CPI Aerostructures Reports Third Quarter and Nine Month 2025 Results

Core Insights - CPI Aerostructures, Inc. reported stronger performance in Q3 2025 compared to Q3 2024, with a 60 basis points increase in gross profit margin and a 49% increase in net income [4] - The company achieved an adjusted EBITDA of $1.9 million, which is 17% higher than the same period last year [4] - The nine-month results were impacted by the termination of the Boeing A-10 Program, affecting overall revenue and profitability [4] Financial Performance - For Q3 2025, revenue was $19.3 million, slightly down from $19.4 million in Q3 2024 [9] - Gross profit for Q3 2025 was $4.3 million, compared to $4.2 million in Q3 2024, resulting in a gross margin of 22.3% versus 21.7% [9] - Net income for Q3 2025 was $1.1 million, up from $0.7 million in Q3 2024, with earnings per share increasing to $0.09 from $0.06 [9] - For the nine months ended September 30, 2025, revenue was $49.8 million, down from $59.3 million in the same period of 2024 [9] - The nine-month gross profit was $6.6 million, significantly lower than $12.9 million in 2024, leading to a gross margin of 13.3% [9] Balance Sheet and Debt Management - The company reduced its total debt to an all-time low of $15.9 million as of September 30, 2025, down from $18.2 million a year earlier [5][9] - The Debt-to-Adjusted EBITDA Ratio stood at 2.6, excluding the impact of the A-10 Program termination [5] Strategic Developments - CPI Aero received a significant award from Raytheon to manufacture structural missile wing assemblies, which will start deliveries in 2026, contributing to a backlog of $509 million as of September 30, 2025 [6] - This award reflects the company's ongoing success in securing new development programs and the confidence placed in it by leading aerospace and defense firms [6] Company Overview - CPI Aerostructures is a prime contractor to the U.S. Department of Defense and a Tier 1 subcontractor to major aerospace and defense contractors, providing a range of services including engineering and program management [7]