EDGEWOOD, N.Y. - CPI Aerostructures (NYSE:CVU), Inc. (NYSE American: CVU), a manufacturer of structural assemblies for aircraft, announced a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer. The company expects to fulfill these orders through mid-2025.
President and CEO Dorith Hakim expressed pride in CPI Aero's continued partnership with the U.S. Defense and Allied Forces, emphasizing the company's commitment to delivering high-quality components that support the warfighter.
CPI Aero operates in both commercial aerospace and national security markets, supplying fixed wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance pod systems. The company functions as a Tier 1 supplier to aircraft OEMs or as a Tier 2 subcontractor to major Tier 1 manufacturers. Additionally, CPI Aero serves as a prime contractor to the U.S. Department of Defense, primarily the Air Force.
Beyond assembly, the company offers engineering, program management, supply chain management, and MRO services. This follow-on order reinforces CPI Aero's position within the global aerostructure supply chain and its role in supporting military operations.
The press release also contains forward-looking statements regarding the company's plans and expectations. These statements are based on current beliefs and projections and are subject to risks and uncertainties that could cause actual results to differ. The company cautions not to place undue reliance on these forward-looking statements, which do not guarantee future performance.
This announcement is based on a press release statement from CPI Aerostructures, Inc., and it does not imply an endorsement of the company's claims. CPI Aerostructures has made no further comments on the potential impact of this contract on its future financial performance.
InvestingPro Insights
In light of CPI Aerostructures' recent contract announcement, a glance at the company's financial health and market performance offers valuable insights. CPI Aerostructures, with a market capitalization of just under $30 million, is trading at a low earnings multiple, with a P/E ratio of 2.05 and an even lower adjusted P/E ratio for the last twelve months as of Q1 2024 at 1.83. This suggests that the company's stock could be undervalued relative to its earnings, which is a point of interest for value investors.
Despite a slight decrease in revenue growth of nearly 2% over the last twelve months as of Q1 2024, CPI Aerostructures has maintained a robust gross profit margin of 19.1%, which indicates a healthy difference between the cost of goods sold and net sales. Moreover, the company's return on assets is impressive at 24.63%, reflecting efficient management in generating profits from its assets.
InvestingPro Tips highlight that CPI Aerostructures has high shareholder yield and liquid assets that exceed short-term obligations, underscoring the company's ability to meet its immediate financial liabilities and potentially return value to shareholders. Moreover, the company has been profitable over the last twelve months, a reassuring sign for potential investors.
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