Servotronics Reports Q1 EPS of 6c, Revenue of $11.7M

Servotronics reported Q1 revenue of $11.7M, up from $10.4M last year, and a turnaround in operating income due to process improvements and revenue strategies. CEO William Farrell credited the team's dedication and focus on long-term goals. The company is benefiting from increased volumes and growth in the military and commercial aerospace markets.

Servotronics, Inc. (NYSE American – SVT) reported robust financial results for the first quarter ended March 31, 2025, with significant improvements in revenue and profitability. The company's revenue increased to $11.7 million, up 12.0% from $10.4 million in the first quarter of 2024 [1]. This growth was driven by higher volumes and improved pricing, partially offset by an unfavorable product mix [2].

Notably, Servotronics' gross profit increased by 36.0% to $2.4 million, representing 20.2% of revenue, up from $1.7 million, or 16.6% of revenue, in the prior-year period [2]. This significant improvement was attributed to increased sales volume, enhanced operational efficiencies, and improved pricing. The company's operating income improved by $0.5 million to $0.2 million, compared to a loss of ($0.3) million in the first quarter of 2024 [2].

Servotronics' net income from continuing operations was $0.1 million, or $0.06 per diluted share in the first quarter of 2025, compared to a net loss from continuing operations of $0.4 million, or a loss of ($0.15) per diluted share in the first quarter of 2024 [2]. CEO William F. Farrell, Jr., commented on the turnaround, attributing it to the team's dedication and focus on long-term strategic goals. He also noted the benefits of efforts in growing the business with both current and new customers in the military and commercial aerospace markets [2].

The company's Chief Financial Officer, Robert A. Fraass, highlighted the initiative to improve pricing terms with key customers, which will bolster margins starting in 2026 [2]. This strategy reflects Servotronics' commitment to delivering value to the aerospace industry and maintaining customer trust.

Servotronics' financial performance underscores the positive impact of industry conditions and the company's operational improvements. As the company continues to evaluate strategic opportunities, it remains well-positioned to generate improved financial results and achieve its long-term goals.

References:
[1] https://www.marketscreener.com/quote/stock/SERVOTRONICS-INC-15989/news/Servotronics-Inc-Reports-Earnings-Results-for-the-First-Quarter-Ended-March-31-2025-49896260/
[2] https://www.prnewswire.com/news-releases/servotronics-announces-improved-first-quarter-2025-financial-results-302450651.html