CPI Aerostructures, Inc. Delivers First Pod Structure of Latest Production Contract for Next Generation Jammer Mid-Band Program to Raytheon
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.
- First delivery of 37 pod structures under a $32.6 million contract.
- Continued deliveries expected through mid-2025, indicating sustained revenue.
- Proven ability to meet production schedules, enhancing reliability and trust.
- None.
Insights
The delivery of the first Low Rate Initial Production 3 (LRIP 3) pod structure by CPI Aerostructures to Raytheon is a significant development for several reasons. Firstly, it signals that CPI Aero is meeting its production schedules, which is critical in defense contracts where timeliness and reliability are paramount. The continuity from previous deliveries demonstrates CPI Aero's operational consistency, which can strengthen its reputation and reliability as a defense contractor.
In financial terms, the maximum contract value of
The broader context of this program involves the Next Generation Jammer Mid-Band (NGJ-MB), a priority for the U.S. Navy to enhance their electronic warfare capabilities. CPI Aero's role in such a critical defense project highlights its strategic importance within the defense supply chain. Given the geopolitical landscape and rising defense budgets, companies involved in enhancing electronic warfare capabilities are well-positioned for growth.
CPI Aerostructures' recent delivery ties directly into its financial health and future revenue prospects. The contract's value of
Comparatively, the successful delivery milestones also boost investor confidence. Reliable and timely performance on such contracts is important for maintaining and attracting further defense contracts. The defense sector's funding is generally secure and less susceptible to market volatility, providing a more stable investment outlook.
It's worth noting that CPI Aero's stock performance might see a positive impact as this news reassures investors about the company's operational capabilities and contract fulfillment. However, investors should keep an eye on any changes in defense budgets and policies which could influence future contracts.
From a market perspective, CPI Aero's involvement in the NGJ-MB program places it in a lucrative niche within the defense industry. The global defense electronics market is expanding, with a particular focus on electronic warfare capabilities. The NGJ-MB program is a critical upgrade that enhances the U.S. Navy's operational effectiveness, making CPI Aero's contributions highly valuable.
The competitive advantage for CPI Aero lies in its ability to produce intricate and highly specialized components like the AMS and pod structures. This specialization can serve as a significant barrier to entry for competitors, reinforcing CPI Aero's market position.
Additionally, the credibility gained from working with major defense contractors like Raytheon can enhance CPI Aero's portfolio, making it an attractive partner for future projects in both military and commercial aerospace sectors. This delivery may also act as a testimonial to other potential clients about CPI Aero's capabilities and reliability in the aerospace supply chain.
First Production Pod Structure Delivery of a planned 37 Pods for LRIP 3 Contract
EDGEWOOD, N.Y., July 08, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced today that it shipped the first Low Rate Initial Production 3 (LRIP 3) pod structure to RTX Corporation as authorized under a previously announced contract award with a maximum value of
“Last year, CPI successfully delivered 20 NGJ-MB pod structures and associated AMS components, demonstrating our ability to ramp up and meet the Low Rate Initial Production. Today’s announcement is evidence of our continued commitment to RTX Corporation and the U.S. Navy for this critical program, as we continue to support our customer and the warfighter needs by delivering on or ahead of schedule,” stated Dorith Hakim, president and CEO of CPI Aero.
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 Aero 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. The words “expect,” “anticipate,” ”outlook” and similar expressions are intended to identify 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.
Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these 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, 2023 filed 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.
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 | adavis@cpiaero.com |
| www.cpiaero.com |
FAQ
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