CVD Equipment Corporation Reports Decline in Q2 Revenue and Profitability, Despite First Half Growth

CVD Equipment Corporation reported its financial results for the second quarter and first half of 2025, revealing a decline in revenue and profitability compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated revenue of $5.1 million, a decrease of 19.4% from $6.3 million in the prior year. The gross profit for the quarter was $1.1 million, reflecting a gross margin of 21.0%, down from 24.3% in the same quarter of 2024. The net loss for the quarter was $1.1 million, compared to a loss of $761,000 in the previous year.

In the first half of 2025, CVD Equipment's revenue increased to $13.4 million, up 19.2% from $11.3 million in the first half of 2024. This growth was primarily driven by a 37.8% increase in revenue from the CVD Equipment segment, which contributed $9.7 million. However, the SDC segment saw a decline of 8.7%, generating $3.9 million. The gross profit for the six-month period was $3.8 million, with a gross margin of 28.1%, significantly higher than the 20.7% margin reported in the same period last year.

Operationally, CVD Equipment's total bookings for the second quarter of 2025 were approximately $4.5 million, an increase from $3.2 million in the same quarter of 2024. However, the backlog decreased from $13.8 million at the end of March 2025 to $13.2 million by June 30, 2025, indicating a potential slowdown in future revenue generation. The company maintained a consistent employee headcount of 6,881,838 shares of common stock outstanding as of August 12, 2025.

The filing also highlighted strategic developments, including the ongoing focus on growth markets such as aerospace and microelectronics, particularly in relation to the electrification of various applications. CVD Equipment has received significant orders for its PVT200 system, which is used in the production of silicon carbide crystals, and for its CVD4000™ SiC coating reactor systems. Despite these developments, the company faces challenges from geopolitical tensions and tariffs that may impact its cost competitiveness and overall market conditions.

Looking ahead, CVD Equipment expressed cautious optimism regarding its ability to meet working capital and capital expenditure needs, supported by its cash position of $7.0 million as of June 30, 2025. The company plans to continue evaluating market conditions and opportunities for product expansion while navigating the uncertainties posed by external economic factors.