CPS Technologies — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported revenue of $8.9 million for the quarter ended September 26, 2026, compared to $8.8 million in the prior-year period.
• Gross profit was $1.9 million (20.9% of revenue), an increase from $1.5 million (17.1% of revenue) in the prior-year quarter.
• Operating profit was $0.4 million, up from $0.3 million in the prior-year period.
• Reported net income was $0.6 million ($0.03 per diluted share), compared to $0.2 million ($0.01 per diluted share) in the prior-year quarter.
• SG&A expenses increased approximately $0.2 million year-over-year to $1.5 million.
• For the nine months ended September 26, 2026, revenue was $24.2 million versus $24.4 million in the prior-year period.
• Nine-month net income was $0.1 million ($0.00 per diluted share) compared to $0.4 million ($0.03 per diluted share) in the prior-year period.
• Cash and cash equivalents were $2.8 million as of September 26, 2026, down from $4.5 million as of December 27, 2025.
• Total assets were $48.2 million as of September 26, 2026, compared to $29.5 million as of December 27, 2025.
• Total liabilities were $14.1 million as of September 26, 2026, compared to $4.9 million as of December 27, 2025.
• Deferred revenue was $0.5 million (current) and $0.03 million (long-term) as of September 26, 2026, compared to $0.2 million (current) and $0.03 million (long-term) as of December 27, 2025.
• Inventories, net, increased to $10.3 million as of September 26, 2026, from $5.6 million as of December 27, 2025.

Guidance and Future Outlook

• Management expects continued growth and higher financial results heading into fiscal 2027.
• The company plans to potentially initiate a partial move to the new Attleboro facility earlier in 2027, though the full buildout is expected to continue into the second half of 2027.
• Volume orders from a major semiconductor customer are expected to continue deliveries into fiscal 2027.
• Detailed planning for the new facility expansion is underway with construction management partner Dacon Corporation.

Business Segments and Product Lines

• Received the first order from a defense contractor for tungsten alloy components manufactured using the proprietary QuickSet Injection Molding™ process.
• Secured significant volume orders from its largest customer, a semiconductor manufacturer, for components integrated into high-speed rail, energy, and grid infrastructure systems.
• Signed a long-term lease for an 80,000-square-foot facility in Attleboro, Massachusetts, approximately twice the size of the current location, to expand production and increase efficiency.
• Product lines include proprietary metal matrix composites (MMCs), hermetic packaging for high-reliability power and communications modules, and HybridTech Armor®.

Market and Competitive Landscape

• The company serves global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense.
• Strong ongoing demand is reported for the company's growing array of mission-critical products.
• The company specializes in applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure.

Risks and Challenges

• Forward-looking statements involve risks and uncertainties, including factors that could cause actual results to differ materially from expectations.
• The full buildout of the new facility may be delayed due to complex production requirements.
• Specific risk factors are detailed in the company's SEC filings, including the Annual Report on Form 10-K.

Management Commentary and Tone

• President and CEO Brian Mackey described the quarter as showing "solid progress" and noted that gross margins expanded to a level not seen since HybridTech Armor® contracts over three years ago.
• Management highlighted the resilience of product lines and sound operating execution.
• The CEO expressed confidence that the company is in "excellent shape for continued growth."

Other Key Points

• The company announced a conference call for November 4, 2026, at 9:00 a.m. Eastern to discuss results.
• Weighted average number of diluted common shares outstanding increased to 19.8 million in the quarter ended September 26, 2026, from 14.7 million in the prior-year quarter.
• The company repurchased 217,075 common shares as of September 26, 2026, compared to 144,133 shares as of December 27, 2025.
• Additional paid-in capital increased to $60.2 million as of September 26, 2026, from $50.3 million as of December 27, 2025.
• Total stockholders' equity increased to $34.1 million as of September 26, 2026, from $24.6 million as of December 27, 2025.