CPI Aero Receives $4.4 Million Purchase Order From U.S. Air Force for T-38 Aircraft Modification Kits

Rhea-AI Summary

CPI Aerostructures (NYSE American: CVU) announced a new $4.4 million purchase order from the U.S. Air Force for structural modification kits and services under the PCIII and TRIM programs. This raises the total funded orders under the multi-year contract to $28.4 million, extending the performance period into late 2024. The T-38 aircraft, used for over 50 years, will have its service life extended beyond 2030 as a result of these upgrades.

Positive

• Total funded orders under the multi-year contract increased to $28.4 million.
• New purchase order worth $4.4 million enhances contract scope with U.S. Air Force.
• Extension of performance period into late 2024 signifies ongoing demand.
• Structural modifications expected to extend the T-38 aircraft service life beyond 2030.

Negative

• None.

Increases Funded Orders Under Previously Awarded Multi-year Contract to $28.4 million

EDGEWOOD, N.Y., April 27, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (CPI Aero^®) (NYSE American: CVU) today announced that it has been awarded a $4.4 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.   The new purchase order brings the total funded value of the contract to $28.4 million and extends the currently funded period of performance into late 2024.  

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 new purchase order value announced by CPI Aerostructures on April 27, 2021?

The new purchase order value announced is $4.4 million.

How much has CPI Aerostructures' total funded orders increased to?

The total funded orders have increased to $28.4 million.

What programs is the new purchase order supporting?

The new purchase order supports the Phase 3 of the T-38C Pacer Classic III and the Talon Repair Inspection and Maintenance programs.

Until when is the performance period for the contract extended?

The performance period for the contract is extended into late 2024.

How long has the T-38 aircraft been used by the U.S. Air Force?

The T-38 aircraft has been used by the U.S. Air Force for more than 50 years.