SIFCO Industries (SIF) 10-Q 14 Feb 25 2025 Q1 Quarterly report Financial data

Cover Page

Cover Page	3 Months Ended
	Dec. 31, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	1-5978
Entity Registrant Name	SIFCO Industries, Inc.
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0553950
Entity Address, Address Line One	970 East 64th Street,
Entity Address, City or Town	Cleveland
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44103
City Area Code	(216)
Local Phone Number	881-8600
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Shares
Trading Symbol	SIF
Security Exchange Name	NYSEAMER
Entity Common Stock, Shares Outstanding (in shares)	6,147,011
Entity Central Index Key	0000090168
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Net sales	$ 20,883	$ 15,474
Cost of goods sold	19,955	16,019
Gross profit (loss)	928	(545)
Selling, general and administrative expenses	2,840	3,103
Operating loss	(1,912)	(3,648)
Interest expense, net	469	342
Foreign currency exchange (gain) loss, net	(2)	4
Other expense, net	38	69
Loss from continuing operations before income tax expense	(2,417)	(4,063)
Income tax expense	5	6
Loss from continuing operations	(2,422)	(4,069)
Income from discontinued operations, net of tax	106	647
Net loss	$ (2,316)	$ (3,422)
Basic and diluted earnings (loss) per share:
Basic loss per share from continuing operations (in dollars per share)	$ (0.40)	$ (0.67)
Diluted loss per share from continuing operations (in dollars per share)	(0.40)	(0.67)
Basic earnings per share from discontinued operations (in dollars per share)	0.02	0.10
Diluted earnings per share from discontinued operations (in dollars per share)	0.02	0.10
Basic loss per share (in dollars per share)	(0.38)	(0.57)
Diluted loss per share (in dollars per share)	$ (0.38)	$ (0.57)
Weighted-average common shares outstanding basic (in shares)	6,016	5,956
Weighted-average number of common shares (diluted) (in shares)	6,016	5,956

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,316)	$ (3,422)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	5,554	253
Retirement plan liability adjustment, net of tax	23	43
Other	(2)	0
Comprehensive income (loss)	$ 3,259	$ (3,126)

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Current assets:
Cash and cash equivalents	$ 3,143	$ 1,714
Receivables, net of allowance for credit losses of $152 and $117, respectively	16,848	17,272
Contract assets	10,119	10,745
Inventories, net	5,683	6,230
Refundable income taxes	13	13
Prepaid expenses and other current assets	3,129	2,382
Current assets of discontinued operations	0	15,967
Total current assets	38,935	54,323
Property, plant and equipment, net	25,347	26,261
Operating lease right-of-use assets, net	13,132	13,326
Goodwill	3,493	3,493
Other assets	75	357
Noncurrent assets of discontinued operations	0	6,864
Total assets	80,982	104,624
Current liabilities:
Current maturities of long-term debt, net of unamortized debt issuance costs	3,227	353
Promissory note — related party	0	3,510
Revolver	12,633	20,142
Short-term operating lease liabilities	892	879
Accounts payable	8,820	11,574
Contract liabilities	2,384	2,879
Accrued liabilities (related party — nil and $880, respectively)	3,058	4,615
Current liabilities of discontinued operations	0	10,058
Total current liabilities	31,014	54,010
Long-term debt, net of current maturities	85	0
Long-term operating lease liabilities, net of short-term	12,844	13,035
Deferred income taxes, net	219	154
Pension liability	2,398	2,465
Other long-term liabilities	746	645
Noncurrent liabilities of discontinued operations	0	3,890
Shareholders’ equity:
Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at December 31, 2024 and September 30, 2024	0	0
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,147 at December 31, 2024 and 6,158 at September 30, 2024	6,147	6,158
Additional paid-in capital	11,778	11,775
Retained earnings	15,565	17,881
Accumulated other comprehensive income (loss)	186	(5,389)
Total shareholders’ equity	33,676	30,425
Total liabilities and shareholders’ equity	$ 80,982	$ 104,624

Consolidated Condensed Balanc_2

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Credit losses	$ 152	$ 117
Accrued liabilities	$ 3,058	$ 4,615
Preferred shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred shares, shares issued (in shares)	0	0
Preferred shares, shares outstanding (in shares)	0	0
Common shares, par value (in dollars per share)	$ 1	$ 1
Common shares, shares authorized (in shares)	10,000,000	10,000,000
Common shares, shares issued (in shares)	6,147,000	6,158,000
Common shares, shares outstanding (in shares)	6,147,000	6,158,000
Director
Accrued liabilities	$ 0	$ 880

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (2,316)	$ (3,422)
Income from discontinued operations, net of tax	106	647
Loss from continuing operations	(2,422)	(4,069)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization	1,181	1,232
Amortization of debt issuance costs	37	11
LIFO effect	501	293
Share transactions under company stock plan, net	(7)	38
Inventory valuation accounts	320	392
Other short-term liabilities	7	0
Other long-term liabilities	56	42
Deferred income taxes	65	(24)
Changes in operating assets and liabilities:
Receivables	424	3,217
Contract assets	626	(859)
Inventories	(274)	(3,146)
Prepaid expenses and other current assets	(543)	(202)
Other assets	265	(50)
Accounts payable	(2,772)	86
Accrued liabilities	(778)	(140)
Contract liabilities	(495)	1,675
Accrued income tax and other	0	1
Net cash used for operating activities	(3,809)	(1,503)
Cash flows from investing activities:
Capital expenditures	(109)	(482)
Net cash provided by (used for) investing activities	(109)	(482)
Cash flows from financing activities:
Payments on long-term debt	0	(55)
Proceeds from term loan	3,000	0
Payments on term loan	(100)	0
Proceeds from revolving credit agreement	35,025	23,413
Repayments of revolving credit agreement	(42,534)	(23,641)
Payment of debt issuance costs	(203)	(147)
Principal payments on capital lease obligations	(10)	0
Proceeds from promissory note — related party	0	3,000
Repayments of promissory note and related fees — related party	(4,417)	0
Net cash (used for) provided by financing activities	(9,239)	2,570
Cash flows from discontinued operations:
Net cash used for operating activities	(57)	(664)
Net cash provided by (used for) investing activities	13,313	(14)
Net cash provided by financing activities	356	2,898
Effects of exchange rate changes on cash and cash equivalents	(35)	33
Net cash provided by discontinued operations	13,577	2,253
Increase in cash and cash equivalents	420	2,838
Cash and cash equivalents at the beginning of the period			$ 2,723	$ 368
Less: Cash and cash equivalents from discontinued operations at the end of the period	0	2,599
Cash and cash equivalents from continuing operations at the end of the period	3,143	607
Cash paid during the year:
Cash paid for interest	(389)	(326)
Non-cash investing and financing activities:
Additions to property, plant & equipment — incurred but not yet paid	19	463
Debt issuance costs — incurred but not yet paid	115	0
Accrued guaranty fees — related party	0	760
Origination fees capitalized to promissory note principal — related party	0	150
Interest added to promissory note — related party (paid-in-kind)	$ 27	$ 0

