CVD Equipment Corporation Reports 69% Revenue Increase to $8.3 Million in Latest Quarter

CVD Equipment Corporation reported significant financial improvements in its latest quarterly results, with revenue reaching $8.3 million for the three months ended March 31, 2025, a 69% increase from $4.9 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $2.7 million, which translates to a gross profit margin of 32.4%, compared to 16.2% in the prior year. This increase in profitability is attributed to higher revenues from aerospace and industrial contracts, as well as improved overhead absorption and margins on contracts in progress.

The company’s operating income turned positive at $269,000, a notable recovery from an operating loss of $1.6 million in the first quarter of 2024. Total operating expenses remained relatively stable, increasing slightly to $2.4 million from $2.4 million year-over-year. CVD Equipment's net income for the quarter was $360,000, a significant turnaround from a net loss of $1.5 million in the previous year. This improvement reflects the company's strategic focus on growth markets, particularly in aerospace and industrial applications.

CVD Equipment's operational metrics indicate a mixed performance in terms of customer engagement and order backlog. The total backlog decreased from $19.4 million at the end of 2024 to $13.8 million by March 31, 2025, primarily due to lower orders in the CVD Equipment segment. However, the company did secure a $1.2 million semiconductor system order shortly after the quarter ended, which may help stabilize future revenues. The company’s cash and cash equivalents stood at $10.2 million, down from $12.6 million at the end of 2024, reflecting cash used in operating activities.

The company operates through three segments: CVD Equipment, SDC, and MesoScribe, with the CVD Equipment segment generating the majority of revenue at $6.3 million, a 114.3% increase from the previous year. The SDC segment contributed $2.1 million, while MesoScribe's revenue was minimal at $22,000. CVD Equipment's growth was driven by increased demand for its systems, particularly in the aerospace sector, where customers are producing advanced materials for next-generation jet engines.

Looking ahead, CVD Equipment Corporation remains cautious about the impact of external factors such as tariffs and geopolitical tensions, which could affect its cost competitiveness and supply chain. The company plans to continue focusing on its core strategy of targeting growth markets, particularly in aerospace and electrification applications. Management expressed optimism about future revenue generation, supported by a backlog of contracts and ongoing customer demand, while also acknowledging the inherent uncertainties in the current economic environment.