CVD Equipment Corporation has announced its financial results for the third quarter ended September 30, 2025, alongside the initiation of a comprehensive transformation strategy aimed at enhancing operational efficiency and achieving sustainable profitability.

Third Quarter 2025 Financial Highlights

  • Orders totaled $2.2 million, primarily driven by demand for gas delivery systems within the SDC segment.
  • Revenue was $7.4 million, down 9.6% from the prior-year quarter. Year-to-date revenue reached $20.8 million, reflecting a 7.1% increase over the same period in 2024. The quarterly decline was attributed to reduced revenue from the MesoScribe product line, which ceased operations in 2024.
  • Backlog stood at $8.0 million as of September 30, 2025, compared to $13.2 million at the end of the second quarter.
  • Gross margin improved significantly to 32.7%, up from 21.5% in Q3 2024, due to a more favorable contract mix in the CVD Equipment segment.
  • Net income was $384,000, or $0.06 per basic and diluted share, up from $203,000 or $0.03 per share in the third quarter of 2024.
  • Cash and cash equivalents were $8.4 million as of September 30, 2025, compared to $12.6 million at the end of 2024.

Manny Lakios, President and CEO of CVD Equipment Corporation, noted that booking levels were affected by various external factors, including proposed tariffs, reduced U.S. government funding for universities, and the government shutdown. He emphasized the company’s ongoing efforts to adapt to changing market conditions and geopolitical developments.

Strategic Transformation Plan

On November 6, 2025, the company’s Board of Directors approved a set of initiatives to reduce fixed operating costs and increase organizational agility. The plan includes:

  • A transition from vertically integrated fabrication to outsourced manufacturing for select components within the CVD Equipment business.
  • Workforce reduction within the CVD Equipment division, expected to be completed by December 31, 2025, which is projected to yield approximately $2.0 million in annual cost savings beginning in fiscal 2026. The SDC division will remain unaffected.
  • A revised sales strategy that introduces external distributors and sales representatives to complement the internal sales team and expand market reach.
  • Exploration of strategic alternatives, including potential divestitures of non-core business lines or assets.

“These strategic initiatives will enable our company to operate more efficiently as we focus on our core competencies of engineering design, assembly, test, installation, and customer service,” said Lakios. “We continue to target high-growth applications in aerospace and defense, industrial markets including silicon carbide on graphite, high-power SiC electronics, and EV battery materials. Our long-term strategy remains focused on expanding in markets where our technologies provide critical value.”

The company reaffirmed its commitment to achieving profitability and positive cash flow through targeted operational improvements and market-driven execution.

Original – CVD Equipment