experience, historical and projected sales trends and the age of inventory on hand. As of June 30, 2026 and September 30, 2025, the inventory valuation allowances were $4,549 and $5,919 , respectively.
4.Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income are as follows:
| June 30, 2026 | September 30, 2025 | ||||||||||
| Retirement plan liability adjustment, net of tax | |||||||||||
| Total accumulated other comprehensive income | $ | $ | |||||||||
During the nine months ended June 30, 2025, the Company reclassified $5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of CBlade and the substantially complete liquidation of operations in Europe.
5. Debt
Debt consists of:
| June 30, 2026 | September 30, 2025 | ||||||||||
| Revolving credit agreement | $ | $ | |||||||||
Term loan, net of unamortized debt issuance costs of $ | |||||||||||
| Finance lease obligations | |||||||||||
| Other | |||||||||||
| Total debt | |||||||||||
Less — current maturities | ( | ( | |||||||||
| Total long-term debt | $ | $ | |||||||||
Loan and Security Agreement
On October 17, 2024, the Company and Quality Aluminum Forge, LLC, a wholly-owned subsidiary of the Company (“QAF”, and together with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Loan Agreement”) among the Company and QAF, as borrowers, Siena Lending Group LLC, as Lender (“Siena”), and each of the affiliates of the borrowers signatory to the Loan Agreement from time to time as guarantors.
The Loan Agreement provided for a senior secured revolving credit facility with a term of three years in an aggregate principal amount not to exceed $20,000 (the “Revolver”) and a term loan in the original principal amount of $3,000 (the “Term Loan”).
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The Loan Agreement also provided for a $2,500 letter of credit sub-facility (the “Letter of Credit Sub-facility,” and collectively with the Revolver and the Term Loan, the “Credit Facility”). The Credit Facility matures on October 17, 2027.
Borrowings under the Revolver and the Letter of Credit Sub-facility will bear interest at an annual rate of 4.5 % plus the adjusted term SOFR (or, if the base rate is applicable, an annual rate of 3.5 % plus the base rate). Borrowings under the Term Loan will bear interest at an annual rate of 5.5 % plus the adjusted term SOFR (or, if the base rate is applicable, 4.5 % plus the base rate) and shall be repaid in equal consecutive monthly installments of $50 commencing November 1, 2024, with the entire unpaid balance due and payable on the maturity date. Letters of credit issued under the Letter of Credit Sub-facility will have an interest rate equal to 4.5 % plus adjusted term SOFR per annum of the face amount of such letter of credit. The Letter of Credit Sub-facility requires the Company to maintain compensating balances in a money market account in support of any issuances. The Company may withdraw funds from this account at its discretion; however, availability under the Letter of Credit Sub-facility will be dependent upon the maintenance of such compensating balances. As of the reporting date, the Company had no outstanding letters of credit issued under this Loan Agreement. The Company had outstanding letters of credit issued by another financial institution, which are fully secured by cash compensating balances. As of June 30, 2026 and September 30, 2025, the Company maintained compensating balances of $1,081 and $1,553 , respectively, which were included in restricted cash in the consolidated condensed balance sheets.
In consideration of the execution and delivery by Siena of the Loan Agreement, the Company agreed pursuant to the fee letter to pay a closing fee in the amount of $230 (of which $115 was paid on the closing date and $115 was paid on the first anniversary of the closing date, with the remaining amount (if any) of the closing fee to be paid in full on the maturity date). The fee letter provides for a collateral monitoring fee in the amount of $126 , which fee shall be paid in installments as follows: (a) equal payments of approximately $4 shall be payable on the closing date and on the first day of each month thereafter and (b) the remaining amount of such fee (if any) shall be paid in full on the maturity date. In addition, an unused line fee accrues with respect to the unused amount of the Revolver at an annual rate of 0.5 %. All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of June 30, 2026.
Borrowings under the Credit Facility are secured by (a) a continuing first priority lien on and security interest in and to substantially all of the assets of the Company and other loan parties identified therein; and (b) a continuing first priority pledge of the pledged equity. The obligations of the Borrowers are guaranteed by each guarantor on the terms set forth in the Loan Agreement.
The Loan Agreement includes a financial covenant requiring the Company to maintain a minimum fixed charge coverage ratio ("FCCR") of 1.0 to 1.0, in accordance with the Loan Agreement, once the availability block has been released. The Loan Agreement contains a $2,000 availability block that reduces the borrowing base until the later of the (i) the first anniversary date of the closing date and (ii) date on which the Company achieves a FCCR of at least 1.05 to 1.00, measured on a trailing twelve-month basis, at which point the availability block is eliminated. The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type. Additionally, the Loan Agreement contains provisions for a lockbox arrangement and a subjective acceleration clause related to the appraised value of collateralized property, plant, and equipment; hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of June 30, 2026.
