CPI Aerostructures, Inc. manufactures structural aircraft assemblies and related aerospace systems for defense and commercial programs. The company operates as a prime contractor to the U.S. Department of Defense and as a Tier 1 subcontractor to aerospace and defense OEMs, providing engineering, program management, supply chain management, assembly operations and MRO services.
Recurring developments include funded orders and follow-on awards for military aircraft structures, airborne pod structures, engine inlet assemblies, RF/EMI shielded enclosures and repair-and-overhaul work. Company updates also address quarterly and annual results, backlog execution, customer programs with contractors such as Lockheed Martin/Sikorsky, RTX/Collins Aerospace, Raytheon, Northrop Grumman and Embraer, and governance or finance leadership changes.
CPI Aerostructures (CVU) has completed its financial restatement for 2018 and reported 2019 results showing a 24.3% revenue increase to $87.5 million. Gross profit surged by 116.7% to $9.1 million, driven by improved military program production. However, the company faced a net loss of $4.5 million, a significant decrease from $7.5 million in 2018. Total backlog reached a record $561.9 million, with defense contracts making up 88%. COVID-19 impacts are expected to affect operations and profits in 2020, prompting cost-cutting measures. An amended credit facility has been established, extending repayment terms.
CPI Aerostructures (CVU) secured $5 million in long lead funding, anticipating over $20 million in purchase orders from Northrop Grumman for Outer Wing Panel components for the E-2D Advanced Hawkeye aircraft. This funding increases the total value of their multi-year contract with Northrop Grumman to over $70 million. CPI Aero has been a key supplier for the E-2D platform since 2008, contributing significantly to its backlog. The company is involved in structural assembly across aerospace and national security markets.
CPI Aerostructures, Inc. (NYSE American: CVU) announced a follow-on order from Lockheed Martin for structural assemblies for the F-16 Block 70/72 aircraft, totaling approximately $8.7 million in firm orders since their initial contract in February 2019. Deliveries are expected in late 2021. CPI Aero's CEO highlighted the strengthening relationship with Lockheed Martin, citing increased F-16 sales opportunities and the company's role as the sole-source supplier for specific components. The firm also praised Lockheed Martin's timely payments during the COVID-19 Pandemic.
CPI Aerostructures (CVU) has secured approximately $14 million in purchase orders from Boeing for structural assemblies of the A-10 Thunderbolt II, part of a previously announced IDIQ contract worth up to $48 million. This brings CPI Aero's total funding from Boeing for A-10 assemblies to around $20 million. The first delivery is expected by late 2020, with ongoing performance extending into 2022. These orders reflect a strong commitment from the U.S. Air Force and Boeing to maintain the A-10 system, underscoring CPI Aero's importance in national security operations.
CPI Aerostructures, Inc. (CVU) announced an initial order from Northrop Grumman to supply structural components for the Next Generation Jammer-Low Band (NGJ-LB) system, enhancing U.S. Navy defenses. This order funds non-recurring tooling and risk reduction activities, with deliveries starting in Q1 2021 and expected performance through 2025. CPI Aero's role as a critical supplier in airborne electronic attack underscores its position in the defense sector, contributing to vital ISR and EW missions.