CPI Aero(US:CVU)2025-05-15 21:00Financial Performance - Revenue for Q1 2025 was $15.4 million, down from $19.1 million in Q1 2024, representing a decrease of approximately 19.2%[9] - Gross profit for Q1 2025 was $1.6 million, compared to $3.6 million in Q1 2024, resulting in a gross margin of 10.7%, down from 18.6%[9] - The company reported a net loss of $1.3 million in Q1 2025, compared to a net income of $0.2 million in Q1 2024, marking a significant decline[9] - Adjusted EBITDA for Q1 2025 was $(0.8) million, a decrease from $1.2 million in Q1 2024[9] Debt and Cash Flow - The total debt was reduced to an all-time low of $16.7 million, with a Debt-to-Adjusted EBITDA Ratio of 2.9, maintaining below 3.0 for nine consecutive quarters[5] - Cash flow used in operations was $2.7 million in Q1 2025, compared to $1 million in Q1 2024, indicating increased operational cash outflow[9] Backlog and Client Engagement - The company ended Q1 2025 with a strong backlog of $516 million, including new program awards from major clients such as L3Harris, Raytheon, Lockheed, and Embraer[6] Operational Challenges - The company recognized a pre-tax loss of $2.1 million on the A-10 Program due to higher manufacturing costs on a fixed-price contract[4] - Selling, general and administrative expenses increased to $2.8 million in Q1 2025 from $2.7 million in Q1 2024[16] Strategic Focus - The company remains committed to operational improvements and transitioning from legacy programs to future-oriented programs[6]