As of June 30, 2026, the Company was in compliance with its FCCR covenant. As of June 30, 2026, total availability under the Revolver was $15,156 , and no letters of credit were outstanding.
As of June 30, 2026 and September 30, 2025, the Company had effective interest rates of 13.9 % and 9.8 %, respectively, under its revolving credit agreements. The effective interest rate for the current period presented was impacted by a provision in the Loan Agreement requiring interest to be calculated on a specified minimum borrowing level, regardless of actual outstanding borrowings. As a result, the Company incurred interest expense on amounts in excess of its actual borrowings, which increased the effective interest rate.
Debt issuance costs
As of June 30, 2026 and September 30, 2025, the Company had debt issuance costs related to its outstanding revolving credit agreement of $556 309 and $170 , respectively. As of June 30, 2026 and September 30, 2025, the Company had debt issuance costs related to the Term Loan of $83 55 and $33 , respectively.
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First Energy
In April 2019, the Company entered into an economic development loan in the amount of $864 with FirstEnergy Corporation (“FirstEnergy”) through its Ohio Electric Security Plan (“ESP”) in effect at that time (the “ED Loan”). The ED Loan matures in five years and requires quarterly payments at an interest rate of zero percent per annum for the first twenty-four months and 2.0 % per annum for the remainder of the term. Any unpaid balance after the initial term will convert to the U.S. Prime Rate plus 1.0 %. As of June 30, 2026 and September 30, 2025, the Company had outstanding balances under the ED Loan of $163 and $147 , respectively.
6.Income Taxes
For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first nine months of fiscal 2026 was 2.7 %, compared with (37.2 )% for the same period of fiscal 2025. The increase in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2026 compared with the same period of fiscal 2025 along with the Company's transition from a pre-tax loss to a pre-tax income position. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate. The Company analyzes the need for a valuation allowance on a quarterly basis and has determined that a full valuation allowance on the U.S. net deferred tax assets as of the third quarter of fiscal 2026 is appropriate. It is reasonably possible that sufficient positive evidence required to release all, or a portion of the U.S valuation allowance will exist within the next 12 months.
The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, and various state and local jurisdictions.
7.Retirement Benefit Plans
The Company and certain of its subsidiaries sponsor defined benefit pension plans covering some of its employees. The components of the net periodic benefit cost of the Company’s defined benefit plans are as follows:
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of net loss | |||||||||||||||||||||||
| Net periodic pension cost | $ | $ | $ | $ | |||||||||||||||||||
During the nine months ended June 30, 2026 and 2025, the Company made $310 and $175 in cash contributions to its defined benefit pension plans. The Company anticipates making $80 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2026. The Company does not anticipate making cash contributions above the minimum funding requirement to fund its defined benefit pension plans during the balance of fiscal 2026.
8.Stock-Based Compensation
The Company has outstanding equity awards under the Company’s 2007 Long-Term Incentive Plan (the “2007 Plan”) and the Company’s 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the “2016 Plan”), and awards performance and restricted shares under the 2016 Plan.
In the first nine months of fiscal 2026, the Company granted 47 time-based restricted shares under the 2016 Plan to non-employee directors with a grant date fair value of $6.50 per share. The awards vest over one year .
In the first nine months of fiscal 2026, the Company granted two separate awards under the 2016 Plan to certain key employees, 50 time-based restricted shares with a grant date fair value of $6.73 per share and 10 time-based restricted shares with a grant date fair value of $5.76 per share. The awards vest over three years . There were 35 shares forfeited during the nine months ended June 30, 2026. No performance-based shares were granted during the nine months ended June 30, 2026.
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If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 303 shares that remain available for award as of June 30, 2026.
Stock-based compensation expense under the 2016 Plan was $257 and $135 during the first nine months of fiscal 2026 and 2025, respectively, and $114 and $47 during the three months ended June 30, 2026 and 2025, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations. As of June 30, 2026, there was $457 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.4 years.
9.Revenue
The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) commercial space, semiconductor and other commercial applications.
Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company’s contracts are from purchase orders (“PO’s”), which continue to be recognized as of a point in time when products are shipped from the Company’s manufacturing facilities or at a later time when control of the products transfers to the customer. Under the revenue standard, the Company recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows:
•Certain military contracts, which relate to the provisions of specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation (“FAR”). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process.
•For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company’s use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin.
As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.
The following table represents a breakout of total revenue by customer type:
| Three Months Ended June 30, 2026 | Nine Months Ended June 30, 2026 | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Commercial revenue | $ | $ | $ | $ | |||||||||||||||||||
| Military revenue | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
The following table represents revenue by end market:
| Three Months Ended June 30, 2026 | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Aerospace components for: | |||||||||||||||||||||||
| Fixed wing aircraft | $ | $ | $ | $ | |||||||||||||||||||
| Rotorcraft | |||||||||||||||||||||||
| Commercial space | |||||||||||||||||||||||
| Energy components for power generation units | |||||||||||||||||||||||
| Commercial product and other revenue | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
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All revenue based on selling locations originated from the Company’s U.S. operations.
