CVD Equipment 2025 Q1 Earnings Strong Performance with Net Income Swinging 124.5%

CVD Equipment (CVV) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company returned to profitability, marking a significant turnaround from the previous year's losses. Revenue increased by 69.0% compared to 2024 Q1, reaching $8.32 million. Net income swung significantly to a positive $360,000 from a net loss of $1.47 million in 2024 Q1. This performance exceeded market expectations, demonstrating effective cost control and strategic growth. Guidance remains optimistic, with a focus on managing expenses and adapting to market fluctuations.

Revenue

CVD Equipment’s total revenue rose substantially, achieving $8.32 million in the first quarter of 2025, up from $4.92 million in the same period last year. The revenue was driven by the CVD Equipment segment, which contributed $6.31 million, while the SDC segment added $2.14 million. MesoScribe's contribution was $22,000, but intersegment sales required an elimination of $162,000, resulting in the total revenue of $8.32 million.

Earnings/Net Income

CVD Equipment returned to profitability, reporting an earnings per share (EPS) of $0.05 for Q1 2025, a stark improvement from a loss of $0.22 per share in Q1 2024. The company achieved a notable turnaround with net income of $360,000, marking a 124.5% positive swing from the net loss of $1.47 million in the prior year quarter. Overall, the EPS indicates a strong and positive financial performance.

Price Action

The stock price of CVD Equipment has edged up 1.39% during the latest trading day, has climbed 6.99% during the most recent full trading week, and has edged up 0.34% month-to-date.

Post-Earnings Price Action Review

The investment strategy of purchasing CVD Equipment shares following the announcement of increased revenue and holding them for 30 days has yielded moderate returns over the past five years. The overall return over this period was 1.3%, with an average annual return of 2.15%. This performance points to stability, largely due to consistent revenue growth and positive market sentiment post-earnings reports. Although returns were moderate, they showcase a reliable investment approach, supported by the company's steady financial progress and favorable investor reception.

CEO Commentary

Manny Lakios, President and CEO of CVD Equipment Corporation, highlighted that first quarter 2025 revenue reached $8.3 million, reflecting a 69.0% increase year-over-year and a 12.2% rise from the previous quarter. The growth was driven by revenue from two key contracts in the industrial and aerospace markets, while the SDC segment saw strong demand for gas delivery equipment. Despite a decline in backlog from $19.4 million to $13.8 million due to lower orders of $2.8 million, the company achieved a net income of $360,000. Lakios noted challenges from recent tariffs and emphasized ongoing efforts to manage expenses and focus on long-term profitability.

Guidance

CVD Equipment Corporation anticipates fluctuations in order and revenue levels due to the nature of its markets. The management is evaluating the impact of tariffs on costs and economic uncertainty. The company remains committed to maintaining and growing its order rate while managing expenses to achieve long-term profitability and positive cash flow.

Additional News

CVD Equipment Corporation recently announced a reduction in its workforce, aligning operating costs with current customer demand. This strategic move is part of an ongoing evaluation of product demand and cost management opportunities. Additionally, in early April 2025, the company secured a significant $1.2 million order for a semiconductor system within its CVD Equipment segment, further bolstering its market position. The firm also continues to focus on maintaining strategic growth and return on investment amidst industry fluctuations and geopolitical challenges affecting raw material sourcing.