CVD Equipment (CVV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $8.3 million, up 69% year-over-year and 12.2% sequentially, driven by aerospace, industrial contracts, and SDC segment growth.

• Net income was $360,000, marking the third consecutive quarter of profitability, compared to a net loss of $1.5 million in Q1 2024.

• Backlog declined from $19.4 million at year-end 2024 to $13.8 million as of March 31, 2025, due to lower orders.

• Cost reduction and workforce management initiatives were implemented to align with current demand.

• Cash and cash equivalents stood at $10.2 million at quarter-end.

Financial highlights

• Gross profit for Q1 2025 was $2.7 million, with a gross margin of 32.4%, up from $0.8 million and 16.2% in Q1 2024.

• Operating income was $269,000, compared to an operating loss of $1.6 million in Q1 2024.

• Earnings per share were $0.05 (basic and diluted), versus a loss of $0.22 per share in Q1 2024.

• Working capital stood at $14.5 million, up from $13.8 million at the prior year end.

• Cash and cash equivalents declined by $2.4 million during the quarter.

Outlook and guidance

• Management expects continued fluctuations in order and revenue levels due to market dynamics.

• Cash and projected cash flow from operations are expected to cover working capital and capital expenditures for the next 12 months.

• Unrecognized contract revenue of $11.2 million is expected to be recognized over the next 18 months.

• Strategic focus remains on aerospace, defense, high-power electronics, and EV battery energy storage markets.

• Early April 2025 saw a $1.2 million semiconductor system order, supporting future revenue.