CPSH's revenue actually decreased in Q4 2024, not surged1. The company's revenue decline in Q4 2024 can be attributed to several factors:
- End of Significant Contracts: The completion of the HybridTech Armor contract with Kinetic Protection for the U.S. Navy and reduced orders from another major client due to excess inventory significantly impacted revenues2.
- Shifts in Customer Demand: Changes in customer demand and strategic adjustments also contributed to the revenue decline2.
Despite the revenue decline, the cost of goods sold increased, leading to a negative net profit margin. This was likely due to the company's third production shift fully operational and new contracts secured across key sectors, which could have increased the cost of goods sold without yielding corresponding revenues2.