TechPrecision Corporation

Good afternoon and welcome to the Tech Precision Corporation Fiscal Year 2026 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode, and we will open the floor for your questions and comments after the presentation. Should you require operator assistance during today's conference, please press star zero on your telephone keypad. It is now my pleasure to turn the floor over to your host, Brett Moss with Hayden IR. Brett, the floor is yours.

Thank you. On the call today is Alex Shen, Chief Executive Officer, and Phil Podgorski, Chief Financial Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the Safe Harbor forward-looking statements as contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of risks and uncertainties in the company's financial filings with the SEC. In addition, projections as to the company's future performance represents management estimates as of today, August 21, 2025. Tech Precision assumes no obligation to revise or update these forward-looking statements. With that out of the way, I'd like to turn the call over to Alex Shen, Chief Executive Officer, to provide opening remarks. Alex, the floor is yours.

Thank you, Brett. Good afternoon to everyone, and thank you for joining us. Fiscal 2026, first quarter consolidated revenue was $7.4 million, 8% lower when compared to $8 million in the fiscal 2025 first quarter. Consolidated gross profit totaled $1 million, an increase of $800,000 when compared to the first quarter of fiscal 2025. At both Raynor and Stadco segments, our production costs decreased and margins increased. Fiscal 2026, first quarter, Raynor revenue was $4.3 million, with operating profit of $1.5 million. First quarter, Stadco revenue was $3.3 million, with operating loss of $1.2 million. Compared to the same period a year ago, STATCO had a $469,000 improvement in operating income. STATCO's $1.2 million operating loss this quarter consists of three drivers. One, lower revenue due to business timing and lumpiness. Two, losses from one-time, one-off contracts. And three, losses from specific first article costs. We are actively pursuing countermeasures and requesting adjustments from our clients. We remain highly focused on aggressive daily cash management, a critical piece of risk mitigation. We continue to manage and control expenses, capital expenditures, customer advances, progress billings, and final invoicing at shipment. Our tactical execution focus and success enables us to continuously re-secure strategic customer confidence at both segments. At our Raynor segment, sustained delivery and installation of new equipment continues as we specifically execute the $21 million plus of completely funded grant money from our U.S. Navy-related customers. Customer confidence remains high. We reached a new milestone, building our backlog to $50.1 million on June 30, 2025. This high customer confidence is leading both subsidiaries, STADCO, and Raynor to new quoting opportunities in air defense and submarine defense, respectively, with the same customers that already know and trust our capabilities. We expect to deliver our backlog over the course of the next one to three fiscal years with gross margin expansion. I'll turn the call over now to our Chief Financial Officer, Phil Podgorski. Phil? All yours.