CPI Aero Receives $8.7 Million Purchase Order From U.S. Air Force for T-38 Aircraft Modification Kits

Rhea-AI Summary

CPI Aerostructures (NYSE American: CVU) announced an $8.7 million purchase order from the U.S. Air Force, increasing the total funded value of a multi-year contract to $24.0 million. The contract supports the T-38C Pacer Classic III program and extends funding into 2024. This contract, initially valued at $65.7 million, aims to enhance the structural service life of the T-38 aircraft beyond 2030, underscoring CPI Aero's role as a significant player in the national defense market.

Positive

• Increased total funded orders under a multi-year contract to $24.0 million.
• New purchase order of $8.7 million supports essential U.S. Air Force programs.
• Contract extension into 2024 reinforces long-term revenue assurance.

Negative

• None.

- Increases Funded Orders Under Previously Awarded Multi-year Contract to $24.0 million -

EDGEWOOD, N.Y., Feb. 16, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (CPI Aero^®) (NYSE American: CVU) today announced that it has been awarded a $8.7 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 $24.0 million and extends the currently funded period of performance into 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 and Electronic Warfare pod systems, primarily for 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 year ended December 31, 2019 and Forms 10-Q for the three-month periods ended March 31, 2020, June 30, 2020, and September 30, 2020. CPI Aero® is a registered trademark of CPI Aerostructures, Inc.

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 order value announced by CPI Aerostructures for the U.S. Air Force?

CPI Aerostructures announced a new order valued at $8.7 million, bringing the total funded value to $24.0 million.

What programs are supported by CPI Aerostructures' recent contract with the U.S. Air Force?

The contract supports the T-38C Pacer Classic III and Talon Repair Inspection and Maintenance programs.

How long does the contract with the U.S. Air Force extend CPI Aerostructures' funding?

The funding has been extended into 2024.

What is the total value of the contract awarded to CPI Aerostructures by the U.S. Air Force?

The total value of the contract is up to $65.7 million.

How does the T-38C Pacer Classic III program impact CPI Aerostructures' business?

The program is expected to increase the structural service life of the T-38 aircraft beyond 2030, securing ongoing work for CPI Aerostructures.