CVD Equipment Stock Declines Following Weak Q2 Earnings and Revenue

Shares of CVD Equipment Corporation CVV have lost 20% since the company reported its earnings for the quarter ended June 30, 2025. This compares with the S&P 500 Index’s 1.2% gain over the same period. Over the past month, the stock has lost 15.9%, while the S&P 500 advanced 2.5%.CVV’s Revenue and Earnings PerformanceCVD Equipment reported second-quarter 2025 revenues of $5.1 million, down 19.4% from $6.3 million in the prior-year period. Gross profit declined 30.4% year over year to $1.1 million from $1.5 million, with gross margin narrowing to 20.9% from 24.3%. The company posted a net loss of $1.1 million, or $0.15 per share, compared with $0.8 million, or $0.11 per share, in the second quarter of 2024.Segment-wise, the CVD Equipment division recorded $3.4 million in revenues, down 17.1% year over year from $4.1 million, while the SDC gas delivery systems unit posted $1.7 million, down 25.1% from $2.3 million. The legacy MesoScribe unit, which was wound down in 2024, contributed minimal revenue.Year-to-date revenues stood at $13.4 million, up 19.2% from $11.3 million in the first half of 2024, supported by strength in the CVD Equipment segment.CVD Equipment’s Other Key Business MetricsBookings for the second quarter were approximately $4.5 million, up from $3.2 million in the second quarter of 2024. For the first half, bookings totaled $7.3 million compared with $16.9 million a year earlier. Backlog stood at $13.2 million as of June 30, 2025, a slight decline from $13.8 million at the end of March. Management attributed the weaker bookings to the timing of customer orders and external headwinds.Cash and cash equivalents totaled $7 million at quarter-end, down from $12.6 million at the end of 2024. The decline reflected higher accounts receivable, which rose by $3.6 million as the company achieved contract milestones. Management expects to collect these receivables in the third quarter. Working capital as of June 30, 2025, was relatively stable at $13.9 million compared with $13.8 million as of Dec. 31, 2024.CVD Equipment Corporation Price, Consensus and EPS Surprise CVD Equipment Corporation price-consensus-eps-surprise-chart | CVD Equipment Corporation QuoteCVV’s Management CommentaryPresident and CEO Emmanuel Lakios highlighted that the quarter’s results reflected uncertainties tied to proposed tariffs, reduced U.S. government funding for universities, and the gradual adoption of its technologies. Lakios reiterated that CVD Equipment is tightly managing expenses and headcount while monitoring customer demand and the geopolitical environment.The CEO emphasized opportunities across aerospace and defense, industrial silicon carbide (SiC) applications, high-power SiC electronics, and electric vehicle (EV) battery materials. He pointed to progress with the CVD4000 SiC coating reactor system, which was first shipped in early July 2025 to an industrial customer. While this launch partially contributed to reduced second-quarter revenues from other projects, management views it as a strategic investment for long-term growth.Factors Influencing CVD Equipment’s Headline NumbersThe year-over-year revenue decline was driven by reduced contracts in progress for both the CVD Equipment and SDC segments, offset partially by higher non-system sales in the CVD Equipment division. While the SDC division saw strong demand for gas delivery equipment, revenue recognition was hurt by timing. The gross margin contraction reflected both lower volumes and higher costs tied to inflationary pressures and tariffs on imported components.CVV’s customer concentration also played a role, with two customers representing 23.4% and 17.7% of revenues during the quarter. The company noted that tariff-related costs on imported components have added inflationary pressure, although the majority of its customer orders remain U.S.-based.CVV’s GuidanceCVD Equipment did not issue formal numerical guidance. However, management reiterated its long-term strategy to grow across aerospace, defense, SiC electronics and EV battery materials, while maintaining disciplined expense control to return to profitability. Executives expressed confidence that existing cash, anticipated receivable collections, and backlog revenues would be sufficient to fund operations over the next 12 months.CVD Equipment’s Other DevelopmentsIn addition to shipping the first CVD4000 system, management reported progress in shipping several FirstNano systems for microelectronics and carbon nanotube applications in 2025. 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Click to get this free report CVD Equipment Corporation (CVV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks