How did Sypris Solutions' revenue and expenses trend in Q4 2024?

Sypris Solutions Inc. experienced notable improvements in revenue and gross profit in Q4 2024, driven by favorable product mix and exchange rates, with a slight increase in SG&A expenses.

1. **Revenue Growth**: Sypris Solutions reported a significant increase in revenue for Q3 2024, with $35.7 million recorded, a 6.2% rise compared to $33.6 million in the same period the previous year. This growth was primarily attributed to increased shipments in the Sypris Electronics segment, which saw a 13.6% revenue increase due to new contract wins in electronic warfare, subsea communications, and avionics for aircraft and missiles. Sypris Technologies also contributed to the growth with a modest 0.7% increase in revenues.
2. **Gross Profit Improvement**: The company's gross profit surged by 48% to $5.98 million in Q3 2024, compared to $4.04 million in the same period the previous year. This increase was driven by a 150.9% year-over-year rise in gross profit for Sypris Technologies, which improved its gross profit margin to 18.8% from 7.5% year-over-year. However, Sypris Electronics experienced a slight dip in gross margin to 14.3% from 18.1% in the previous year, affected by additional labor and overhead costs.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|General, Corporate and Other|0|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|General, Corporate and Other|0|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|General, Corporate and Other|0|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|General, Corporate and Other|0|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|General, Corporate and Other|0|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|Sypris Electronics|1.7203E7|185|
|SYPR|SYPR.O|Sypris Solutions|20240101-2024|Sypris Technologies|1.835E7|185|

|code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|SYPR|SYPR.O|Sypris Solutions|2024 Q1|8.1118|-37.04706841022855|185|
|SYPR|SYPR.O|Sypris Solutions|2024 Q2|11.9945|-7.767251587899662|185|
|SYPR|SYPR.O|Sypris Solutions|2024 Q3|13.5893|7.15169961284625|185|
|SYPR|SYPR.O|Sypris Solutions|2024 Q4|14.1889|12.062456561571999|185|

3. **Operating Expense Trends**: Sypris Solutions reported SGAE expenses of $4.25 million for Q3 2024, slightly higher than the $4.17 million recorded in the same period the previous year. The increase was mainly due to unfavorable medical claims and additional headcount. R&D expenses were not provided separately for Q4 2024.
4. **Profitability**: The company achieved a net income of $0.4 million, or $0.02 per diluted share, in Q3 2024, compared to a net loss of $0.6 million, or $0.03 per diluted share, in Q3 2023. This marked a return to profitability, driven by increased revenue and gross profit.