CPI Aerostructures, Inc. - CVU STOCK NEWS

CPI Aerostructures (CVU) has received authorization from Raytheon Technologies to begin manufacturing pod structures and air management system components for the Lot 4 Production phase of the Next Generation Jammer Mid-Band (NGJ-MB) program, with a maximum contract value of $33.4 million.

The NGJ-MB is an advanced offensive airborne electronic attack system designed for EA-18G and F/A-18E/F aircraft, with two pods required per EA-18G aircraft. The Lot 4 contract supports the production of 34 Pods, with deliveries scheduled to begin in the second half of 2025.

This follows previous production phases: LRIP 1 (July 2021), LRIP 2 (December 2021), and LRIP 3 (May 2023). The program achieved Milestone C in June 2021, confirming its readiness for production. CPI Aero reports delivering pods on or ahead of schedule for this critical U.S. Navy capability.

CPI Aerostructures has appointed Carey Bond as the new Chairman of its Board of Directors, effective immediately. Bond takes over from Terry Stinson, who steps down after six years to become Vice-Chairman, continuing his strategic input. Bond, who joined CPI Aero's Board in 2016 and served as Vice-Chairman, has extensive aerospace industry experience with executive roles at Sikorsky Aircraft, Bell Helicopter Textron, and other firms. He holds an MBA from Texas Christian University. CEO Dorith Hakim expressed confidence in Bond's leadership to strengthen CPI Aero's fundamentals and increase shareholder value.

CPI Aero is a U.S. manufacturer of structural assemblies for both commercial and military defense aerospace markets. It serves as a Tier 1 supplier to aircraft OEMs, a Tier 2 subcontractor to major Tier 1 manufacturers, and a prime contractor to the U.S. Department of Defense, primarily the Air Force. The company also offers engineering, program management, supply chain management, and MRO services.

CPI Aerostructures (NYSE American: CVU) has secured a contract worth up to $12.1 million from L3Harris Technologies to manufacture airborne pod structures for the Next Generation Jammer Low-Band (NGJ-LB) program. The contract supports L3Harris' delivery of operational prototype pods to the U.S. Naval Air Systems Command.

Deliveries will begin in 2025 and continue through 2027. The NGJ-LB pods, designed for the EA-18G Growler, will replace the AN/ALQ-99 Tactical Jamming System. The system features advanced processing, increased jamming capability, and a modular architecture for future upgrades. The program is scheduled to reach early operational capability in 2029.

CPI Aerostructures reported its Q3 2024 financial results, showing improved profitability despite slightly lower revenue. Q3 revenue was $19.4 million, down from $20.4 million in Q3 2023, while gross profit increased to $4.2 million with an improved margin of 21.7%. Net income rose to $0.7 million, with earnings per share of $0.06. The company reduced its debt by $2.7 million over the past year to $18.2 million, maintaining a Debt-to-Adjusted EBITDA ratio of 2.5. CPI Aero secured a new contract from L3Harris for the Next Generation Jammer Low Band Pod, adding to its $506 million backlog.

CPI Aerostructures (NYSE American: CVU) has appointed Philip Passarello as its new Chief Financial Officer. Passarello brings over 20 years of experience in financial management, government compliance, and strategic forecasting. He previously served as Vice President of Finance at TTM Technologies and held various executive positions at Telephonics This appointment aligns with CPI Aero's goal of achieving best-in-class financial operations and strengthening its aerospace leadership team.

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance pod systems. The company operates as a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers in the commercial aerospace and national security markets. Additionally, CPI Aero serves as a prime contractor to the U.S. Department of Defense, primarily the Air Force.

CPI Aerostructures (NYSE American: CVU) reported its financial results for Q2 and H1 2024. In Q2, revenue increased slightly to $20.8 million, with improved gross profit of $5.1 million and a higher gross margin of 24.6%. Net income rose to $1.4 million, with earnings per diluted share of $0.11. Adjusted EBITDA grew to $2.6 million.

For H1 2024, revenue decreased to $39.9 million, with lower gross profit of $8.7 million and slightly reduced gross margin of 21.7%. Net income declined to $1.6 million, with earnings per diluted share of $0.12. The company reduced its debt to $18.9 million and maintained a Debt-to-Adjusted EBITDA Ratio below 3.0 for the sixth consecutive quarter.

CEO Dorith Hakim noted progress in transitioning to future programs and an uptick in quote requests. The company's backlog stood at $512 million as of June 30, 2024.

CPI Aerostructures, Inc. (NYSE American: CVU) has signed a Long Term Agreement (LTA) with MST Manufacturing for component supply in support of its aerostructures production. The LTA, signed during the Farnborough International Air Show, extends through the end of 2027. This agreement strengthens the existing relationship between the two companies and provides a foundation for potential additional business.

CPI Aero, a U.S. manufacturer of structural assemblies for various aircraft and airborne systems, serves as a Tier 1 or Tier 2 supplier in the global aerostructure supply chain. MST Manufacturing, based in Claremore, Oklahoma, specializes in complex CNC machining and fabrication, operating over 50 CNC machines and offering various manufacturing services.

CPI Aerostructures, known as CPI Aero, has delivered the first pod structure under the Low Rate Initial Production 3 (LRIP 3) contract to RTX This delivery is part of a $32.6 million contract involving 37 pod structures, with deliveries expected to continue through mid-2025. CPI Aero also manufactures air management system components for the Next Generation Jammer Mid-Band program. The company aims to transition to Lot 4 deliveries after completing LRIP 3. Previously, CPI Aero delivered 20 pod structures and AMS components for the same program, showcasing their capability to meet production schedules.

CPI Aerostructures (NYSE American: CVU) announced a settlement with the SEC regarding restatements of financial statements from 2018 to 2022. The company agreed to a cease-and-desist order without admitting or denying the findings, and committed to remediating internal control weaknesses by December 31, 2024. Failure to comply will result in a $400,000 penalty by June 30, 2025. CPI Aero has already undertaken significant remedial actions, including revising its compliance program, hiring new personnel, and engaging a consultant. CEO Dorith Hakim remarked on the company’s commitment to improving financial reporting and compliance.