Yes, SeaCast is the pour in place material for transom repair after the wood is removed. On a 25, I might do a bit more surgery, because of our findings--see below. On a 22, the pour in place should work fine. But replacing the plywood and re glassing/gel coating the transom should not take 50 hours at $100 an hour (that allows $300 for materials).
Back to the problem--and Dr John explains the issues with the woods well, and TyBoo hits the jackpot as to the problem.
The way that most boats this size are constructed is that the hull to deck joint is formed on the top of the transom; the splashwell is part of the deck mold, and the hull has the core molded into the transom. Core material is used to decrease the weight aft. A 1 1/2 to 2" solid glass laminate would weight twice as much as a one cored with 2 layers of 3/4" ply, and almost 3x as much as one with balsa core or a foam composite.
Our newer 25 (2003) was built with a plywood core--very possible that balsa was used in the older "cruiser 25's". The problem was two fold--one was that the plywood did not go all of the way out to the transom, so that the thrust of the motor was taken structurally by the splash well. In our boat there was insufficient glass on the top of the transom and in the splash well. The sides of the transom were thinner than the center core, and could flex some (not visiable). We resolved the problem by reglassing the top of the transom, and putting several layers of 18 oz trixial cloth in the laminate of the splash well. After glassing over the top of the transom, we re attatched the cap with black 5200. In our boat the plywood core only had some minor rot in the area of the trim tab screws and the depth sounder transducer screws. As in TyBoo's boat there were no glass over the top of the transom core, but just resin.
A paradox is that balsa is a hardwood by classification--that is it has short cells, and channels for water migration, thus water does not migrate in the wood grain far. Fir or pine (material which most plywood core are made of) are softwoods, with longer cells, and no canals for water migation, and thus water migrates in the wood much more easily. Rot occurs faster and more extensively in the softwood plywoods. (There are hardwood plys such as Gaboon marine ply, often used for cold molded or stitch and glue boats)
In this case, if there is no evidence of water intrusion (moisture meter on the transom, and ice pick into the top of the wood), just reapply the cap and be sure it is well sealed.