Consolidated Condensed Statem_4

Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Sep. 30, 2023		6,105
Beginning balance at Sep. 30, 2023	$ 34,335	$ 6,105	$ 11,626	$ 23,264	$ (6,660)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	(3,126)			(3,422)	296
Performance and restricted share expense	87		87
Share transactions under equity-based plans (in shares)		55
Share transactions under equity-based plans	(49)	$ 55	(104)
Ending balance (in shares) at Dec. 31, 2023		6,160
Ending balance at Dec. 31, 2023	$ 31,247	$ 6,160	11,609	19,842	(6,364)
Beginning balance (in shares) at Sep. 30, 2024	6,158	6,158
Beginning balance at Sep. 30, 2024	$ 30,425	$ 6,158	11,775	17,881	(5,389)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive (loss) income	3,259			(2,316)	5,575
Performance and restricted share expense	20		20
Share transactions under equity-based plans (in shares)		(11)
Share transactions under equity-based plans	$ (28)	$ (11)	(17)
Ending balance (in shares) at Dec. 31, 2024	6,147	6,147
Ending balance at Dec. 31, 2024	$ 33,676	$ 6,147	$ 11,778	$ 15,565	$ 186

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies A. Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. In October 2024, the Company sold its European operations in order to streamline operational synergies and refocus on its core aerospace forging business. SIFCO Irish Holdings, Ltd., a wholly owned subsidiary of the Company, entered into a Share Purchase Agreement (the “SPA”) pursuant to which it sold 100% of the share capital of C Blade S.p.A. Forging & Manufacturing, an Italian joint stock company and wholly-owned subsidiary of the Company (“CBlade”), for cash consideration. As a result of the sale transaction, the Company’s financial statements have been prepared with the net assets, results of operations, and cash flows of CBlade presented as discontinued operations. All historical statements, amounts and related disclosures have been retrospectively adjusted to conform to this presentation. Refer to Note 2 — Discontinued Operations . The U.S. dollar is the functional currency for all of the Company’s operations in the United States (“U.S.”) and its non-operating, non-U.S. subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income (loss). Prior to the sale of CBlade, the functional currency for the Company’s other non-U.S. subsidiaries was the Euro; the Company no longer has active operations in Europe. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period which approximate the rates in effect at the date of the transaction. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 (the “2024 Annual Report”). The year-end consolidated condensed balance sheet contained in these financial statements was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) and disclosures considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. B. Accounting Policies A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s 2024 Annual Report. C. Net Loss per Share The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. During a period of net loss, zero restricted and performance shares are included in the calculation of diluted earnings per share because the effect would be anti-dilutive. In a period of net income, the net income per diluted share reflects the effect of the Company’s outstanding restricted shares and performance shares under the treasury stock method. The dilutive effect is as follows: Three Months Ended 2024 2023 Loss from continuing operations $ (2,422) (4,069) Income from discontinued operations, net of tax 106 647 Net loss $ (2,316) $ (3,422) Weighted-average common shares outstanding (basic and diluted) 6,016 5,956 Net earnings (loss) per share – basic and diluted: Continuing operations $ (0.40) $ (0.67) Discontinued operations 0.02 0.10 Net loss per share $ (0.38) $ (0.57) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 149 249 D. Recent Accounting Standards Adopted None applicable. E. Reclassifications Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. For the three months ended December 31, 2024, the Company revised its classification within the consolidated condensed statements of cash flows by moving the prior period amount for contract liabilities from accrued liabilities to contract liabilities to conform to current period presentation.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations The Company committed to the plan to sell CBlade in August 2024 in order to streamline operational synergies and refocus on its core aerospace forging entities. On August 1, 2024, the Company’s Board of Directors approved and authorized the execution of a share purchase agreement (the “SPA”), under which SIFCO Irish Holdings, Ltd., a wholly owned subsidiary of the Company, entered into an agreement to sell 100% of the share capital of CBlade to TB2 S.r.l. (the “Buyer”) at an enterprise value of €20,000, less debt, for cash consideration of €13,800 in net equity value at closing, subject to adjustments for changes in working capital and certain other items (the “CBlade Sale”). The Company determined that CBlade met the criteria for classification as assets held for sale and discontinued operations upon the aforementioned events, and, based on the significance of the disposed operations (i.e., strategic shift), CBlade represented discontinued operations upon classification of the CBlade assets and liabilities as held for sale. In October 2024, upon regulatory approval, the Company completed the sale of CBlade and received cash consideration of approximately $14,586, net of transaction costs of $352. The Company does not expect to have any significant continuing involvement with CBlade after the sale. All operating activities prior to the disposal date were included in the Company's financial statements separately as discontinued operations, including income before income tax provision, gain from the sale CBlade (i.e., cash proceeds received less net assets transferred), and the release of accumulated other comprehensive income (loss) attributable to the Company's European operations. Due to the CBlade Sale, the Company ceased manufacturing operations within the European market, as CBlade represented the last remaining facility in this region. Prior to the transaction, CBlade was directly owned by SIFCO Irish Holdings Inc., a wholly-owned subsidiary of the Company incorporated in Ireland (“Irish Holdings”), which historically acted as the holding company for the Company's international operations. With the disposal of CBlade, the Company determined that its European operations represented a substantially complete liquidation. Therefore, $5,851 of cumulative translation adjustment loss attributable to these operations (related to Irish Holdings) was recognized in the statement of operations as a component of the gain on sale of discontinued operations upon the loss of a controlling financial interest in CBlade, which represented in excess of 90% of the assets of the Company's European operations. The principal components of the assets and liabilities related to discontinued operations classified as held for sale as of September 30, 2024 were as follows: September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,009 Short-term investments 1,114 Receivables, net 6,259 Inventories, net 6,185 Prepaid expenses and other current assets 1,400 Total current assets 15,967 Property, plant and equipment, net 6,625 Other long-term assets 239 Total assets of discontinued operations $ 22,831 LIABILITIES Current liabilities: Current maturities of long-term debt $ 3,843 Accounts payable 2,770 Accrued and other current liabilities 3,445 Total current liabilities 10,058 Long-term debt, net 3,536 Other long-term liabilities 354 Total liabilities of discontinued operations $ 13,948 A summary of the operating results for the discontinued operations is as follows: Three Months Ended 2024 2023 Net sales $ 622 $ 5,578 Cost of sales 348 4,297 Interest expense, net 15 88 Income from discontinued operations before income tax expense and gain on sale 214 691 Income tax expense from discontinued operations 166 44 Gain on sale of discontinued operations before income tax expense 58 — Income tax expense on gain from sale of discontinued operations — — Income from discontinued operations, net of tax $ 106 $ 647

