SIFCO INDUSTRIES INC

The Company is subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in the Company’s 2024 Annual Report. There have been no material changes to our risk factors since the Company’s 2024 Annual Report, except as described below. Investors should consider all of the other information set forth in this Quarterly Report on Form 10-Q, including our unaudited consolidated condensed financial statements and the related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in evaluating our business and prospects. If any of the risks described herein occurs, our business, financial condition or results of operations could be negatively affected. Additional risks and uncertainties, including risks not currently known or that are currently deemed immaterial may also adversely affect our business financial conditions or results of operations.

Significant tariffs and other trade measures, including recently announced U.S. tariffs on aluminum and steel, could adversely affect our business, results of operations, financial position and cash flows.

Our business is subject to risks associated with changes in international trade policies, including tariffs and other trade restrictions. On February 10, 2025, the President of the United States issued an executive order increasing the tariff rate on aluminum and steel imports to 25% from 10% and eliminating numerous tariff exclusions. This action followed similar orders issued on February 1, 2025, imposing 25% tariffs on imports from Mexico and Canada. In June 2025, these tariffs were further increased to 50% on imports from all countries except the United Kingdom, effective June 4, 2025.

While our manufacturing operations are primarily located in the United States, and we currently do not expect these measures to have a material direct impact on our operations, we are continuing to assess potential indirect effects, including increased costs for raw materials, potential disruptions to our supply chain, and inflationary pressure on component and input pricing. These developments may require us to adjust pricing, renegotiate supplier terms, or shift sourcing strategies, which could adversely affect our margins, customer relationships, and overall competitiveness.

The ultimate impact of these measures remains uncertain and will depend on various factors such as their scope, duration, and the potential for further escalation in trade tensions. Any such impacts could adversely affect our business, financial condition, results of operations, and cash flows.