In addition to the disaggregated revenue information provided above, approximately 67 % and 61 % of total net sales for the nine months ended June 30, 2026 and 2025, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time.
Contract Balances
The following table contains a roll forward of contract assets and contract liabilities for the nine months ended June 30, 2026 and 2025:
| June 30, 2026 | June 30, 2025 | ||||||||||
Contract assets — beginning balance | $ | $ | |||||||||
| Additional revenue recognized over-time | |||||||||||
| Less amounts billed to the customers | ( | ( | |||||||||
Contract assets — ending balance | $ | $ | |||||||||
| June 30, 2026 | June 30, 2025 | ||||||||||
Contract liabilities — beginning balance | $ | $ | |||||||||
| Payments received in advance of performance obligations | |||||||||||
| Performance obligations satisfied | ( | ( | |||||||||
| Contract liabilities — ending balance | $ | $ | |||||||||
During the three and nine months ended June 30, 2026, the Company recognized revenues of approximately $94 and $751 , respectively, that were included in contract liabilities at the beginning of fiscal year 2026. During the three and nine months ended June 30, 2025, the Company recognized revenues of approximately $2,050 and $3,716 , respectively, that was included in contract liabilities at the beginning of fiscal year 2025.
Accounts receivable were $17,272 and $14,223 as of September 30, 2024 and June 30, 2025, respectively. There were certain contracts that met the criteria for loss recognition, a loss contract reserve of $555 and $325 was recorded as of June 30, 2026 and September 30, 2025, respectively.
Remaining performance obligations
10.Commitments and Contingencies
In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not anticipate any material impact on its financial condition or results of operations from these matters. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation.
The Company may be subject to late shipping charges under certain customer arrangements if delivery timelines are not met. As of June 30, 2026, the Company has not accrued any amounts related to such potential charges, as the likelihood of incurring material penalties is not considered probable. The Company will continue to monitor this matter and will record an accrual if and when it becomes probable that a liability has been incurred and the amount can be reasonably estimated.
Environmental Compliance Matter - Orange, California Facility
On October 3, 2025, the Company received written notice of potential violations of the Clean Water Act and California’s General Industrial Storm Water Permit occurring at Quality Aluminum Forge, LLC’s facilities located at 820 North Cypress Street & 794 North Cypress Street, Orange, California 92867. The Company received written Notice of Violations and Intent to File Suit Under the Federal Water Pollution Control Act, dated December 23, 2025, regarding potential violations of the Clean Water Act and California’s General Industrial Storm Water Permit occurring at Quality Aluminum Forge, LLC’s facilities located at 820 North Cypress Street & 794 North Cypress Street, Orange, California 92867. The foregoing notices resulted in a lawsuit filed on February 23, 2026, in the United States District Court, Central District of California, captioned: Orange County Coastkeeper v. Quality Aluminum Forge, LLC, SIFCO Industries, Inc. and Private Investments, LLC. The Company has not yet been officially served with this suit and is engaged in efforts described below to resolve this matter. The suit makes claims that
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generally repeats the claims from the December 23, 2025 notice described above and requests injunctive relief, storm water compliance actions, and plaintiffs’ costs.
11.Segment Information
The Company identifies itself as one operating segment , SIFCO, which is a manufacturer of forgings and machined components for the A&E, defense, and commercial space markets. The Company's chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM has the ultimate decision-making authority for resource allocation and assessing the performance of the Company. As such, the CODM reviews the income (loss) from continuing operations as a measure of segment profit or loss, as well as segment expense included in the below table, to evaluate operating performance, generate future operating plans and make strategic decisions. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets.
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | $ | $ | $ | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Other¹ | ( | ||||||||||||||||||||||
| Income (Loss) from continuing operations | $ | ( | $ | $ | $ | ( | |||||||||||||||||
¹ Other items include gain on disposal of operating assets, interest expense, foreign currency exchange (gain) loss, other expense, net, and income tax (benefit) expense.
12.Subsequent Events
The Company has evaluated subsequent events through August 10, 2026, the date the financial statements were available to be issued, and has determined that the following subsequent events require disclosure in the financial statements.
