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CPI AEROSTRUCTURES INC (CVU)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered solid profitability and cash generation despite lower revenue: revenue $21.8M, gross margin 20.0%, net income $1.0M, adjusted EBITDA $2.3M, and cash from operations $4.4M .
  • Margin execution improved versus prior year on operational efficiencies and lower SG&A and interest; CEO highlighted a 150 bps FY gross margin expansion and EPS up 19.5% ex-tax valuation impacts .
  • Backlog remained robust at $510M with new awards from L3Harris, Raytheon and Embraer, reinforcing medium-term visibility and program pipeline .
  • No formal guidance was provided; Street consensus for Q4 2024 EPS and revenue was unavailable, limiting beat/miss framing; use actuals for context (values retrieved from S&P Global)* .

What Went Well and What Went Wrong

What Went Well

  • Margin and profitability: Q4 gross margin 20.0% (+260 bps YoY), adjusted EBITDA $2.3M vs $1.8M YoY, with management attributing gains to operational efficiencies and lower SG&A and interest costs .
  • Cash generation and de-leveraging: Q4 cash from operations $4.4M; FY 2024 cash from operations $3.6M; year-end debt $17.4M, lowest since 2011, with Debt/Adj. EBITDA 2.2 (eighth consecutive quarter-end <3.0) .
  • Backlog and awards: Backlog of $510M at year-end supported by new awards from L3Harris, Raytheon, and Embraer; management expressed confidence in the long-term outlook .

What Went Wrong

  • Revenue softness: Q4 revenue $21.8M vs $23.5M prior year and FY 2024 revenue $81.1M vs $86.5M prior year, reflecting program transitions and mix .
  • Sequential margin normalization: Q4 gross margin at 20.0% was below Q2’s 24.6% and Q3’s 21.7% despite YoY improvement, indicating mix and ramp effects quarter-to-quarter .
  • Prior-year comparability noisy: Q4 2023 EPS of $1.20 benefited from deferred tax asset valuation impacts; excluding this effect, Q4 2023 EPS was $0.05 vs $0.11 in Q4 2024 (ex-impact), emphasizing the need for adjusted comparisons .

Financial Results

Year-over-Year (Q4 2024 vs Q4 2023)

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$23.5 $21.8
Gross Profit ($USD Millions)$4.1 $4.3
Gross Margin (%)17.4% 20.0%
Net Income ($USD Millions)$14.8 (reported) $1.0 (reported)
Net Income ex DTA valuation impact ($USD Millions)$0.6 $1.4
Diluted EPS ($USD)$1.20 (reported) $0.08 (reported)
Diluted EPS ex DTA valuation impact ($USD)$0.05 $0.11
Adjusted EBITDA ($USD Millions)$1.8 $2.3
Cash from Operations ($USD Millions)$3.1 $4.4

Sequential (Q3 2024 → Q4 2024)

MetricQ3 2024Q4 2024
Revenue ($USD Millions)$19.4 $21.8
Gross Margin (%)21.7% 20.0%
Net Income ($USD Millions)$0.7 $1.0
Diluted EPS ($USD)$0.06 $0.08
Adjusted EBITDA ($USD Millions)$1.7 $2.3
Cash from Operations ($USD Millions)$0.7 $4.4

Quarterly Trend (Q2, Q3, Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$20.8 $19.4 $21.8
Gross Margin (%)24.6% 21.7% 20.0%
Diluted EPS ($USD)$0.11 $0.06 $0.08
Adjusted EBITDA ($USD Millions)$2.6 $1.7 $2.3

Estimates vs Actual (Q4 2024)

MetricConsensus EstimateActual
Revenue ($USD Millions)N/A*$21.8
EPS ($USD)N/A*$0.08

Values retrieved from S&P Global*. Consensus was unavailable for CVU Q4 2024.

Segment Breakdown

  • N/A – CPI Aerostructures does not present segment-level revenue in the press releases or 8-Ks reviewed .

