CPI Aerostructures Reports First Quarter 2026 Results
Rhea-AI Summary
CPI Aerostructures (NYSE American: CVU) reported strong Q1 2026 results with revenue of $17.4 million, up from $15.4 million. Gross profit rose to $4.5 million and margin to 25.8%. Net income was $1.2 million versus a $(1.3) million loss, EPS $0.10 versus $(0.10).
Adjusted EBITDA was $2.1 million, compared to $(0.8) million, which CPI Aero describes as 53% growth excluding A-10 Program impact. The company highlighted a total backlog of $495 million and began preparations for previously announced missile production work.
AI-generated analysis. Not financial advice.
Positive
- Revenue increased to $17.4M from $15.4M year over year
- Gross profit rose to $4.5M from $1.6M
- Gross margin expanded to 25.8% from 10.7%
- Net income improved to $1.2M from $(1.3)M loss
- EPS improved to $0.10 from $(0.10)
- Adjusted EBITDA reached $2.1M versus $(0.8)M
- Total funded and unfunded backlog totals $495M
Negative
- None.
News Market Reaction – CVU
On the day this news was published, CVU gained 15.07%, reflecting a significant positive market reaction. Argus tracked a peak move of +13.3% during that session. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $58.39M at that time. Trading volume was exceptionally heavy at 5.9x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While CVU was down 2.67% pre-release, momentum peers like MNTS (+11.74%) and SIDU (+5.51%) were moving higher, with AIRI down 3.66%. Sector scanners note 2 peers up (median 8.6%), but their direction diverges from CVU.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | FY 2025 earnings | Negative | -13.0% | Full-year 2025 revenue and profit pressured by A-10 program termination. |
| Aug 19 | Q2 2025 earnings | Negative | +4.5% | Q2 revenue drop, net loss and A-10 write-off despite strong backlog. |
| May 15 | Q1 2025 earnings | Negative | -6.1% | Challenging Q1 with A-10 loss driving revenue decline and net loss. |
| Mar 31 | FY 2024 earnings | Positive | +0.6% | 2024 margin gains, positive net income and reduced debt with strong backlog. |
Earnings releases have often led to downside or modest moves, especially when results were pressured by A-10 program impacts, with one notable instance where weak results still saw a positive reaction.
Over the past year, CPI Aero’s earnings cycle has been dominated by the A‑10 program overhang and backlog resilience. Q1 and Q2 2025 showed revenue declines and net losses tied to write‑offs, while year‑end 2024 still delivered $3.3M in net income and a $510M backlog. The most recent 2025 results on Mar 31, 2026 highlighted weaker revenue and a $0.8M loss. Today’s Q1 2026 report marks a sharp turnaround versus those challenged periods.
Historical Comparison
In the past four earnings releases, CVU’s average next-day move was -3.5%, reflecting generally cautious reactions to financial updates, especially when A-10 program headwinds were in focus.
Earnings have progressed from solid FY2024 profitability and backlog strength, through A‑10-driven revenue declines and losses in 2025, to a Q1 2026 update that highlights a return to growth, higher margins and positive net income.
Regulatory & Risk Context
The company has an effective S-3/A shelf dated 2026-04-07, registering up to $30,000,000 of securities and supporting an at-the-market equity program of up to $17,000,000. A 424B5 filed on 2026-04-14 indicates the ATM has been activated, providing flexibility to issue equity for working capital and general corporate purposes.
Market Pulse Summary
The stock surged +15.1% in the session following this news. A strong positive reaction aligns with Q1 2026 fundamentals that showed revenue rising to $17.4M, net income of $1.2M, and gross margin improving to 25.8%. Historically, earnings moves averaged -3.5%, so a sharp upside response would mark a break from prior caution. Investors would still need to weigh the active $30M shelf and ATM program, which allow equity issuance that could influence future trading dynamics.
Key Terms
adjusted EBITDA financial
MRO technical
OEM technical
AI-generated analysis. Not financial advice.
First Quarter 2026 vs. First Quarter 2025
- Revenue of
$17.4 million compared to$15.4 million ; - Gross profit of
$4.5 million compared to$1.6 million ; - Gross profit margin of
25.8% compared to10.7% (21.6% excluding A-10 Program impact); - Net income of
$1.2 million compared to net (loss) of$(1.3) million ; - Earnings per share of
$0.10 compared to (loss) per share of$(0.10) ; - Adjusted EBITDA(1) of
$2.1 million compared to$(0.8) million ($1.4 million excluding A-10 Program impact);
EDGEWOOD, N.Y., May 18, 2026 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the first quarter ended March 31, 2026, delivering significant year‑over‑year improvements driven by favorable product mix, operational efficiencies, and continued execution across key Aerospace & Defense programs.