Subsequent to June 30, 2026, the Company repaid in full the outstanding $1,950 term loan under its Loan Agreement. The repayment, which occurred in July 2026, resulted in the extinguishment of the Company's term loan obligation. In connection with the repayment, the Company incurred a $39 prepayment penalty and wrote off approximately $28 of unamortized deferred financing costs associated with the term loan. These amounts will be recorded as a loss on extinguishment of debt in the other expense (income), net line on the consolidated condensed statements of operations for the fourth quarter of fiscal 2026.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain various forward-looking statements and includes assumptions concerning the Company’s operations, future results and prospects. The words “will,” “may,” “designed to,” “outlook,” “believes,” “should,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “forecasts” and similar expressions identify certain of these forward-looking statements. These forward-looking statements are based on current expectations and are subject to risk and uncertainties. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides this cautionary statement identifying important economic, political and technological factors, among others, the absence or effect of which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such factors include the following: (1) the impact on business conditions in general, and on the demand for product in the aerospace and energy (or “A&E”), defense, and commercial space industries in particular, of the global economic outlook, including the continuation of military spending at or near current levels and the availability of capital and liquidity from banks, the financial markets and other providers of credit; (2) the future business environment, including capital and consumer spending; (3) competitive factors, including the ability to replace business that may be lost at comparable margins; (4) metals and commodities price increases and the Company’s ability to recover such price increases; (5) successful development and market introduction of new products and services; (6) continued reliance on consumer acceptance of regional and business aircraft powered by more fuel efficient turboprop engines; (7) continued reliance on military spending, in general, and/or several major customers, in particular, for revenues; (8) the impact on future contributions to the Company’s defined benefit pension plans due to changes in actuarial assumptions, government regulations and the market value of plan assets; (9) stable governments, business conditions, laws, regulations and taxes in economies where business is conducted; (10) the ability to successfully integrate businesses that may be acquired into the Company’s operations; (11) cyber and other security threats or disruptions faced by us, our customers or our suppliers and other partners; (12) our exposure to additional risks as a result of our international business, including risks related to geopolitical and economic factors, suppliers, laws and regulatory compliance, and trade measures such as significant tariffs - including U.S. tariffs on aluminum and steel; (13) the ability to maintain a qualified workforce; (14) the adequacy and availability of our insurance coverage; (15) our ability to develop new products and technologies and maintain technologies, facilities, and equipment in order to remain competitive, win bids, and meet the evolving needs of our customers; (16) our ability to realize amounts in our backlog; (17) investigations, claims, disputes, enforcement actions, litigation and/or other legal proceedings; and (18) extraordinary or force majeure events affecting the business or operations of our business, such as geopolitical conflicts and supply chain disruptions resulting therefrom.
The Company engages in the production of forgings and machined components primarily for the A&E, defense and commercial space markets. The processes and services provided by the Company include forging, heat-treating, chemical processing, machining, subassembly, and testing. The Company operates under one business segment.
The Company endeavors to continue to plan and evaluate its business operations while taking into consideration certain factors including the following: (i) the projected build rate for commercial, business and military aircraft, as well as the engines that power such aircraft; (ii) the projected maintenance, repair and overhaul schedules for commercial, business and military aircraft, as well as the engines that power such aircraft; (iii) the projected build rate and repair for industrial turbines and commercial space.
The Company operates within a cost structure that includes a significant fixed component. Therefore, higher net sales volumes are expected to result in greater operating income because such higher volumes allow the business operations to better leverage the fixed component of their respective cost structures. Conversely, the opposite effect is expected to occur at lower net sales and related production volumes.
A.Results of Operations
Overview
The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) commercial space, semiconductor and other commercial applications.
Backlog of Orders
SIFCO’s total backlog as of June 30, 2026 was $164.2 million, compared with total backlog of $130.4 million as of June 30, 2025. Orders may be subject to modification or cancellation by the customer with limited charges. Recovery in the aerospace markets was the primary contributor to the increased bookings. Backlog information may not be indicative of future sales.
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Three Months Ended June 30, 2026 compared with Three Months Ended June 30, 2025
Net Sales
Net sales comparative information for the third quarter of fiscal 2026 and 2025 is as follows:
| (Dollars in millions) | Three Months Ended June 30, | Increase/ (Decrease) | |||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Aerospace components for: | |||||||||||||||||
| Fixed wing aircraft | $ | 12.7 | $ | 13.2 | $ | (0.5) | |||||||||||
| Rotorcraft | 7.6 | 5.2 | 2.4 | ||||||||||||||
| Commercial space | 0.1 | 1.2 | (1.1) | ||||||||||||||
| Energy components for power generation units | — | 0.3 | (0.3) | ||||||||||||||
| Commercial product and other revenue | 5.7 | 2.2 | 3.5 | ||||||||||||||
| Total | $ | 26.1 | $ | 22.1 | $ | 4.0 | |||||||||||
Net sales for the third quarter of fiscal 2026 increased $4.0 million to $26.1 million, compared with $22.1 million in the comparable period of fiscal 2025. The increase is driven by higher production volumes and favorable pricing, partially offset by the impact of customer-supplied raw materials. Under these arrangements, the Company does not recognize revenue for materials provided by customers, resulting in lower reported net sales relative to comparable programs utilizing company-procured materials. Fixed wing sales decreased $0.5 million compared with the same period last year, primarily due to timing across most programs. Rotorcraft sales increased compared with the same period last year primarily due to the timing of orders for V-22 Osprey and UH-60 Black Hawk programs. Commercial space products decreased by $1.1 million due to timing of orders in the commercial space market. Net sales for the energy components for power generation units decreased by $0.3 million, primarily due to lower customer demand. Commercial products and other revenue increased $3.5 million compared with the same period last year mostly due to the timing of orders related to munitions programs.
