Core Viewpoint - CPI Aerostructures, Inc. reported a significant financial impact in Q1 2025 due to a pre-tax loss of $2.1 million on the A-10 Program, which has higher manufacturing costs under a fixed-price contract from 2019. The company is taking steps to mitigate further financial degradation from this program [3]. Financial Performance - Revenue for Q1 2025 was $15.4 million, down from $19.1 million in Q1 2024 [9]. - Gross profit decreased to $1.6 million, compared to $3.6 million in the same period last year, 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 [9]. - Adjusted EBITDA was $(0.8) million, a decline from $1.2 million in Q1 2024 [9]. Balance Sheet and Debt Management - The total debt was reduced to an all-time low of $16.7 million, with a Debt-to-Adjusted EBITDA Ratio of 2.9, marking the ninth consecutive quarter below 3.0 [4]. - Total assets as of March 31, 2025, were $65.36 million, down from $67.98 million at the end of 2024 [12][13]. Operational Outlook - The company ended the quarter with a strong backlog of $516 million, including new program awards from major clients such as L3Harris, Raytheon, Lockheed, and Embraer [5]. - CPI Aero is focused on operational improvements and transitioning from legacy programs to future-oriented programs [5].