CPI Aerostructures (CVU) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $19.3M, down 0.8% year-over-year, with improved net income of $1.1M ($0.09 per share) and gross margin of 22.3%, driven by better product mix and operational efficiencies.

• Nine-month 2025 revenue was $49.8M (down 16% YoY), with a net loss of $1.5M, mainly due to the Boeing A-10 program termination and unfavorable contract adjustments.

• Gross margin for the nine-month period declined to 13.3% (20.4% excluding A-10 impact), compared to 21.7% in the prior year.

• The company operates as a single segment, focusing on aerostructure assemblies and MRO for defense and commercial markets.

• A new strategic contract from Raytheon contributed to a $509M backlog as of September 30, 2025.

Financial highlights

• Q3 2025 revenue: $19.3M (vs. $19.4M in Q3 2024); gross profit: $4.3M (22.3% margin); net income: $1.1M (vs. $0.7M); EBITDA: $1.9M (vs. $1.7M).

• Nine-month 2025 revenue: $49.8M (vs. $59.3M); gross profit: $6.6M (13.3% margin); net loss: $1.5M (vs. $2.3M income); Adjusted EBITDA: $(0.6)M ($3.9M excluding A-10) vs. $5.5M.

• Q3 2025 SG&A expenses: $2.6M (down 7% YoY); nine-month SG&A: $8.0M (down 2.3% YoY).

• Q3 2025 interest expense: $388K (down 32% YoY); nine-month interest expense: $1.16M (down 35% YoY).

Outlook and guidance

• Backlog at September 30, 2025 was $509M, supported by new contract wins, with 96% attributable to government and military contracts.

• Deliveries for the new Raytheon contract are set to begin in 2026.

• Management expects existing resources to meet working capital needs for at least the next 12 months, but notes variability due to timing of program awards and payment terms.