CVD Equipment (CVV) Q4 2025 earnings summary

Executive summary

• Initiated a transformation strategy in Q4 2025 to reduce fixed costs, increase agility, and maximize shareholder value, including outsourcing fabrication and workforce reduction.

• Entered a definitive agreement to sell the SDC business/division to Atlas Copco Group for $16.9 million in cash, expected to close in Q2 2026.

• Focus remains on core CVD Equipment business, with proceeds from the SDC sale to strengthen the balance sheet and provide financial flexibility.

• Fourth quarter 2025 orders totaled $3.5 million, mainly from SDC gas delivery equipment and two PVT 150 units for a university semiconductor research center.

• Fiscal year 2025 revenue was $25.8 million, a 4.1% decrease year-over-year, reflecting lower SDC and MesoScribe revenue.

Financial highlights

• Q4 2025 revenue was $5 million, down 33% year-over-year and sequentially; full year 2025 revenue was $25.8 million, down 4.1% from 2024.

• Q4 2025 operating loss was $1.3 million, compared to operating income of $34,000 in Q4 2024; net loss for the quarter was $1.3 million ($0.18 per share) vs. net income of $132,000 ($0.02 per share) prior year.

• Full year 2025 net loss was $1.6 million ($0.23 per share), improved from a net loss of $1.9 million ($0.28 per share) in 2024.

• Gross profit for 2025 was $7.3 million (28.3% margin), up from $6.1 million (22.5% margin) in 2024, mainly due to absence of a prior year inventory write-down.

• Cash and equivalents at year-end 2025 were $8.7 million, down from $12.6 million at year-end 2024.

Outlook and guidance

• Return to consistent profitability depends on improved order flow, disciplined cost management, and execution of the transformation plan.

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

• Net proceeds from SDC sale (~$14–15 million after escrow/expenses) to be invested in U.S. Treasury securities initially.

• Management remains focused on aerospace, defense, and industrial SiC applications, monitoring demand and geopolitical risks.

• Workforce reduction in Q4 2025 expected to reduce annual operating costs by $1.8 million in 2026.