Announces Strategic Initiatives Designed to Drive Improved Operational Efficiencies
CENTRAL ISLIP, N.Y.–(BUSINESS WIRE)–CVD Equipment Corporation (NASDAQ: CVV), (the “Company”) today announced its financial results for the third quarter ended September 30, 2025. In addition, the Company announced a set of strategic initiatives designed to drive improved operational efficiencies and achieve profitability.
Third Quarter 2025 Performance
- Orders: $2.2 million for the quarter, primarily driven by demand in our SDC segment for gas delivery equipment.
- Revenue: $7.4 million, a decrease of 9.6% from the prior-year quarter. Year to date revenue of $20.8 million was 7.1% higher than the prior-year period. The decrease during the quarter was principally due to lower MesoScribe revenues following the cessation of its operations in 2024.
- Backlog: $8.0 million as of September 30, 2025, compared to $13.2 million as of June 30, 2025.
- Gross margin: 32.7% as compared to 21.5% in the prior-year quarter, reflecting an improved contract mix in our CVD Equipment segment.
- Net income: $384,000, or $0.06 per basic and diluted share, compared to $203,000 or $0.03 per basic and diluted share in the third quarter of 2024.
- Cash and cash equivalents: $8.4 million as of September 30, 2025, as compared to $12.6 million as of December 31, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “Our bookings during the third quarter remained impacted by several factors, including the uncertainties related to proposed tariffs, reduced US government funding for universities, and the effects of the government shutdown as well as a lag in the adoption of our products within the emerging growth markets we serve. We are actively monitoring the evolving customer demand, geopolitical landscape and potential tariff impacts and planning accordingly.”
Strategic Initiatives Update
In response to the continued fluctuations in our order rates and the recent decline in the bookings of our CVD Equipment division, on November 6, 2025, the Company’s Board of Directors approved a comprehensive ‘transformation’ strategy designed to significantly reduce our fixed operating costs and position the Company as a more agile organization. A key component of this strategy entails transitioning CVD’s Equipment business from vertically integrated fabrication to outsourced fabrication of certain components. Other elements of the transformation strategy include:
- The reduction in the CVD Equipment division’s workforce, planned to be completed by December 31, 2025, is expected to reduce annual operating costs by approximately $2.0 million in fiscal 2026. Note that our SDC division will not be impacted by this action;
- Implementation of a revised sales strategy for our CVD Equipment business utilizing distributors and outside sales representatives to supplement internal sales efforts which we believe can better enable us to identify a broad range of opportunities we see in our markets and geographies; and
- Exploration of strategic alternatives for businesses and product lines, including the potential sale or divestiture of assets or business lines.
Lakios added: “These strategic initiatives will enable our company to operate more efficiently as we focus on our core competencies of engineering design, assembly, test, installation and customer service. We remain encouraged about our ability to provide solutions across our key target markets — aerospace and defense, industrial applications including silicon carbide (SiC) on graphite, SiC high-power electronics, and electric vehicle (EV) battery materials. Our long-term strategy is intact – growing our presence across key markets where our technology adds value – and these strategic initiatives will better support our goal of achieving profitability and positive cash flow.”
Further details about the workforce reduction plan
We expect to complete the workforce reduction plan during the fourth quarter of 2025 and anticipate incurring approximately $0.1 million in severance and other charges. In connection with the transformation plan, we may incur non-cash impairment charges in future periods with respect to certain of our long-lived assets to the extent that any such assets are disposed of for amounts less than their book values.