KPIs and Balance Sheet Highlights

KPIQ2 2024Q3 2024Q4 2024
Backlog ($USD Millions)$512 $506 $510
Debt at Period-End ($USD Millions)$18.9 $18.2 $17.4
Debt-to-Adjusted EBITDA Ratio2.7 2.5 2.2
Cash from Operations ($USD Millions)$(1.6) (six months) $0.7 (Q3) $4.4 (Q4)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
All metricsFY/Q1 outlookNone providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was available; themes below are synthesized from company press releases and 8-Ks.

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Backlog & AwardsBacklog $512M (Q2); uptick in RFQs; competitive positioning . Backlog $506M (Q3); award from L3Harris for Next Generation Jammer Low Band Pod .Backlog $510M; new awards from L3Harris, Raytheon, Embraer .Stable-high backlog with continued program wins
Margin/Operational EfficiencyGM 24.6%; net income +21.9% YoY due to mix and performance .GM 21.7% with improved mix; net income +149% YoY .FY gross margin +150 bps; Q4 GM 20.0%; efficiencies and lower SG&A/interest .
De-leveragingDebt $18.9M; Debt/Adj. EBITDA 2.7 .Debt $18.2M; Debt/Adj. EBITDA 2.5 .Debt $17.4M; Debt/Adj. EBITDA 2.2; lowest debt since 2011 .
Cash Flow$(1.6)M cash used in H1 to support Pod ramp .$0.7M cash from ops in Q3 .$4.4M cash from ops in Q4; $3.6M FY .
Pod ProgramsH1 cash use tied to pod ramp .Added NGJ Low Band Pod award (L3Harris) .ISR pod systems remain strategic focus (company overview) .

Management Commentary

  • “Although our 2024 revenue was lower than our 2023 revenue, we increased our gross profit margin by 150 basis points. Our net income, excluding the tax asset valuation impact, was up 22.2% with EPS up 19.5% from prior year due to operational efficiencies, lower SG&A and interest costs.” — Dorith Hakim, President & CEO .
  • “We generated $3.6 million in cash from operations in 2024 and reduced our debt by another $2.7 million reaching an all-time low debt balance since 2011. Our Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, which marks our eighth consecutive quarter-end below 3.0.” — Dorith Hakim .
  • “We ended the year with a strong backlog of $510 million, which includes multiple new program awards from L3Harris, Raytheon and Embraer.” — Dorith Hakim .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available; Q&A details and any guidance clarifications are unavailable [Search returned none].

Estimates Context

  • Wall Street consensus for Q4 2024 EPS and revenue was unavailable for CVU; results should be evaluated against actuals rather than Street expectations (values retrieved from S&P Global)*. Q4 actuals: revenue $21.8M, diluted EPS $0.08 .
  • Given limited analyst coverage, estimate revisions are unlikely to be a near-term catalyst; focus on backlog conversion, margin execution, and cash generation .

Key Takeaways for Investors

  • Margin execution continues to improve: Q4 gross margin 20.0% vs 17.4% YoY; adjusted EBITDA $2.3M vs $1.8M YoY, reflecting efficiencies and cost discipline .
  • Balance sheet strengthening: Year-end debt at $17.4M and Debt/Adj. EBITDA 2.2, with sustained below-3.0 leverage trend supporting equity value durability .
  • Robust backlog and new awards (L3Harris, Raytheon, Embraer) underpin multi-quarter revenue visibility; watch for timing of conversions and mix effects on margins .
  • Cash generation inflecting: Q4 CFO $4.4M and FY CFO $3.6M; monitor sustainability as pod program ramps progress .
  • Comparability: Prior-year Q4 EPS inflated by deferred tax asset valuation; ex-impact comparisons show clearer improvement (Q4 2024 EPS ex-impact $0.11 vs Q4 2023 $0.05) .
  • Near-term trading: Absence of formal guidance and limited Street coverage shifts focus to order flow, backlog updates, and quarterly margin/CFO prints as catalysts .
  • Medium-term thesis: Margin expansion from operational efficiencies and program mix, continued deleveraging, and backlog realization could re-rate the stock as execution persists .

Additional relevant press releases supporting demand backdrop:

  • $7M funded orders for MH-60 SEAHAWK stabilator overhaul/repair (Feb 3, 2025) .
  • $4.3M contracts for UH-60M Black Hawk gunner window assemblies (Jan 21, 2025) .

Footnote: Values retrieved from S&P Global*.