CPI Aerostructures Receives $4M Contract From Collins Aerospace for Airborne Pod System

Rhea-AI Summary

CPI Aerostructures (CVU) announced a purchase order from Collins Aerospace for the manufacturing of the Tactical Synthetic Aperture Radar (TacSAR) system. This award follows a previous contract where CPI Aero developed necessary documentation for the TacSAR pod. The new contract focuses on completing non-recurring engineering and tool development to build a prototype pod for testing. CPI Aero emphasizes its strategic evolution beyond aircraft structures, further solidifying its role as a crucial supplier in advanced aerospace systems.

Positive

• Awarded purchase order from Collins Aerospace for TacSAR system, enhancing revenue potential.
• Moving to prototype production phase, indicating project progress and credibility.
• Demonstrates successful diversification beyond structural manufacturing into advanced systems.

Negative

• None.

EDGEWOOD, N.Y., March 03, 2022 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced that Collins Aerospace, a unit of Raytheon Technologies Corp. (NYSE: RTX), has awarded CPI Aero a purchase order to manufacture the Tactical Synthetic Aperture Radar (TacSAR) intelligence, surveillance and reconnaissance (ISR) system. TacSAR is a long-range synthetic aperture radar system designed for overland and maritime reconnaissance and surveillance developed by Collins Aerospace (Collins) and Leonardo UK Ltd.

Under a previous contract with Collins, CPI Aero used Collins’ design to create fabrication drawings, assembly drawings, parts lists, interface drawings, tooling drawings and other documentation sufficient for the manufacture of the complete TacSAR pod. Under this new contract, CPI will complete non-recurring engineering (NRE) and tool development and build one prototype pod that Collins will use to complete required test and evaluation of the TacSAR system.

In service, Collins intends for the TacSAR system to complement another Collins reconnaissance system, the DB/MS-110, to provide all-weather ISR capability to allied foreign militaries. CPI Aero is a manufacturer of the DB/MS-110 pod for Collins and the TacSAR and DB/MS-110 pods share common structural components.

“We are excited that this development program has moved to the prototype production phase. This is now the fourth different airborne pod system that we produce across the Raytheon Technologies enterprise and the first since receiving Raytheon’s 2020 Premier Supplier Excellence Award. This new contract highlights the success of CPI’s strategic move beyond the production of aircraft structure and validates our growing reputation as a critical supplier to developers of some of the world’s most advanced aerospace systems,” stated Douglas McCrosson, 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. 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/A for the year ended December 31, 2020 and Form 10-Q for the quarter ended March 31, 2021.

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
Source: CPI Aerostructures, Inc.

FAQ

What is the latest news about CPI Aerostructures (CVU)?

CPI Aerostructures announced a purchase order from Collins Aerospace to manufacture the Tactical Synthetic Aperture Radar system.

What does the purchase order for TacSAR mean for CVU stock?

The purchase order indicates robust revenue opportunities and progress in CPI Aero's strategic growth.

When did CPI Aerostructures secure the TacSAR contract?

The contract was announced on March 3, 2022.

How does the TacSAR project impact CPI Aerostructures' business model?

The project supports CPI Aerostructures' diversification into advanced aerospace systems, moving beyond traditional manufacturing.