CPI Aerostructures — Second Quarter 2026 Earnings Summary

Financial Performance

• Second quarter 2026 revenue was $17.6 million, up from $15.2 million in the second quarter of 2025.
• Six months 2026 revenue was $34.9 million, up from $30.6 million in the six months of 2025.
• Second quarter 2026 gross profit was $3.9 million compared to $0.7 million in the prior year period; gross margin was 22.0% (4.4% in prior year), or 17.1% excluding A-10 Program impact.
• Six months 2026 gross profit was $8.4 million compared to $2.3 million in the prior year period; gross margin was 23.9% (7.6% in prior year), or 19.3% excluding A-10 Program impact.
• Second quarter 2026 net income was $0.7 million compared to a net loss of $(1.3) million in the prior year period; earnings per share (EPS) were $0.05 compared to $(0.10).
• Six months 2026 net income was $1.9 million compared to a net loss of $(2.6) million in the prior year period; EPS were $0.15 compared to $(0.21).
• Second quarter 2026 Adjusted EBITDA was $1.4 million compared to $(1.7) million in the prior year period ($0.6 million excluding A-10 Program impact).
• Six months 2026 Adjusted EBITDA was $3.5 million compared to $(2.5) million in the prior year period ($2.0 million excluding A-10 Program impact).
• As of June 30, 2026, total assets were $78.7 million compared to $75.2 million as of December 31, 2025.
• Total liabilities were $50.6 million as of June 30, 2026, compared to $49.4 million as of December 31, 2025.
• Shareholders' equity was $28.1 million as of June 30, 2026, compared to $25.8 million as of December 31, 2025.
• Accounts receivable increased to $9.8 million as of June 30, 2026, from $5.8 million as of December 31, 2025.
• Contract liabilities (deferred revenue) increased to $3.0 million as of June 30, 2026, from $1.6 million as of December 31, 2025.
• Long-term debt (net of current portion) was $9.6 million as of June 30, 2026, compared to $9.7 million as of December 31, 2025.
• Current portion of long-term debt was $0.3 million as of June 30, 2026, compared to $0.2 million as of December 31, 2025.
• Line of credit balance was $9.2 million as of June 30, 2026, compared to $8.4 million as of December 31, 2025.

Guidance and Future Outlook

• Management stated the company has entered the second half of 2026 with strong visibility and confidence, aligned to deliver continued financial improvement and sustained momentum into 2027.
• CEO Dorith Hakim noted that demand across core defense platforms remains strong.
• The company cited a $533 million backlog supported by recent contract awards for new generation products.

Business Segments and Product Lines

• CPI Aerostructures serves as a prime contractor to the U.S. Department of Defense and a Tier 1 subcontractor to major aerospace and defense contractors.
• Key defense OEM customers include Lockheed Martin, Sikorsky Aircraft, RTX Corporation, L3Harris, Collins Aerospace, and Northrop Grumman.
• Civil aviation OEM customers include Embraer S.A.
• The company recently secured $62 million in contract awards this year for new generation products.
• Specific programs include the F-16 Fighting Falcon, UH-60 BLACK HAWK, MH-60 Seahawk, CH-53E, CH-53K King Stallion, ALQ-249 Next Generation Jammer Mid-Band Pod, Advanced Tactical Pods, MS-110 & TacSAR Reconnaissance Airborne Pods, Hypersonic Missile Wings, B-52 Radar Modernization, Next Generation Jammer Low-Band Pod, E-2D Advanced Hawkeye, Airborne Laser Mine Detection Pod, T-38 Pacer Classic, and T-38 Talon.

Market and Competitive Landscape

• CPI Aerostructures is recognized as a leader in aircraft structural assemblies, military advanced tactical pod structures, engine air inlets, and complex welded products.
• The company operates within the international aerospace market with a focus on engineering, program management, supply chain management, assembly operations, and MRO services.

Risks and Challenges

• Forward-looking statements involve risks and uncertainties, including factors that could cause actual results to differ materially from expectations, as detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
• The press release notes the impact of the A-10 Program on financial metrics, specifically regarding gross margin and Adjusted EBITDA adjustments.

Management Commentary and Tone

• CEO Dorith Hakim described the six-month performance as showcasing a focused growth strategy and disciplined execution, delivering year-over-year gains across every major metric.
• Management highlighted a $6.0 million increase in gross profit and a $4.6 million increase in net income driven by a favorable product mix and operational efficiencies.
• Adjusted EBITDA of $3.5 million was characterized by management as a clear inflection point for the business, even when normalizing for the A-10 program impact.
• The tone was confident, citing strong customer confidence and a focus on disciplined program execution, quality, and delivery performance.

Other Key Points

• Total backlog is $533 million, consisting of $100 million in funded backlog of remaining performance obligations and $433 million in unfunded backlog of future orders.
• The company has 13,227,806 shares of common stock issued and outstanding as of June 30, 2026.
• The press release includes a reconciliation of GAAP income from operations to Adjusted EBITDA, adjusting for depreciation and stock-based compensation.
• The A-10 Program impact included a $2.3 million adjustment in the second quarter of 2025 and a $4.5 million adjustment in the six months of 2025.