Here are 1-2 brief analogies for SIFCO Industries (SIF):

• A smaller, highly specialized Howmet Aerospace (HWM), focused on safety-critical forged components for aerospace and defense.
• Like one of the highly engineered, critical component manufacturers that TransDigm Group (TDG) is known for acquiring, specifically focused on advanced forgings for aerospace and defense applications.

• Forgings: Produces highly engineered custom closed-die forgings primarily for aerospace and energy industries.
• Machined Components: Provides precision machining services to manufacture complex components for critical applications.
• Specialized Repair and Overhaul Services: Offers repair and refurbishment of critical rotating components for aerospace and industrial gas turbine engines.

SIFCO Industries (SIF) sells primarily to other companies, specifically original equipment manufacturers (OEMs) and their suppliers in the aerospace, defense, and energy markets. The company has a high concentration of sales among a few key customers.

Based on their latest financial disclosures, the following are among SIFCO's major customer companies:

• GE Aerospace (a division of General Electric Company - NYSE: GE)
• Raytheon Technologies Corporation (NYSE: RTX)
• The Boeing Company (NYSE: BA)

George Scherff, Chief Executive Officer

Mr. Scherff was appointed CEO of SIFCO Industries, Inc. effective July 8, 2024. Prior to joining SIFCO, he served as CEO for Thermal Systems Manufacturing, Paradigm Packaging, Lund International, ABC Truck Body, and Hartzell Manufacturing following its merger with Continental Metal Specialties. He holds a bachelor's degree from The Ohio State University and a master's degree in mechanical engineering from the University of Toledo.

Jennifer Wilson Skuhrovec, Chief Financial Officer

Ms. Wilson Skuhrovec was appointed Chief Financial Officer of SIFCO Industries, Inc., effective November 13, 2024. She joined SIFCO in 2019 as Director of Financial Planning and Analysis, later becoming Controller of the Orange, CA facility in 2021 and Director of External Reporting in 2022. Before SIFCO, Ms. Wilson Skuhrovec was an Accounting and Finance Consultant with Resources Global Professionals and served as Manager of Accounting and Treasury for Technical Consumer Products. She is a certified public accountant and holds an MBA in business administration and a Bachelor of Science in accounting from David N. Meyers College.

Alayne Reitman, Chairman of the Board

Ms. Reitman serves as the Chairman of the Board for SIFCO Industries. She is listed as a key executive and director.

John Glover, Corporate Vice President of Sales

Mr. Glover is the Corporate Vice President of Sales at SIFCO Industries.

Wendy Worthington, Director of Human Resources

Ms. Worthington serves as the Director of Human Resources for SIFCO Industries.

The key risks to SIFCO Industries (SIF) are primarily tied to the cyclical nature of its core markets, ongoing supply chain challenges, and customer concentration.

1. Cyclical Nature of Aerospace and Energy Markets: SIFCO Industries operates in high-stakes and cyclical end markets, primarily aerospace and energy, which directly ties its revenue to the health of commercial airline recovery, government spending, and the broader energy industry. A continuing or further downturn in these industries could significantly impact demand for SIFCO's products.
2. Raw Material Availability and Supply Chain Disruptions: The company has faced and continues to experience challenges with raw material availability, leading to shipment constraints and missed revenue opportunities. Effectively converting strong underlying demand into realized sales is contingent on resolving these supply chain headwinds.
3. Customer Concentration: SIFCO Industries relies on a limited number of key customers for a substantial portion of its consolidated net sales. For instance, in fiscal year 2024, one direct customer accounted for 15% of consolidated net sales, and three customers combined represented 41% of net sales. The loss of a major customer could have a material adverse impact on the business.

The clear emerging threat for SIFCO Industries is the increasing adoption and advancement of additive manufacturing (3D printing) technology for the production of critical components in the aerospace and energy sectors.

Historically, SIFCO has specialized in producing highly engineered forged components for these industries. However, aerospace and energy companies are increasingly investing in and adopting advanced additive manufacturing techniques for metal parts, including those made from high-performance alloys like titanium and nickel. This technology offers advantages such as significantly reduced material waste, the ability to create complex geometries that are difficult or impossible with traditional forging, and potentially faster lead times for certain components. Major aerospace OEMs and engine manufacturers are already integrating 3D-printed parts into new engine designs and airframe structures.