Inventories

Inventories	3 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of: December 31, September 30, Raw materials and supplies $ 1,494 $ 1,044 Work-in-process 1,649 3,419 Finished goods 2,540 1,767 Total inventories, net $ 5,683 $ 6,230 For a portion of the Company’s inventory, cost is determined using the last-in, first-out (“LIFO”) method. Approximately 37% and 30% of the Company’s inventories as of December 31, 2024 and September 30, 2024, respectively, use the LIFO method. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because the actual results may vary from these estimates, the annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value (“NRV”). If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $10,997 and $10,496 higher than reported as of December 31, 2024 and September 30, 2024, respectively. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The Company estimates net realizable value, excess and obsolescence and shrink reserves for its inventory based upon historical experience, historical and projected sales trends and the age of inventory on hand. As of December 31, 2024 and September 30, 2024, our inventory valuation allowances were $3,054 and $2,733, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive loss are as follows: December 31, September 30, Foreign currency translation adjustment $ — $ (5,554) Retirement plan liability adjustment, net of tax 186 163 Interest rate swap agreement, net of tax — 2 Total accumulated other comprehensive loss $ 186 $ (5,389) During the three months ended December 31, 2024, the Company reclassified $5,554 from foreign currency translation adjustment to income from discontinued operations in the consolidated condensed statements of operations concurrent with the disposition of the CBlade and the substantially complete liquidation of operations in Europe.

Leases

Leases	3 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Leases	Leases The components of lease expense were as follows: Three Months Ended 2024 2023 Finance lease expense: Amortization of right-of use assets on finance leases $ 11 $ 2 Interest on lease liabilities 1 — Operating lease expense 415 409 Variable lease cost 15 20 Total lease expense $ 442 $ 431 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets December 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 132 $ 4 Operating lease assets Operating lease right-of-use assets, net 13,132 13,326 Total lease assets $ 13,264 $ 13,330 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 45 $ — Operating lease liabilities Short-term operating lease liabilities 892 879 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 85 — Operating lease liabilities Long-term operating lease liabilities, net of short-term 12,844 13,035 Total lease liabilities $ 13,866 $ 13,914 Supplemental cash flow and other information related to leases were as follows: Three Months Ended 2024 2023 Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 415 $ 409 Operating cash flows from finance leases 1 — Financing cash flows from finance leases 10 — Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 139 — Operating leases 81 — December 31, September 30, Weighted-average remaining lease term (years): Finance leases 2.8 0.0 Operating leases 11.5 12.4 Weighted-average discount rate: Finance leases 5.2 % — % Operating leases 5.9 % 5.9 % Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows: Finance Leases Operating Leases Year ending September 30, Remainder of 2025 $ 37 $ 1,239 2026 50 1,662 2027 50 1,683 2028 2 1,564 2029 — 1,506 Thereafter — 11,251 Total lease payments $ 139 $ 18,905 Less: Imputed interest (9) (5,169) Present value of lease liabilities $ 130 $ 13,736
Leases	Leases The components of lease expense were as follows: Three Months Ended 2024 2023 Finance lease expense: Amortization of right-of use assets on finance leases $ 11 $ 2 Interest on lease liabilities 1 — Operating lease expense 415 409 Variable lease cost 15 20 Total lease expense $ 442 $ 431 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets December 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 132 $ 4 Operating lease assets Operating lease right-of-use assets, net 13,132 13,326 Total lease assets $ 13,264 $ 13,330 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 45 $ — Operating lease liabilities Short-term operating lease liabilities 892 879 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 85 — Operating lease liabilities Long-term operating lease liabilities, net of short-term 12,844 13,035 Total lease liabilities $ 13,866 $ 13,914 Supplemental cash flow and other information related to leases were as follows: Three Months Ended 2024 2023 Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 415 $ 409 Operating cash flows from finance leases 1 — Financing cash flows from finance leases 10 — Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 139 — Operating leases 81 — December 31, September 30, Weighted-average remaining lease term (years): Finance leases 2.8 0.0 Operating leases 11.5 12.4 Weighted-average discount rate: Finance leases 5.2 % — % Operating leases 5.9 % 5.9 % Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows: Finance Leases Operating Leases Year ending September 30, Remainder of 2025 $ 37 $ 1,239 2026 50 1,662 2027 50 1,683 2028 2 1,564 2029 — 1,506 Thereafter — 11,251 Total lease payments $ 139 $ 18,905 Less: Imputed interest (9) (5,169) Present value of lease liabilities $ 130 $ 13,736