Conference Call
A conference call reviewing these results has been scheduled for today, November 10, 2025 starting at 5:00 PM ET. To join the call, dial 1-877-407-2991 or 1-201-389-0925. A live and archived webcast of the call will also be available on the company’s website at www.cvdequipment.com/events. The archived webcast will be available approximately two hours following the end of the conference call. A telephone replay will be available for 7 days. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. The replay passcode is 13756783.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include aerospace & defense (ceramic matrix composites), silicon carbide (SiC) high-power electronics, electric vehicle (EV) battery materials (carbon nanotubes, graphene and silicon nanowires), and industrial applications. Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as “forward-looking statements, “as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, market and business conditions, the success of CVD Equipment Corporation’s growth and sales strategies, uncertainty as to our ability to execute on our transformation strategy, the possibility of customer changes in delivery schedules, cancellation of, or failure to receive orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements, competition in our existing and potential future product lines of business, including our aerospace equipment and PVT systems; our ability to obtain financing on acceptable terms if and when needed; uncertainty as to our ability to develop new products for growth markets; uncertainty as to our future profitability; uncertainty as to any future expansion of the Company; uncertainty as to our ability to adequately obtain raw materials and components from foreign markets in light of geopolitical developments; and other risks and uncertainties that are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor of the Private Securities Litigation Reform Act of 1995. The Company assumes no obligations to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. Past performance is not a guarantee of future results.
|
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES |
|||||||||||||||
|
Condensed Consolidated Statements of Operations |
|||||||||||||||
|
(In thousands, except per share data – unaudited) |
|||||||||||||||
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
||||
|
Revenue |
|
$ |
7,408 |
|
$ |
8,194 |
|
|
$ |
20,836 |
|
|
$ |
19,462 |
|
|
Cost of revenue |
|
|
4,987 |
|
|
|
6,430 |
|
|
|
14,646 |
|
|
|
15,371 |
|
Gross profit |
|
|
2,421 |
|
|
|
1,764 |
|
|
|
6,190 |
|
|
|
4,091 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Research and development |
|
|
594 |
|
|
644 |
|
|
|
2,061 |
|
|
|
2,055 |
|
|
Selling |
|
|
328 |
|
|
423 |
|
|
|
1,097 |
|
|
|
1,268 |
|
|
General and administrative |
|
|
1,191 |
|
|
1,245 |
|
|
3,595 |
|
|
|
3,844 |
||
|
Gain on sale of equipment |
|
|
|
|
|
(625) |
|
|
|
|
|
|
(625) |
||
|
Total operating expenses |
|
|
2,113 |
|
|
1,687 |
|
|
6,753 |
|
|
|
6,542 |
||
|
Operating income (loss) |
|
|
308 |
|
|
77 |
|
|
(563) |
|
|
|
(2,451) |
||
|
Net income (loss) |
|
$ |
384 |
|
|
$ |
203 |
|
|
$ |
(317) |
|
|
$ |
(2,030) |
|
Basic and diluted income (loss) per share |
|
$ |
0.06 |
|
$ |
0.03 |
|
|
$ |
(0.05) |
|
|
$ |
(0.30) |
|
|
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES |
||||||||
|
Condensed Consolidated Balance Sheets |
||||||||
|
(In thousands – unaudited) |
||||||||
|
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|||
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,358 |
|
|
$ |
12,598 |
|
|
Accounts receivable, net of allowance for credit losses |
|
|
2,674 |
|
|
|
2,149 |
|
|
Contract assets |
|
|
4,952 |
|
|
|
2,226 |
|
|
Inventories |
|
|
2,012 |
|
|
|
2,115 |
|
|
Other current assets |
|
|
496 |
|
|
|
898 |
|
|
Total current assets |
|
|
18,492 |
|
|
|
19,986 |
|
|
Property, plant and equipment, net |
|
|
11,231 |
|
|
|
11,699 |
|
|
Other assets |
|
|
52 |
|
|
|
1 |
|
|
Total assets |
|
$ |
29,775 |
|
|
$ |
31,686 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
3,887 |
|
|
$ |
6,137 |
|
|
Long-term debt, net of current portion |
|
|
113 |
|
|
|
181 |
|
|
Total stockholders’ equity |
|
|
25,775 |
|
|
|
25,368 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
29,775 |
|
|
$ |
31,686 |
|
This earnings release should be read in conjunction with the Company’s filings with the SEC, including the Form 10-Q for Q3 2025 and the Annual Report on Form 10-K for 2024, available at www.sec.gov and the Company’s website.
Contacts
CVD Equipment Corporation Contact:
Richard Catalano, Executive Vice President & CFO
Phone: (631) 981-7081
Email: investorrelations@cvdequipment.com
