CVD Equipment Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the three months ended September 30, 2026, was $1.6 million, a 72.1% decrease from $5.7 million in the prior-year quarter.
• Net income for the nine months ended September 30, 2026, was $9.4 million, compared to a net loss of $0.3 million in the same period last year, driven by a $14.1 million net gain on the sale of SDC.
• Net loss from continuing operations for the quarter was $2.1 million ($0.30 per share), compared to net income of $0.1 million ($0.02 per share) in the prior-year quarter.
• Gross margin for the quarter was 9.2%, down from 32.0% in the prior-year quarter, due to lower system revenue and fixed manufacturing costs on a reduced base.
• Cash and cash equivalents increased to $23.5 million at September 30, 2026, from $8.7 million at December 31, 2025.
• Stockholders' equity increased to $34.6 million at September 30, 2026, from $24.7 million at December 31, 2025.
• The company reported no outstanding debt at the end of the quarter.
• Restructuring charges for the quarter were $0.8 million, consisting primarily of severance, asset impairments, and legal costs.
• Income from discontinued operations was $0.6 million for the quarter and $14.6 million for the nine-month period, including the $14.1 million SDC divestiture gain.

Guidance and Future Outlook

• The company will no longer pursue new system orders for its CVD Equipment business.
• Management is evaluating strategic alternatives and pursuing the disciplined monetization of assets.
• The company expects to hold investor calls in connection with significant corporate developments as appropriate.

Business Segments and Product Lines

• The workforce has been reduced to align with completing the remaining equipment backlog, satisfying warranty obligations, and supporting the ongoing spare parts, quartz, and services business.
• Bookings for the quarter were $0.7 million, down from $1.0 million in the third quarter of 2025, due to lower system orders.
• Backlog stood at $3.0 million at September 30, 2026, down from $3.9 million at June 30, 2026.
• The company continues to supply quartz components, replacement parts, process support, and related services for its installed base.

Market and Competitive Landscape

• CBRE, Inc. has been engaged to market the company's owned real estate properties in Central Islip and Saugerties, New York, for sale.

Risks and Challenges

• Forward-looking statements highlight risks including unexpected costs or delays in completing backlog, customer claims, cancellations, or disputes.
• There is no assurance that strategic alternatives will result in a transaction or that cost reductions will produce anticipated savings.
• Risks include the possibility that asset dispositions may not yield expected timing or proceeds.

Management Commentary and Tone

• Chairman Lawrence J. Waldman stated the balance sheet is strengthened by the SDC sale and the company has no debt, allowing for the evaluation of strategic alternatives and asset monetization.
• Acting CEO Warren Cheesman noted actions taken to align the workforce and cost structure with current operating requirements, emphasizing a focus on backlog completion and warranty obligations.

Other Key Points

• The company is not holding an investor conference call for this quarter.
• The SDC business was divested in the second quarter of 2026, resulting in a $14.1 million net gain.
• The company's address is 355 South Technology Drive, Central Islip, New York 11722.
• Richard Catalano serves as Executive Vice President & CFO.