CVD Equipment's Q4 2024: Navigating Contradictions in Wafer Demand, PVT Orders, and Aerospace Partnerships

These are the key contradictions discussed in CVD Equipment Corporation's latest 2024 Q4 earnings call, specifically including: Uncertainty in Wafer Demand and Pricing, PVT Orders and Market Demand, and Aerospace Engine Manufacturers Partnerships:



Revenue and Order Growth:
- CVD Equipment reported revenue of $7.4 million in Q4 2024, up 80.3% from the prior year's Q4, but down from the $8.2 million reported in Q3 2024.
- The growth was driven by increased orders in both the CVD and SDC segments, although challenges in the silicon carbide market and global overcapacity of wafers impacted orders.

Silicon Carbide Market Challenges:
- The company's silicon carbide market faced challenges due to global overcapacity of wafers and a decline in wafer prices.
- The PVT150 product line experienced a significant market downturn, prompting a $1.3 million non-cash charge in inventory reductions.

Aerospace and Defense Market Recovery:
- Orders from the aerospace and defense market reached $28.1 million in 2024, an 8.9% increase from 2023.
- This recovery was driven by a $3.5 million follow-on order for a CVI/CVD3500 system from an existing customer.

Strategic Segment Focus and Backlog:
- CVD Equipment maintained a focus on strategic segments, including Aerospace & Defense, Microelectronics, Energy Storage, and Industrial.
- Despite market challenges, the company ended 2024 with a backlog of $19.4 million, which was 4.9% higher than the 2023 year-end backlog.