CPI Aero Receives $2.5 Million of Purchase Orders From U.S. Air Force for T-38 Aircraft Modification Kits

Rhea-AI Summary

CPI Aerostructures (NYSE American: CVU) has secured multiple purchase orders worth $2.5 million from the U.S. Air Force for T-38 aircraft modification kits. These orders are part of a previously announced contract valued at up to $65.7 million for the T-38C Pacer Classic III Fuselage Structural Modification Kit Integration program and the Talon Repair Inspection and Maintenance program.

The new orders increase the total funded value to $50.8 million, with deliveries extending into 2028. The modifications will extend the service life of nearly 500 Northrop T-38 Talon aircraft, which have served as the U.S. Air Force's principal supersonic jet trainer for over 60 years, beyond 2030.

Positive

• New purchase orders worth $2.5 million increase total funded contract value to $50.8 million
• Contract provides steady revenue stream with deliveries extending into 2028
• Program extends service life of T-38 aircraft beyond 2030, ensuring long-term business opportunity

Negative

• Contract value of $2.5 million is relatively small compared to the total potential contract value of $65.7 million
• Remaining unfunded portion of $14.9 million subject to future funding uncertainty

Increases Funded Orders under Previously Awarded Multi-year Contract to $50.8 million

EDGEWOOD, N.Y., Aug. 04, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced that it has received multiple purchase orders totaling $2.5 million under a previously announced contract from the U.S. Air Force valued at up to $65.7 million to provide structural modification kits, program management, logistics, and other sustainment services in support of Phase 3 of the T-38C Pacer Classic III Fuselage Structural Modification Kit Integration program (“PCIII”) and the Talon Repair Inspection and Maintenance (“TRIM”) program. The new purchase orders bring the total funded value of the contract to $50.8 million and support additional kit deliveries within the currently funded period of performance into 2028.

The Northrop T-38 Talon is a two-seat, twinjet supersonic aircraft and has been the principal supersonic jet trainer used by the U.S. Air Force for more than 60 years. Over 1,200 were produced and just under 500 are still being flown by the U.S. Air Force and NASA. The PCIII and TRIM programs give the aircraft a structural makeover that extends the service life of the aircraft beyond 2030.

“Kitting and Supply Chain Management is a key segment of CPI’s portfolio and we are proud to be a small business supplying these critical aircraft modification kits to the U.S. Air Force,” commented Dorith Hakim, president and chief executive officer of CPI Aero.

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI Aero also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release are forward-looking statements.

Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by forward-looking statements. There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by its forward-looking statements, including those important factors set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2024, and its subsequent filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.  

Contacts:
Investor Relations Counsel		CPI Aerostructures, Inc.
Alliance Advisors IR		Pamela Levesque
Jody Burfening		Interim Chief Financial Officer
(212) 838-3777		(631) 586-5200
cpiaero@allianceadvisors.com		plevesque@cpiaero.com
		www.cpiaero.com

FAQ

What is the value of CPI Aero's new purchase orders from the U.S. Air Force for T-38 aircraft modification kits?

CPI Aero (CVU) received multiple purchase orders totaling $2.5 million from the U.S. Air Force for T-38 aircraft modification kits.

What is the total funded value of CPI Aero's T-38 modification contract?

The total funded value of the contract has increased to $50.8 million out of a potential total contract value of $65.7 million.

How long will CPI Aero's T-38 modification kit deliveries continue?

The purchase orders support additional kit deliveries within the currently funded period of performance into 2028.

How many T-38 Talon aircraft are currently in service with the U.S. Air Force and NASA?

Just under 500 T-38 Talon aircraft are still being flown by the U.S. Air Force and NASA, out of over 1,200 originally produced.

What is the purpose of CPI Aero's T-38C Pacer Classic III and TRIM programs?

These programs provide a structural makeover to the T-38 aircraft that extends their service life beyond 2030.