CPI Aerostructures Receives $1.3 Million Follow-on Orders for Welded Assemblies
CPI Aerostructures (CVU) has secured $1.3 million in follow-on orders for complex welded structural assemblies, intended for a U.S. military helicopter. These orders come from an existing customer and are scheduled for delivery through mid-2025.
CEO Dorith Hakim noted the company's longstanding role in providing critical components for both fixed and rotary wing aircraft for the U.S. Defense and Allied Forces. The follow-on contract continues CPI Aero's support for military operations.
CPI Aero manufactures structural assemblies for aircraft and airborne systems in the commercial aerospace and national security markets, serving as a Tier 1 or Tier 2 supplier and a prime contractor for the U.S. Department of Defense, primarily the Air Force.
- Secured $1.3 million in follow-on orders.
- Orders are for complex welded assemblies for a U.S. military helicopter.
- Deliveries scheduled through mid-2025 provide a steady revenue stream.
- Continued partnership with existing customers indicates customer satisfaction and reliability.
- Supports CPI Aero's role in the U.S. Defense and Allied Forces market.
- Enhances CPI Aero's position within the global aerostructure supply chain.
- Relatively modest contract value at $1.3 million.
- Dependence on a number of large contracts for revenue.
- No immediate financial impact as deliveries are spread through mid-2025.
Insights
Financial Outlook: The announcement of the $1.3 million follow-on order is a positive indicator for CPI Aerostructures. While $1.3 million may not be a massive contract in the aerospace and defense industry, it signifies ongoing trust and dependence from a key customer, which is important for financial stability. For a mid-cap company like CPI Aero, consistent orders help in maintaining liquidity and cash flow. This contract may not drastically change the revenue landscape, but it supports business continuity and can lead to more significant deals in the future. Investors should view this as a stabilizing factor.
Long-Term Impact: The contract contributes to CPI Aero's reputation and reliability in the defense sector. Steady orders from military customers reinforce the company’s position as a dependable supplier, which could lead to more substantial, long-term contracts. Maintaining a strong relationship with the U.S. military can also be seen as a vote of confidence, potentially attracting new business partners.
Market Position: CPI Aero's continual receipt of follow-on orders highlights its pivotal role in the defense supply chain. In a highly competitive market, retaining and securing repeated business from existing clients is a testament to the company’s quality and reliability. This is particularly important in the defense sector, where the margin for error is minimal and the stakes are high.
Industry Dynamics: Given the projected increase in defense spending, particularly in aerospace, companies that are already embedded within the supply chain, like CPI Aero, stand to benefit. This order, although modest in size, is indicative of the company's ability to capitalize on the anticipated growth within the sector. Investors should note that being part of the military's supply chain often means a steady stream of projects and potentially fewer market-driven fluctuations.
EDGEWOOD, N.Y., June 05, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced that it has received follow-on orders for complex welded structural assemblies used on a U.S. military helicopter from a current customer valued at approximately
“CPI Aero has a long history providing critical components and assemblies in support of fixed and rotary wing aircraft for the U.S. Defense and Allied Forces. We are proud to have been awarded this follow-on contract allowing CPI Aero to continue to deliver complex fusion welded assemblies in support of our ultimate customer, the warfighter,” 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 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 word ”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 |
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