“Our first‑quarter 2026 results delivered broad‑based strength, outperforming the first quarter of 2025 across every major metric,” said Dorith Hakim, Chief Executive Officer of CVU. “A more favorable product mix and continued operational efficiencies drove a substantial expansion in gross profit margin and a
“Our performance this quarter reflects the strength of our operational discipline and the trust our customers place in CPI Aero,” added Hakim. “We remain focused on delivering high‑quality aerospace structures, meeting program milestones, and supporting the mission‑critical needs of our defense partners. With a strong backlog and improved profitability, we are well‑positioned for continued momentum throughout 2026.”
Added Ms. Hakim, “We also began preparing for production on the previously announced missile work, a strategically important win that expands our presence in high-growth missile and autonomous systems markets. With improved margins, significant earnings growth, and a robust backlog of
About CPI Aero
CPI Aero is a prime contractor to the U.S. Department of Defense as well as a Tier 1 subcontractor to some of the largest aerospace and defense contractors in the world. CPI Aero provides engineering, program management, supply chain management, assembly operations and MRO services to this global network of customers. CPI Aero is recognized as a leader within the international aerospace market in such areas as aircraft structural assemblies, military advanced tactical pod structures, engine air inlets, and complex welded products.
Our OEM customers in the defense sector include (i) Lockheed Martin Corporation and Sikorsky Aircraft, for the F-16 Fighting Falcon, the UH-60 BLACK HAWK©, the MH-60 Seahawk, the CH-53E and the CH-53K King Stallion; (ii) RTX Corporation, formerly Raytheon, for the ALQ-249 Next Generation Jammer Mid-Band Pod for the EA-18G Growlers, the Advanced Tactical Pods, the MS-110 & TacSAR Reconnaissance Airborne Pods, Hypersonic Missile Wings, and B-52 Radar Modernization; (iii) L3Harris for the Next Generation Jammer Low-Band Pod for the EA-18G Growlers; (iv) Collins Aerospace, for RF Enclosures; (v) Northrop Grumman Corporation, for the E-2D Advanced Hawkeye, the Airborne Laser Mine Detection Pod, welded tubes, aerial refueling probes, and welded fluid tanks; and (vi) the DOD/USAF and the Defense Logistics Agency for the T-38 Pacer Classic and T-38 Talon. Our OEM customers in the civil aviation market include Embraer S.A. for the Phenom 300 and Phenom 100.
Our funded backlog of remaining performance obligations exceeds
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. All statements, other than statements of historical fact, included in this press release are forward-looking statements. Words such as “remain focused,” ”well-positioned,” “continued momentum,” “confidence,” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements include statements regarding the Company’s backlog, future performance, anticipated production activities, continued operational execution, customer relationships, market presence, and expectations regarding continued momentum. The Company does not guarantee that it will actually achieve the plans, intentions or expectations disclosed in its forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements.
Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these 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 year ended December 31, 2025 filed with the Securities and Exchange Commission. Although the Company may elect to do so at some point in the future, the Company does not assume any obligation to update any forward-looking statements and it disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on X @CPIAERO.
