Cpi Aerostructures Reports 27% Q2 Drop

Cpi Aerostructures (NYSEMKT:CVU), an aerospace and defense manufacturing specialist supplying complex aircraft parts to large contractors and the U.S. Department of Defense, released its results for the second quarter of fiscal 2025 on August 19, 2025. The headline news was a sharp decrease in GAAP revenue and profits in Q2 2025 compared to the same period last year, which management attributed primarily to the termination of the long-standing A-10 Program. This event led to inventory write-offs that significantly impacted both gross margins and earnings per share for the period. No analyst estimates were available for direct comparison, so year-over-year changes serve as the key benchmark. Compared to prior-year results, GAAP revenue declined by 26.9%. GAAP gross profit dropped sharply, and the company moved from positive net income to a net loss (GAAP). Management highlighted ongoing business transitions, though operational risks remain.

Cpi Aerostructures operates as a key supplier in the aerospace and defense supply chain. It delivers major structural assemblies and high-precision subcomponents for both military and commercial aircraft platforms. The company’s core business is to serve as a Tier 1 supplier to original equipment manufacturers—those are companies that make the finished products—and as a Tier 2 supplier to larger integrators and major primes such as Boeing and Lockheed Martin.

The firm stands out for its focus on diversification across government and commercial programs, though the majority of its backlog—about 95%—remains tied to government contracts as of December 31, 2024. Its competitive strengths include flexibility, cost-effectiveness, and the ability to produce complex assemblies to strict quality standards. Winning new program awards and transitioning to next-generation platforms are central to its business plan, as is expanding its backlog through new customer relationships and long-term agreements.

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Source Fool.com