Debt

Debt	3 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt Debt consists of: December 31, September 30, Revolving credit agreement $ 12,633 $ 20,142 Term loan, net of unamortized debt issuance costs of $83 and nil, respectively 2,822 — Promissory note — related party — 3,510 Finance lease obligations 130 — Other 360 353 Total debt 15,945 24,005 Less — current maturities (15,860) (24,005) Total long-term debt $ 85 $ — Loan and Security Agreement On October 17, 2024, Company and Quality Aluminum Forge, LLC, a wholly-owned subsidiary of the Company (“QAF”, and together with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Loan Agreement”) among the Company and QAF, as borrowers, Siena Lending Group LLC, as Lender (“Siena”), and each of the affiliates of the borrowers signatory to the Loan Agreement from time to time as guarantors. The Loan Agreement provided for a senior secured revolving credit facility with a term of three years in an aggregate principal amount not to exceed $20,000 (the “Revolver”) and a term loan in the original principal amount of $3,000 (the “Term Loan”). The Loan Agreement also provided for a $2,500 letter of credit sub-facility (the “Letter of Credit Sub-facility,” and collectively with the Revolver and the Term Loan, the “Credit Facility”). The Credit Facility matures on October 17, 2027. Proceeds of borrowings under the Credit Facility were used to repay amounts outstanding under the Company’s Credit Agreement, Security Agreement, and Export Credit Agreement dated August 8, 2018, as amended, and was also available for working capital, capital expenditures and other general corporate purposes. These amounts included accrued paid-in-kind interest of $387 and fees under the guaranty agreement and subordinated promissory note with Garnet Holdings, Inc., a California corporation owned and controlled by Mark J. Silk (“GHI”) (Mr. Silk is a member of the Board of Directors of the Company and considered a related party) of $1,030. Borrowings under the Revolver and the Letter of Credit Sub-facility will bear interest at an annual rate of 4.5% plus the adjusted term SOFR (or, if the base rate is applicable, an annual rate of 3.5% plus the base rate). Borrowings under the Term Loan will bear interest at an annual rate of 5.5% plus the adjusted term SOFR (or, if the base rate is applicable, 4.5% plus the base rate) and shall be repaid in equal consecutive monthly installments of $50 commencing November 1, 2024, with the entire unpaid balance due and payable on the maturity date. Letters of credit issued under the Letter of Credit Sub-facility will have a fee equal to 4.5% plus adjusted term SOFR per annum of the face amount of such letter of credit. The Letter of Credit Sub-facility requires the Company to maintain compensating balances in a money market account in support of any issuances. The Company may withdraw funds from this account at its discretion; however, availability under the Letter of Credit Sub-facility will be dependent upon the maintenance of such compensating balances. As of December 31, 2024, the Company held $1,559 in compensating balances, which were included in cash and cash equivalents in the consolidated condensed balance sheets. In consideration of the execution and delivery by Siena of the Loan Agreement, the Company agreed pursuant to the fee letter to pay a closing fee in the amount of $230 (of which $115 was paid on the closing date and $115 is payable on the first anniversary of the closing date, with the remaining amount (if any) of the closing fee to be paid in full on the maturity date). The fee letter provides for a collateral monitoring fee in the amount of $126, which fee shall be paid in installments as follows: (a) equal payments of approximately $4 shall be payable on the closing date and on the first day of each month thereafter and (b) the remaining amount of such fee (if any) shall be paid in full on the maturity date. In addition, an unused line fee accrues with respect to the unused amount of the Revolver at an annual rate of 0.5%. All fees that are payable in future installments or in full at maturity were recognized within accrued liabilities in the consolidated condensed balance sheets as of December 31, 2024. Borrowings under the Credit Facility are secured by (a) a continuing first priority lien on and security interest in and to substantially all of the assets of the Company and other loan parties identified therein; and (b) a continuing first priority pledge of the pledged equity. The obligations of the Borrowers are guaranteed by each guarantor on the terms set forth in the Loan Agreement. The Loan Agreement provides that the Company must maintain compliance with a minimum fixed charge coverage ratio, determined in accordance with the Loan Agreement. The Loan Agreement also contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investment, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for financings of this type. Additionally, the Loan Agreement contains provisions for a lockbox arrangement and a subjective acceleration clause related to the appraised value of collateralized property, plant, and equipment; hence, the Term Loan and the Revolver were each classified as current maturities of long-term debt in the consolidated condensed balance sheet as of December 31, 2024. As of December 31, 2024, the Company was in compliance with all covenants under the Loan Agreement. As of December 31, 2024, total availability under the Revolver was $3,859, and no letters of credit were outstanding. As of December 31, 2024 and September 30, 2024, the Company had effective interest rates of 9.6% and 8.1%, respectively, under its revolving credit agreements. Debt issuance costs As of December 31, 2024 and September 30, 2024, the Company had debt issuance costs related to its outstanding revolving credit agreements of $556 and $461, respectively, which are included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $31 and nil, respectively. As of December 31, 2024, the Company had debt issuance costs related to the Term Loan of $83, which are included net of debt in the consolidated condensed balance sheets, net of amortization of $6. First Energy In April 2019, the Company entered into an economic development loan in the amount of $864 with FirstEnergy Corporation (“FirstEnergy”) through its Ohio Electric Security Plan (“ESP”) in effect at that time (the “ED Loan”). The ED Loan matures in five years and requires quarterly payments at an interest rate of zero percent per annum for the first twenty-four months and 2.0% per annum for the remainder of the term. Any unpaid balance after the initial term will convert to the U.S. Prime Rate plus 1.0%. As of December 31, 2024 and September 30, 2024, the Company had outstanding balances under the ED Loan of $140 and $133, respectively. Beginning on October 1, 2019, FirstEnergy invoiced the Company on a quarterly basis and payments were made accordingly. However, in light of recent difficulties experienced by FirstEnergy, the Company has not received invoices (or other requests for payment) since its October 2023 payment, and all attempts at correspondence with FirstEnergy have gone unanswered. Due to the lack of communication with the lender, the Company has been unable to make the remaining three installment payments and consider the outstanding balance a potential contingent cash payment under the ED Loan until a formal letter of forgiveness or other determination is received. The Company will continue efforts to resolve this obligation in the near future. While we expect to meet the standards for full forgiveness of the ED Loan, there is no assurance that we will be granted such forgiveness. City of Cleveland In May 2019, the Company entered into a vacant property initiative loan agreement with the City of Cleveland in the amount of $180 at an annual interest rate of 3.6% to construct a die storage building near our Cleveland, OH facility (the “VPI Loan”). The VPI Loan matures in five years with a final balloon payment of all outstanding principal and interest and is forgivable in full contingent upon the Company creating a minimum number of new jobs and maintaining minimum employment levels during the term of the loan. As of both December 31, 2024 and September 30, 2024, the Company had amounts outstanding under the VPI Loan of $220. Due to the effects of the worldwide pandemic, the Company experienced declines in demand for its products and sales, which hindered the Company's ability to grow its workforce and maintain it at or above the required levels. The Company is currently in discussions with the City of Cleveland for forgiveness of the VPI Loan under extenuating circumstances beyond the Company's control. Until a final determination is made by the City of Cleveland, the Company has not made payments on the VPI Loan, which may become payable in full if forgiveness is not approved. The Company will continue efforts to resolve this obligation in the near future. While we expect to meet the standards for full forgiveness of the VPI Loan, there is no assurance that we will be granted such forgiveness.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first three months of fiscal 2025 was (0.21)%, compared with (0.15)% for the same period of fiscal 2024. The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate. The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, and various state and local jurisdictions.

