CPS Technologies secures new U.S. Army contract

Published 05/03/2025, 22:06
CPS Technologies secures new U.S. Army contract

NORTON, Mass. - CPS Technologies Corp. (NASDAQ: CPSH), a small-cap technology company with a market capitalization of $21.79 million, has been awarded a new contract by the U.S. Army to further its Hybrid Electric Powertrain, Power, and Propulsion Systems (HEPPS) initiative. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 3.99. This Phase I Small Business Innovation Research (SBIR) contract, the third for the company in 2025, provides $250,000 in funding for a six-month research effort aimed at enhancing fuel efficiency and extending the operational range of military vehicles.

The contract focuses on the development of fiber-reinforced aluminum (FRA) components for military vehicles, utilizing CPS Technologies’ advanced net-shape manufacturing techniques. While InvestingPro analysis shows the company currently operates with modest gross profit margins of 5.93% and generated $21.94 million in revenue over the last twelve months, this new contract could contribute to future growth. FRA is recognized for its lightweight and wear-resistant properties, making it particularly suitable for hybrid electric systems in military applications. The use of FRA in components such as bearings is expected to reduce wear, thereby extending the lifespan of hybrid electric systems and improving fuel economy and performance.

CPS Technologies became the exclusive global licensor of FRA technology, originally developed by Triton Systems of Chelmsford, MA, in March 2024. The research funded by the SBIR contract will concentrate on optimizing the manufacturability and performance of FRA for use in military vehicle components.

Brian Mackey, CEO of CPS Technologies, expressed enthusiasm for the company’s role in advancing the Army’s vehicle capabilities, while Dr. Anant Singh, Executive Vice President of Triton Systems, highlighted the strategic intent behind the partnership with CPS and the rapid development towards military and broader market applications.

CPS Technologies is a leader in high-performance materials solutions, with products and intellectual property serving various applications including electric and hybrid vehicles, wind turbines, and 5G infrastructure. The company’s armor products are known for their exceptional ballistic protection and light weight. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.

This announcement is based on a press release statement by CPS Technologies Corp. and does not include any speculative content regarding the broader industry or future trends.

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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