Powerpack

Unlock full stockrow access for only $9.90/month and boost yourself as an investor.

  • Full quarterly history

    Every quarter and TTM period we hold, not just the last 12.

  • Analyst estimates

    Three years of forward estimates and dividend forecasts.

  • Unlimited screener

    All results, unlimited saved screens, email when a screen changes.

  • Unlimited Excel

    Full workbooks and screener exports.

  • Unlimited follows

See Powerpack
Screener Weekly Summary Pricing

CPI Aerostructures, Inc. CVU

Industrials  —  Aerospace & Defense
5.08 (0.08) (1.55%) as of 25 Sep
Market cap
$68.4M
P/E
17.5×
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

CPI Aerostructures, Inc. (CVU) Business Profile

Updated before January 2025

Company Overview

CPI Aerostructures, Inc. (CVU), commonly referred to as CPI Aero, is a U.S.-based aerospace and defense contractor specializing in the manufacture of structural assemblies for fixed-wing aircraft, helicopters, and other aerospace platforms. Founded in 1980 and headquartered in Edgewood, New York, CPI Aero has established itself as a key supplier to both the U.S. Department of Defense (DoD) and major aerospace original equipment manufacturers (OEMs). The company has a long-standing reputation for delivering high-quality, cost-effective solutions tailored to the needs of its clients.

CPI Aero’s leadership team is composed of seasoned professionals with extensive experience in aerospace manufacturing and defense contracting. The company’s CEO, Douglas McCrosson, has been instrumental in driving strategic growth and operational efficiency. Under his leadership, CPI Aero has expanded its portfolio and strengthened its position in the aerospace supply chain.

Core Business Segments

CPI Aero operates across several core business segments, offering a diverse range of products and services:

1. Aerostructures Manufacturing

CPI Aero specializes in the production of complex aerostructures, including:

  • Wing assemblies
  • Fuselage components
  • Engine nacelles
  • Flight control surfaces

These components are used in both military and commercial aircraft, ensuring structural integrity and aerodynamic performance.

2. Military Programs

The company is a trusted supplier for various U.S. military programs, providing critical components for platforms such as:

  • Lockheed Martin’s F-16 Fighting Falcon
  • Sikorsky’s UH-60 Black Hawk helicopter
  • Northrop Grumman’s E-2D Advanced Hawkeye

CPI Aero’s contributions to these programs include structural assemblies, subassemblies, and aftermarket support.

3. Commercial Aerospace

In the commercial sector, CPI Aero manufactures components for leading OEMs and Tier 1 suppliers. The company’s expertise in lightweight materials and precision engineering makes it a preferred partner for commercial aircraft manufacturers.

4. Aftermarket Services

CPI Aero provides maintenance, repair, and overhaul (MRO) services for aerostructures. These services help extend the lifecycle of aircraft components, ensuring safety and reliability.

Business Model

CPI Aero’s business model is centered on long-term contracts with government agencies and aerospace OEMs. The company integrates its manufacturing capabilities with engineering expertise to deliver turnkey solutions. Revenue is generated through:

  • Fixed-price contracts
  • Cost-plus contracts
  • Time-and-materials contracts

By leveraging its vertically integrated supply chain, CPI Aero minimizes production costs and ensures timely delivery of products. The company also invests in advanced manufacturing technologies, such as automated assembly systems and composite materials, to enhance efficiency and competitiveness.

Strategic Direction

CPI Aero is focused on achieving sustainable growth through diversification and innovation. Key strategic initiatives include:

1. Expanding Military Programs

The company aims to secure additional contracts for emerging military platforms, such as unmanned aerial vehicles (UAVs) and next-generation fighter jets.

2. Growing Commercial Aerospace Presence

CPI Aero plans to increase its market share in the commercial aerospace sector by partnering with new OEMs and expanding its product offerings.

3. Sustainability Goals

The company is committed to reducing its environmental footprint by adopting eco-friendly manufacturing practices and materials.

4. New Product Development

CPI Aero is exploring opportunities in advanced materials, such as carbon composites, to develop lighter and more durable aerostructures.

Competitive Landscape

CPI Aero operates in a highly competitive industry, facing competition from both large aerospace manufacturers and specialized suppliers. Key competitors include:

  • Spirit AeroSystems
  • Triumph Group
  • AAR Corp.
  • Ducommun Incorporated

Despite the competition, CPI Aero differentiates itself through its focus on niche markets, strong customer relationships, and proven track record of performance.

Risk Factors

CPI Aero faces several risks that could impact its operations and financial performance:

1. Market Dependence

The company relies heavily on contracts from the U.S. government and a few key OEMs. Any reduction in defense spending or loss of major contracts could adversely affect revenue.

2. Supply Chain Disruptions

Global supply chain challenges, such as material shortages and transportation delays, could impact production schedules and increase costs.

3. Regulatory Compliance

As a defense contractor, CPI Aero must comply with stringent regulations. Non-compliance could result in penalties or loss of contracts.

4. Economic Uncertainty

Economic downturns and geopolitical tensions could affect demand for aerospace products and services.

Recent Developments

CPI Aero has recently undertaken several initiatives to strengthen its market position:

  • Secured a multi-year contract with Lockheed Martin for F-16 structural assemblies.
  • Expanded its MRO capabilities to support a broader range of aircraft platforms.
  • Invested in advanced manufacturing technologies to improve efficiency and reduce costs.

Global developments, such as the COVID-19 pandemic, have posed challenges for the aerospace industry. However, CPI Aero has demonstrated resilience by adapting to changing market conditions and maintaining operational continuity.

Investment Considerations

Strengths

  • Established reputation as a reliable supplier to the aerospace and defense industries.
  • Diversified product portfolio catering to both military and commercial markets.
  • Strong relationships with major OEMs and government agencies.

Risks

  • High dependence on a limited number of customers.
  • Exposure to regulatory and geopolitical risks.
  • Vulnerability to economic downturns and supply chain disruptions.

Conclusion

CPI Aerostructures, Inc. is a well-established player in the aerospace and defense industry, known for its expertise in manufacturing complex aerostructures. While the company faces challenges such as market dependence and supply chain risks, its strategic initiatives and strong customer relationships position it for future growth. With a focus on innovation and sustainability, CPI Aero is poised to capitalize on emerging opportunities in the aerospace sector.