CPI Aerostructures, Inc.

What they do

CPI Aero produces structural aircraft assemblies, military advanced tactical pod structures, engine air inlets, and complex welded products through contract production. It operates as a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers, and as a prime contractor primarily to the U.S. Air Force. Alongside assembly, it provides engineering, program management, supply chain management and kitting, and MRO services.

Revenue drivers

• Defense programs (government and military backlog) — About 95% of total backlog at June 30, 2026 was attributable to government and military contractor contracts; government backlog totaled $508.8 million, of which $97.7 million was funded.
• Raytheon / RTX pod and rack programs — Named among the largest total backlog programs: NGJ-Mid Band Pods, Advanced Tactical Pods, and B-52 Radar Racks; funded backlog is primarily purchase orders under these long-term contracts.
• L3Harris NGJ-Low Band Pods — Listed both in total backlog and as a primary source of funded backlog at June 30, 2026.
• Commercial aerospace — Commercial backlog was $24.4 million at June 30, 2026 ($2.3 million funded, $22.0 million unfunded), far smaller than the government portion; Embraer Phenom 300 and Phenom 100 are named civil aviation programs.

Recent performance

Second quarter 2026 revenue was $17.6 million versus $15.2 million in the second quarter of 2025, with gross profit of $3.9 million versus $0.7 million and gross margin of 22.0% versus 4.4%. Second quarter net income was $0.7 million, or $0.05 per share, compared with a net loss of $1.3 million, or $(0.10) per share. For the six months ended June 30, 2026, revenue was $34.9 million versus $30.6 million, gross profit was $8.4 million versus $2.3 million, and net income was $1.9 million, or $0.15 per share, versus a net loss of $2.6 million, or $(0.21) per share. Adjusted EBITDA was $3.5 million for the six months versus $(2.5) million a year earlier. Full-year 2025 revenue was $69.3 million with a net loss of $0.8 million and negative operating cash flow of $5.2 million.

Strategy

Management described the first-half results as the product of a focused growth strategy and disciplined execution, citing a more favorable product mix, operational execution, and cost management across key Aerospace & Defense programs. The company says it is focused on disciplined program execution, quality, and delivery performance. It cited $62 million in contract awards this year for new-generation products and $533 million of total backlog as support for visibility into the second half of 2026 and momentum into 2027.

Risks

• Backlog termination and funding risk — Substantially all backlog is subject to termination at will and rescheduling without significant penalty, and the company states funded backlog does not include the full value of its contracts.
• Government funding dependence — Approximately 95% of total backlog at June 30, 2026 was government and military contractor related, and funds are often appropriated on a yearly or quarterly basis even for multi-year performance contracts.
• Backlog is not indicative of revenue — The company states realization of backlog depends on program funding, customer requirements, and continuation of underlying programs, and that backlog may include options or anticipated orders not yet funded or awarded.
• Financial and program concentration risk — Annual revenue declined from $103.4 million in 2021 to $69.3 million in 2025 with a 2025 net loss and negative operating cash flow of $5.2 million, and large total backlog programs are concentrated among a small number of customers including Raytheon, L3Harris, Lockheed Martin, and Sikorsky.

Outlook

CEO Dorith Hakim said the company entered the second half of 2026 with strong visibility and confidence, aligned to deliver continued financial improvement and sustained momentum into 2027. She cited demand across core defense platforms, the $533 million backlog, and $62 million in 2026 contract awards for new-generation products. No specific revenue or earnings guidance figures were provided in the release.