CPI Aerostructures Receives $5 Million Long-Lead Funding to Supply Wing Components for E-2D Advanced Hawkeye

Rhea-AI Summary

CPI Aerostructures (CVU) secured $5 million in long lead funding, anticipating over $20 million in purchase orders from Northrop Grumman for Outer Wing Panel components for the E-2D Advanced Hawkeye aircraft. This funding increases the total value of their multi-year contract with Northrop Grumman to over $70 million. CPI Aero has been a key supplier for the E-2D platform since 2008, contributing significantly to its backlog. The company is involved in structural assembly across aerospace and national security markets.

Positive

• Secured $5 million long lead funding.
• Anticipating over $20 million in orders from Northrop Grumman.
• Total contract value increased to over $70 million.
• Long-term agreement strengthens backlog.

Negative

• None.

EDGEWOOD, N.Y., June 25, 2020 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced that it received long lead funding of $5 million in anticipation of purchase orders that will total more than $20 million from Northrop Grumman to supply Outer Wing Panel (OWP) structural components and kits for the E-2D Advanced Hawkeye airborne command and control (ACC) aircraft. CPI Aero has been delivering OWP components and kits for multiple configurations of the E-2D Advanced Hawkeye since 2008. The expected future purchase orders are for additional requirements under the multi-year agreement that CPI Aero announced earlier this year, and increase the value of the previously announced multi-year contract to more than $70 million.

Douglas McCrosson, President and CEO of CPI Aero, stated, “The E-2D Advanced Hawkeye has been an important aircraft platform for CPI Aero for the past decade and will continue to be so well into the future. Combined with the recently announced OWP long-term agreement, the funding for these additional requirements contributes significantly to our already robust backlog on the E-2D aircraft.”

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 for the year ended December 31, 2018, and Form 10-Q for the three-month periods ended March 31, 2019, June 30, 2019, and September 30, 2019.

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 Contacts:

LHA Investor Relations
Sanjay M. Hurry/Jody Burfening
(212) 838-3777
cpiaero@lhai.com
www.lhai.com

FAQ

What recent funding did CPI Aerostructures (CVU) receive?

CPI Aerostructures received $5 million in long lead funding.

How much in purchase orders is expected from Northrop Grumman for CVU?

CPI Aero anticipates over $20 million in purchase orders from Northrop Grumman.

What is the total value of CPI Aerostructures' contract with Northrop Grumman?

The total value of the contract exceeds $70 million.

For which aircraft is CPI Aerostructures supplying components?

CPI Aerostructures is supplying components for the E-2D Advanced Hawkeye aircraft.

Since when has CPI Aerostructures been delivering components for the E-2D Advanced Hawkeye?

CPI Aerostructures has been delivering components since 2008.