CVD Equipment (CVV) Q4 2025 earnings summary

Executive summary

• Initiated a transformation strategy in Q4 2025 to reduce fixed costs, increase agility, and maximize shareholder value, including outsourcing fabrication and workforce reduction.

• Entered a definitive agreement to sell the SDC business/division to Atlas Copco Group for $16.9 million in cash, expected to close in Q2 2026.

• Focus remains on core CVD Equipment business and strengthening the balance sheet, with management focused on aerospace, defense, and industrial SiC applications.

• Fourth quarter 2025 orders totaled $3.5 million, mainly from SDC gas delivery equipment and two PVT 150 units for a university semiconductor research center.

• Updated sales strategy to leverage distributors and external reps for CVD Equipment division.

Financial highlights

• Q4 2025 revenue was $5 million, down 33% year-over-year and sequentially; full year 2025 revenue was $25.8 million, down 4.1% from 2024.

• Q4 2025 gross profit was $1.1 million (22.2% margin), down from $2 million (26.4%) in Q4 2024; Q4 2025 gross margin was 22.1%.

• Q4 2025 operating loss was $1.3 million, including a $163,000 non-cash impairment; net loss was $1.3 million ($0.18/share) vs. net income of $132,000 ($0.02/share) in Q4 2024.

• Full year 2025 net loss was $1.6 million ($0.23/share), improved from $1.9 million ($0.28/share) in 2024.

• Cash and equivalents at year-end 2025 were $8.7 million, down from $12.6 million at end of 2024.

Outlook and guidance

• Return to consistent profitability depends on improved order flow, cost management, and execution of the transformation plan.

• Current cash and projected flows expected to cover working capital and capex for at least 12 months.

• Net proceeds from SDC sale (~$14–15 million after escrow, expenses, and taxes) to be invested in U.S. Treasury securities and enhance financial flexibility.

• Workforce reduction in Q4 2025 expected to reduce annual operating costs by $1.8 million in 2026.

• Management monitoring demand and geopolitical risks in key markets.