CVD Equipment Corporation reported a significant decline in financial performance for the second quarter and first half of 2026, as detailed in its latest 10-Q filing. For the three months ended June 30, 2026, the company generated revenue of $1.95 million, a decrease of 42.6% compared to $3.40 million in the same period of 2025. The six-month revenue also fell sharply to $3.80 million from $9.74 million, marking a 61.0% decline. The gross profit for the second quarter was $0.33 million, down from $0.48 million a year earlier, reflecting a gross margin of 16.8%, compared to 14.1% in the prior year. The operating loss from continuing operations increased to $1.56 million for the quarter, compared to a loss of $1.37 million in the previous year.
The company attributed the revenue decline primarily to lower system bookings, which resulted in reduced system revenue. Total bookings for the second quarter of 2026 were approximately $1.2 million, down from $1.5 million in the same quarter of 2025. However, total bookings for the first half of 2026 increased to $2.9 million from $2.3 million in the first half of 2025. The backlog of orders decreased from $4.6 million at the end of March 2026 to $3.9 million by June 30, 2026, indicating a challenging market environment.
In a strategic move, CVD Equipment completed the sale of its SDC business division on April 1, 2026, for approximately $17.4 million, resulting in net cash proceeds of $15.7 million after transaction costs. This divestiture is part of a broader strategy to enhance financial flexibility and focus on its core CVD Equipment division, which manufactures chemical vapor deposition and related equipment. The company retained ownership of its Saugerties, New York facility, which is now leased to the buyer of the SDC division.
As of June 30, 2026, CVD Equipment reported cash and cash equivalents of $23.5 million, a significant increase from $8.7 million at the end of 2025. The company has no long-term debt following the repayment of an equipment loan in early 2026. Despite the current financial challenges, management believes that the existing cash balance, along with anticipated revenue from its backlog, will be sufficient to meet working capital needs over the next twelve months.
Looking ahead, CVD Equipment continues to face uncertainties due to fluctuating order rates, geopolitical tensions, and economic conditions that may impact customer spending and project timing. The company is actively monitoring these factors and evaluating strategic opportunities to navigate the evolving market landscape.
About CVD EQUIPMENT CORP
CVD Equipment Corporation designs and manufactures advanced process equipment for the development and production of materials and coatings used in aerospace, microelectronics, energy storage, and industrial applications. Its core segments include chemical vapor deposition, physical vapor transport, and ultra-high purity gas systems. Serving global markets, the company leverages proprietary technology, process development expertise, and a broad customer base, focusing on innovation, quality, and tailored solutions.
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