CVD Equipment Corporation Q2 FY2025 earnings call

• Second quarter 2025 revenue was $5.1 million, a 19.4% decrease from prior year and 38.5% decrease from first quarter 2025. Year-to-date revenue was 19.2% higher than prior year.
• Second quarter orders were $4.5 million, with first 6 months of 2025 orders at $7.3 million vs $16.9 million in prior year.
• Shipped first CVD4000 silicon carbide coating reactor system in early July 2025, with remaining 2 systems of 3-system order planned for shipment over next 12 months.
• Backlog as of June 30, 2025, was $13.2 million, down from $13.8 million at March 31, 2025.
• Focus on key markets: aerospace and defense (chemical vapor and filtration systems), industrial (silicon carbide on graphite, etc.), electric vehicles (powder coat systems for anode materials), and support for FirstNano systems for microelectronic and carbon nanotube applications.
• Committed to long-term strategy of growth and return to consistent profitability while managing operating expenses.

Second quarter 2025 revenue was $5.1 million. CVD Equipment segment revenue was primarily driven by 2 customers in industrial and aerospace, representing 41.1% of the quarter's revenues. The CVD Equipment segment had a 17.4% decrease in revenue due to lower contracts in progress but offset by higher nonsystem revenue. The SDC segment had revenue of $1.4 million in Q2 2025, down from $2.2 million in Q2 2024, but orders for SDC's gas delivery systems were strong during the quarter. Year-to-date revenue was $13.4 million, 19.2% higher than prior year period.

• Cash and cash equivalents at June 30, 2025, were $7 million, and projected cash flow from operations is sufficient to meet working capital and capital expenditure requirements for next 12 months.
• Return to profitability dependent on receipt of new equipment orders, mitigating inflationary pressures, and managing planned capital expenditures and operating expenses.

• Tariffs affecting cost of goods sold as some components come from Europe or Asia with import tariffs.
• Uncertainties related to proposed tariffs, reduced U.S. government funding for universities, timing of product adoption, and dynamic nature of emerging markets.

Q: Asked about NDAs, specifically if clients were domestic or international due to tariff environment.

A: Emmanuel Lakios stated the facility for the NDA-related client is in the United States, and clients with NDAs can be both domestic and international, with majority of orders being U.S.-based. Also, revenue from the July delivery is recognized pro rata as manufacturing progresses.