CPI Aerostructures Receives $3.1M Order From Embraer for Engine Inlet Assemblies
CPI Aerostructures (NYSE American: CVU) announced that Embraer S.A. (NYSE: ERJ) placed additional orders worth $3.1 million for engine inlet assemblies for the Phenom 300 business jets. This extension of a previous Long Term Agreement will see deliveries continue through mid-2025. Earlier this year, CPI Aero delivered its 800th shipset of Phenom 300 Engine Inlets to Embraer. CEO Dorith Hakim highlighted the company's consistent high-quality performance and its strong capabilities in structural assembly and integration within the aerospace industry.
- CPI Aerostructures received additional orders worth $3.1 million from Embraer.
- Deliveries will continue through mid-2025, indicating sustained business.
- CPI Aero successfully delivered its 800th shipset of Phenom 300 Engine Inlets earlier this year.
- The new orders affirm CPI Aero’s high-quality performance and strong relationship with Embraer.
- This contract extension boosts CPI Aero's credibility in the aerospace industry.
- The press release does not mention any new contracts beyond mid-2025, implying potential future order uncertainty.
- No financial data on revenue growth or profit margins from this order extension is provided, leaving financial impact unclear.
CPI Aerostructures' recent $3.1 million order from Embraer for engine inlet assemblies marks a continuation of a longstanding relationship between the two companies. This follow-on order is a positive indicator of CPI Aero's consistent performance and reliability in delivering quality components. From a financial perspective, this order contributes positively to the company's revenue stream through mid-2025, but the impact on the overall financial health should be viewed in context. The continued business with Embraer reinforces CPI Aero's position in the aerospace supply chain, which bodes well for long-term stability. However, investors should keep an eye on the broader financials, including the company's profit margins and cash flow, to understand the real impact on earnings.
The order might not significantly affect the stock price in the short term, given the relatively modest value compared to CPI Aero's total revenue. Nevertheless, it helps maintain a stable order book, which can be reassuring for investors looking for steady performance in a volatile market.
This new order from Embraer signals positive market sentiment and confidence in CPI Aero's capabilities. It's important to note that the Phenom 300 is a best-selling light jet and reliable suppliers like CPI Aero play a important role in its ongoing success. This relationship underscores CPI Aero's competitive edge in the aerospace market, particularly as a trusted supplier for high-demand aircraft models.
For investors, understanding the market dynamics is key. The business jet market can be sensitive to economic cycles, but companies like Embraer have shown resilience and growth potential. CPI Aero's ability to secure follow-on orders hints at their competitive pricing, quality and delivery reliability, which are essential factors for retaining and expanding market share. Long-term prospects look favorable if CPI Aero can leverage this relationship to secure more contracts in the future, potentially diversifying and growing their customer base.
EDGEWOOD, N.Y., June 10, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) announced that Embraer S.A. of Brazil (NYSE: ERJ) has placed several additional orders against a previously announced Long Term Agreement to manufacture engine inlet assemblies for the Embraer Phenom 300 business jets. These new orders will see deliveries continue through mid-2025.
“We are proud to be part of the successful Phenom 300 program. Earlier this year we delivered our 800th shipset of Phenom 300 Engine Inlets to Embraer. These follow-on orders are a testimony of CPI Aero team’s performance that continues to deliver high quality inlets to this long standing customer, demonstrating our strength in structural assembly & integration in the aerospace industry,” stated Dorith Hakim, CPI Aero’s CEO & President.
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 words “expect,” “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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