As additive manufacturing capabilities expand in terms of material properties, part size, and cost-effectiveness, it poses a direct competitive threat by potentially reducing the demand for traditionally forged components, thereby challenging SIFCO's core business model in its primary markets.

SIFCO Industries (SIF) operates in the global markets for highly engineered forged components, primarily serving the aerospace, energy, and defense sectors. The company's main products and services include the production of forgings and machined components, as well as repair, coating, and machining of jet engine and aerospace components.

Addressable Market Sizes:

• Global Metal Forging Market: The global metal forging market was valued at approximately USD 94.88 billion in 2024 and is projected to reach around USD 149.52 billion by 2032, demonstrating a Compound Annual Growth Rate (CAGR) of 5.85% during the forecast period. Other estimates place the 2024 value at USD 94.38 billion, growing to USD 145.46 billion by 2030 with a CAGR of 7.4% from 2025 to 2030. Another source estimates the market at USD 95.02 billion in 2024, expecting it to reach approximately USD 199.69 billion by 2034, at a CAGR of 7.71% from 2025 to 2034.
• Global Aircraft Maintenance, Repair and Overhaul (MRO) Market (Aerospace): The global market for Aircraft Maintenance, Repair and Overhaul (MRO), a segment relevant to SIFCO's aerospace component and repair services, was estimated at US$49.1 billion in 2023 and is projected to reach US$66.2 billion by 2030, with a CAGR of 4.4% from 2023 to 2030. Another report valued the global aircraft MRO market at USD 51.5 billion in 2024 and anticipates it will reach USD 68.52 billion by 2033, growing at a CAGR of 3.2%. A broader "aerospace and defense MRO market" was estimated at USD 135.7 billion in 2024 and is projected to reach USD 187.3 billion by 2030, with a CAGR of 5.6%. The narrow-body segment dominated the aircraft MRO market in 2024 with a 47.5% revenue share.

SIFCO Industries (SIF) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Sustained Demand in Aerospace and Energy Markets: SIFCO is benefiting from robust demand in the aerospace and energy sectors, with aircraft and defense customers expanding output. This has led to increased production rates and strong orders for SIFCO's forged and machined components. In fiscal year 2024, sales to aerospace customers increased by 24.4%, and sales to energy customers rose by 15.4%, reflecting a positive trend in these market segments.
2. Growing Customer Backlog: The company has demonstrated a consistent increase in its total backlog, which stood at $114.4 million at the end of fiscal 2024, with orders for fiscal 2025 scheduled at $85.0 million. This backlog further grew to $129.2 million by the second quarter of fiscal 2025, indicating strong ongoing demand for its products and providing a clear pipeline for future revenue.
3. Expansion into New and Diversified Markets: SIFCO is actively pursuing diversification by entering new markets, including Space and Semiconductors. The company has already achieved increased revenue from its Space segment and added new customers in the Semiconductor industry. This strategic initiative aims to strengthen its long-term market position and leverage opportunities beyond its traditional aerospace and defense focus, such as capitalizing on the commercial fleet renewal cycle.
4. Favorable Pricing Negotiations: Management has emphasized favorable pricing negotiations with customers, which are anticipated to support both revenue growth and margin stability. These constructive pricing discussions are contributing to a more stable revenue outlook for the company.
5. Product Innovations and Advanced Manufacturing Techniques: SIFCO's continued investment in research and development to introduce new and improved products that meet evolving customer needs is a potential growth driver. The company's focus on advanced manufacturing techniques is also expected to contribute to revenue growth in the coming years.

Outbound Investments

• In October 2024, SIFCO sold its European operations, C Blade S.p.A. Forging & Manufacturing, an Italian subsidiary, for cash consideration. This sale aimed to streamline operational synergies and refocus on the core aerospace forging business.

Capital Expenditures

• Total capital expenditures for fiscal year 2025 are anticipated to be between $2.0 million and $3.0 million.
• These anticipated capital expenditures for fiscal year 2025 are primarily focused on further enhancing production and product offering capabilities, as well as reducing operating costs.
• In fiscal year 2021, capital expenditures were primarily used for the restoration of the Orange location due to a fire, with the work completed by September 30, 2021.