CVD Equipment (NASDAQ: CVV) posts Q2 2026 profit but core revenue drops 42.6%
Rhea-AI Filing Summary
CVD Equipment Corporation reported second quarter 2026 results shaped by the sale of its SDC division and weak demand in continuing operations. The company completed the divestiture of SDC on April 1, 2026 for $17.4 million, generating approximately $15.0 million in net cash proceeds. This drove a $13.9 million gain from discontinued operations and quarterly net income of $12.6 million, compared with a net loss a year earlier.
After the transaction, cash and cash equivalents rose to $23.5 million with no long-term debt, and stockholders’ equity increased to $36.0 million from $24.7 million at December 31, 2025. However, continuing operations remained challenged: Q2 revenue was $2.0 million, down 42.6% from the prior-year quarter, with an operating loss from continuing operations of $1.6 million and a net loss from continuing operations of $1.4 million. Orders were $1.2 million and backlog was $3.9 million at June 30, 2026, below the prior quarter. The company noted the customer for a $0.8 million system order filed a prepackaged Chapter 11 case, and is evaluating potential impacts.
Positive
- $17.4 million sale of the SDC division generated approximately $15.0 million in net cash proceeds and a $13.9 million gain, significantly boosting liquidity.
- Cash and cash equivalents increased to $23.5 million with no long-term debt, and stockholders’ equity rose to $36.0 million from $24.7 million, strengthening the balance sheet.
- Gross margin from continuing operations improved to 16.8% from 14.1% year over year, reflecting a higher proportion of non-system revenues.
Negative
- Revenue from continuing operations fell to $2.0 million, a 42.6% decline from the prior-year quarter, driven by lower system bookings.
- Continuing operations posted a quarterly operating loss of $1.6 million and a net loss of $1.4 million, with a six-month net loss from continuing operations of $3.1 million.
- Orders were $1.2 million, down from $1.5 million in the prior-year quarter, and backlog decreased to $3.9 million from $4.6 million at March 31, 2026.
- A customer for a $0.8 million system order filed a prepackaged Chapter 11 bankruptcy, creating uncertainty around that order and related backlog and cash flows.
- Six-month revenue from continuing operations declined to $3.8 million from $9.7 million in the prior-year period, indicating a substantial slowdown in the ongoing business.
Filing Explained
The company reports that it completed a major operational restructuring during the second quarter, with the stated expectation that the changes will significantly reduce its fixed cost structure.
8-K Event Classification
Key Figures
Key Terms
discontinued operations financial
backlog financial
prepackaged Chapter 11 bankruptcy regulatory
contract assets financial
emerging growth company regulatory
Earnings Snapshot
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FAQ
How did CVD Equipment (CVV) achieve net income in Q2 2026 despite weak operations?
What was CVD Equipment (CVV)’s revenue from continuing operations in Q2 2026?
How did the SDC division sale affect CVD Equipment (CVV)’s balance sheet?
What are CVD Equipment (CVV)’s orders and backlog after Q2 2026?
What risk does the customer bankruptcy pose to CVD Equipment (CVV)?
How did CVD Equipment (CVV)’s six-month 2026 results compare to 2025?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
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Telephone Number, Including Area Code:
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities Registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On August 12, 2026, the Company issued a press release announcing its results of operations for the second quarter ended June 30, 2026.
A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press release dated August 12, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: August 12, 2026
| CVD EQUIPMENT CORPORATION | ||
| By: | /s/ Richard Catalano | |
| Name: | Richard Catalano | |
| Title: | Executive Vice President, Chief Financial Officer, Secretary and Treasurer | |
Exhibit 99.1
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enabling tomorrow’s technologies™ |
| 355 South Technology Drive, Central Islip, New York 11722 | T 631.981.7081 | F 631.981.7095 | info@cvdequipment.com | |
CVD Equipment Reports Second Quarter 2026 Results;
Advances Strategic
Transformation
Balance Sheet
CENTRAL ISLIP, N.Y., (Business Wire) – August 12, 2026 – CVD Equipment Corporation (NASDAQ: CVV) (the “Company”) today reported its financial results for the second quarter ended June 30, 2026.
Highlights
| ● | Completed sale of SDC division on April 1, 2026 for $17.4 million. |
| ● | Generated
net cash proceeds of approximately |
| ● | Ended the quarter with approximately $23.5 million of cash and cash equivalents and no long-term debt. |
| ● | Reported
net income of $12.6 million for the quarter, reflecting the |
| ● | Completed major operational restructuring expected to significantly reduce the Company’s fixed cost structure. |
Manny
Lakios, President and Chief Executive Officer of CVD Equipment Corporation, stated, “The successful divestiture of SDC marks a
transformational milestone in the evolution of CVD Equipment. The transaction significantly strengthened our balance sheet, increased
our financial flexibility, and allows us to pursue long-term growth opportunities while
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enabling tomorrow’s technologies™ |
While
customer order levels continue to be
Second Quarter 2026 Performance from Continuing Operations
(excluding the discontinued operations of SDC)
Balance Sheet
As a result of the divestiture of the SDC division:
| ● | Cash increased to $23.5 million from $8.7 million at December 31, 2025. |
| ● | Stockholders’
equity increased to |
Operations
| ● | Orders:
$1.2 million (includes |
| ● | Revenue: $2.0 million, down 42.6% as compared to prior year quarter. Revenue continued to reflect lower system bookings during 2025 and early 2026. |
| ● | Gross margin: 16.8% versus 14.1% in the prior year quarter, principally due to a higher proportion of non-system revenues in the current quarter. |
| ● | Backlog: $3.9 million at June 30, 2026, as compared to $4.6 million at March 31, 2026. |
Earnings (Loss)
| ● | Net loss from continuing operations: ($1.4 million), or ($0.20) per basic and diluted share, compared with net loss from continuing operations of ($1.3 million), or ($0.19) per basic and diluted share, in the prior year quarter. |
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enabling tomorrow’s technologies™ |
| ● | Net
income from discontinued operations: |
Conference Call
A conference call reviewing these results has been scheduled for today, August 12, 2026 starting at 5:00 PM ET. To join the call, dial 1-877-407-2991 or 1-201-389-0925. A live and archived webcast of the call will also be available on the company’s website at https://cvdequipment.com/events. The archived webcast will be available approximately two hours following the end of the conference call. A telephone replay will be available for 7 days. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. The replay passcode is 13762114.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, and related equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include aerospace & defense (ceramic matrix composites), silicon carbide (SiC) high-power electronics, electric vehicle (EV) battery materials (carbon nanotubes, graphene and silicon nanowires), and industrial applications. Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance.
