SDC sale leaves CVD Equipment (NASDAQ: CVV) with $23M cash and no debt
Rhea-AI Filing Summary
CVD Equipment Corporation reported a much weaker first quarter of 2026 while completing the sale of its SDC division. From continuing operations, revenue was $1.84 million, down 70.9% from $6.33 million a year earlier, mainly due to lower CVD system bookings. Gross margin fell to 8.0% from 27.4%, and the company posted a net loss from continuing operations of $1.73 million, or ($0.25) per share, versus a ($0.03) loss per share last year.
The SDC sale, completed April 1, 2026, generated $14.8 million in net cash proceeds, leaving CVD with about $23 million in cash and no long-term debt. Management is restructuring operations, including a previously announced workforce reduction, expected to lower annual operating costs by about $1.8 million in fiscal 2026. Orders improved to $1.8 million, up from $0.8 million, and backlog remained $4.7 million at March 31, 2026, as the company focuses on aerospace, silicon carbide, EV battery materials and other industrial markets.
Positive
- Balance sheet strengthened by SDC divestiture: Sale of the SDC division generated $14.8 million in net cash proceeds, leaving the company with about $23 million in cash and no long-term debt as of April 1, 2026.
Negative
- Sharp deterioration in continuing operations: Q1 2026 revenue from continuing operations fell 70.9% year over year to $1.84 million, gross margin dropped to 8.0%, and net loss from continuing operations widened to ($1.73 million) from ($0.23 million).
Insights
Balance sheet strengthened by SDC sale, but core business remains weak.
CVD Equipment completed the SDC division sale, receiving $14.8M net cash and ending up with about $23M in cash and no long-term debt as of April 1, 2026. This significantly improves financial flexibility and reduces balance-sheet risk.
However, continuing operations deteriorated sharply. Q1 2026 revenue fell to $1.84M, down 70.9% year over year, with gross margin dropping to 8.0% from 27.4%. Net loss from continuing operations widened to $1.73M, or ($0.25) per share, compared with ($0.03) per share in Q1 2025.
Management expects a previously announced workforce reduction and shift away from vertically integrated fabrication to cut annual operating costs by about $1.8M in fiscal 2026. Future filings may show whether increased orders of $1.8M and a stable $4.7M backlog can translate into higher revenue and margins for the CVD Equipment segment.
8-K Event Classification
Key Figures
Key Terms
discontinued operations financial
held for sale financial
backlog financial
gross margin financial
contract liabilities financial
forward-looking statements regulatory
Earnings Snapshot
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):
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) |
(IRS Employer Identification No.) |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s
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 May 14, 2026, the Company issued a press release announcing its results of operations for the first quarter March 31, 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 May 14, 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: May 14, 2026
| CVD EQUIPMENT CORPORATION | ||
| By: | /s/ Richard Catalano | |
| Name: | Richard Catalano | |
| Title: | Executive Vice President, Chief Financial Officer, Secretary and Treasurer | |
Exhibit 99.1
 |
enabling tomorrow’s technologies™ | |
| 355 South Technology Drive, Central Islip, New York 11722 | T 631.981.7081 | info@cvdequipment.com | ||
CVD Equipment Corporation Reports First Quarter 2026 Results
Completed the Sale of its SDC Division as Previously Announced
CENTRAL
ISLIP, N.Y., (Business Wire) – May 14, 2026 – CVD Equipment Corporation (NASDAQ: CVV) (the “Company”) today reported
financial results for the first quarter
First
Quarter 2026 Performance from Continuing Operations
| ● | |
| ● | |
| ● | Backlog: $4.7 million at both March 31, 2026 and December 31, 2025. |
| ● | Gross
margin: 8.0% versus 27.4% in the prior year quarter, primarily due to lower CVD system revenue |
| ● | Decreases in revenue and gross margin for the quarter ended March 31, 2026 from reduced system bookings were partially offset by a $0.3 million benefit from a contract modification. |
| ● | Net loss from continuing operations: ($1.7 million), or ($0.25) per basic and diluted share, compared with net loss from continuing operations of ($0.2 million), or ($0.03) per basic and diluted share, in the prior year quarter. |
www.cvdequipment.com | www.firstnano.com
|
enabling tomorrow’s technologies™ |
Conference Call
A
conference call reviewing these results has been scheduled for today,
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
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, 2024 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
www.cvdequipment.com | www.firstnano.com
|
enabling tomorrow’s technologies™ |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data - Unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 1,844 | $ | 6,332 | ||||
| Cost of revenue | 1,697 | 4,598 | ||||||
| Gross profit | 147 | |||||||
| Operating expenses: | ||||||||
| Research and development | 727 | 734 | ||||||
| Selling | 240 | 367 | ||||||
| General and administrative | 1,022 | 953 | ||||||
| Gain on sale of equipment | (46 | ) | - | |||||
| Total operating expenses | 1,943 | 2,054 | ||||||
| Operating loss from continuing operations | (1,796 | ) | (320 | ) | ||||
| Net loss from continuing operations | ) | (229 | ) | |||||
| Net income from discontinued operations | 63 | 589 | ||||||
| Net income (loss) | $ | (1,663 | ) | $ | 360 | |||
| Basic and diluted income (loss) per share | ||||||||
| Loss from continuing operations per common share | $ | (0.25 | ) | (0.03 | ) | |||
| Income from discontinued operations per common share | $ | 0.01 | 0.09 | |||||
| Net income (loss) per common share | $ | (0.24 | ) | 0.05 | ||||
www.cvdequipment.com | www.firstnano.com
|
enabling tomorrow’s technologies™ |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands - Unaudited)
| March 31, 2026 | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,196 | $ | 8,734 | ||||
| Accounts receivable, net | 677 | 1,293 | ||||||
| Contract assets | 3,347 | 2,853 | ||||||
| Inventories | 306 | 285 | ||||||
| Current assets of discontinued operations | 2,780 | 2,852 | ||||||
| Assets held for sale - equipment | - | 510 | ||||||
| Other current assets | 390 | 357 | ||||||
| Total current assets | 15,696 | 16,884 | ||||||
| Property, plant and equipment, net | 10,421 | 10,529 | ||||||
| Noncurrent assets of discontinued operations | - | 46 | ||||||
| Other assets | 97 | 50 | ||||||
| Total assets | $ | 26,214 | $ | 27,509 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 213 | $ | 250 | ||||
| Accrued expenses | 1,039 | 849 | ||||||
| Current maturities of long-term debt | - | 181 | ||||||
| Current liabilities of discontinued operations | 1,154 | 944 | ||||||
| Contract liabilities | 526 | 560 | ||||||
| Total current liabilities | 2,932 | 2,784 | ||||||
| Total stockholders’ equity | 23,282 | 24,725 | ||||||
| Total liabilities and stockholders’ equity | $ | 26,214 | $ | 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.
www.cvdequipment.com | www.firstnano.com