CPI Aerostructures Reports 27.1% Revenue Decline in Q2 2025

CPI Aerostructures, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $15.2 million, down 27.1% from $20.8 million in the same period last year. For the first half of 2025, revenue decreased by 23.3% to $30.6 million compared to $39.9 million in the prior year. The company attributed this decline primarily to unfavorable adjustments related to the termination of its A-10 Main Landing Gear Pods program and delays in material receipts for other projects. Gross profit for the second quarter fell sharply to $663,382, representing a gross margin of 4.4%, down from 24.6% a year earlier.

In terms of operational changes, CPI Aerostructures has faced challenges with its contract assets and liabilities. As of June 30, 2025, contract assets stood at $31 million, a decrease from $32.8 million at the end of 2024, while contract liabilities decreased to $1.9 million from $2.4 million. The company’s total assets increased to $72.3 million from $68 million, driven by a rise in accounts receivable and operating lease right-of-use assets. However, total liabilities also rose to $48.5 million, up from $42 million, reflecting increased accounts payable and accrued expenses.

Strategically, CPI Aerostructures has made significant organizational changes, including the appointment of Pamela Levesque as Interim Chief Financial Officer following the resignation of Philip Passarello. The company also approved a new Long-Term Incentive Plan, allowing for the issuance of up to 800,000 shares to attract and retain talent. Additionally, the company has been actively managing its credit facilities, obtaining waivers for financial covenant non-compliance and executing amendments to its credit agreement to adjust for the impact of the A-10 program termination.

Looking ahead, CPI Aerostructures has a total backlog of $506.5 million as of June 30, 2025, slightly down from $510.3 million at the end of 2024. The funded backlog, primarily from government contracts, increased to $86.8 million, indicating ongoing demand despite recent operational challenges. The company expects to continue navigating its financial landscape while focusing on improving cash flow and compliance with its credit agreements. However, the outlook remains cautious as the company assesses the long-term implications of recent program terminations and market conditions.