CPS Technologies secures $1.15 million Army contract for warhead development

NORTON, Mass. - CPS Technologies Corp. (NASDAQ:CPSH), a $53 million market cap company whose stock has surged 141% over the past year and is currently trading near its 52-week high of $3.72, has been awarded a Phase II Small Business Technology Transfer (STTR) contract worth $1.15 million from the U.S. Army Combat Capabilities Development Command, according to a company press release.

The two-year contract will fund CPS’s continued development of a controlled fragmentation tungsten warhead, initially focusing on a 40mm variant. This project builds upon work completed during an earlier Phase I program.

Dr. Mark Occhionero will serve as principal investigator for the project, which will utilize the company’s proprietary injection molding process for tungsten components. This manufacturing method offers an alternative to traditional machining techniques, potentially providing cost advantages and greater precision in warhead design.

The New Mexico Institute of Mining and Technology’s Energetic Materials Research and Testing Center will partner with CPS as a subcontractor during the project. The research center specializes in artillery research and testing.

Brian Mackey, President and CEO of CPS Technologies, stated that prototypes developed under this contract will undergo testing to meet Army performance standards.

This award represents the fifth new federally funded project for CPS in 2025 and the third successful conversion of a Phase I program to Phase II since June 2024, according to the company.

CPS Technologies specializes in high-performance materials for various applications including electric vehicles, Navy ships, and 5G infrastructure. The company’s hermetic packages are used in aerospace and satellite applications, while its armor products are designed for ballistic protection. According to InvestingPro data, while the company maintains strong liquidity with a current ratio of 3.34 and holds more cash than debt, it faces profitability challenges with gross margins of just 6.88%.Want deeper insights? InvestingPro subscribers have access to 10+ additional exclusive ProTips and comprehensive financial analysis for CPS Technologies, along with expert research reports covering 1,400+ US stocks.

In other recent news, CPS Technologies announced record revenue of $8.1 million for the second quarter of 2025, marking a 61% increase compared to the same period last year. This financial result also included a net income of $100,000, a notable improvement from a net loss of $900,000 in the previous year’s second quarter. These developments highlight the company’s financial recovery and strategic progress. Additionally, the earnings announcement was followed by a 12.26% surge in the company’s stock. The positive financial results have drawn attention from investors and analysts alike. There are no reports of any mergers or acquisitions involving CPS Technologies at this time. Analyst firms have not recently upgraded or downgraded the company’s stock. These recent developments underscore the company’s ongoing efforts to enhance its financial performance.

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