CPI Aerostructures, Inc. and MST Manufacturing Sign Long Term Agreement
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Insights
CPI Aero secures supply chain stability through 2028 with new MST Manufacturing agreement, reinforcing operational continuity for ongoing aerospace programs.
CPI Aerostructures has strategically reinforced its supply chain by signing a second Long-Term Agreement (LTA) with MST Manufacturing, extending component supply commitments through the end of 2028. This agreement represents more than just a routine supplier contract – it's a calculated move to ensure production stability during a period when aerospace supply chains remain under pressure.
The renewal suggests three important industrial dynamics: First, MST has likely demonstrated reliability in quality and delivery metrics to earn this extension. Second, CPI Aero is proactively securing critical component sources to support both existing contracts and anticipated program growth. Third, the timing of the announcement at the Paris Air Show – a premier industry event – indicates the strategic importance CPI places on this relationship.
What's particularly noteworthy is CEO Dorith Hakim's mention that this agreement "rewards [MST] for supporting our new programs." This suggests MST has demonstrated flexibility in adapting to CPI Aero's expanding portfolio and may have contributed engineering support during new program development phases. For a Tier 1/Tier 2 aerostructure manufacturer like CPI Aero, maintaining such supplier continuity significantly reduces program risk and potential production disruptions.
While financial terms remain undisclosed, this multi-year commitment indicates a material relationship between the companies. MST's comprehensive capabilities – from 5-axis CNC machining to complex sheet metal forming – provide CPI Aero with access to sophisticated manufacturing processes essential for aerospace components that typically require precision tolerances and specialized materials.
CPI Aero's extended supplier agreement strengthens competitive positioning in defense/commercial aerospace markets while potentially improving margin stability.
This supplier agreement carries strategic financial implications beyond immediate revenue impacts. By securing a long-term component supply through 2028, CPI Aero has effectively mitigated pricing volatility and supply disruption risks that have plagued aerospace manufacturing in recent years. While the agreement's exact financial value remains undisclosed, its four-year term suggests it represents a meaningful portion of CPI Aero's manufacturing cost structure.
The timing is particularly advantageous given the current aerospace market dynamics. Defense budgets remain robust across Western nations while commercial aerospace continues its post-pandemic recovery with strong OEM backlogs. By cementing this supplier relationship now, CPI Aero positions itself to capitalize on both markets with greater cost predictability.
MST Manufacturing's comprehensive capabilities – from machining to sheet metal fabrication – suggest this agreement covers a diverse component range, potentially reducing CPI's need to manage multiple suppliers for different component types. This consolidation typically yields administrative efficiencies and strengthens negotiating leverage.
For investors, this agreement signals continuity in CPI Aero's business fundamentals. As both a Tier 1 supplier to OEMs and Tier 2 subcontractor to major manufacturers, CPI's ability to secure stable supply chains enhances its reliability to customers up the aerospace value chain. This reliability becomes a competitive differentiator when pursuing new contracts, potentially expanding CPI's addressable market and supporting long-term growth objectives.
PARIS, June 17, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced today that it has signed another Long-Term Agreement (“LTA”) with MST Manufacturing (“MST”) during the international air show in Paris, France, for the supply of components in support of its aerostructures production. This LTA will cover CPI Aero’s requirements from MST through the end of calendar year 2028.
“We’ve had a strong relationship with MST and, this second LTA reflects their performance as a critical supplier to CPI Aero, and rewards them for supporting our new programs,” stated Dorith Hakim, president and CEO of CPI Aero.
Kenneth Statton, CEO & founder of MST added, “CPI Aero continues to be a strong and reliable part of our business model. We are excited to continue building on our relationship and hope to continue this trajectory through our dedication to superior customer service, innovation and speed of execution.”
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.
About MST Manufacturing: MST is located on in Claremore, Oklahoma with over 75,000 square feet of manufacturing space and more than 110 team members. With AS9100, ISO9001 and ITAR certifications, MST is propelling itself to be one of Oklahoma’s premier and most respected complex CNC machining and fabrication companies. MST operates over 60 CNC machines, sheet metal forming machines, waterjets as well as a host of support services from engineering, large capacity CMM’s to multiple levels of CAD/CAM software. MST offers CNC machining services up to 150” which includes 5-axis milling and multi-axis turning as well as complex sheet metal forming utilizing rubber head presses and sheet metal brakes.
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 may include, but are not limited to, statements regarding the anticipated benefits of the Long-Term Agreement with MST and the continuation of the business relationship between the parties.
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 Alliance Advisors IR Jody Burfening (212) 838-3777 cpiaero@allianceadvisors.com | CPI Aerostructures, Inc. Philip Passarello Chief Financial Officer (631) 586-5200 ppassarello@cpiaero.com www.cpiaero.com |
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