CPI Aerostructures Receives $3.2 Million Order From Boeing Under A-10 ATTACK Re-Wing Contract

Rhea-AI Summary

CPI Aerostructures has received purchase orders totaling approximately $3.2 million from Boeing for A-10 Thunderbolt II structural assemblies. This comes under a previously announced Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a maximum value of $48 million. With these new orders, funded orders reach around $23.4 million, part of a contract valued at up to $999 million awarded by the United States Air Force for wing sets and spares kits through August 2026.

Positive

• CPI Aero has secured $3.2 million in new orders from Boeing for A-10 structural assemblies.
• Total funded orders have reached approximately $23.4 million, indicating strong demand.
• The current IDIQ contract allows for orders until August 2026, providing revenue stability.

Negative

• None.

- Funded orders now total approximately $23.4 million of potential $48 million contract –

EDGEWOOD, N.Y., July 27, 2022 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (OTC Expert Market: CVUA) announced today the receipt of purchase orders totaling approximately $3.2 million from Boeing (NYSE: BA) for structural assemblies for the A-10 Thunderbolt II under a previously announced Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a maximum ceiling value of $48 million. Under the terms of the IDIQ, CPI Aero will manufacture major structural subassemblies of the A-10 aircraft’s wing. Including these new orders, CPI Aero has now received approximately $23.4 million in funding from Boeing for the production of A-10 re-wing structural assemblies and associated program start-up costs. The program is in production at CPI Aero and the IDIQ has an order period through August 2026.

On August 21, 2019, Boeing announced an award from the United States Air Force (USAF) with a maximum contract value of $999 million to manage the production of up to 112 new wing sets and spares kits for A-10 aircraft.

Dorith Hakim, president and CEO of CPI Aero stated, “The A-10 is a time-tested, battle-proven weapon system and CPI Aero is proud to be part of the ATTACK Re-wing Program. CPI Aero’s statement of work includes Assembly & Integration of the Main Landing Gear Pods which demonstrates CPI Aero’s specific strengths in Supply Chain and Program Management, and the manufacture of complex, mixed-commodity Aerostructures.”

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 Aero 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.

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. Forward-looking statements involve risks and uncertainties, and actual results could vary materially from 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.

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/A for the period ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q. 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 LHA Investor Relations Jody Burfening (212) 838-3777 cpiaero@lhai.com www.lhai.com		CPI Aerostructures, Inc. Andrew L. Davis Chief Financial Officer (631)586-5200 www.cpiaero.com

FAQ

What is the contract value of CPI Aero's orders from Boeing for the A-10?

CPI Aero's orders from Boeing for the A-10 total approximately $3.2 million, part of a potential $48 million contract.

How much has CPI Aero secured in total funded orders?

CPI Aero has secured approximately $23.4 million in total funded orders from Boeing for A-10 re-wing structural assemblies.

What is the duration of the IDIQ contract for CPI Aero?

The IDIQ contract for CPI Aero with Boeing has an order period through August 2026.

What is the potential maximum value of the contract awarded by the USAF to Boeing?

The contract awarded by the USAF to Boeing has a maximum value of $999 million.