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enabling tomorrow’s technologies™ |
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as “forward-looking statements, “as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, market and business conditions, the success of CVD Equipment Corporation’s growth and sales strategies, uncertainty as to our ability to execute on our transformation strategy, the possibility of customer changes in delivery schedules, cancellation of, or failure to receive orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements, competition in our existing and potential future product lines of business, including our aerospace equipment and PVT systems; our ability to obtain financing on acceptable terms if and when needed; uncertainty as to our ability to develop new products for growth markets; uncertainty as to our future profitability; uncertainty as to any future expansion of the Company; uncertainty as to our ability to adequately obtain raw materials and components from foreign markets in light of geopolitical developments; and other risks and uncertainties that are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor of the Private Securities Litigation Reform Act of 1995. The Company assumes no obligations to update or supplement any forward-looking statements whether as a result of new information, future events.
CVD Equipment Corporation Contact:
Richard Catalano, Executive Vice President & CFO
Phone: (631) 981-7081
Email: investorrelations@cvdequipment.com
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enabling tomorrow’s technologies™ |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data - Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 1,953 | $ | 3,404 | $ | 3,798 | $ | 9,737 | ||||||||
| Cost of revenue | 1,624 | 2,923 | 3,321 | 7,451 | ||||||||||||
| Gross profit | 329 | 481 | 477 | 2,286 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 685 | 639 | 1,413 | 1,373 | ||||||||||||
| Selling | 232 | 282 | 472 | 649 | ||||||||||||
| General and administrative | 971 | 931 | 1,992 | 1,954 | ||||||||||||
| Gain on sale of equipment | - | - | (46 | ) | — | |||||||||||
| Total operating expenses | 1,888 | 1,852 | 3,831 | 3,976 | ||||||||||||
| Operating loss from continuing operations | (1,559 | ) | (1,371 | ) | (3,354 | ) | (1,690 | ) | ||||||||
| Net loss from continuing operations | (1,372 | ) | (1,292 | ) | (3,097 | ) | (1,521 | ) | ||||||||
| Net income from discontinued operations | 231 | 820 | ||||||||||||||
| Net income (loss) | $ | $ | (1,061 | ) | $ | $ | (701 | ) | ||||||||
| Basic and diluted loss per share | ||||||||||||||||
| Loss from continuing operations | $ | (0.20 | ) | $ | (0.19 | ) | $ | (0.45 | ) | $ | (0.22 | ) | ||||
| Income from discontinued operations | $ | $ | 0.03 | $ | $ | 0.12 | ||||||||||
| Net income (loss) | $ | $ | (0.15 | ) | $ | 1.58 | $ | (0.10 | ) | |||||||
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enabling tomorrow’s technologies™ |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands - Unaudited)
| June 30, 2026 | Dec. 31, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 23,483 | $ | 8,734 | ||||
| Accounts receivable, net | 1,771 | 1,293 | ||||||
| Contract assets | 1,397 | 2,853 | ||||||
| Inventories | 247 | 285 | ||||||
| Amount held in escrow | 900 | - | ||||||
| Current assets of discontinued operations | - | 2,852 | ||||||
| Assets held for sale - equipment | - | 510 | ||||||
| Other current assets | 350 | 357 | ||||||
| Total current assets | 28,148 | 16,884 | ||||||
| Property, plant and equipment, net | 10,276 | 10,529 | ||||||
| Noncurrent assets of discontinued operations | - | 46 | ||||||
| Other assets | 99 | 50 | ||||||
| Total assets | $ | 38,523 | $ | 27,509 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 155 | $ | 250 | ||||
| Accrued expenses | 1,060 | 849 | ||||||
| Income taxes payable | - | |||||||
| Contract liabilities | 541 | 560 | ||||||
| Current maturities of long-term debt | - | 181 | ||||||
| Current liabilities of discontinued operations | - | 944 | ||||||
| Total current liabilities | 2,784 | |||||||
| Total non-current liabilities – security deposit | 30 | - | ||||||
| Total stockholders’ equity | 24,725 | |||||||
| Total liabilities and stockholders’ equity | $ | 38,523 | $ | 27,509 | ||||
This earnings release should be read in conjunction with the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for fiscal year ended December 31, 2025.