CPI Aerostructures (CVU) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $15.2M, down 27.1% year-over-year, primarily due to the termination of the A-10 program and timing of material receipts on key programs.

• Net loss for Q2 2025 was $1.3M, compared to net income of $1.4M in Q2 2024, driven by a sharp decline in gross profit.

• Gross margin for Q2 2025 fell to 4.4% from 24.6% in Q2 2024, reflecting unfavorable contract adjustments and increased costs.

• Significant negative impact from the termination of the A-10 Program, with a $2.3M write-off in Q2 and $4.5M for the six months.

• Backlog remains strong at $506M, supported by new program awards from major defense and aerospace customers.

Financial highlights

• Six-month revenue was $30.6M, down 23.3% year-over-year.

• Six-month net loss was $2.6M, compared to net income of $1.6M in the prior year.

• Gross profit dropped to $0.7M in Q2 2025 from $5.1M in Q2 2024; six-month gross profit was $2.3M versus $8.7M year-over-year.

• Cash at June 30, 2025 was $0.67M, down from $5.5M at year-end 2024.

• Debt reduced to $16.2M as of June 30, 2025, from $18.9M a year earlier.

Outlook and guidance

• Management expects to meet financial covenants over the next twelve months following recent credit agreement amendments.

• Focus on transitioning from legacy programs to new growth opportunities, leveraging relationships with major defense and aerospace customers.

• The company continues to monitor inflation, supply chain, and labor market risks, with most contracts at fixed pricing.