Retirement Benefit Plans

Retirement Benefit Plans	3 Months Ended
	Dec. 31, 2024
Retirement Benefits [Abstract]
Retirement Benefit Plans	Retirement Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering some of its employees. The components of the net periodic benefit cost of the Company’s defined benefit plans are as follows: Three Months Ended 2024 2023 Service cost $ 43 $ 17 Interest cost 236 271 Expected return on plan assets (264) (262) Amortization of net loss 23 43 Net periodic pension cost $ 38 $ 69 During the three months ended December 31, 2024 and 2023, the Company made $42 and $9 in cash contributions, and zero and $86 in non-cash contributions utilizing carryover balance, respectively, to its defined benefit pension plans. The Company anticipates making $240 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2025, and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2025. The Company’s ability to elect to use such carryover balance will be determined based on the actual funded status of each defined benefit pension plan relative to the plan’s minimum regulatory funding requirements. The Company does not anticipate making cash contributions above the minimum funding requirement to fund its defined benefit pension plans during the balance of fiscal 2025.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company has outstanding equity awards under the Company’s 2007 Long-Term Incentive Plan (the “2007 Plan”) and the Company’s 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the “2016 Plan”), and awards performance and restricted shares under the 2016 Plan. In the first three months of fiscal 2025, the Company granted 10 time-based restricted shares under the 2016 Plan to certain key employees with a grant date fair value of $4.14 per share. The awards vest over three years. There were 30 shares forfeited during the three months ended December 31, 2024. No performance-based shares were granted during the three months ended December 31, 2024 If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 405 shares that remain available for award as of December 31, 2024. If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation expense under the 2016 Plan was $21 and $86 during the first three months of fiscal 2025 and 2024, respectively, within selling, general and administrative expense on the consolidated condensed statements of operations. As of December 31, 2024, there was $172 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.2 years.

Revenue

Revenue	3 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) commercial space, semiconductor and other commercial applications. Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company’s contracts are from purchase orders (“PO’s”), which continue to be recognized as of a point in time when products are shipped from the Company’s manufacturing facilities or at a later time when control of the products transfers to the customer. Under the revenue standard, the Company recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows: • Certain military contracts, which relate to the provisions of specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation (“FAR”). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process. • For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company’s use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin. As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. The following table represents a breakout of total revenue by customer type: Three Months Ended 2024 2023 Commercial revenue $ 11,157 $ 7,662 Military revenue 9,726 7,812 Total $ 20,883 $ 15,474 The following table represents revenue by end market: Three Months Ended 2024 2023 Aerospace components for: Fixed wing aircraft $ 12,845 $ 9,939 Rotorcraft 3,394 3,150 Commercial space 2,448 1,333 Energy components for power generation units 1,028 613 Commercial product and other revenue 1,168 439 Total $ 20,883 $ 15,474 All revenue based on selling locations originated from the Company’s U.S. operations. In addition to the disaggregated revenue information provided above, approximately 53% and 57% of total net sales for the three months ended December 31, 2024 and 2023, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time. Contract Balances The following table contains a roll forward of contract assets and contract liabilities for the periods presented: December 31, December 31, Contract assets — beginning balance $ 10,745 $ 10,091 Additional revenue recognized over-time 10,713 9,184 Less amounts billed to the customers (11,339) (8,326) Contract assets — ending balance $ 10,119 $ 10,949 December 31, December 31, Contract liabilities — beginning balance $ 2,879 $ 731 Payments received in advance of performance obligations 440 1,675 Performance obligations satisfied (935) — Contract liabilities — ending balance $ 2,384 $ 2,406 Accounts receivable were $15,638 and $12,421 as of September 30, 2023 and December 31, 2023, respectively. There were no material impairment losses recorded on contract assets as of December 31, 2024 and September 30, 2024. Remaining performance obligations As of December 31, 2024, the Company has $121,900 of remaining performance obligations (including contract assets), the majority of which are anticipated to be completed within the next twelve months.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In October 2024, the Company repaid all amounts outstanding under its secured subordinated loan from Garnet Holdings, Inc., a California corporation owned and controlled by Mark J. Silk (“GHI”) (Mr. Silk is a member of the Board of Directors of the Company and considered a related party), in the original principal amount of $3,000, as well as accrued paid-in-kind interest. As part of the guaranty and subordinated promissory note with GHI, the Company paid fees of $880 and $150, respectively. See Note 6 — Debt for further information.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (2,316)	$ (3,422)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. In October 2024, the Company sold its European operations in order to streamline operational synergies and refocus on its core aerospace forging business. SIFCO Irish Holdings, Ltd., a wholly owned subsidiary of the Company, entered into a Share Purchase Agreement (the “SPA”) pursuant to which it sold 100% of the share capital of C Blade S.p.A. Forging & Manufacturing, an Italian joint stock company and wholly-owned subsidiary of the Company (“CBlade”), for cash consideration. As a result of the sale transaction, the Company’s financial statements have been prepared with the net assets, results of operations, and cash flows of CBlade presented as discontinued operations. All historical statements, amounts and related disclosures have been retrospectively adjusted to conform to this presentation. Refer to Note 2 — Discontinued Operations . The U.S. dollar is the functional currency for all of the Company’s operations in the United States (“U.S.”) and its non-operating, non-U.S. subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income (loss). Prior to the sale of CBlade, the functional currency for the Company’s other non-U.S. subsidiaries was the Euro; the Company no longer has active operations in Europe. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period which approximate the rates in effect at the date of the transaction. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 (the “2024 Annual Report”). The year-end consolidated condensed balance sheet contained in these financial statements was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) and disclosures considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.
Net Loss per Share	Net Loss per Share
Recent Accounting Standards Adopted	Recent Accounting Standards Adopted None applicable.
Reclassifications	Reclassifications Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. For the three months ended December 31, 2024, the Company revised its classification within the consolidated condensed statements of cash flows by moving the prior period amount for contract liabilities from accrued liabilities to contract liabilities to conform to current period presentation.
Revenue	The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) commercial space, semiconductor and other commercial applications. Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company’s contracts are from purchase orders (“PO’s”), which continue to be recognized as of a point in time when products are shipped from the Company’s manufacturing facilities or at a later time when control of the products transfers to the customer. Under the revenue standard, the Company recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows: • Certain military contracts, which relate to the provisions of specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation (“FAR”). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process. • For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company’s use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin. As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Schedule of Dilutive Effect	The dilutive effect is as follows: Three Months Ended 2024 2023 Loss from continuing operations $ (2,422) (4,069) Income from discontinued operations, net of tax 106 647 Net loss $ (2,316) $ (3,422) Weighted-average common shares outstanding (basic and diluted) 6,016 5,956 Net earnings (loss) per share – basic and diluted: Continuing operations $ (0.40) $ (0.67) Discontinued operations 0.02 0.10 Net loss per share $ (0.38) $ (0.57) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 149 249

