CPI Aerostructures, Inc. - CVU STOCK NEWS

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.

CPI Aerostructures (NYSE American: CVU) announced that Embraer S.A. (NYSE: ERJ) placed additional orders worth $3.1 million for engine inlet assemblies for the Phenom 300 business jets. This extension of a previous Long Term Agreement will see deliveries continue through mid-2025. Earlier this year, CPI Aero delivered its 800th shipset of Phenom 300 Engine Inlets to Embraer. CEO Dorith Hakim highlighted the company's consistent high-quality performance and its strong capabilities in structural assembly and integration within the aerospace industry.

CPI Aerostructures (CVU) has secured $1.3 million in follow-on orders for complex welded structural assemblies, intended for a U.S. military helicopter. These orders come from an existing customer and are scheduled for delivery through mid-2025.

CEO Dorith Hakim noted the company's longstanding role in providing critical components for both fixed and rotary wing aircraft for the U.S. Defense and Allied Forces. The follow-on contract continues CPI Aero's support for military operations.

CPI Aero manufactures structural assemblies for aircraft and airborne systems in the commercial aerospace and national security markets, serving as a Tier 1 or Tier 2 supplier and a prime contractor for the U.S. Department of Defense, primarily the Air Force.

CPI Aerostructures (NYSE American: CVU) reported its financial results for Q1 2024, ending March 31, 2024. Revenue decreased by 13% to $19.1 million compared to $22.0 million in Q1 2023. Gross profit was $3.6 million, down from $4.7 million, leading to a reduced gross profit margin of 18.6%. Net income fell to $0.2 million from $1.0 million, translating to earnings per share (EPS) of $0.01, down from $0.08. Cash flow from operations was negative at ($1.0) million, compared to a positive $0.9 million in Q1 2023. On a positive note, debt was reduced to $19.1 million from $22.1 million year-over-year. CEO Dorith Hakim highlighted the completion of key deliveries for Raytheon's NGJ Mid Band Pods LRIP 2 and the anticipation of resumed deliveries in the second half of the year, alongside a strong backlog of $510 million.