CPS Technologies(US:CPSH) ZACKSยท2025-09-30 18:06Core Insights - CPS Technologies Corp. has secured a Phase II Small Business Technology Transfer contract worth $1.15 million from the U.S. Army, focusing on the development of a controlled fragmentation tungsten warhead [1] - The contract signifies a continuation of successful work from a previous Phase I program, led by Dr. Mark Occhionero, utilizing CPSH's proprietary injection molding process for tungsten components [2] - The partnership with the New Mexico Institute of Mining and Technology's Energetic Materials Research and Testing Center will enhance research efforts and technical foundation [3] Strategic Developments - This contract marks CPSH's fifth federally funded project in 2025 and the third successful transition from Phase I to Phase II since June 2024, indicating the company's growing reputation in U.S. defense initiatives [4] - The contract highlights the long-term value of CPSH's manufacturing capabilities, diversifying revenue streams beyond electric vehicles, Navy ships, 5G infrastructure, aerospace, and ballistic armor products [5] - Success in securing government contracts positions CPSH for sustained growth and strengthens its competitive edge, validating its technological advantages [6] Financial Performance - CPSH reported record revenues of $8.1 million in Q2 2025, a 61% increase from the same quarter last year, alongside a net income of $100,000, a significant recovery from a $900,000 net loss in Q2 2024 [7] - Management anticipates 2025 to be the best revenue year on record, driven by strong demand and operational efficiency improvements, with a 4-6 month visibility on orders [8] Future Outlook - The dual strategy of securing high-value defense contracts and achieving record financial performance indicates a transformative year ahead for CPS Technologies [9] - Management's confidence suggests that 2025 may represent a pivotal shift for CPSH from a niche material supplier to a key player in defense and technology partnerships [10]