CPI Aerostructures (CVU) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $20.8M, up 1.3% year-over-year, with gross profit rising to $5.1M and net income increasing 21.9% to $1.41M; six-month revenue declined 6.3% to $39.9M, and net income fell 26.3% to $1.58M, reflecting lower volumes and higher interest expense.

• Operational focus shifted from legacy to future programs, supporting a $512M backlog as of June 30, 2024.

• Gross margin improved to 24.6% in Q2 2024 from 22.4% in Q2 2023, driven by favorable program mix and lower direct charges.

Financial highlights

• Q2 2024 revenue: $20.8M (+1.3% YoY); six-month revenue: $39.9M (-6.3% YoY).

• Q2 2024 net income: $1.41M (+21.9% YoY); six-month net income: $1.58M (-26.3% YoY).

• Q2 2024 gross profit: $5.1M (24.6% margin); six-month gross profit: $8.7M (21.7% margin).

• Q2 2024 EPS (basic/diluted): $0.11; six-month EPS: $0.13 (basic), $0.12 (diluted).

• Adjusted EBITDA for Q2 2024 was $2.6M, up 25% YoY; six-month Adjusted EBITDA was $3.8M, down from $4.3M.

Outlook and guidance

• Management expects existing resources to meet working capital needs for at least the next 12 months, with continued program wins and backlog growth anticipated.

• Backlog remains strong at $512M, with 96% attributable to government and military contracts.

• Increased requests for quotes signal a strengthening competitive position.