Discontinued Operations

3 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

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 December 31,
	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