Sypris Solutions, Inc. Q4 FY2022 earnings call

• Revenue for the quarter increased 15.2% year-over-year and 17.9% sequentially, with continued strength across segments. - Gross profit for the quarter increased 4.3% year-over-year and 133% sequentially, supported by 164% expansion for Sypris Electronics and 107% increase for Sypris Technologies from Q3 2022. - Orders for the quarter were up 103% year-over-year and 71% sequentially, backlog rose 117% year-over-year and 17% sequentially. - Announced several new contract awards, including an amendment to a multiyear supply agreement for Navy program, a follow-on award for Army Key Management System, and an award for DoD weapon system electronic interface modules. - Market outlooks: Demand for Class 8 heavy vehicles expected to remain flat in 2023; Europe boosting LNG imports and increasing LNG import capacity; long-term defense spending market positive with backlog at $118.5 million up 119% from prior year-end.

Sypris Electronics: Q4 revenue increased 13% year-over-year. Full-year revenue increased 14.5% year-over-year. Backlog at the end of 2022 was $118.5 million. Sypris Technologies: Q4 revenue increased 16.6% year-over-year. Full-year revenue increased 12.2% year-over-year. Orders for energy products in Q4 increased 71% year-over-year. Revenue contribution details: Q4 consolidated revenue was $29.7 million, with Sypris Technologies contributing $17.2 million and Sypris Electronics contributing $12.5 million.

• Forecasts top line growth of 25% to 30% in 2023. - Expect margin expansion of 175 to 225 basis points in 2023. - Cash flow from operations to remain solid supported by earnings growth. - Backlog provides a strong platform for future growth in 2023.

• Supply chain challenges were previously a factor, though beginning to abate. No other specific risks explicitly highlighted in detail.