Contacts:
| Investor Relations Counsel | CPI Aerostructures, Inc. |
| Alliance Advisors IR | Robert Mannix |
| Jody Burfening | Chief Financial Officer |
| (212) 838-3777 | (631) 586-5200 |
| cpiaero@allianceadvisors.com | rmannix@cpiaero.com |
| www.cpiaero.com |
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
| March 31, 2026 (Unaudited) | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 1,002,548 | $ | 899,199 | ||||
| Accounts receivable, net | 4,165,949 | 5,764,928 | ||||||
| Contract assets, net | 37,021,183 | 33,670,354 | ||||||
| Inventory | 725,908 | 800,823 | ||||||
| Prepaid expenses and other current assets | 3,055,241 | 2,272,696 | ||||||
| Total Current Assets | 45,970,829 | 43,408,000 | ||||||
| Operating lease right-of-use assets | 9,150,484 | 9,515,207 | ||||||
| Property and equipment, net | 425,879 | 412,553 | ||||||
| Deferred tax asset, net | 19,627,037 | 19,894,796 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other assets | 346,831 | 229,691 | ||||||
| Total Assets | $ | 77,305,314 | $ | 75,244,501 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 16,531,357 | $ | 14,724,293 | ||||
| Accrued expenses | 3,289,821 | 4,763,719 | ||||||
| Contract liabilities | 1,371,571 | 1,628,382 | ||||||
| Loss reserve | 126,676 | 138,426 | ||||||
| Current portion of line of credit | — | — | ||||||
| Current portion of long-term debt | 250,000 | 187,500 | ||||||
| Operating lease liabilities, current | 1,468,989 | 1,434,385 | ||||||
| Income taxes payable | 206,540 | 142,540 | ||||||
| Total Current Liabilities | 23,244,954 | 23,019,245 | ||||||
| Line of credit, net of current portion | 9,173,672 | 8,373,672 | ||||||
| Long-term operating lease liabilities | 7,972,638 | 8,353,120 | ||||||
| Long-term debt, net of current portion | 9,634,471 | 9,690,890 | ||||||
| Total Liabilities | 50,025,735 | 49,436,927 | ||||||
| Commitments and Contingencies (see note 11) | — | |||||||
| Shareholders’ Equity: | ||||||||
| Preferred stock - $.001 par value; authorized 5,000,000 shares, 0 shares issued and outstanding | — | — | ||||||
| Common stock - $.001 par value; authorized 50,000,000 shares, 13,189,061 and 13,155,061 shares, respectively, issued and outstanding | 13,189 | 13,155 | ||||||
| Additional paid-in capital | 75,377,421 | 75,142,168 | ||||||
| Accumulated deficit | (48,111,031 | ) | (49,347,749 | ) | ||||
| Total Shareholders’ Equity | 27,279,579 | 25,807,574 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 77,305,314 | $ | 75,244,501 | ||||
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| For the three months ended March 31, | |||||||||
| 2026 | 2025 | ||||||||
| Revenue | $ | 17,359,940 | $ | 15,400,608 | |||||
| Cost of sales | 12,880,049 | 13,751,133 | |||||||
| Gross profit | 4,479,891 | 1,649,475 | |||||||
| Selling, general and administrative expenses | 2,650,263 | 2,835,777 | |||||||
| Income (loss) from operations | 1,829,628 | (1,186,302 | ) | ||||||
| Other income (expense) | 30,373 | 1,500 | |||||||
| Interest expense | (291,935 | ) | (488,091 | ) | |||||
| Income (loss) before provision for income taxes | 1,568,066 | (1,672,893 | ) | ||||||
| Provision (benefit) for income taxes | 331,348 | (348,969 | ) | ||||||
| Net income (loss) | $ | 1,236,718 | $ | (1,323,924 | ) | ||||
| Income (loss) per common share, basic | $ | 0.10 | $ | (0.10 | ) | ||||
| Income (loss) per common share, diluted | $ | 0.09 | $ | (0.10 | ) | ||||
| Shares used in computing income (loss) per common share: | |||||||||
| Basic | 12,863,180 | 12,720,148 | |||||||
| Diluted | 13,040,998 | 12,720,148 | |||||||
Unaudited Reconciliation of GAAP to Non-GAAP Measures
Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP income from operations plus depreciation, amortization and stock-compensation expense.
Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA should not be construed as either an alternative to income from operations or net income or as an indicator of our operating performance or an alternative to cash flows as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below. Please refer to the following table below that reconciles GAAP income from operations to Adjusted EBITDA.
The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:
Depreciation. The Company incurs depreciation expense (recorded in cost of sales and in selling, general and administrative expenses) related to capital assets purchased, leased or constructed to support the ongoing operations of the business. The assets are recorded at cost and are depreciated over the estimated useful lives of individual assets.
Stock-based compensation expense. The Company incurs non-cash expense related to stock-based compensation included in its GAAP presentation of cost of sales and selling, general and administrative expenses. Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP financial measures that exclude stock-based compensation.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.
Reconciliation of income from operations to Adjusted EBITDA is as follows:
| Three months ended March 31 | ||||||||
| 2026 | 2025 | |||||||
| Income (loss) from operations | $ | 1,829,628 | $ | (1,186,302 | ) | |||
| Depreciation | 39,729 | 98,767 | ||||||
| Stock-based compensation | 235,287 | 320,229 | ||||||
| Adjusted EBITDA | 2,104,644 | (767,306 | ) | |||||
| A-10 Termination | — | 2,145,696 | ||||||
| Adjusted EBITDA Excluding A-10 adjustment | $ | 2,104,644 | $ | 1,378,390 | ||||