Commercial net sales and military net sales were 26.7% and 73.3%, respectively, of total net sales in the third quarter of fiscal 2026, compared with 39.3% and 60.7%, respectively, in the comparable period in fiscal 2025. Commercial net sales decreased $1.7 million to $7.0 million in the third quarter of fiscal 2026, compared with $8.7 million in the comparable period of fiscal 2025, primarily due to reduced procurement of components the Company provides for the power generation and commercial space market partially offset by higher demand in the commercial aerospace market. Military net sales increased by $5.7 million to $19.1 million in the third quarter of fiscal 2026, compared with $13.4 million in the comparable period of fiscal 2025, primarily due to increased demand across multiple programs, such as munitions, V-22 Osprey and UH-60 Black Hawk.
Cost of Goods Sold
Cost of goods sold (“COGS”) increased by $6.5 million, or 40.3%, to $22.7 million, or 86.9% of net sales, during the third quarter of fiscal 2026, compared with $16.2 million, or 73.3% of net sales, in the comparable period of fiscal 2025. The increase is primarily as a result of higher sales volume and a $3.2 million increase in LIFO expense resulting from higher inventory costs and increased purchases. In addition, COGS in the prior year third quarter was reduced by a $2.4 million Employee Retention Credit (“ERC”) benefit that did not recur in the current period and included a LIFO benefit of $0.4 million.
Gross Profit
Gross profit decreased by $2.5 million to $3.4 million in the third quarter of fiscal 2026, compared with $5.9 million gross profit in the comparable period of fiscal 2025. The prior year period included a $2.4 million ERC benefit recognized within COGS. Excluding the impact of the ERC benefit, gross profit would have decreased by $0.1 million. Higher sales volume, improved pricing, a more favorable customer and product mix, including increased volumes on higher-margin programs, and improved overhead absorption resulting from higher production volumes substantially offset the unfavorable impact of a $3.2 million increase in LIFO expense.
Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were $3.1 million, or 11.9% of net sales, during the third quarter of fiscal 2026, compared with $2.6 million, or 11.9% of net sales, in the comparable period of fiscal 2025. The increase is primarily driven by $0.5 million in incentive compensation accruals.
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Interest Expense, Net
The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreements in the third quarter of fiscal 2026 and 2025:
| (Dollars in millions) | Weighted Average Interest Rate Three Months Ended June 30, | Weighted Average Outstanding Balance Three Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revolving credit agreement | 11.2 | % | 9.9 | % | $ | 6.4 | $ | 10.0 | |||||||||||||||
| Term loan | 9.4 | % | 10.1 | % | $ | 2.1 | $ | 2.7 | |||||||||||||||
| Other debt | 7.8 | % | 2.3 | % | $ | 0.2 | $ | 0.4 | |||||||||||||||
The revolving credit agreement weighted average interest rate for the three months ended reflects the impact of a provision within the Company's Loan Agreement that requires interest be calculated on a specified minimum borrowing level, regardless of actual outstanding borrowings. As average borrowings during the period were below threshold, the Company incurred interest expense in amounts in excess of the actual debt outstanding. As a result, the Company's effective interest rate was higher than would be expected based solely on the stated contractual rates applied to its outstanding borrowings. Excluding the impact to this provision, the Company's effective interest rate for the period would have been approximately 9.5%, compared to the reported rate of 11.2%. The impact of this provision may continue in future periods to the extent that outstanding borrowings remain below the specified minimum level.
Income Taxes
The Company’s effective tax rate through the third quarter of fiscal 2026 was (122.2)%, compared with 1.2% for the same period of fiscal 2025. The change in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2026 compared with the same period of fiscal 2025 along with the Company's transition from a pre-tax loss to a pre-tax income position. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate.
The Company continues to maintain a full valuation allowance against its U.S. deferred tax assets. It is reasonably possible that, if the Company continues to generate sufficient U.S. taxable income, all or a portion of the valuation allowance could be released within the next 12 months.
Income (Loss) from Continuing Operations
Loss from continuing operations was nominal during the third quarter of fiscal 2026, compared with income of $3.3 million in the comparable period of fiscal 2025. The prior period included a net benefit of $2.7 million related to the ERC. The change in results was primarily attributable to the factors impacting gross profit discussed above.
