CPI Aerostructures Receives $9.2 Million Follow-On Order From Lockheed Martin for F-16 Structural Assemblies

Rhea-AI Summary

CPI Aerostructures, Inc. (NYSE American: CVU) has received a follow-on order from Lockheed Martin totaling approximately $17.9 million for the structural assemblies of F-16 Block 70/72 aircraft. This order is part of a multi-year contract initiated in February 2019 and more than doubles the company's existing order book. Deliveries are set for 2022 and 2023. CPI Aero's CEO, Douglas McCrosson, emphasized the company’s role as the single source supplier for these assemblies and expressed optimism for future foreign military sales orders related to the F-16.

Positive

• New order from Lockheed Martin worth approximately $17.9 million.
• Order more than doubles the existing book for structural assemblies.
• Deliveries planned for 2022 and 2023, indicating future revenue.
• CPI Aero is the single source supplier for F-16 Block 70/72 assemblies.

Negative

• None.

Firm Orders Under Multi-Year Contract Now Total Approximately $17.9 Million

EDGEWOOD, N.Y., March 17, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) today announced that it was awarded a follow-on order from Lockheed Martin (NYSE: LMT) to manufacture structural assemblies for new production F-16 Block 70/72 aircraft ‒ the newest and most advanced F-16 production configuration.

In February 2019, CPI Aero announced a multi-year contract with Lockheed Martin to provide Rudder Island and Drag Chute Canister (RI/DCC) assemblies for the F-16 and has received a number of orders since then. This new order, the largest order under this contract thus far, more than doubles the order book for this structural assembly to $17.9 million. Recently, CPI Aero delivered the first production unit to Lockheed Martin. Deliveries under the order announced today are expected to occur in 2022 and 2023.

CPI Aero president and CEO Douglas McCrosson stated, “CPI is proud to be the single source supplier of RI/DCC assemblies for the F-16 Block70/72. Last August, the USAF and Lockheed Martin announced the 10 Year Indefinite-Delivery/Indefinite-Quantity contract in support of Foreign Military Sales Orders for the F-16. We believe that this contract vehicle will facilitate and accelerate foreign sales of this iconic aircraft and we look forward to supplying RI/DCC assemblies for many years to come. As a supplier on multiple Lockheed Martin platforms, including the F-35, the world’s premier 5th Generation fighter, and numerous Sikorsky helicopters, we thank the company for its continued confidence in CPI Aero’s execution capabilities.”

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, 2019, and Form 10-Q for the three-month periods ended March 31, 2020, June 30, 2020, and September 30, 2020.

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
Jody Burfening
(212) 838-3777
cpiaero@lhai.com
www.lhai.com 

FAQ

What is the value of the new contract awarded to CVU for F-16 aircraft?

The new contract awarded to CPI Aerostructures, Inc. is valued at approximately $17.9 million.

When are the deliveries for the new F-16 order expected?

Deliveries for the new F-16 order are expected to occur in 2022 and 2023.

What significant role does CVU play in the F-16 aircraft production?

CPI Aerostructures, Inc. is the single source supplier of structural assemblies for the F-16 Block 70/72.

How has CVU's order book changed recently?

CPI Aero's order book for structural assemblies has more than doubled due to the new order from Lockheed Martin.