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Assets and Liabilities Discontinued Operations	The principal components of the assets and liabilities related to discontinued operations classified as held for sale as of September 30, 2024 were as follows: September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,009 Short-term investments 1,114 Receivables, net 6,259 Inventories, net 6,185 Prepaid expenses and other current assets 1,400 Total current assets 15,967 Property, plant and equipment, net 6,625 Other long-term assets 239 Total assets of discontinued operations $ 22,831 LIABILITIES Current liabilities: Current maturities of long-term debt $ 3,843 Accounts payable 2,770 Accrued and other current liabilities 3,445 Total current liabilities 10,058 Long-term debt, net 3,536 Other long-term liabilities 354 Total liabilities of discontinued operations $ 13,948 A summary of the operating results for the discontinued operations is as follows: Three Months Ended 2024 2023 Net sales $ 622 $ 5,578 Cost of sales 348 4,297 Interest expense, net 15 88 Income from discontinued operations before income tax expense and gain on sale 214 691 Income tax expense from discontinued operations 166 44 Gain on sale of discontinued operations before income tax expense 58 — Income tax expense on gain from sale of discontinued operations — — Income from discontinued operations, net of tax $ 106 $ 647

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of: December 31, September 30, Raw materials and supplies $ 1,494 $ 1,044 Work-in-process 1,649 3,419 Finished goods 2,540 1,767 Total inventories, net $ 5,683 $ 6,230

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Schedule of Components of Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are as follows: December 31, September 30, Foreign currency translation adjustment $ — $ (5,554) Retirement plan liability adjustment, net of tax 186 163 Interest rate swap agreement, net of tax — 2 Total accumulated other comprehensive loss $ 186 $ (5,389)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Schedule of Lease Cost Components, Supplemental Cash Flow and Other information, and Weighted-Average Remaining Lease Term Schedules	The components of lease expense were as follows: Three Months Ended 2024 2023 Finance lease expense: Amortization of right-of use assets on finance leases $ 11 $ 2 Interest on lease liabilities 1 — Operating lease expense 415 409 Variable lease cost 15 20 Total lease expense $ 442 $ 431 Supplemental cash flow and other information related to leases were as follows: Three Months Ended 2024 2023 Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 415 $ 409 Operating cash flows from finance leases 1 — Financing cash flows from finance leases 10 — Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 139 — Operating leases 81 — December 31, September 30, Weighted-average remaining lease term (years): Finance leases 2.8 0.0 Operating leases 11.5 12.4 Weighted-average discount rate: Finance leases 5.2 % — % Operating leases 5.9 % 5.9 %
Schedule of Supplemental Balance Sheet Information Schedule	The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets December 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 132 $ 4 Operating lease assets Operating lease right-of-use assets, net 13,132 13,326 Total lease assets $ 13,264 $ 13,330 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 45 $ — Operating lease liabilities Short-term operating lease liabilities 892 879 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 85 — Operating lease liabilities Long-term operating lease liabilities, net of short-term 12,844 13,035 Total lease liabilities $ 13,866 $ 13,914
Schedule of Maturities of Finance Lease Liabilities by Fiscal Year Schedule	Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows: Finance Leases Operating Leases Year ending September 30, Remainder of 2025 $ 37 $ 1,239 2026 50 1,662 2027 50 1,683 2028 2 1,564 2029 — 1,506 Thereafter — 11,251 Total lease payments $ 139 $ 18,905 Less: Imputed interest (9) (5,169) Present value of lease liabilities $ 130 $ 13,736
Schedule of Maturities of Operating Lease Liabilities by Fiscal Year Schedule	Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows: Finance Leases Operating Leases Year ending September 30, Remainder of 2025 $ 37 $ 1,239 2026 50 1,662 2027 50 1,683 2028 2 1,564 2029 — 1,506 Thereafter — 11,251 Total lease payments $ 139 $ 18,905 Less: Imputed interest (9) (5,169) Present value of lease liabilities $ 130 $ 13,736

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Schedule of Debt	Debt consists of: December 31, September 30, Revolving credit agreement $ 12,633 $ 20,142 Term loan, net of unamortized debt issuance costs of $83 and nil, respectively 2,822 — Promissory note — related party — 3,510 Finance lease obligations 130 — Other 360 353 Total debt 15,945 24,005 Less — current maturities (15,860) (24,005) Total long-term debt $ 85 $ —

Retirement Benefit Plans (Table

Retirement Benefit Plans (Tables)	3 Months Ended
	Dec. 31, 2024
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Cost	The components of the net periodic benefit cost of the Company’s defined benefit plans are as follows: Three Months Ended 2024 2023 Service cost $ 43 $ 17 Interest cost 236 271 Expected return on plan assets (264) (262) Amortization of net loss 23 43 Net periodic pension cost $ 38 $ 69

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table represents a breakout of total revenue by customer type: Three Months Ended 2024 2023 Commercial revenue $ 11,157 $ 7,662 Military revenue 9,726 7,812 Total $ 20,883 $ 15,474 The following table represents revenue by end market: Three Months Ended 2024 2023 Aerospace components for: Fixed wing aircraft $ 12,845 $ 9,939 Rotorcraft 3,394 3,150 Commercial space 2,448 1,333 Energy components for power generation units 1,028 613 Commercial product and other revenue 1,168 439 Total $ 20,883 $ 15,474
Schedule of Contract Assets and Liabilities	The following table contains a roll forward of contract assets and contract liabilities for the periods presented: December 31, December 31, Contract assets — beginning balance $ 10,745 $ 10,091 Additional revenue recognized over-time 10,713 9,184 Less amounts billed to the customers (11,339) (8,326) Contract assets — ending balance $ 10,119 $ 10,949 December 31, December 31, Contract liabilities — beginning balance $ 2,879 $ 731 Payments received in advance of performance obligations 440 1,675 Performance obligations satisfied (935) — Contract liabilities — ending balance $ 2,384 $ 2,406

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - shares	3 Months Ended
	Dec. 31, 2024	Oct. 31, 2024
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted and performance shares (in shares)	0
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted and performance shares (in shares)	0
Discontinued Operations, Disposed of by Sale | CBlade
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share purchase agreement, percentage to be acquired		100%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Dilutive Effect (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Loss from continuing operations	$ (2,422)	$ (4,069)
Income from discontinued operations, net of tax	106	647
Net loss	$ (2,316)	$ (3,422)
Weighted-average common shares outstanding (basic) (in shares)	6,016	5,956
Weighted-average common shares outstanding diluted (in shares)	6,016	5,956
Continuing operations - basic (in dollars per share)	$ (0.40)	$ (0.67)
Continuing operations - diluted (in dollars per share)	(0.40)	(0.67)
Discontinued operations - basic (in dollars per share)	0.02	0.10
Discontinued operations - diluted (in dollars per share)	0.02	0.10
Basic loss per share (in dollars per share)	(0.38)	(0.57)
Diluted loss per share (in dollars per share)	$ (0.38)	$ (0.57)
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares)	149	249

