CPI Aerostructures Reports Second Quarter and Six Month 2025 Results
Second Quarter 2025 vs. Second Quarter 2024
Revenue of $15.2 million compared to $20.8 million;
Gross profit of $0.7 million compared to $5.1 million;
Gross margin of 4.4% (17.1% excluding A-10 Program impact) compared to 24.6%;
Net (loss) income of $(1.3) million compared to net income of $1.4 million;
(Loss) earnings per share of $(0.10) compared to earnings per share of $0.11;
Adjusted EBITDA(1) of $(1.7) million ($0.6 million excluding A-10 Program impact) compared to $2.6 million.
Six Months 2025 vs. Six Months 2024
Revenue of $30.6 million compared to $39.9 million;
Gross profit of $2.3 million compared to $8.7 million;
Gross margin of 7.6% (19.3% excluding A-10 Program impact) compared to 21.7%;
Net (loss) income of $(2.6) million compared to net income of $1.6 million;
(Loss) earnings per share of $(0.21) compared to earnings per share of $0.13;
Adjusted EBITDA(1) of $(2.5) million ($2.0 million excluding A-10 Program impact) compared to $3.8 million;
Debt as of June 30, 2025 of $16.2 million compared to $18.9 million as of June 30, 2024.
EDGEWOOD, N.Y., Aug. 19, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero" or the "Company") (NYSE:CVU) today announced financial results for the three and six months ended June 30, 2025.
"During the second quarter we took a $2.3 million write-off on the A-10 Program as a result of the termination of the Program by The Boeing Company and the pending retirement of the A-10 fleet. Our six-month ended June 30, 2025 impact related to the A-10 Program was $4.5 million.
"Without the impact of the terminated A-10 Program, we performed well as we continued the transition to our new programs and achieved key development milestones such as the first Advanced Tactical Flight Pod delivery to Raytheon.
"We also continued to improve our balance sheet during the second quarter, bringing our total debt down to an all-time low of $16.2 million and our Debt-to-Adjusted EBITDA Ratio to 2.7 excluding the impact of the A-10 Program," continued Dorith Hakim, President and CEO.
Concluded Ms. Hakim, "We remain committed to optimizing our portfolio and transitioning from legacy programs to programs of the future. As a result, we ended the quarter with a strong backlog of $506 million, which includes multiple new program awards from Raytheon, Sikorsky, Lockheed, the US Air Force and Embraer. Looking ahead we will continue to capitalize on the multiple growth opportunities leveraging our long-standing relationships with our customers."
As disclosed in the Form 10-Q filed today, management identified a material weakness in internal control over financial reporting related to the classification of debt pending an amendment to a debt covenant. Management believes this has no bearing on the financial results for the second quarter and is implementing the necessary steps to remediate the matter.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. Words such as "remain committed," "optimizing our portfolio," "transitioning from legacy programs," "multiple growth opportunities," "continue," "leveraging our long-standing relationships," "believes," "implementing," and similar expressions are intended to identify these forward-looking statements. The Company does not guarantee that it will actually achieve the plans, intentions or expectations disclosed in its forward-looking statements and you should not place undue reliance on the Company's forward-looking statements.
Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. There are a number of important factors that could cause the Company's actual results to differ materially from those indicated or implied by its forward-looking statements, including those important factors set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2024 filed with the Securities and Exchange Commission. Although the Company may elect to do so at some point in the future, the Company does not assume any obligation to update any forward-looking statements and it disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter
Contacts:Investor Relations CounselAlliance Advisors IR Jody Burfening (212) 838-3777
CPI Aerostructures, Inc. Pamela Levesque Interim Chief Financial Officer (631) 586-5200 www.cpiaero.com
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
June 30, 2025 (Unaudited)
December 31, 2024
ASSETS
Current Assets:
Cash
$
674,481
$
5,490,963
Accounts receivable, net
6,054,015
3,716,378
Contract assets, net
31,027,022
32,832,290
Inventory
1,025,172
918,288
Prepaid expenses and other current assets
541,084
634,534
Total Current Assets
39,321,774
43,592,453
Operating lease right-of-use assets
10,220,405
2,856,200
Property and equipment, net
643,476
767,904
Deferred tax asset, net
20,153,104
18,837,576
Goodwill
1,784,254
1,784,254
Other assets
132,954
143,615
Total Assets
$
72,255,967
$
67,982,002
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$
15,179,687
$
11,097,685
Accrued expenses
4,727,857
7,922,316
Contract liabilities
1,896,936
2,430,663
Loss reserve
70,137
22,832
Current portion of line of credit
3,000,000
2,750,000
Current portion of long-term debt
10,822
