CVD(CVV) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights This section provides an overview of CVD Equipment Corporation's financial and operational performance for Q2 2025, highlighting key metrics and strategic developments Second Quarter 2025 Financial Performance Highlights CVD Equipment Corporation reported a revenue decrease of 19.4% year-over-year to $5.1 million for Q2 2025, with gross margin declining to 21.0%, resulting in a net loss of $1.1 million Key Financial Performance (Q2 2025 vs. Q2 2024 & YTD) | Metric | Q2 2025 | Q2 2024 | YoY Change | YTD 2025 | YTD 2024 | YTD Change | | :------------------ | :------ | :------ | :--------- | :------- | :------- | :--------- | | Revenue | $5.1M | $6.3M | -19.4% | $13.4M | $11.3M | +19.2% | | Gross Margin | 21.0% | 24.3% | -3.3 pp | - | - | - | | Net Loss | $(1.1)M | $(0.8)M | $(0.3)M | - | - | - | | Basic & Diluted EPS | $(0.15) | $(0.11) | $(0.04) | - | - | - | - Cash and cash equivalents decreased to $7.0 million as of June 30, 2025, from $12.6 million as of December 31, 2024[7] Second Quarter 2025 Operational Performance Highlights Orders for Q2 2025 were $4.5 million, primarily driven by demand in the SDC segment, with total orders for the first six months decreasing year-over-year Orders and Backlog (Q2 2025 & YTD) | Metric | Q2 2025 | YTD 2025 | YTD 2024 | June 30, 2025 | March 31, 2025 | | :------- | :------ | :------- | :------- | :-------------- | :------------- | | Orders | $4.5M | $7.3M | $16.9M | - | - | | Backlog | - | - | - | $13.2M | $13.8M | - SDC segment experienced strong demand for gas delivery systems, leading to a significant increase in its backlog during the quarter, despite lower revenue due to timing of orders[7] - Accounts receivable increased by $3.6 million during Q2 2025 due to achieved contract milestones, with collection expected in the third quarter[7] - The company improved operating efficiency during 2025 and continues to evaluate opportunities to further reduce operating costs[7] Management Commentary Management discusses Q2 2025 performance, strategic market positioning, product offerings, and the company's long-term strategy and outlook Q2 2025 Performance Overview President and CEO Manny Lakios stated that Q2 bookings and revenue were influenced by uncertainties related to proposed tariffs, reduced US government funding, and product adoption - Bookings and revenue in Q2 reflected uncertainties related to proposed tariffs, reduced US government funding for universities, a lag in product adoption, and the dynamic nature of emerging growth markets[4] - Management is actively monitoring evolving customer demand, geopolitical landscape, and potential tariff impacts, while tightly managing operating expenses and headcount[4] Strategic Market Positioning and Product Offerings CVD Equipment Corporation is strategically positioned to provide solutions across key target markets including aerospace, industrial, SiC high-power electronics, and EV battery materials - CVD Equipment Corporation is well-positioned in key target markets: aerospace and defense, industrial applications (SiC on graphite, nuclear energy), SiC high-power electronics, and EV battery materials[5][6] - Key product offerings include CVI systems for CMCs, SiC coating reactor systems, PVT150™ and PVT200™ SiC crystal growth systems, and PowderCoat™ systems for advanced anode materials[6] - The first CVD4000™ SiC coating reactor system was shipped to an industrial customer in early July 2025, with resources allocated to this launch partially attributing to reduced revenue from other contracts[8] Long-Term Strategy and Outlook The company remains committed to its long-term strategy of expanding its presence across key markets while maintaining disciplined expense management to achieve sustained profitability - Long-term strategy focuses on growing market presence and disciplined expense management[9] - The goal is to achieve sustained profitability and positive cash flow[9] Company Information This section provides an overview of CVD Equipment Corporation's business, forward-looking statement disclaimers, and investor contact details About CVD Equipment Corporation CVD Equipment Corporation designs, develops, and manufactures various chemical vapor deposition and thermal processing systems for industrial and research applications across key markets - CVD Equipment Corporation designs, develops, and manufactures chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment for materials and coatings[10] - Products are used in production and R&D centers, targeting aerospace & defense, SiC high-power electronics, EV battery materials, and industrial applications[10] - The company provides an application laboratory for customers to optimize process performance collaboratively[10] Forward-Looking Statements The press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, involving known and unknown risks and uncertainties - Forward-looking statements are protected by the Private Securities Litigation Reform Act of 1995[11] - Potential risks and uncertainties include market and business conditions, success of growth/sales strategies, customer changes, product delays, competition, financing, new product development, future profitability/expansion, raw material sourcing, and geopolitical developments[11] - The company assumes no obligation to update or supplement any forward-looking statements[11] Contact Information Contact information for investor relations is provided, with Richard Catalano, Executive Vice President & CFO, as the primary contact - Investor relations contact: Richard Catalano, Executive Vice President & CFO[12] - Contact details: Phone: (631) 981-7081, Email: investorrelations@cvdequipment.com[12] Condensed Consolidated Financial Statements This section presents the condensed consolidated statements of operations and balance sheets for CVD Equipment Corporation Condensed Consolidated Statements of Operations For Q2 2025, revenue decreased to $5.1 million, resulting in a net loss of $(1.1) million, while year-to-date revenue increased to $13.4 million with improved net loss Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :----- | | Revenue | $5,111 | $6,345 | $(1,234) | | Cost of revenue | $4,038 | $4,803 | $(765) | | Gross profit | $1,073 | $1,542 | $(469) | | Operating expenses | $2,213 | $2,440 | $(227) | | Operating loss | $(1,140) | $(898) | $(242) | | Net loss | $(1,061) | $(761) | $(300) | | Basic and diluted loss per share | $(0.15) | $(0.11) | $(0.04) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :----- | | Revenue | $13,427 | $11,267 | $2,160 | | Cost of revenue | $9,658 | $8,941 | $717 | | Gross profit | $3,769 | $2,326 | $1,443 | | Operating expenses | $4,639 | $4,852 | $(213) | | Operating loss | $(870) | $(2,526) | $1,656 | | Net loss | $(701) | $(2,233) | $1,532 | | Basic and diluted loss per share | $(0.10) | $(0.33) | $0.23 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $29.9 million, primarily due to reduced cash and cash equivalents, while total stockholders' equity remained stable Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (Assumed) | Dec 31, 2024 | Change | | :-------------------------- | :---------------------- | :----------- | :----- | | Cash and cash equivalents | $7,023 | $12,598 | $(5,575) | | Accounts receivable, net | $4,993 | $2,149 | $2,844 | | Contract assets | $3,768 | $2,226 | $1,542 | | Inventories | $2,328 | $2,115 | $213 | | Total current assets | $18,499 | $19,986 | $(1,487) | | Property, plant and equipment, net | $11,394 | $11,699 | $(305) | | Total assets | $29,945 | $31,686 | $(1,741) | | Current liabilities | $4,628 | $6,137 | $(1,509) | | Long-term debt, net | $136 | $181 | $(45) | | Total stockholders' equity | $25,181 | $25,368 | $(187) | | Total liabilities and stockholders' equity | $29,945 | $31,686 | $(1,741) | - Note: The balance sheet header in the original document states 'June 30, 2024' for the current period, which is inconsistent with the 'Second Quarter 2025 Financial Results' report title and income statement dates. For analysis, it is assumed to be 'June 30, 2025'[16]