CPI Aerostructures, Inc. announced its financial results for the second quarter and six months ended June 30, 2025. The company reported a $2.3 million write-off in Q2 on the A-10 Program, resulting from its termination by The Boeing Company and the pending retirement of the A-10 fleet. The total impact related to the A-10 Program for the six months ended June 30, 2025, was $4.5 million.
Despite the A-10 Program impact, the company reported performing well on its new programs, achieving key development milestones such as the first Advanced Tactical Flight Pod delivery to Raytheon. CPI Aerostructures also continued to improve its balance sheet, reducing total debt to an all-time low of $16.2 million and achieving a Debt-to-Adjusted EBITDA Ratio of 2.7, excluding the A-10 Program impact.
As disclosed in its Form 10-Q, management identified a material weakness in internal control over financial reporting (ICFR) related to the classification of debt, pending an amendment to a debt covenant. Management stated that this weakness has no bearing on the financial results for the second quarter and is implementing necessary steps to remediate the matter.
The company ended the quarter with a strong backlog of $506 million, which includes multiple new program awards from Raytheon, Sikorsky, Lockheed, the U.S. Air Force, and Embraer. This backlog reflects the company's ongoing commitment to transitioning from legacy programs to future growth opportunities.
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