SIFCO Industries, Inc
SIFCO Industries is a U.S.-based manufacturer of forgings, machined components, and sub-assemblies for aerospace and defense, energy, and commercial space applications. Its operations are centered on producing envelope and precision forgings in metals such as steel, nickel alloys, titanium, and aluminum from facilities in Cleveland, Ohio and Orange, California.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueOpen-die and precision forged metal parts for aerospace, defense, and adjacent markets.
Rough and finished machined parts produced from forged or customer-supplied material.
Integrated component assemblies built for OEM and supplier customers.
Components and parts sold into defense platforms and munitions programs.
Parts for commercial aircraft, energy applications, and commercial space programs.
Products
Reported · share of revenue- Fixed Wing Aircraft Revenue60.6 %
- Rotocraft Revenue20.1 %
- Commercial Products and Other Revenue10.4 %
- Commercial Space5.9 %
- Energy Components for Power Generation Units2.9 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
SIFCO sells to OEMs, Tier 1 and Tier 2 suppliers, and aftermarket service providers that need technically demanding forged and machined metal parts. Its end markets include aerospace and defense, energy, and commercial space, with both military and commercial aerospace demand represented in the customer mix. The company also serves customers that outsource critical manufacturing steps because of qualification, capacity, or process requirements.
Buy forged and machined components for direct integration into aircraft, defense, energy, and space systems.
Source outsourced forgings and machined parts to support larger platform programs and supply chains.
Purchase replacement and repair parts for maintenance, overhaul, and sustainment work.
Buy components for defense platforms and munitions programs where qualification and reliability matter.
Buy parts for aircraft, commercial space, and energy applications requiring technical competence.
Strategy
SIFCO’s strategy is to balance military and commercial aerospace revenue while supplementing growth with energy, commercial space, and adjacent markets. It also emphasizes capacity utilization, broader manufacturing capability, and new customer development to strengthen its position in technically demanding forgings and machined components.
Diversifies demand across defense and civil programs and reduces reliance on any one cycle.
Higher utilization improves manufacturing efficiency and supports competitive pricing.
More process capability allows the company to bid on a wider set of forgings and machined parts.
New accounts help offset program volatility and customer concentration.
Geography
Q2/2024SIFCO operates primarily from two U.S. manufacturing sites in Cleveland, Ohio and Orange, California. Its customer base is global, and the company competes with both U.S. and non-U.S. suppliers as aerospace and defense supply chains expand internationally. Geography matters because certification, customer proximity, and trade measures can affect sourcing, pricing, and delivery performance.
Share of the revenue the company reports by geography.
Risks
SIFCO is exposed to customer concentration, program timing, and price pressure in a highly competitive forgings market. Its business also depends on supplier performance, defense spending, metals pricing, and compliance with trade and cybersecurity requirements, all of which can affect delivery, margins, and continuity of operations.
- Customer concentrationImpact: HighLikelihood: Medium
A small number of customers account for a meaningful share of sales, so lost volume would hurt revenue.
Exposure: One direct customer accounted for 18% of net sales; two customers and subcontractors 34% combined
- Defense and program demand volatilityImpact: HighLikelihood: Medium
Military and government-related orders can fluctuate with budgets, build rates, and contract timing.
Exposure: Military programs and U.S. government-related contracts
- Metals and tariff inflationImpact: MediumLikelihood: High
Steel, aluminum, and other input costs may rise faster than the company can recover them.
Exposure: Aluminum and steel tariffs; raw material pricing
- Competitive and pricing pressureImpact: MediumLikelihood: Medium
Larger domestic and international competitors can underbid or offer broader capabilities.
Exposure: Aerospace and defense forgings market
- Cybersecurity and operational disruptionImpact: MediumLikelihood: Medium
Manufacturing and customer data systems are exposed to intrusion, downtime, and data loss.
Exposure
Accounting
Judgemental itemsManagement uses estimates when pricing contracts, so changes can affect margins and earnings.
Impact: Reported profitability and contract performance
Forgings and machined parts require valuation of raw materials, WIP, and finished goods.
Impact: Cost of goods sold and working capital
Goodwill is tested at the reporting unit level and depends on future cash flow assumptions.
Impact: Potential non-cash impairment charges
Discount rate and expected return assumptions affect pension expense and obligations.
Impact: Pension expense and projected benefit obligation
Receivables from aerospace and defense customers require judgment on collectability.
Impact: Allowance for credit losses and net income
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Last updated: 24/09/2026