CVD Equipment (CVV) investor relations material

Executive summary

• Q3 2025 revenue was $7.4 million, down 9.6% year-over-year, but up 44.9% sequentially from Q2 2025; year-to-date revenue reached $20.8 million, a 7.1% increase over the same period in 2024.

• Orders for Q3 totaled $2.2 million, with a nine-month total of $9.5 million, down from $21 million in the prior year; backlog at September 30, 2025, was $8 million, down from $13.2 million at June 30, 2025.

• Net income for Q3 2025 was $384,000 ($0.06 per diluted share), up from $203,000 ($0.03 per share) in Q3 2024.

• Cash and cash equivalents were $8.4 million at quarter-end, down from $12.6 million at year-end 2024.

• Transformation strategy launched to reduce fixed costs and improve agility, including outsourcing and workforce reduction.

Financial highlights

• Gross profit for Q3 was $2.4 million, with a gross margin of 32.7%, up from $1.8 million and 21.5% in Q3 2024.

• Operating income was $308,000, up from $77,000 in Q3 2024.

• Net cash used in operations for the first nine months was $4.1 million, mainly due to working capital changes and contract timing.

• Operating margin for Q3 2025 was 4.2%, up from 0.9% in Q3 2024.

• Total stockholders' equity was $25.8 million as of September 30, 2025.

Outlook and guidance

• Transformation plan expected to reduce annual operating costs by $2 million starting in 2026, with workforce reduction and outsourcing fabrication.

• Company expects to incur $100,000 in severance and related charges in Q4 2025.

• $5.3 million in unrecognized contract revenue is expected to be recognized within the next twelve months.

• Current cash and projected operating cash flows expected to cover working capital and capex needs for at least 12 months.

• Return to consistent profitability depends on new orders, cost management, and successful transformation execution.