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Here are 1-2 brief analogies for CPI Aerostructures (CVU):

• Like a **Magna International** for the aerospace industry, supplying major prime contractors with specialized structural components.
• A smaller, specialized version of **Spirit AeroSystems**, focusing on aerostructures like nacelles, pylons, and wing components for aircraft manufacturers.

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• Aerospace Structural Assemblies: Designs, engineers, and manufactures complex structural components and sub-assemblies primarily for military and commercial aircraft.
• Advanced Composite Structures: Fabricates lightweight, high-strength composite parts and assemblies used in various aerospace platforms.
• Aircraft Component Kitting: Provides integrated kitting services, supplying organized sets of parts for specific aircraft assemblies and installations.

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Major Customers of CPI Aerostructures (CVU)

CPI Aerostructures (CVU) sells primarily to other companies, specifically leading aerospace and defense prime contractors. Based on their latest filings (10-K for fiscal year ended December 31, 2022), their major customers include:

• The Boeing Company (Symbol: BA)
• Northrop Grumman Corporation (Symbol: NOC)
• Lockheed Martin Corporation (Symbol: LMT)
• RTX Corporation (formerly Raytheon Technologies Corporation) (Symbol: RTX)

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Dorith Hakim, President and Chief Executive Officer

Dorith Hakim was named President and Chief Executive Officer of CPI Aero in March 2022. She has diverse and extensive experience in the aerospace industry. Most recently, she served as Group Vice President of Parker Hannifin Aerospace, where she directed the global supply chain for 11 divisions, 25 manufacturing sites, and two joint ventures. Before joining Parker Hannifin, Ms. Hakim was at Triumph Group, first as Vice President, Corporate Program Management and Operations Excellence, and prior to that, as Vice President, Program Management Precision Components. She also served as Director of Aftermarket Operations at Sikorsky Aircraft, Inc. Ms. Hakim held various capacities at Bell Helicopter for over 21 years, including Program Director of helicopter product lines and Director of strategic sourcing and supply chain management.

Philip Passarello, Chief Financial Officer

Philip Passarello was appointed Chief Financial Officer of CPI Aerostructures in August 2024. He brings over 20 years of experience in financial management, government compliance, and strategic forecasting. Prior to joining CPI Aero, Mr. Passarello served as Vice President of Finance at TTM Technologies. He also held various managerial and executive positions for over 15 years at Telephonics Corporation, a company that was acquired by TTM Technologies in June 2022. His experiences at Telephonics spanned multiple facets, including system implementation and integration, strategic planning, analytics, business combinations, and divestitures. Earlier in his career, he spent five years at KPMG within their audit practice, primarily focused on public companies.

Paula Castellano, Senior Vice President, Operations

Paula Castellano joined CPI Aero as Senior Vice President of Operations in March 2025.

Jay Mulhall, Vice President of Business Development

Jay Mulhall has over 30 years of experience in the aerospace industry.

Ross Johnson, Vice President, Program Management

Ross Johnson was appointed Vice President, Program Management in January 2024. He has extensive experience in program management, business development, marketing & sales, contracts, engineering technical support, customer support, and aircraft operations. Most recently, he served as Director, Program Management at Sikorsky Aircraft, Inc., and was promoted to Director, Business Development for Sikorsky's commercial helicopter aftermarket. Before his tenure at Sikorsky Aircraft Inc., Mr. Johnson served a significant portion of his career at Bell Helicopter Textron Inc., where he was General Manager, Bell Supply Center with full P&L responsibility for its Canadian operation, and then Director, Business Development/Programs for Bell's entire aftermarket business.

