CPI Aerostructures (CVU) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 12.7% year-over-year to $17.36 million, driven by strong performance in military subcontracts and favorable product mix, partially offset by declines in certain commercial and government prime contracts.

• Net income was $1.24 million, reversing a net loss of $1.32 million in Q1 2025, primarily due to higher gross profit and lower costs.

• Gross margin improved significantly to 25.8% from 10.7% year-over-year, reflecting better program performance, operational efficiencies, and cost controls.

• Adjusted EBITDA rose to $2.1 million from a loss of $0.8 million, or $1.4 million excluding the A-10 Program impact.

• Backlog remains robust at $495 million, supporting future growth and momentum.

Financial highlights

• Revenue: $17.36 million, up from $15.40 million in Q1 2025.

• Gross profit: $4.48 million (25.8% margin), up from $1.65 million (10.7% margin) in Q1 2025.

• Net income: $1.24 million, or $0.10 per basic share, compared to a net loss of $1.32 million, or $(0.10) per share, last year.

• Adjusted EBITDA reached $2.1 million, compared to negative $0.8 million last year.

• Working capital rose to $22.73 million, up 11.5% from December 2025.

Outlook and guidance

• Backlog remains robust at $495.0 million, with 96% attributable to government and military contracts.

• Management expects continued momentum in 2026, supported by a strong backlog and recent contract wins.

• Production preparations for new missile work are underway, expanding presence in high-growth markets.

• Management expects existing liquidity to be sufficient for at least the next 12 months, but notes working capital needs may fluctuate with program awards and payment terms.

• Inflation and supply chain risks are being actively monitored, with most contracts at fixed pricing.