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - CBlade € in Thousands, $ in Thousands	1 Months Ended		3 Months Ended
	Oct. 31, 2024 EUR (€)	Oct. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)
Schedule of Equity Method Investments [Line Items]
Share purchase agreement, percentage to be acquired	100%
Enterprise value | €	€ 20,000
Proceeds from sale of business	€ 13,800	$ 14,586
Transaction costs		352
Cumulative translation adjustment		$ 5,851	$ 5,554
Percentage of excess assets	90%	90%

Discontinued Operations - Asset

Discontinued Operations - Assets and Liabilities Discontinued Operations (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Current assets:
Total current assets	$ 0	$ 15,967
Current liabilities:
Total current liabilities	$ 0	10,058
Discontinued Operations, Held for Sale | CBlade
Current assets:
Cash and cash equivalents		1,009
Short-term investments		1,114
Receivables, net		6,259
Inventories, net		6,185
Prepaid expenses and other current assets		1,400
Total current assets		15,967
Property, plant and equipment, net		6,625
Other long-term assets		239
Total assets of discontinued operations		22,831
Current liabilities:
Current maturities of long-term debt		3,843
Accounts payable		2,770
Accrued and other current liabilities		3,445
Total current liabilities		10,058
Long-term debt, net		3,536
Other long-term liabilities		354
Total liabilities of discontinued operations		$ 13,948

Discontinued Operations - Summa

Discontinued Operations - Summary of Operating Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 106	$ 647
Discontinued Operations, Disposed of by Sale | CBlade
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	622
Cost of sales	348
Interest expense, net	15
Income from discontinued operations before income tax expense and gain on sale	214
Income tax expense from discontinued operations	166
Gain on sale of discontinued operations before income tax expense	58
Income tax expense on gain from sale of discontinued operations	0
Income from discontinued operations, net of tax	$ 106
Discontinued Operations, Held for Sale | CBlade
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales		5,578
Cost of sales		4,297
Interest expense, net		88
Income from discontinued operations before income tax expense and gain on sale		691
Income tax expense from discontinued operations		44
Gain on sale of discontinued operations before income tax expense		0
Income tax expense on gain from sale of discontinued operations		0
Income from discontinued operations, net of tax		$ 647

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 1,494	$ 1,044
Work-in-process	1,649	3,419
Finished goods	2,540	1,767
Total inventories, net	$ 5,683	$ 6,230

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Inventory Disclosure [Abstract]
Percentage of inventories determined using LIFO method	37%	30%
Additional amount that would have been reported in inventory if FIFO method had been used	$ 10,997	$ 10,496
Inventory valuation allowances	$ 3,054	$ 2,733

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	$ 33,676	$ 30,425	$ 31,247	$ 34,335
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	0	(5,554)
Retirement plan liability adjustment, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	186	163
Interest rate swap agreement, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	0	2
Total accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	$ 186	$ (5,389)	$ (6,364)	$ (6,660)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2024	Dec. 31, 2024
Discontinued Operations, Disposed of by Sale | CBlade
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustment	$ 5,851	$ 5,554

Leases - Lease Cost Components

Leases - Lease Cost Components Schedule (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Finance lease expense:
Amortization of right-of use assets on finance leases	$ 11	$ 2
Interest on lease liabilities	1	0
Operating lease expense	415	409
Variable lease cost	15	20
Total lease expense	$ 442	$ 431

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Assets:
Property, plant and equipment, net	$ 132	$ 4
Operating lease right-of-use assets, net	13,132	13,326
Total lease assets	13,264	13,330
Current liabilities:
Current maturities of long-term debt	45	0
Short-term operating lease liabilities	892	879
Non-current liabilities:
Long-term debt, net of current maturities	85	0
Long-term operating lease liabilities, net of short-term	12,844	13,035
Total lease liabilities	$ 13,866	$ 13,914
Finance lease, asset, statement of financial position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Current finance lease, liability, statement of financial position [Extensible List]	Current maturities of long-term debt, net of unamortized debt issuance costs	Current maturities of long-term debt, net of unamortized debt issuance costs
Noncurrent finance lease, liability, statement of financial position [Extensible List]	Long-term debt, net of current maturities	Long-term debt, net of current maturities

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information and Non-Cash Activity Schedule (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$ 415	$ 409
Operating cash flows from finance leases	1	0
Financing cash flows from finance leases	10	0
Finance leases	139	0
Operating leases	$ 81	$ 0

Leases - Weighted-Average Remai

Leases - Weighted-Average Remaining Lease Term and Discount Rate Schedule (Details)	Dec. 31, 2024	Sep. 30, 2024
Weighted-average remaining lease term (years):
Finance leases	2 years 9 months 18 days	0 years
Operating leases	11 years 6 months	12 years 4 months 24 days
Weighted-average discount rate:
Finance leases	5.20%	0%
Operating leases	5.90%	5.90%

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities by Fiscal Year Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Finance Leases
Remainder of 2025	$ 37
2026	50
2027	50
2028	2
2029	0
Thereafter	0
Total lease payments	139
Less: Imputed interest	(9)
Present value of lease liabilities	130	$ 0
Operating Leases
Remainder of 2025	1,239
2026	1,662
2027	1,683
2028	1,564
2029	1,506
Thereafter	11,251
Total lease payments	18,905
Less: Imputed interest	(5,169)
Present value of lease liabilities	$ 13,736