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Key Risks to CPI Aerostructures (CVU)

1. Financial Challenges and Profitability Concerns: CPI Aerostructures faces significant financial headwinds, marked by persistent negative profitability and concerning debt levels. The company has reported negative metrics such as Return on Assets (ROA), Return on Equity (ROE), and Return on Invested Capital (ROIC), indicating difficulties in converting its resources into profit. Its profit margin is also negative, and there is a consistent downward trend in sales year-over-year. With a debt-to-equity ratio of 1.12, the company relies heavily on borrowed funds, which is particularly risky given its lack of profitability. Furthermore, an Altman Z-Score of 0.62 places CPI Aerostructures in a "distress zone," suggesting a potential risk of bankruptcy within the next two years. The company has also previously identified a material weakness in its internal control over financial reporting.
2. Dependence on Government Contracts and Defense Sector: A substantial portion of CPI Aerostructures' revenue is derived from government subcontracts and its role as a supplier for the aerospace and defense sector, including prime defense contractors and the U.S. Department of Defense. This reliance exposes the company to risks associated with congressional funding decisions and U.S. government procurement rules and regulations. A significant adverse impact could occur if the company were suspended or barred from government contracting, or if the U.S. government substantially reduced its business with CPI Aerostructures. The termination of key programs, such as the Boeing A-10, has already been identified as a structural challenge that negatively impacted the company's gross margins and net income.
3. Competition and Market Position: CPI Aerostructures operates as a small-cap player in a highly competitive aerospace and defense industry. It faces competition from much larger entities such as Bombardier, Gulfstream, Lockheed Martin, Boeing, Northrop Grumman, and Spirit AeroSystems. Despite occupying a specialized niche within the defense sector, its relatively small size and market capitalization make it vulnerable to competitive pressures from these larger aerospace companies.

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CPI Aerostructures (CVU) specializes in the manufacture of structural assemblies (aerostructures) for fixed-wing aircraft and helicopters in both the commercial aerospace and national security markets, and provides Maintenance, Repair, and Overhaul (MRO) services, as well as engineering, program management, supply chain management, and kitting services.

The addressable markets for these main products and services are as follows:

• Global Aerostructures Market: This market, which encompasses structural components of aircraft, was valued at approximately USD 116.09 billion in 2023 and is projected to grow to USD 210.65 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.93% from 2024 to 2032. North America held a significant share of this market, accounting for 37.62% in 2023.

• Global Aircraft Structural Parts Market: This market is projected to reach USD 29.01 billion by 2025, with a CAGR of 5.6% throughout the forecast period of 2025-2033.

• Global Aerospace Parts Manufacturing Market: This broader market, which includes structural components, was valued at USD 82.9 billion in 2023 and is projected to grow to USD 120.5 billion by 2035, with a CAGR of 3.17% from 2025 to 2035.

  • For the commercial aviation segment, the market was approximately USD 34.25 billion in 2024 and is projected to reach USD 49.41 billion by 2035.
  • For the military aviation segment, the market was approximately USD 20.12 billion in 2024 and is expected to increase to USD 28.66 billion by 2035.

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• Transition to New Programs: The company is actively transitioning away from legacy programs, such as the terminated A-10 Program, towards new initiatives. This shift is crucial for future revenue generation.
• Growth from Advanced Tactical Flight Pod Program: The achievement of key development milestones, including the first Advanced Tactical Flight Pod delivery to Raytheon, indicates the initiation and potential ramp-up of revenue from these new programs.
• Increased Efficiency and Reduced Debt: Although not a direct revenue driver, improved operational efficiencies, lower selling, general, and administrative expenses, and reduced interest costs contribute to stronger financial health. This can free up resources for investment in growth initiatives and improve the profitability of existing and new revenue streams.

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Share Issuance

• Over the last year, insiders collectively purchased or received $3.11 million worth of shares across 100 transactions, with no sales reported.
• Institutional investors acquired a total of 336,005 shares in the last 24 months, representing approximately $1.20 million in transactions.

Inbound Investments

• CPI Aerostructures secured a $33.4 million contract from Raytheon Technologies for the Next Generation Jammer Mid-Band program.
• In February 2025, the company reported receiving orders worth $7 million for the overhaul and repair of stabilator assemblies for the Sikorsky MH-60 SEAHAWK helicopter.
• The company secured an additional $2.5 million in purchase orders from the U.S. Air Force, increasing the total funded value of an ongoing contract to $50.8 million, which includes structural modification kits and sustainment services for the T-38C Pacer Classic III program.

Capital Expenditures

• Capital expenditures for Property, Plant, and Equipment (PPE) were approximately -$404,000 in 2024, -$141,000 in 2023, -$41,000 in 2022, -$29,000 in 2021, and -$147,000 in 2020.