CVD Equipment 2025 Q2 Earnings Deepened Losses Amid Revenue Drop

CVD Equipment (CVV) released its earnings for the second quarter of fiscal 2025 on August 12, 2025, showing a significant decline in performance. The results highlight a challenging business environment and deepening losses compared to the same period in 2024.

The earnings report indicates that CVD Equipment’s total revenue for 2025 Q2 was $5.11 million, a 19.4% decrease from $6.34 million in 2024 Q2. The drop was driven by declines in most of the company's business units. The CVD Equipment segment contributed $3.40 million, while the SDC segment generated $1.73 million. MesoScribe brought in a modest $9,000, and intersegment sales elimination recorded a negative $35,000. The overall performance reflects ongoing challenges in the market and product adoption cycles.

CVD Equipment’s losses widened to $0.15 per share in 2025 Q2 from a loss of $0.11 per share in 2024 Q2, representing a 36.4% increase in per-share losses. The company’s net loss also rose to $1.06 million from $761,000 in the prior year, a 39.4% increase. These figures underscore the financial strain the company is experiencing.

The stock price of CVD Equipment has declined significantly in the aftermath of the report, dropping 15.28% on the latest trading day and 15.05% over the most recent full trading week. Month-to-date, the stock has fallen an additional 3.42%. These price movements suggest a market reaction to the disappointing earnings and uncertainty about the company’s future performance.

Despite the recent challenges, historical data shows that a strategy of buying CVD Equipment shares after a quarterly revenue increase on the earnings report date and selling them 30 days later has generated positive returns over the past three years. This strategy yielded a total profit of $1,170 and an average profit of $6.85 per investment. However, the stock’s volatility remains a concern, with price swings of up to $10 within the 30-day holding period. While the strategy has historically been profitable, investors must remain cautious given the current financial difficulties.

CEO Emmanuel N. Lakios attributed the Q2 2025 revenue decline—19.4% year-over-year and 38.5% quarter-over-quarter—to various external challenges, including proposed tariffs, reduced U.S. university funding, and delays in product adoption. Despite these issues, he noted strong demand for the SDC gas delivery equipment and highlighted the shipment of the first CVD4000 system in July. Lakios also pointed out a backlog of $13.2 million as of June 30 and expressed confidence in the company’s long-term positioning across aerospace, defense, industrial, and EV markets. He emphasized a cautious strategy of expense management and long-term profitability as key to the company’s success.

Looking ahead, Lakios stated that the company’s return to profitability will depend on securing new equipment orders, managing inflationary pressures, and controlling operating expenses and capital expenditures. CFO Richard Catalano noted that the company’s $7 million in cash and cash equivalents should support operations for the next 12 months, with continued evaluation of demand and operational efficiency to preserve working capital.

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