v3.26.1
Note 21 - Segment Information
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

(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.