CVD Equipment (CVV) Q1 2026 earnings summary

Executive summary

• Completed sale of SDC division on April 1, 2026, generating $14.8 million in net cash proceeds, boosting cash to $23 million, and eliminating long-term debt.

• Initiated a transformation strategy including workforce reduction and outsourcing fabrication, expected to reduce annual operating costs by $1.8 million.

• Company now operates as a single segment focused on CVD Equipment and related markets.

• Retained ownership of the Saugerties, NY facility, now leased to the SDC buyer for two years.

• Continued focus on aerospace, defense, industrial, and emerging nuclear energy markets.

Financial highlights

• Q1 2026 revenue was $1.8 million, down 70.9% year-over-year due to lower system bookings and reduced demand.

• Gross margin declined to 8% from 27.4% in the prior year, with gross profit at $147,000.

• Net loss from continuing operations was $1.7 million ($0.25 per share), compared to $229,000 ($0.03 per share) last year.

• Orders in Q1 totaled $1.8 million, up from $0.8 million in Q1 2025; backlog at quarter-end was $4.7 million, unchanged from year-end 2025.

• Cash and equivalents were $8.2 million at quarter-end, rising to $23 million post-SDC sale; no long-term debt outstanding.

Outlook and guidance

• Return to profitability depends on improved order flow, disciplined cost management, and execution of the transformation plan.

• Management expects existing cash, receivables, and backlog to cover working capital and capital equipment needs for the next 12 months.

• Ongoing operational efficiency initiatives and cost reductions are expected to continue.

• Focus remains on aerospace, defense, industrial, and emerging nuclear energy markets.

• Evaluating opportunities in nuclear energy and expanding product offerings in power electronics.