Core Points - CPI Aerostructures, Inc. has completed the production and delivery of an Airborne Laser Mine Detection System (ALMDS) pod structure for Northrop Grumman, supporting a contract awarded by Korea Aerospace Industries, Ltd. (KAI) for the Engineering, Manufacturing, and Design (EMD) phase of the Republic of Korea's Mine Countermeasures Helicopter (KMCH) program, expected to be completed in 2027 [1] - There is potential for a follow-on order for Low-Rate Production of eight pods valued at approximately $3 million [1] - The ALMDS system is designed to rapidly detect, classify, and localize mines, capable of untethered operations day or night, achieving high area search rates and providing accurate target geo-location for mine neutralization [2] - CPI Aero has delivered a total of 28 ALMDS pod structures to Northrop Grumman since 2007, including 24 for the U.S. Navy and 4 for the Japanese Maritime Self Defense Force [2] - CPI Aero operates as a U.S. manufacturer of structural assemblies for various aircraft and pod systems, serving both commercial aerospace and national security markets, and is a Tier 1 supplier or Tier 2 subcontractor within the global aerostructure supply chain [3]

Core Insights - CPI Aerostructures, Inc. reported a decrease in revenue for 2024 compared to 2023, but improved gross profit margin by 150 basis points [3][6] - The company achieved a net income increase of 22.2% and earnings per share (EPS) growth of 19.5% due to operational efficiencies and reduced costs [3][6] - CPI Aero ended 2024 with a strong backlog of $510 million, including new program awards from major clients [5] Financial Performance - Fourth Quarter 2024 revenue was $21.8 million, down from $23.5 million in Q4 2023; gross profit increased to $4.3 million from $4.1 million [6] - Full Year 2024 revenue totaled $81.1 million, a decrease from $86.5 million in 2023; gross profit slightly increased to $17.2 million from $17.1 million [6][15] - Net income for Q4 2024 was $1.0 million, significantly lower than $14.8 million in Q4 2023; full year net income was $3.3 million compared to $17.2 million in 2023 [6][15] Operational Efficiency - The company generated $3.6 million in cash from operations in 2024 and reduced debt by $2.7 million, achieving the lowest debt level since 2011 [4] - The Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, marking the eighth consecutive quarter-end below 3.0 [4] Backlog and Future Outlook - CPI Aero's backlog of $510 million includes multiple new program awards from L3Harris, Raytheon, and Embraer, indicating confidence in future growth [5] - The company aims to capitalize on long-standing customer relationships and multiple opportunities ahead [5]