CPI Aero Receives $3.1 Million Purchase Order from U.S. Air Force for T-38 Aircraft Modification Kits

Rhea-AI Summary

CPI Aerostructures (CVU) has received a $3.1 million purchase order from the U.S. Air Force, boosting total funded orders for the year to over $16 million, under a larger contract valued at $65.7 million. This third order in 2021 raises the total contract's funded value to $31.5 million and extends the performance period to 2025. The orders support structural modifications for the T-38C aircraft, essential for maintaining its service life beyond 2030.

Positive

• Awarded $3.1 million order, boosting total funded contract value to $31.5 million.
• Year-to-date orders exceed $16 million, indicating strong demand.
• Extends contract performance period to 2025, securing future revenue.

Negative

• None.

- Third Order This Year Increases Funded Orders Under Previously Awarded Multi-year Contract to $31.5 million -

EDGEWOOD, N.Y., June 28, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (CPI Aero^®) (NYSE American: CVU) today announced that it has been awarded a $3.1 million purchase order under a previously announced contract from the U. S. Air Force (the “Air Force”) to provide structural modification kits, program management, logistics, and other sustainment services in support of Phase 3 of the T-38C Pacer Classic III Fuselage Structural Modification Kit Integration program (“PCIII”) and the Talon Repair Inspection and Maintenance (“TRIM”) program. In July 2019, the Company announced the PCIII and TRIM contract valued at up to $65.7 million.   This is the third time this year the Air Force has ordered these kits and year-to-date the Company has received firm orders totaling more than $16 million in orders. The total funded value of the contract has now increased to $31.5 million. The new order extends the currently funded period of performance into 2025.  

The Northrop T-38 has been the principal supersonic jet trainer used by the Air Force for more than 50 years. PCIII and TRIM are expected to increase the structural service life of the aircraft to beyond 2030.

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. CPI Aero is included in the Russell Microcap® Index.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the years ended December 31, 2019, and December 31, 2020.

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

Investor Relations Counsel:
LHA Investor Relations
Jody Burfening
(212) 838-3777
cpiaero@lhai.com
www.lhai.com

FAQ

What is the latest purchase order amount awarded to CPI Aerostructures by the U.S. Air Force?

CPI Aerostructures was awarded a purchase order of $3.1 million.

How much total funded orders has CPI Aerostructures received in 2021?

CPI Aerostructures has received over $16 million in firm orders year-to-date.

What is the total value of the contract related to the T-38C program for CPI Aerostructures?

The total value of the contract is $65.7 million.

Until when does the new order from the Air Force extend the contract for CPI Aerostructures?

The new order extends the performance period to 2025.

What type of services are included in the contract for CPI Aerostructures?

The contract includes structural modification kits, program management, logistics, and other sustainment services.