SYPRIS SOLUTIONS INC Segments Disclosure

(21)	Segment Information

 

The Company is organized into two business segments, Sypris Technologies and Sypris Electronics. Our Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM evaluates each segment’s performance based on metrics such as net revenue, gross profit, operating (loss) income and other key financial indicators, guiding strategic decisions to align with company-wide goals. On a monthly basis, the CODM considers budget-to-actual variances for gross profit and operating (loss) income when making decisions about allocating capital to the segments. The segments are each managed separately because of the distinctions between the products, markets, customers, technologies, and workforce skills of the segments. Sypris Technologies generates revenue primarily from the sale of forged, machined, welded and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. Sypris Electronics provides circuit card and box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work to customers in the market for aerospace and defense, communications and space electronics. There was no intersegment net revenue recognized for any year presented.

 

The Company includes the unallocated costs of its corporate office, including the employment costs of its senior management team and other corporate personnel, administrative costs and net corporate interest expense incurred at the corporate level under the caption “General, corporate and other” in the table below. Such unallocated costs include those for centralized information technology, finance, legal and human resources support teams, certain professional fees, director fees, corporate office rent, certain self-insurance costs and recoveries, software license fees and various other administrative expenses that are not allocated to our reportable segments. The unallocated assets include cash and cash equivalents maintained in its domestic treasury accounts and the net book value of corporate facilities and related information systems. The unallocated liabilities consist primarily of the related party notes payable. Domestic income taxes are calculated at an entity level and are not allocated to our reportable segments. Corporate capital expenditures and depreciation and amortization include items attributable to the unallocated fixed assets of the corporate office and related information systems.

 

The following table presents financial information for the reportable segments of the Company (in thousands):

 

		Year ended December 31,
		2025				2024
Net revenue from unaffiliated customers:
Sypris Technologies		$	51,746			$	75,207
Sypris Electronics			68,141				64,973
Total net revenue		$	119,887			$	140,180
Gross profit:
Sypris Technologies		$	6,403			$	12,824
Sypris Electronics			2,995				7,066
Total gross profit		$	9,398			$	19,890
Operating (loss) income:
Sypris Technologies		$	439			$	7,245
Sypris Electronics			(1,522	)			2,119
General, corporate and other			(5,523	)			(6,437	)
Total operating (loss) income		$	(6,606	)		$	2,927
Interest expense, net:
Sypris Technologies		$	318			$	243
Sypris Electronics			227				711
General, corporate and other			1,086				730
Total interest expense, net		$	1,631			$	1,684

 

		Year ended December 31,
		2025				2024
Other (income) expense, net:
Sypris Technologies		$	(1,957	)		$	1,240
Sypris Electronics			3				(16	)
General, corporate and other			(6	)			(7	)
Total other (income) expense, net		$	(1,960	)		$	1,217
(Loss) income before income taxes:
Sypris Technologies		$	2,423			$	6,005
Sypris Electronics			(1,754	)			1,423
General, corporate and other			(6,946	)			(7,402	)
Total (loss) income before income taxes		$	(6,277	)		$	26
Depreciation and amortization:
Sypris Technologies		$	1,889			$	2,257
Sypris Electronics			955				921
General, corporate and other			0				3
Total depreciation and amortization		$	2,844			$	3,181
Capital expenditures:
Sypris Technologies		$	678			$	697
Sypris Electronics			11				375
General, corporate and other			67				11
Total capital expenditures		$	756			$	1,083

 

		December 31,
		2025				2024
Total assets:
Sypris Technologies		$	37,095			$	35,013
Sypris Electronics			63,469				76,405
General, corporate and other			7,247				7,958
Total assets		$	107,811			$	119,376
Total liabilities:
Sypris Technologies		$	20,214			$	18,104
Sypris Electronics			52,139				68,780
General, corporate and other			17,668				12,911
Total liabilities		$	90,021			$	99,795

 

The Company’s export sales from the U.S. totaled $3,426,000 and $7,354,000 in 2025 and 2024, respectively. Approximately $31,722,000 and $53,301,000 of net revenue in 2025 and 2024, respectively, and $10,502,000 and $6,956,000 of long lived assets at December 31, 2025 and 2024, respectively, and net assets of $23,076,000 and $20,419,000 at December 31, 2025 and 2024, respectively, relate to the Company’s international operations.