Defense parts demand lifts TechPrecision revenue 23% as funded backlog reaches $52.7 million
U.S. defense spending has kept specialty fabricators busy well into calendar 2026, and the quarterly numbers from one small-cap supplier reflect that tide. TechPrecision Corporation (NASDAQ: TPCS), a custom manufacturer of…
Key takeaways
- TechPrecision reported first-quarter fiscal 2027 revenue of $9.1 million, a 23% increase over the same period a year earlier.
- Gross profit rose 36% to $1.4 million, and net loss narrowed to $0.2 million from $0.6 million.
- The company's funded backlog reached $52.7 million as of June 30, 2026, with roughly $22 million in additional unfunded purchase orders.
- TechPrecision maintained full-year fiscal 2027 guidance of $35.0 million to $37.0 million in revenue and $3.0 million to $4.0 million in EBITDA.
- All debt obligations are classified as current due to certain covenant violations, with cash on hand of $0.3 million and negative $46,000 working capital at quarter-end.
U.S. defense spending has kept specialty fabricators busy well into calendar 2026, and the quarterly numbers from one small-cap supplier reflect that tide. TechPrecision Corporation (NASDAQ: TPCS), a custom manufacturer of precision, large-scale metal components for defense and aerospace customers, reported first-quarter fiscal 2027 revenue of $9.1 million, a 23% gain on the same period a year earlier. Gross profit climbed 36% to $1.4 million on what management called a favorable customer and project mix across both operating segments.
Segment execution narrows the loss
Ranor, the company's Massachusetts-based fabrication subsidiary, led with a 27% revenue increase and a 4% gross profit gain. Its Los Angeles counterpart, Stadco, which makes large mission-critical components for military aircraft, helicopters, and space programs, posted a 22% revenue rise while holding its cost of revenue virtually flat from a year ago, narrowing that segment's losses. The combined effect pushed consolidated operating loss down to $45,000, a 90% improvement, and net loss fell to $0.2 million from $0.6 million.
$52.7 million in funded backlog anchors forward guidance
Against the backdrop of sustained defense procurement, TechPrecision's funded backlog reached $52.7 million on June 30, 2026. Approximately $22 million in additional unfunded purchase orders sit alongside that figure. Chief Executive Officer Alexander Shen said the company expects to deliver the backlog over the next one to three fiscal years, with gross margin improvement throughout. The company maintained its full-year fiscal 2027 guidance of revenue in a range of $35.0 million to $37.0 million, representing at least 10% growth, and EBITDA of $3.0 million to $4.0 million, an 80% increase.
Balance sheet tightness and the covenant watch
Total debt declined to $5.0 million on June 30, 2026, from $7.0 million three months prior, and interest expense dropped 21% over the same period. Cash on hand was $0.3 million at quarter-end and working capital was negative $46,000. TechPrecision disclosed that all debt obligations are classified as current because of certain covenant violations, a balance sheet condition that sits alongside the demand environment as the principal caveat for the sector-wide read-through. The $3.0 million to $4.0 million EBITDA target for fiscal 2027 is the threshold against which balance sheet relief will be measured.
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