CPI Aerostructures Inc (CVU, Financial) released its 8-K filing on March 31, 2025, detailing its financial results for the fourth quarter and full year of 2024. The company, a key player in the manufacturing of structural aircraft parts for both commercial and defense markets in the United States, reported a mixed performance with notable achievements despite a decline in revenue.
Quarterly and Annual Financial Overview
In the fourth quarter of 2024, CPI Aerostructures Inc reported a revenue of $21.8 million, a decrease from $23.5 million in the same period of 2023. However, the company improved its gross profit to $4.3 million from $4.1 million, with a gross margin increase to 20.0% from 17.4%. Net income for the quarter was $1.0 million, a significant drop from $14.8 million in the previous year, although excluding deferred tax asset valuation impact, net income was $1.4 million compared to $0.6 million.
For the full year 2024, revenue stood at $81.1 million, down from $86.5 million in 2023. Despite this, gross profit slightly increased to $17.2 million from $17.1 million, with a gross margin of 21.3% compared to 19.7%. Net income was $3.3 million, a sharp decline from $17.2 million in 2023, but excluding deferred tax asset valuation impact, it was $3.7 million compared to $3.0 million.
Operational Efficiency and Debt Reduction
CPI Aerostructures Inc achieved operational efficiencies, resulting in a 22.2% increase in net income excluding tax asset valuation impact, and a 19.5% rise in earnings per share (EPS) from the prior year. The company generated $3.6 million in cash from operations and reduced its debt by $2.7 million, reaching the lowest debt balance since 2011. The Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, marking the eighth consecutive quarter-end below 3.0.
“Although our 2024 revenue was lower than our 2023 revenue, we increased our gross profit margin by 150 basis points. Our net income, excluding the tax asset valuation impact, was up 22.2% with EPS up 19.5% from prior year due to operational efficiencies, lower SG&A and interest costs,” said Dorith Hakim, President and CEO.
Balance Sheet and Cash Flow Insights
The company's balance sheet showed total assets of $67.98 million as of December 31, 2024, compared to $74.36 million the previous year. Current assets decreased to $43.59 million from $46.91 million, while total liabilities were reduced to $42.05 million from $52.28 million. Shareholders' equity increased to $25.93 million from $22.08 million.
Cash flow from operations was $3.6 million, slightly down from $3.9 million in 2023. The company maintained a strong backlog of $510 million, including new program awards from L3Harris, Raytheon, and Embraer, indicating a positive outlook for future growth.
Industry Position and Future Prospects
CPI Aerostructures Inc's performance highlights its resilience and strategic focus amidst revenue challenges. The company's ability to enhance operational efficiency, reduce debt, and maintain a robust backlog positions it well within the Aerospace & Defense industry. The focus on long-term customer relationships and new program awards underscores its potential for future growth and stability.
“We ended the year with a strong backlog of $510 million, which includes multiple new program awards from L3Harris, Raytheon and Embraer. We remain confident in CPI Aero’s long-term outlook and look forward to capitalizing on the multiple opportunities ahead as we continue to build on our long-standing relationships with our customers,” added Ms. Hakim.
Explore the complete 8-K earnings release (here) from CPI Aerostructures Inc for further details.
