CVD Equipment Corporation Reports 70.9% Revenue Decline in Q1 2026

CVD Equipment Corporation reported a significant decline in financial performance for the first quarter of 2026, with revenues dropping to $1.8 million from $6.3 million in the same period last year, marking a decrease of 70.9%. The company's gross profit also fell sharply to $147,000, down 91.5% from $1.7 million in the prior year, primarily due to reduced system bookings and lower absorption of fixed manufacturing costs. The operating loss from continuing operations widened to $1.8 million compared to a loss of $320,000 in the first quarter of 2025. The company attributed these declines to lower system revenue, although a $0.3 million benefit from a contract modification partially offset the impact.

In terms of operational changes, CVD Equipment completed the sale of its SDC business division on April 1, 2026, for approximately $16.9 million, with net cash proceeds of $14.8 million after transaction costs. This strategic divestiture is part of a broader transformation strategy aimed at reducing fixed operating costs and enhancing financial flexibility. Following the sale, the company retained ownership of its Saugerties, New York facility, which will be leased to the buyer for an initial term of two years. The company now focuses solely on its CVD Equipment division, which manufactures chemical vapor deposition and related equipment.

The company’s cash and cash equivalents stood at $8.2 million as of March 31, 2026, down from $8.7 million at the end of 2025. CVD Equipment's total liabilities remained stable at $2.9 million, while stockholders' equity decreased to $23.3 million from $24.7 million. The company reported a net loss of $1.7 million for the quarter, compared to a net income of $360,000 in the same quarter of the previous year. The loss per share from continuing operations was $(0.25), compared to $(0.03) in the prior year.

CVD Equipment's operational metrics showed a total backlog of $4.7 million as of March 31, 2026, consistent with the previous quarter. The company reported total bookings of approximately $1.8 million for the first quarter, an increase from $800,000 in the same period last year, driven by higher non-system orders for spare parts. The company continues to face challenges in the global economic environment, including inflationary pressures and geopolitical instability, which may impact customer spending and order rates.

Looking ahead, CVD Equipment anticipates that its existing cash balance, along with collections from accounts receivable and revenue from its backlog, will be sufficient to meet its working capital needs over the next 12 months. The company remains focused on its core markets, including aerospace and microelectronics, and is exploring opportunities for growth in emerging sectors such as nuclear energy. However, management acknowledges the uncertainty in market conditions and the potential impact on future operations and financial results.