EDGEWOOD, N.Y. - CPI Aerostructures (NYSE:CVU), Inc. (NYSE American: CVU), a prominent U.S. manufacturer in the aerospace sector with a market capitalization of $55.77 million and annual revenue of $82.81 million, has been authorized by Raytheon Technologies (NYSE:RTX) to commence production for the Next (LON:NXT) Generation Jammer Mid-Band (NGJ-MB) program's Lot 4 phase. The contract, with a maximum value of $33.4 million, involves the manufacturing of pod structures and air management system components. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.6, indicating strong ability to meet short-term obligations.
The NGJ-MB is an advanced electronic attack system designed to provide U.S. Navy aircraft with superior airborne electronic warfare capabilities, particularly in challenging Anti-Access/Area Denial (A2/AD) environments. This system is a crucial enhancement for the EA-18G Growler and F/A-18E/F Super Hornet aircraft, augmenting their electronic attack and kinetic engagement capabilities.
CPI Aero's role in the NGJ-MB program includes the delivery of pod structures and associated air management systems, with each EA-18G aircraft equipped with two NGJ-MB pods. The program reached a significant milestone in June 2021, known as Milestone (WA:MMD) C, indicating its readiness for production. Subsequent production phases have been awarded, with the latest Lot 4 contract supporting the production of 34 pods and deliveries expected to commence in the second half of 2025. The company's stock has shown remarkable momentum, with InvestingPro reporting an impressive 81.78% price return over the past six months, trading at an attractive P/E ratio of 2.76.
Dorith Hakim, President and CEO of CPI Aero, expressed pride in the company's performance, stating that CPI Aero is delivering the NGJ-MB pods on or ahead of schedule, which is critical for meeting the needs of Raytheon (NYSE:RTN), the U.S. Navy, and the Warfighter.
CPI Aero is recognized as either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor within the global aerostructure supply chain. The company also serves as a prime contractor to the U.S. Department of Defense, primarily the Air Force, and provides a range of services including engineering, program management, supply chain management, and maintenance, repair, and overhaul (MRO).
The information for this article is based on a press release statement from CPI Aerostructures, Inc. It should be noted that forward-looking statements within the press release are subject to risks and uncertainties, and actual results could differ materially from those projected. Investors are cautioned not to place undue reliance on these forward-looking statements. For deeper insights into CVU's valuation and growth potential, InvestingPro subscribers can access additional financial health metrics, with the company currently receiving a "GREAT" overall financial health score of 3.04 out of 5.
In other recent news, CPI Aerostructures has made significant strides in both financial and ethical aspects of its operations. The aircraft parts manufacturer has reported a revision in its Code of Ethics and Business Conduct, aiming to enhance corporate governance by strengthening guidelines on conflict of interest, fair dealing, and confidentiality, as well as improving the protection and proper use of company assets.
In financial developments, CPI Aerostructures has amended its existing credit agreement, extending the maturity date to August 31, 2026, and reducing the Base Rate Margin from 3.50% to 2.0%. The company has also reported changes in executive compensation, with CEO Dorith Hakim's annual base salary increased by 4.8% to $385,000.
On the personnel front, Philip Passarello has been appointed as the new Chief Financial Officer and Secretary, replacing Andrew Davis. Moreover, shareholders recently elected Pamela Levesque and Richard C. Rosenjack, Jr. as Class II directors.
In terms of business deals, CPI Aerostructures has entered into a Long Term Agreement with MST Manufacturing for component supply through 2027. Additionally, the company secured a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer, with fulfillment anticipated by mid-2025.
These recent developments underline CPI Aerostructures' commitment to ethical business practices, financial stability, and strategic growth.
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