Nine Months Ended June 30, 2026 compared with Nine Months Ended June 30, 2025
Net Sales
Net sales comparative information for the first nine months of fiscal 2026 and 2025 is as follows:
| (Dollars in millions) | Nine Months Ended June 30, | Increase/ (Decrease) | |||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Aerospace components for: | |||||||||||||||||
| Fixed wing aircraft | $ | 39.5 | $ | 40.4 | $ | (0.9) | |||||||||||
| Rotorcraft | 24.1 | 11.5 | 12.6 | ||||||||||||||
| Commercial space | 2.1 | 4.3 | (2.2) | ||||||||||||||
| Energy components for power generation units | 0.5 | 2.0 | (1.5) | ||||||||||||||
| Commercial product and other revenue | 10.4 | 3.8 | 6.6 | ||||||||||||||
| Total | $ | 76.6 | $ | 62.0 | $ | 14.6 | |||||||||||
Net sales for the first nine months of fiscal 2026 increased $14.6 million to $76.6 million, compared with $62.0 million in the comparable period of fiscal 2025. The increase was primarily driven by higher volumes in military programs, partially offset by declines in certain commercial markets. Fixed wing sales decreased $0.9 million compared with the same period last year due to program timing. Rotorcraft sales increased $12.6 million compared with the same period last year primarily due to the timing of orders in the V-22 Osprey and UH-60 Black Hawk programs. Commercial space products decreased by $2.2 million year-over-
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year due to reduced procurement activity, including one specific customer scaling back orders to manage excess inventory. Net sales for the energy components for power generation units decreased by $1.5 million due to lower customer demand. Commercial products and other revenue increased $6.6 million compared with the same period last year mostly due to the timing of orders related to munitions programs.
Commercial net sales and military net sales were 31.5% and 68.5%, respectively, of total net sales in the first nine months of fiscal 2026, compared with 45.4% and 54.6%, respectively, in the comparable period in fiscal 2025. Commercial net sales decreased $4.1 million to $24.1 million in the first nine months of fiscal 2026, compared with $28.2 million in the comparable period of fiscal 2025, reflecting reduced demand in commercial space market and reduced procurement of components the Company provides for the power generation market. Military net sales increased by $18.7 million to $52.5 million in the first nine months of fiscal 2026, compared with $33.8 million in the comparable period of fiscal 2025, primarily due to timing of munitions orders, increased demand and pricing across most programs.
Cost of Goods Sold
COGS increased by $8.7 million, or 16.2%, to $62.3 million, or 81.4% of net sales, during the first nine months of fiscal 2026, compared with $53.6 million, or 86.5% of net sales, in the comparable period of fiscal 2025. The increase in COGS was primarily attributable to higher production and sales volumes and a $4.4 million increase in LIFO expense resulting from higher inventory costs and increased purchases. As a percentage of net sales, COGS decreased, reflecting improved overhead absorption on higher volumes, pricing actions, and an increase of customer supplied material. Prior year included a $2.4 million ERC benefit in COGS which was not repeated in the current year.
Gross Profit
Gross profit increased $5.9 million to $14.3 million in the first nine months of fiscal 2026, compared with $8.4 million gross profit in the comparable period of fiscal 2025. The prior year period included a $2.4 million ERC benefit recognized within COGS. Excluding the impact of the ERC benefit, gross profit would have increased by $8.3 million. The increase was primarily driven by higher sales volumes, favorable product mix, and improved pricing, partially offset by LIFO expense noted above. Gross margin also increased, reflecting the benefit of these factors, as well as improved cost absorption and impact of cost drivers noted above.
Selling, General and Administrative Expenses
SG&A expenses were $8.7 million, or 11.4% of net sales, during the first nine months of fiscal 2026, compared with $7.8 million, or 12.6% of net sales, in the comparable period of fiscal 2025. The increase in SG&A expenses was primarily driven $0.7 million increase in incentive compensation and $0.4 million related to environmental reserve and associated legal and professional fees as discussed in Note 10 — Commitments and Contingencies of the notes to unaudited consolidated condensed financial statements.
Interest Expense, Net
The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first nine months of both fiscal 2026 and 2025:
| (Dollars in millions) | Weighted Average Interest Rate Nine Months Ended June 30, | Weighted Average Outstanding Balance Nine Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revolving credit agreement | 13.9 | % | 9.7 | % | $ | 5.4 | $ | 11.7 | |||||||||||||||
| Term loan | 9.5 | % | 10.2 | % | $ | 2.2 | $ | 2.6 | |||||||||||||||
| Other debt | 13.5 | % | 4.3 | % | $ | 0.2 | $ | 0.4 | |||||||||||||||
Interest expense for the nine months ended reflects the impact of a provision within the Company's Loan Agreement that requires interest be calculated on a specified minimum borrowing level, regardless of actual outstanding borrowings. As average borrowings during the period were below threshold, the Company incurred interest expense in amounts in excess of the actual debt outstanding. As a result, the Company's effective interest rate was higher than would be expected based solely on the stated contractual rates applied to its outstanding borrowings. Excluding the impact to this provision, the Company's effective interest rate for the period would have been approximately 9.8%, compared to the reported rate of 13.9%. The impact of this provision may continue in future periods to the extent that outstanding borrowings remain below the specified minimum level.
