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Shares of CVD Equipment Corporation CVV have lost 10.3% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 Index’s 1.3% gain over the same time frame. Over the past month, the stock has lost 15.3% against the S&P 500’s 11.8% gain.
Earnings Snapshot
CVD Equipment reported a significant turnaround in the first quarter of 2025. Revenues rose 68.9% year over year to $8.3 million from $4.9 million in the same quarter last year, also marking a 12.2% increase from the fourth quarter of 2024. The top-line growth was primarily driven by strong performance in the CVD Equipment segment, attributed to two major contracts in the industrial and aerospace markets. The SDC segment, which supplies gas delivery equipment, also maintained strong demand.
The company’s gross profit increased to $2.7 million from $0.8 million in the year-ago period, boosting the gross margin to 32.4% from 16.2%. This margin expansion stemmed from increased revenue, better overhead absorption and improved profitability on ongoing contracts.
Operating expenses were largely flat year over year, totaling $2.4 million. Operating income stood at $0.3 million against a loss of $1.6 million in the prior-year quarter. Net income was $0.4 million, or $0.05 per diluted share, against a loss of $1.5 million, or $0.22 per share, in the first quarter of 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Operational Metrics and Orders
Despite the notable revenue growth, CVD Equipment faced a decline in order activity. First-quarter 2025 orders totaled $2.8 million, primarily from the SDC segment, falling short of expectations and down from prior levels. This softness in order intake led to a reduction in backlog from $19.4 million at the end of Dec. 31, 2024, to $13.8 million at the end of March 2025.
However, CVD Equipment disclosed that it secured a $1.2 million semiconductor system order in early April 2025, which is expected to support near-term revenue for its CVD Equipment segment.
CVD Equipment Corporation Price, Consensus and EPS Surprise
CVD Equipment Corporation price-consensus-eps-surprise-chart | CVD Equipment Corporation Quote
Management Commentary
CEO Emmanuel Lakios acknowledged the improved revenue and profitability while cautioning that market conditions remain volatile. He pointed to the recently imposed tariffs as a new challenge, potentially raising the cost of components and materials and contributing to broader economic uncertainty, which could affect future order rates.