CPI Aero Delivers 1st B-52 Radar Rack Structure to RTX

Rhea-AI Summary

CPI Aerostructures delivers first B-52 Radar Rack Structure to Raytheon

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• CPI Aerostructures has delivered its first B-52 Radar Rack Structure to Raytheon under an IDIQ contract with a value of $20 million. CPI Aero will build and deliver a total of 9 development units and 2 spares. Deliveries will continue into 2024. This program is one of multiple new programs at CPI Aero, showcasing their commitment to manufacturing excellence.

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EDGEWOOD, N.Y., Oct. 12, 2023 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) today announced that it has delivered its first B-52 Radar Rack Structure to Raytheon, an RTX business under an IDIQ contract signed in late 2021 with a ceiling value of $20 million. Under this first phase of the IDIQ contract, CPI Aero is building and delivering 9 development units and 2 spares, along with completing the tooling and other non-recurring engineering efforts. Deliveries of the remaining rack structures will continue into 2024.

In 2019, Boeing awarded Raytheon a contract for the radar in support of the U.S. Air Force’s B-52 Radar Modernization Program, a critical upgrade as the US Air Force plans to operate the B-52 bombers in frontline service through 2050 and beyond.

“This B-52 program is one of multiple new programs on-boarded at CPI Aero in 2022, including multiple airborne pod structures supporting critical Intelligence, Surveillance, and Reconnaissance missions,” said Dorith Hakim, president and CEO of CPI Aero. “CPI Aero is proud to support Raytheon on this important B-52 Radar Modernization Program. This first delivery demonstrates CPI Aero’s continued commitment to manufacturing excellence in our Aerosystems business unit, the fastest growing segment of our business.”

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. Forward-looking statements involve risks and uncertainties, and actual results could vary materially from 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.

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, 2022 and the Company’s subsequent filings 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.

This document does not contain technology or technical data controlled under either the U.S. International Traffic in Arms Regulations or the U.S. Export Administration Regulations.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.

Contacts
Investor Relations Counsel	CPI Aerostructures, Inc.
LHA Investor Relations	Andrew L. Davis
Jody Burfening	Chief Financial Officer
(212) 838-3777	(631)586-5200
cpiaero@lhai.com	www.cpiaero.com
www.lhai.com

Source: CPI Aerostructures, Inc.

 

FAQ

What is the value of the IDIQ contract between CPI Aerostructures and Raytheon?

The IDIQ contract has a value of $20 million.

How many development units and spares will CPI Aerostructures deliver?

CPI Aerostructures will deliver 9 development units and 2 spares.

When will the deliveries of the remaining rack structures be completed?

Deliveries will continue into 2024.

What is the B-52 Radar Modernization Program?

The B-52 Radar Modernization Program is a critical upgrade for the U.S. Air Force's B-52 bombers, which are planned to be in service through 2050 and beyond.

What other programs has CPI Aerostructures recently onboarded?

CPI Aerostructures has recently onboarded multiple new programs, including airborne pod structures supporting Intelligence, Surveillance, and Reconnaissance missions.