CVU | Market Cap: $69.0M (07/13/26)
Industry:
Aerospace & Defense

DESCRIPTION

CPI Aero manufactures structural assemblies and integrated systems for military and commercial aerospace programs. Defense work dominates the business, with subcontracts to prime contractors like Raytheon, Northrop Grumman, and Lockheed Martin making up roughly 80% of revenue, direct U.S. government sales adding another 11%, and commercial work accounting for the remaining 9%. CPI Aero's products fall into two categories: aerostructures (build-to-print structural assemblies like wing panels, helicopter components, and airframe structures) and aerosystems (integrated pod structures for electronic warfare, ISR, and radar applications). Key programs include the NGJ-MB electronic warfare pod for the Navy, E-2D Advanced Hawkeye wing panels, UH-60 Black Hawk structural components, F-16V tail assemblies, and T-38 trainer life extension services. CPI Aero operates almost entirely on a build-to-print basis — customers provide designs, and CPI Aero manufactures to spec — under firm fixed-price contracts, so margins depend heavily on manufacturing efficiency and supply chain execution. CPI Aero subcontracts detail part production to third parties, with its core value-add in assembly, integration, and program management. The company argues its aerosystems pod business offers better competitive positioning than pure aerostructures, as it faces fewer independent competitors and competes primarily against primes' internal manufacturing arms. As of year-end 2025, total backlog was approximately $505M, with roughly 96% tied to government contracts.

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