CPI Aerostructures secures $4.3 million Black Hawk contract

Published 21/01/2025, 14:14
CPI Aerostructures secures $4.3 million Black Hawk contract

EDGEWOOD, N.Y. - CPI Aerostructures (NYSE:CVU), Inc. (NYSE American: CVU), a U.S. manufacturer known for structural assemblies for aircraft, has announced securing contracts worth $4.3 million. These contracts are for the production of gunner window assemblies for the UH-60M Black Hawk helicopter, under a multi-year agreement. The company, with a market capitalization of $64.87 million and trailing twelve-month revenue of $82.81 million, continues to strengthen its position in the aerospace sector.

The company, which has been a supplier to Sikorsky since 2010, has previously delivered over 6,000 units of these assemblies, highlighting its long-standing relationship and commitment to quality. CPI Aero's President and CEO, Dorith Hakim, expressed pride in the company's role in supporting the Black Hawk helicopter fleet. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.6, indicating strong ability to meet short-term obligations.

CPI Aero operates as a Tier 1 supplier to aircraft OEMs or as a Tier 2 subcontractor within the global aerostructure supply chain. It also serves as a prime contractor to the U.S. Department of Defense, mainly the Air Force. The company's services extend beyond assembly to include engineering, program management, supply chain management, and maintenance, repair, and overhaul (MRO) services. InvestingPro analysis reveals the company's strong financial health with an overall score of 3.06 (rated as GREAT), suggesting robust operational efficiency.

The recent contracts are part of an indefinite delivery indefinite quantity (IDIQ) agreement, indicating a flexible and ongoing partnership with the U.S. military for the supply of these critical components. This arrangement suggests a stable demand for CPI Aero's products and services in the foreseeable future.

While CPI Aero's press release contains forward-looking statements, it is important to note that these are based on current plans and expectations, which are subject to risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements due to various factors. Trading at a P/E ratio of 2.76, the stock has shown remarkable performance with a 96.84% return over the past year. For deeper insights into CVU's valuation and 8 additional key investment tips, consider exploring InvestingPro.

This news is based on a press release statement from CPI Aerostructures, Inc., and it does not imply any endorsement or prediction of the company's future performance. Investors should consider the inherent risks and uncertainties associated with such forward-looking statements.

In other recent news, CPI Aerostructures, a key player in the aerospace sector, has secured a $33.4 million contract from Raytheon Technologies (NYSE:RTX) for the Next (LON:NXT) Generation Jammer Mid-Band (NGJ-MB) program's Lot 4 phase. The contract encompasses the production of pod structures and air management system components, with deliveries anticipated to commence in the second half of 2025. The company has also revised its Code of Ethics and Business Conduct, reinforcing guidelines on conflict of interest, fair dealing, and confidentiality, and enhancing the protection and proper use of company assets.

In terms of financial developments, CPI Aerostructures has amended its credit agreement, extending the maturity to August 31, 2026, and lowering the Base Rate Margin from 3.50% to 2.0%. The company has also reported changes in executive compensation, with CEO Dorith Hakim's annual base salary increased by 4.8% to $385,000.

New appointments have been made with Philip Passarello stepping in as the new Chief Financial Officer and Secretary, replacing Andrew Davis. Furthermore, the company has entered into a Long Term Agreement with MST Manufacturing for component supply through 2027 and secured a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer. These recent developments highlight CPI Aerostructures' commitment to strategic growth, ethical business practices, and financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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