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TechPrecision (TPCS)
NASDAQ:TPCS
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TechPrecision (TPCS) AI Stock Analysis

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TPCS

TechPrecision

(NASDAQ:TPCS)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
$4.00
▼(-15.25% Downside)
TechPrecision's overall stock score reflects significant financial and operational challenges. The company's financial performance is weak, with declining revenues, high leverage, and cash flow issues. Technical analysis indicates bearish momentum, and the valuation is unattractive due to negative earnings. The earnings call provided some positive developments in gross profit and backlog, but concerns remain regarding revenue decline and operating losses.

TechPrecision (TPCS) vs. SPDR S&P 500 ETF (SPY)

TechPrecision Business Overview & Revenue Model

Company DescriptionTechPrecision (TPCS) is a leading provider of advanced manufacturing solutions specializing in precision components and systems for various high-demand sectors including aerospace, defense, and medical devices. The company leverages cutting-edge technology and a highly skilled workforce to deliver high-quality, customized products that meet the rigorous standards of its clients. TechPrecision's core offerings include precision machining, fabrication, and assembly services, complemented by a commitment to innovation and operational excellence.
How the Company Makes MoneyTechPrecision generates revenue primarily through its contract manufacturing services, where it produces precision components for clients in the aerospace, defense, and medical sectors. The company operates on a project-based revenue model, charging clients based on the specific requirements and complexity of each order. Key revenue streams include long-term contracts with government and commercial entities, as well as customized production runs for high-tech medical devices. Additionally, TechPrecision benefits from strategic partnerships with industry leaders that enhance its technical capabilities and market reach, contributing to a steady influx of projects and long-term contracts that bolster its earnings.

TechPrecision Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed set of results. While there were notable improvements in gross profit, backlog achievement, and effective expense management, the company faced challenges with declining revenue, operating losses at Stadco, and a reported net loss. Debt reduction and expense management were positives, but the working capital situation and Stadco's performance are concerning.
Q1-2026 Updates
Positive Updates
Gross Profit Increase
Consolidated gross profit increased by $800,000 from $0.2 million in fiscal Q1 2025 to $1 million in fiscal 2026 first quarter, resulting in a double-digit year-over-year consolidated gross margin improvement.
Backlog Achievement
The company reached a new milestone by building its backlog to $50.1 million on June 30, 2025, with expectations to deliver over the next 1 to 3 fiscal years.
Expense Management
Consolidated SG&A decreased by 6% to $1.5 million in the fiscal 2026 first quarter, showing effective expense management.
Debt Reduction
Total debt was reduced from $7.4 million on March 31 to $5.7 million on June 30, 2025.
Negative Updates
Revenue Decline
Fiscal 2026 first quarter consolidated revenue was $7.4 million, 8% lower compared to $8 million in the fiscal 2025 first quarter.
Stadco Operating Loss
Stadco reported an operating loss of $1.2 million, with a partial improvement in operating income of $469,000 compared to the previous year.
Net Loss
The company reported a net loss of $0.6 million or $0.06 per share basic and fully diluted.
Working Capital Challenges
Working capital was negative on June 30, 2025, due to all long-term debt being classified as current because of certain debt covenant violations.
Company Guidance
During the TechPrecision Corporation Fiscal Year 2026 First Quarter Financial Results Conference Call, the company reported a consolidated revenue of $7.4 million, which represents an 8% decrease from the previous year's first quarter. Despite the revenue drop, the consolidated gross profit increased significantly by $800,000, reaching $1 million, attributed to improved production costs and higher margins at both Ranor and Stadco segments. Ranor's revenue was $4.3 million with an operating profit of $1.5 million, while Stadco's revenue was $3.3 million, suffering an operating loss of $1.2 million, though this marked a $469,000 improvement in operating income from the previous year. TechPrecision highlighted the importance of aggressive daily cash management and cost control, with a focus on capital expenditures and invoicing, which contributed to a new backlog milestone of $50.1 million as of June 30, 2025. The company also emphasized their commitment to the defense sector, with promising opportunities in air and submarine defense, expecting to deliver their backlog over the next 1 to 3 fiscal years with an eye on gross margin expansion.

TechPrecision Financial Statement Overview

Summary
TechPrecision faces financial challenges across all verticals. The income statement reflects declining revenues and persistent losses, while the balance sheet shows high leverage. Cash flow issues further exacerbate the company's financial position. Strategic initiatives are necessary to improve profitability, reduce debt, and stabilize cash flows to enhance overall financial health.
Income Statement
45
Neutral
TechPrecision's income statement shows a challenging financial position with declining revenue growth and negative profit margins. The TTM data indicates a gross profit margin of 15.32%, which is relatively stable, but the net profit margin is negative at -5.64%, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Revenue growth has been negative recently, suggesting a need for strategic improvements.
Balance Sheet
50
Neutral
The balance sheet reveals a high debt-to-equity ratio of 1.21 in the TTM, indicating significant leverage. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio is reasonable, suggesting some stability in asset financing. Overall, the balance sheet shows financial strain but maintains a balance between debt and equity.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow growth in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is unusually high due to negative net income, highlighting cash flow volatility. Overall, cash flow management needs significant improvement.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue33.42M34.03M31.59M31.43M22.28M15.60M
Gross Profit5.12M4.33M4.12M4.90M3.38M3.46M
EBITDA61.00K587.00K-2.16M1.79M1.19M1.33M
Net Income-1.89M-2.75M-7.04M-979.01K-349.83K320.63K
Balance Sheet
Total Assets32.14M33.53M34.75M36.21M37.85M16.00M
Cash, Cash Equivalents and Short-Term Investments143.00K195.00K138.40K534.47K1.05M2.13M
Total Debt9.93M11.76M12.70M11.82M13.66M3.82M
Total Liabilities23.93M24.79M26.94M21.61M22.59M6.06M
Stockholders Equity8.21M8.74M7.80M14.59M15.26M9.94M
Cash Flow
Free Cash Flow-5.23M-4.72M-1.93M812.54K-681.16K18.34K
Operating Cash Flow-60.40K-599.00K1.30M3.14M257.84K635.85K
Investing Cash Flow-74.09K-1.08M-3.17M-2.32M-8.73M-607.93K
Financing Cash Flow233.10K1.74M1.47M-1.34M7.40M1.17M