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($)	Dec. 31, 2024	Sep. 30, 2024
Debt Instrument [Line Items]
Total debt	$ 15,945,000	$ 24,005,000
Finance lease obligations	130,000	0
Less — current maturities	(15,860,000)	(24,005,000)
Long-term debt, net of current maturities	85,000	0
Promissory note — related party | Director
Debt Instrument [Line Items]
Total debt	0	3,510,000
Other
Debt Instrument [Line Items]
Total debt	360,000	353,000
Revolving credit agreement | Revolving credit agreement
Debt Instrument [Line Items]
Total debt	12,633,000	20,142,000
Secured Debt | Revolving credit agreement
Debt Instrument [Line Items]
Total debt	2,822,000	0
Unamortized debt issuance costs	$ 83,000	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details)		1 Months Ended
	Oct. 17, 2024 USD ($)	May 31, 2019 USD ($)	Apr. 30, 2019 USD ($) installment	Dec. 31, 2024 USD ($)	Nov. 01, 2024 USD ($)	Oct. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)
Line of Credit Facility [Line Items]
Long-term debt, gross				$ 15,945,000			$ 24,005,000
Line of Credit | Secured Debt
Line of Credit Facility [Line Items]
Unamortized debt issuance costs				83,000			0
Long-term debt, gross				2,822,000			0
Line of Credit | Revolving credit agreement
Line of Credit Facility [Line Items]
Debt instrument, unamortized discount premium				556,000			461,000
Revolving line of credit, accumulated amortization of debt issuance costs				31,000			0
Long-term debt, gross				12,633,000			20,142,000
Subordinated note | Director
Line of Credit Facility [Line Items]
Long-term debt, gross				0			$ 3,510,000
Term Loan
Line of Credit Facility [Line Items]
Revolving line of credit, accumulated amortization of debt issuance costs				6,000
Loan Agreement
Line of Credit Facility [Line Items]
Debt instrument, fee paid	$ 115,000
Debt instrument, fee payable	$ 115,000
Loan Agreement | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, maturity term	3 years
Closing fee	$ 230,000
Loan Agreement | Line of Credit | Secured Debt
Line of Credit Facility [Line Items]
Debt face amount	$ 3,000,000
Debt instrument, periodic payments					$ 50,000
Loan Agreement | Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread	5.50%
Loan Agreement | Line of Credit | Secured Debt | Base Rate
Line of Credit Facility [Line Items]
Basis spread	4.50%
Loan Agreement | Line of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 2,500,000
Compensating balances held				1,559,000
Loan Agreement | Line of Credit | Letter of Credit | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread	4.50%
Loan Agreement | Line of Credit | Revolving credit agreement
Line of Credit Facility [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 20,000,000
Debt instrument, collateral fee	126,000
Debt instrument, collateral fee installment amount	$ 4,000
Unused capacity, commitment fee percentage	0.50%
Loan Agreement | Line of Credit | Revolving credit agreement | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread	4.50%
Loan Agreement | Line of Credit | Revolving credit agreement | Base Rate
Line of Credit Facility [Line Items]
Basis spread	3.50%
Subordinated Promissory Note | Subordinated note | Director
Line of Credit Facility [Line Items]
Debt face amount	$ 1,030,000					$ 3,000,000
PIK interest amount	$ 387,000
Closing fee						$ 150,000
Credit Agreement | Line of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit				0
Credit Agreement | Line of Credit | Revolving credit agreement
Line of Credit Facility [Line Items]
Available funds				$ 3,859,000
Weighted average interest rate, revolving credit facility				9.60%			8.10%
ED Loan | Unsecured Debt
Line of Credit Facility [Line Items]
Debt instrument, maturity term			5 years
Debt face amount			$ 864,000
Long-term debt, gross				$ 140,000			$ 133,000
Remaining of installments | installment			3
ED Loan | Unsecured Debt | Debt Covenant Period One
Line of Credit Facility [Line Items]
Interest rate, fixed percentage			0%
ED Loan | Unsecured Debt | Debt Covenant Period Two
Line of Credit Facility [Line Items]
Interest rate, fixed percentage			2%
ED Loan | Unsecured Debt | Prime Rate
Line of Credit Facility [Line Items]
Basis spread			1%
VPI Loan | Unsecured Debt
Line of Credit Facility [Line Items]
Debt instrument, maturity term		5 years
Debt face amount		$ 180,000
Long-term debt, gross				$ 220,000			$ 220,000
Interest rate		3.60%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate, percent	(0.21%)	(0.15%)

Retirement Benefit Plans - Comp

Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Retirement Benefits [Abstract]
Service cost	$ 43	$ 17
Interest cost	236	271
Expected return on plan assets	(264)	(262)
Amortization of net loss	23	43
Net periodic pension cost	$ 38	$ 69

Retirement Benefit Plans - Narr

Retirement Benefit Plans - Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Retirement Benefits [Abstract]
Cash contribution	$ 42,000	$ 9,000
Non-cash contribution	0	$ 86,000
Additional cash contributions planned for fiscal 2025	$ 240,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - 2016 Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding share awards that may be awarded (in shares)	405,000
Outstanding share awards earned and issued at greater than the target number of shares next fiscal year	150%
Share-based compensation expense (benefit)	$ 21	$ 86
Total unrecognized compensation cost related to performance and restricted shares	$ 172
Period of recognized compensation cost (in years)	1 year 2 months 12 days
Key employees | Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	10,000
Shares granted in period, grant date fair value (in dollars per share)	$ 4.14
Vesting period	3 years
Shares forfeited (in shares)	30,000
Key employees | Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	0

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 20,883	$ 15,474
Revenue from Contract with Customer | Customer Concentration Risk | Transferred over Time
Disaggregation of Revenue [Line Items]
Percentage of concentration risk	53%	57%
Fixed wing aircraft
Disaggregation of Revenue [Line Items]
Revenue	$ 12,845	$ 9,939
Rotorcraft
Disaggregation of Revenue [Line Items]
Revenue	3,394	3,150
Commercial space
Disaggregation of Revenue [Line Items]
Revenue	2,448	1,333
Energy components for power generation units
Disaggregation of Revenue [Line Items]
Revenue	1,028	613
Commercial product and other revenue
Disaggregation of Revenue [Line Items]
Revenue	1,168	439
Commercial revenue
Disaggregation of Revenue [Line Items]
Revenue	11,157	7,662
Military revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 9,726	$ 7,812

Revenue - Contract Balances (De

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Change In Contract With Customer, Assets [Roll Forward]
Contract assets — beginning balance	$ 10,745	$ 10,091	$ 10,091
Additional revenue recognized over-time	10,713	9,184
Less amounts billed to the customers	(11,339)	(8,326)
Contract assets — ending balance	10,119	10,949	10,745
Change In Contract With Customer, Liability [Roll Forward]
Contract liabilities — beginning balance	2,879	731	731
Payments received in advance of performance obligations	440	1,675
Performance obligations satisfied	(935)	0
Contract liabilities — ending balance	2,384	2,406	2,879
Accounts receivable		$ 12,421		$ 15,638
Impairment loss on contract assets	$ 0		$ 0

Revenue - Performance Obligatio

Revenue - Performance Obligation (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 121,900
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Timing of satisfaction, period	12 months

Related Party Transactions (Det

Related Party Transactions (Details) - Subordinated Promissory Note - Subordinated note - Director - USD ($)	Oct. 31, 2024	Oct. 17, 2024
Related Party Transaction [Line Items]
Face amount	$ 3,000,000	$ 1,030,000
Guaranty fee	880,000
Closing fee	$ 150,000