CPI Aerostructures, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with total revenue of $69.3 million, down 14.6% from $81.1 million in 2024. The decrease was primarily attributed to unfavorable contract adjustments related to the termination of the Boeing A-10 Main Landing Gear Pods program and reduced revenue from the T-38 Pacer Classic program. In contrast, revenue from commercial contracts increased by 34.1% to $6.3 million, driven by new production on the Embraer Phenom-100 Engine Inlet Assemblies and Collins Compac Enclosures programs.
The company's gross profit also saw a notable decline, falling to $10.6 million from $17.2 million in the previous year, resulting in a gross margin of 15.2%, down from 21.3%. This decline was exacerbated by net unfavorable adjustments to gross profit totaling $10.2 million, primarily due to the aforementioned contract termination. Selling, general, and administrative expenses increased slightly to $10.7 million, while interest expenses decreased significantly to $1.6 million, reflecting lower average debt balances and interest rates following the refinancing of the company's credit facility.
CPI Aero's operational metrics indicate a decrease in employee headcount, with 192 full-time employees as of December 31, 2025, down from 212 the previous year. The company maintains a strong backlog of funded orders totaling $91.8 million, with approximately 96% attributable to government contracts. The company’s strategic focus remains on expanding its aerospace and defense manufacturing programs, particularly in aerostructures and aerosystems, while pursuing new build-to-print opportunities.
Looking ahead, CPI Aero's management expressed cautious optimism, emphasizing the importance of securing long-term agreements and enhancing customer relationships to stabilize revenue streams. The company is also focused on improving cash flow management and working capital requirements, particularly in light of the challenges posed by the current inflationary environment and supply chain disruptions. The outlook remains contingent on the successful execution of existing contracts and the ability to adapt to changing market conditions.
About CPI AEROSTRUCTURES INC
CPI Aerostructures, Inc. manufactures structural assemblies, integrated systems, and kitted components for aerospace and defense markets. Serving OEMs and government agencies, it provides aerostructures, aerosystems, tube bending, welding, and electrical components. The company emphasizes quality, responsiveness, and cost competitiveness, supporting military and civil aircraft programs, with a focus on long-term contracts, supply chain management, and engineering services.
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