Income Taxes
The Company’s effective tax rate through the first nine months of fiscal 2026 was 2.7%, compared with (37.2)% for the same period of fiscal 2025. The change in the effective rate was primarily attributable to changes in jurisdictional mix of income in
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fiscal 2026 compared with the same period of fiscal 2025, as well as the Company's transition from a pre-tax loss to a pre-tax income position. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate.
The Company continues to maintain a full valuation allowance against its U.S. deferred tax assets. While the Company has generated U.S. pretax income during fiscal 2026, it has not yet concluded that sufficient positive evidence exists to support a release of the valuation allowance. The Company will continue to evaluate all available evidence, including the sustainability of earnings. It is reasonably possible that, if sufficient positive evidence is obtained, all or a portion of the valuation allowance could be released within the next 12 months, which could result in a material income tax benefit in the period in which it is recognized.
Income (Loss) from Continuing Operations
Income from continuing operations was $4.4 million during the first nine months of fiscal 2026, compared with a loss of $0.4 million in the comparable period of fiscal 2025 is due to higher sales volumes and gross margin improvements as referenced above. The prior year net loss includes a net benefit of $2.7 million related to ERC that did not repeat in the current period.
B.Liquidity and Capital Resources
Cash and cash equivalents were $0.1 million and $0.5 million as of June 30, 2026 and September 30, 2025, respectively. A nominal amount of the Company’s cash and cash equivalents were in the possession of its non-U.S. holding company subsidiary, and certain distributions from which to the Company may be subject to adverse tax consequences.
Our primary requirements for liquidity and capital resources besides our growth initiatives, are working capital, capital expenditures, principal and interest payments on our outstanding debt, fulfilling obligations under our loan agreements, and other general corporate needs. Historically, the main sources of liquidity of the Company have been cash flows from operations and borrowings under our debt agreements. As of June 30, 2026, the Company was not party to any off-balance sheet arrangements that have had or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources. The Company's primary cash requirements consist of obligations related to outstanding debt and lease payments, operating and capital purchase commitments, and contributions to our defined benefit and contribution plans. These requirements are expected to be funded through a combination of cash on hand, cash generated from operations, and availability under the Company's credit facilities. For additional information regarding the Company’s contractual obligations, including leases and noncancellable purchase commitments, see Note 11 — Leases and Note 12 — Commitments and Contingencies of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025 (the “2025 Annual Report”). Additionally, refer to Note 9 — Retirement Benefit Plans of the Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report for more information related to the Company’s pension and defined contribution plans.
We believe that our existing cash and available credit lines will be sufficient to finance our continued operations and planned capital expenditures for the next 12 months. We believe that our current operating structure will facilitate sufficient cash flows from operations to satisfy our expected long-term liquidity requirements beyond the next 12 months. If these resources are not sufficient to satisfy our liquidity requirements due to changes in circumstances, we may be required to borrow under our loan agreement or seek additional financing. The Company and management will continue to assess and actively manage liquidity needs. For details regarding our debt agreements, see Note 5 — Debt of the notes to unaudited consolidated condensed financial statements.
Operating Activities
Net cash provided by operating activities was $3.4 million for the first nine months of fiscal 2026, compared to net cash used of $0.6 million in the first nine months of fiscal 2025. The increase was primarily driven by improved operating results, with net income of $4.4 million compared to a net loss of $0.4 million in the prior year period. Non-cash adjustments included $4.4 million of LIFO expense and $3.1 million of depreciation and amortization in the current period, partially offset by a $0.7 million decrease in related inventory valuation accounts. Changes in working capital resulted in a net use of cash of approximately $8.3 million during the period. This use was primarily driven by increases in operating assets, including a $9.6 million increase in inventories, $3.0 million increase in accounts receivable, and a $1.3 million increase in contract assets, reflecting higher business activity and the timing of billings and production. These uses were partially offset by increases in operating liabilities, including a $3.1 million in accounts payable and $1.8 million increase in contract liabilities, reflecting the timing of customer advance payments, timing of raw material receipts and vendor disbursements.
In contrast, during the nine months of fiscal 2025, operating activities used $0.6 million of cash, primarily due to net loss of $0.4 million, partially offset by of $3.9 million depreciation and amortization and $0.5 million related to inventory valuation accounts. Changes in working capital resulted in a net use in cash, primarily driven by decreases in accounts payable and
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accrued liabilities due to timing of payments, partially offset by a decrease in accounts receivable, reflecting the timing of customer receipts and billings.
Investing Activities
During the first nine months of fiscal 2026 and 2025, cash used for investing activities was $0.5 million and $0.3 million, respectively, attributable to capital expenditures. Capital commitments as of June 30, 2026 were $0.6 million. The Company anticipates that the remaining fiscal 2026 capital expenditures will be within the range of $0.5 million to $0.7 million and will relate principally to the further enhancement of production and product offering capabilities and drive operating cost reductions.