TechPrecision Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.72
Price Trends
50DMA
5.15
Negative
100DMA
4.75
Negative
200DMA
3.86
Positive
Market Momentum
MACD
-0.17
Positive
RSI
46.84
Neutral
STOCH
27.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPCS, the sentiment is Neutral. The current price of 4.72 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 5.15, and above the 200-day MA of 3.86, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 27.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TPCS.

TechPrecision Risk Analysis

TechPrecision disclosed 36 risk factors in its most recent earnings report. TechPrecision reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TechPrecision Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$127.64M13.5011.00%14.32%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
49
Neutral
$7.03M98.631.07%8.22%3.31%
44
Neutral
$45.48M-23.34-23.42%3.78%78.39%
44
Neutral
$17.37M-18.46-81.84%
42
Neutral
$41.45M-8.12-8.37%-3.95%88.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TPCS
TechPrecision
4.72
1.33
39.23%
AP
Ampco-Pittsburgh
1.85
-0.05
-2.63%
GIFI
Gulf Island Fabrication
11.78
4.74
67.33%
HIHO
Highway Holdings
1.46
-0.44
-23.16%
MTEN
Mingteng International Corp., Inc.
2.41
-4.70
-66.10%
LNKS
Linkers Industries Limited Class A
0.45
-3.87
-89.58%

TechPrecision Corporate Events

Executive/Board ChangesShareholder Meetings
TechPrecision Holds 2025 Annual Stockholders Meeting
Neutral
Oct 28, 2025

On October 28, 2025, TechPrecision Corporation held its 2025 Annual Meeting of Stockholders, where several key decisions were made. The company elected directors for a one-year term, ratified the selection of CBIZ CPAs P.C. as its independent registered public accounting firm for the fiscal year ending March 31, 2026, and approved the compensation of its Named Executive Officers on an advisory, non-binding basis.

The most recent analyst rating on (TPCS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on TechPrecision stock, see the TPCS Stock Forecast page.

Shareholder Meetings
TechPrecision Announces Virtual Annual Meeting Date
Neutral
Sep 18, 2025

TechPrecision Corporation has announced that its 2025 Annual Meeting of Stockholders will be held virtually on October 28, 2025, with October 1, 2025, set as the record date. This meeting date is more than 30 days before the anniversary of the previous meeting held on December 19, 2024, prompting a change in the deadline for stockholder nominations or proposals. Shareholders are informed of the new deadlines for submitting proposals, which must comply with SEC rules and the company’s by-laws.

The most recent analyst rating on (TPCS) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on TechPrecision stock, see the TPCS Stock Forecast page.

TechPrecision’s Mixed Earnings Call: Gains and Challenges
Sep 1, 2025

The recent earnings call for TechPrecision Corporation revealed a mixed sentiment, highlighting both achievements and challenges faced by the company. While there were significant improvements in gross profit and backlog achievements, concerns were raised due to declining revenue and operating losses at Stadco. The company showed effective expense management and debt reduction, yet issues with working capital and Stadco’s performance remain troubling.

Private Placements and Financing
TechPrecision Extends Credit Line Maturity with Berkshire
Neutral
Aug 29, 2025

On August 28, 2025, TechPrecision Corporation’s subsidiary, Ranor, Inc., along with its affiliates, extended the maturity date of their revolving line of credit loan with Berkshire Bank from August 29, 2025, to January 16, 2026. This amendment to the loan agreement reflects the company’s ongoing financial management and relationship with Berkshire Bank, ensuring continued access to credit for operational needs.

The most recent analyst rating on (TPCS) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on TechPrecision stock, see the TPCS Stock Forecast page.

TechPrecision Corporation Reports Q2 2025 Earnings
Aug 22, 2025

TechPrecision Corporation is a Delaware-based company specializing in the custom manufacturing of precision, large-scale fabrication components and machined metal structural components, primarily serving the defense and precision industrial markets.

TechPrecision Delays Q2 2025 Report Filing
Aug 15, 2025

TechPrecision Corporation has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The delay is primarily due to the need for additional time to finalize the results of operations for its Stadco operating segment and to complete the review of the consolidated financial statements by its independent auditors. The delay is mechanical in nature, stemming from resource limitations, and not due to fundamental financial issues. The company expects to file the report within five calendar days following the prescribed due date. Preliminary financial results indicate a decrease in revenue to approximately $7.4 million from $8.0 million in the same period last year, but an increase in gross profit to $1.0 million from $0.2 million. The company is actively working to complete its financial statements and ensure compliance, with the notification signed by Phillip Podgorski, Chief Financial Officer.

Business Operations and StrategyShareholder Meetings
TechPrecision Updates Bylaws and Equity Incentive Plan
Neutral
Aug 14, 2025

On August 8, 2025, TechPrecision Corporation’s Board of Directors approved amendments to its 2016 Equity Incentive Plan, eliminating the ability to reprice stock options without stockholder approval. Additionally, the Board approved amendments to the Company’s By-laws, implementing a majority vote standard in uncontested director elections and allowing stockholders with 20% voting power to request special meetings, among other changes.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 07, 2025