Company Performance Overview
CPI Aerostructures, Inc. is pleased to share its financial results for the period ending in December 2024. The Company has experienced key shifts in its financial standings, revealing both challenges and triumphs in the competitive aerospace sector.
Fourth Quarter 2024 Highlights
Annual Comparison
In the fourth quarter, the company reported revenue of $21.8 million, a slight decrease from $23.5 million during the same period last year. Despite this dip in revenue, CPI Aerostructures recorded an impressive gross profit of $4.3 million, up from $4.1 million, indicating a strategic improvement in cost management.
The gross margin also saw an increase, standing at 20.0%, compared to 17.4% from the previous year, reflecting a clear focus on efficiency and profitability.
However, net income for the quarter reduced to $1.0 million, compared to $14.8 million last year. Adjusting for the deferred tax asset valuation impact reveals a more favorable comparison, as net income would adjust to $1.4 million in 2024 compared to $0.6 million in 2023.
On a per-share basis, earnings came in at $0.08, a significant decrease from $1.20, but again, adjusting for tax impacts, the earnings per share would reflect a more optimistic result at $0.11 versus last year’s $0.05.
Full Year 2024 Financial Performance
Positive Trajectory
Looking at the full year, CPI Aerostructures achieved a revenue of $81.1 million, down from $86.5 million the previous year. However, gross profit slightly increased to $17.2 million from $17.1 million, showcasing resilience in profitability despite overall revenue dips.
The gross margin for the year was recorded at 21.3%, an increase from 19.7% in 2023, further emphasizing the Company’s focus on enhancing operational efficiency.
Net income for the year dropped to $3.3 million compared to $17.2 million last year. After accounting for deferred tax impacts, this reflects a yuletide performance of $3.7 million for 2024 compared to $3.0 million in 2023.
Throughout the fiscal year, CPI Aerostructures reported cash flow from operations at $3.6 million, slightly down from $3.9 million a year prior. Notably, the Company has managed to reduce its debt significantly, ending 2024 with $17.4 million, down from $20.1 million the previous year.
CEO Insights on Future Growth
Dorith Hakim, President and CEO of CPI Aerostructures, expressed satisfaction with the Company’s ability to navigate challenges, particularly emphasizing the enhanced gross profit margin and increased operational efficiencies. “Excluding the tax asset valuation impact, we observed a 22.2% rise in net income for 2024,” she noted. “Our continuous focus on reducing selling, general and administrative expenses has also contributed greatly to our earnings per share improvement.”
“We concluded the year with a robust order backlog valued at $510 million fueled by recent program awards from leading industry players, further bolstering our growth outlook,” Ms. Hakim added. “With ongoing efforts to solidify our client relationships, we remain excited about the potential opportunities that lie ahead.”
About CPI Aerostructures
CPI Aerostructures stands out as a leading manufacturer dedicated to providing structural assemblies for a variety of aircraft, including fixed-wing planes and helicopters, along with airborne Intelligence Surveillance and Reconnaissance pod systems. Operating within both commercial aerospace and defense sectors, the company serves as either a Tier 1 supplier or a Tier 2 contractor to notable aircraft OEMs, as well as a prime contractor for the U.S. Department of Defense.
In addition to its manufacturing capabilities, CPI Aerostructures also delivers engineering, program, and supply chain management services, highlighting its diverse operational expertise.
Frequently Asked Questions
1. What were CPI Aerostructures’ total revenues for 2024?
CPI Aerostructures reported total revenues of $81.1 million for the full year 2024.
2. How did the Company’s gross margin change in 2024?
The gross margin improved to 21.3% in 2024, up from 19.7% in the previous year.
3. What factors contributed to net income fluctuations?
Net income fluctuations were primarily influenced by changes in revenue and the exclusion of deferred tax asset valuation impacts.
4. What is CPI Aerostructures’ order backlog?
The Company ended the year with a strong order backlog valued at $510 million.
5. Who can I contact for more information regarding CPI Aerostructures?
For inquiries, you can reach out to Investor Relations Counsel Jody Burfening at (212) 838-3777 or via email at cpiaero@allianceadvisors.com.