Financing Activities
Cash used for financing activities was $3.7 million in the first nine months of fiscal 2026, compared with $13.4 million in the first nine months of fiscal 2025. The year-over-year decrease in cash used for financing was primarily related to lower repayments on debt obligations during fiscal 2026 versus prior year included the refinancing of debt.
Refer to Note 5 — Debt of the notes to unaudited consolidated condensed financial statements for details regarding our financing activities during the nine months ended June 30, 2026.
Future cash flows from the Company’s operations may be used to pay down outstanding debt amounts. The Company believes it has adequate cash/liquidity available to finance its operations from the combination of (i) the Company’s expected cash flows from operations and (ii) funds available under its loan and security agreement as described in Note 5 — Debt of the notes to unaudited consolidated condensed financial statements for its domestic locations.
C.Recent Accounting Standards
ASU 2024-01 was adopted during the nine months ended June 30, 2026. Refer to Note 1 — Summary of Significant Accounting Policies for further detail. Additionally, the Company’s significant accounting policies and procedures are explained in the Management’s Discussion and Analysis section of the Company’s 2025 Annual Report.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The Company's management, under the supervision and with the participation of the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of the Company's disclosure controls and procedures, as defined in Exchange Act Rule 13a-15(e), as of June 30, 2026 (the “Evaluation Date”). Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal controls over financial reporting that occurred during the fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.
Part II. Other Information
Items 1, 1A, 2, 3, 4 and 5 are not applicable or the answer to such items is negative; therefore, the items have been omitted and no reference is required in this Quarterly Report.
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Item 6. (a) Exhibits
| Exhibit No. | Description | |||||||
| 10.1 | ||||||||
| 10.2 | ||||||||
| **10.3 | ||||||||
| **10.4 | ||||||||
| *31.1 | ||||||||
| *31.2 | ||||||||
| *32.1 | ||||||||
| *32.2 | ||||||||
| *101 | The following financial information from SIFCO Industries, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 filed with the SEC on August 10, 2026, formatted in XBRL includes: (i) Consolidated Condensed Statements of Operations for the fiscal periods ended June 30, 2026 and 2025, (ii) Consolidated Condensed Statements of Comprehensive Income for the fiscal periods ended June 30, 2026 and 2025, (iii) Consolidated Condensed Balance Sheets as of June 30, 2026 and September 30, 2025, (iv) Consolidated Condensed Statements of Cash Flow for the fiscal periods ended June 30, 2026 and 2025, (iv) Consolidated Condensed Statements of Shareholders’ Equity for the periods June 30, 2026 and 2025, and (v) the Notes to the Consolidated Condensed Financial Statements. | |||||||
| *104 | Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained with Exhibit 101 | |||||||
* Filed herewith.
** Management contract or compensatory plan or arrangement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SIFCO Industries, Inc. | ||||||||
| (Registrant) | ||||||||
| August 10, 2026 | /s/ George Scherff | |||||||
| George Scherff | ||||||||
| Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
| August 10, 2026 | /s/ Eric B. Shultz | |||||||
| Eric B. Shultz | ||||||||
| Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
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Exhibit 31.1
CERTIFICATION
OF THE CHIEF EXECUTIVE OFFICER
RULE 13A-14(A) / 15D-14(A)
I, George Scherff, certify that:
1.I have read this Quarterly Report on Form 10-Q of SIFCO Industries, Inc.
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;
d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| August 10, 2026 | /s/ George Scherff | |||||||
| George Scherff | ||||||||
| Chief Executive Officer | ||||||||
Exhibit 31.2
CERTIFICATION
OF THE CHIEF FINANCIAL OFFICER
RULE 13A-14(A) / 15D-14(A)
I, Eric B. Shultz, certify that:
1.I have read this Quarterly Report on Form 10-Q of SIFCO Industries, Inc.
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;
d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| August 10, 2026 | /s/ Eric B. Shultz | |||||||
| Eric B. Shultz | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
In connection with the Quarterly Report of SIFCO Industries, Inc. (“Company”) on Form 10-Q for the quarter ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| August 10, 2026 | /s/ George Scherff | |||||||
| George Scherff | ||||||||
| Chief Executive Officer | ||||||||
This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by SIFCO Industries, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that SIFCO Industries, Inc. specifically incorporates it by reference.
A signed original of this written statement required by Section 906 has been provided to SIFCO Industries, Inc. and will be retained by SIFCO Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
In connection with the Quarterly Report of SIFCO Industries, Inc. (“Company”) on Form 10-Q for the quarter ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| August 10, 2026 | /s/ Eric B. Shultz | |||||||
| Eric B. Shultz | ||||||||
| Chief Financial Officer | ||||||||
This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by SIFCO Industries, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that SIFCO Industries, Inc. specifically incorporates it by reference.
A signed original of this written statement required by Section 906 has been provided to SIFCO Industries, Inc. and will be retained by SIFCO Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.