Cpi Aerostructures Reports Q2 Revenue Drop Amid A-10 Program Termination

Cpi Aerostructures reported a 27% drop in Q2 revenue to $15.2 million, due to a one-time $2.3 million write-off related to the A-10 Program. The company posted a net loss and no forward guidance was provided. Backlog reached a record $506 million, but the termination of the A-10 Program impacted gross margins and earnings per share.

CPI Aerostructures (NYSE American: CVU) reported a challenging second quarter (Q2) 2025, with revenue declining by 27% to $15.2 million, primarily due to a one-time $2.3 million write-off related to the termination of the A-10 Program by Boeing [1]. This led to a net loss of $1.3 million, compared to net income of $1.4 million in Q2 2024.

The company's gross margin was significantly impacted, falling to 4.4% from 24.6% in Q2 2024, due to the A-10 Program termination [3]. Excluding the A-10 Program impact, gross margin improved to 17.1% [1]. The termination of the A-10 Program also affected earnings per share, which decreased to $(0.10) from $0.11 in Q2 2024 [3].

Despite these challenges, CPI Aerostructures maintained a strong backlog of $506 million, supported by new program awards from Raytheon, Sikorsky, Lockheed, the US Air Force, and Embraer [1]. The company's total debt was reduced to an all-time low of $16.2 million, and the Debt-to-Adjusted EBITDA Ratio was 2.7 excluding the A-10 Program impact [1].

The company's six-month results also showed a decline, with revenue dropping to $30.6 million from $39.9 million in the same period last year [3]. Gross profit fell to $2.3 million from $8.7 million, and net income decreased to $(2.6) million from $(1.4) million [3]. Adjusted EBITDA was $(1.7) million, down from $2.6 million in the same period last year [3].

CPI Aerostructures has delayed the filing of its Form 10-Q due to the need for additional time to complete the compilation, review, and validation of information, particularly concerning adjustments related to the A-10 Program termination [2]. The company anticipates reporting a net loss of approximately $1.2 to $1.4 million for the quarter [2].

The stock's overall score is primarily influenced by moderate financial performance and valuation, with concerns over high leverage and declining revenue [2]. Technical analysis indicates bearish momentum, further impacting the score.

References:
[1] https://www.stocktitan.net/news/CVU/cpi-aerostructures-reports-second-quarter-and-six-month-2025-vzbw03p4kfwo.html
[2] https://www.tipranks.com/news/company-announcements/cpi-aerostructures-delays-quarterly-report-filing
[3] https://www.marketscreener.com/news/cpi-aerostructures-reports-second-quarter-and-six-month-2025-results-ce7c51ddde8df020