CPSH

This article first appeared on GuruFocus. Revenue: $6.7 million in Q1 2022, up 37% from $4.9 million in Q1 2021, and a 7% increase over Q4 2021. Gross Margin: $2.0 million, or 30% of sales, compared to $900,000 (19% of sales) in Q1 2021. Operating Income: $547,000 in Q1 2022, versus $36,000 in Q1 2021. SG&A Expenses: $1.4 million in Q1 2022, up from $908,000 in Q1 2021. Cash Position: $4.7 million at end of Q1 2022, a decrease of $350,000 from end of 2021. Accounts Receivable: $4.9 million at April 2, 2022, flat versus December 25, 2021; DSO improved to 66 days from 72 days. Inventories: $4.7 million at April 2, 2022, up from $3.9 million at December 25, 2021. Inventory Turnover: 4.7 times over the most recent four quarters, consistent with end of 2021. Payables and Accruals: $3.0 million at April 2, 2022, down from $3.2 million at December 25, 2021. Book-to-Bill Ratio: Averaging 1.4 to 1.6 over a trailing 12-month basis. Warning! GuruFocus has detected 2 Warning Signs with CPSH. Is CPSH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record first-quarter revenues of $6.7 million, a 37% increase year-over-year. Operating profit of $547,000 in Q1 2022 exceeded the entire operating profit for fiscal year 2021. Gross margin improved significantly to 30% of sales, up from 19% in the prior year quarter. Strong book-to-bill ratio averaging 1.4 to 1.6 over the trailing twelve months, indicating robust demand. Won two new SBIR contracts with the Department of Defense, including a Navy award for thermal energy storage devices. Cash position decreased by $350,000 during the quarter due to increased inventory and reduced accrued expenses. SG&A expenses rose to $1.4 million from $908,000, driven by higher compensation and commission costs. Inventory levels increased to $4.7 million from $3.9 million, tying up cash and potentially indicating supply chain challenges. The transportation segment, including EV and rail, continues to lag due to COVID-19 impacts, with demand recovery not expected until 2023. Management acknowledges that one quarter does not make a year, and sustaining improved margins and profitability remains uncertain. Q: With the book-to-bill ratio running at 1.2 to 1.4 or higher, is it conceivable that you'll be able to maintain those kind of gross margins going forward, or is that just a function of the hybrid armor being delivered now in '22?A: Michael McCormack (CEO & President): Certainly, that's our goal. We are working actively on many initiatives across operations, sales, and purchasing to manage costs. The higher volume helps with fixed cost absorption, but we need a couple more quarters of this performance before we declare victory. We are trending positively. Q: On the EVs, you mentioned several design wins working through testing. Are those wins going to be strictly limited to individual luxury type vehicles, or are you working on something that might be more platform driven?A: Michael McCormack (CEO & President): Certainly more the latter. When we talk to our customers, they are discussing extremely high production numbers. We are having dialogues about being realistic on demands, but there are really high volumes of parts being asked to be quoted, and we need to demonstrate our production capacity to handle that. Q: Would that require a capital raise to handle that high-volume demand?A: Michael McCormack (CEO & President): I don't know at this time. We are doing workman-like planning and looking at ways to optimize our current 40,000 square foot facility on a nine-acre site, which gives us room to expand. The key dialogue with customers is whether to get the contract first or expand first to keep costs low and remain competitive. Q: Can you elaborate on the recent small business award for aluminum alloy and thermal energy storage devices, and whether it has broader commercial market application?A: Michael McCormack (CEO & President): We don't know the specific Navy application yet as they compartmentalize their technology pursuits. This is a $250,000 phase one contract for R&D over 10-12 months. As we execute and meet performance gates, we will get more information about applications that will lend us towards phase two and further development. Q: You mentioned improvements in manufacturing processes with 3D printing. Could that enable you to get your costs down to a point where they become extremely attractive in the power module space?A: Michael McCormack (CEO & President): I dream of AlSiC being less than copper every day, but we're not there yet. The idea of reducing production costs and improving manufacturing consistency is always a good approach. Our goal is to produce quality products at the lowest cost possible so our customers can be competitive, and we are open to all process improvements. Q: Is there any update on the EV market and other transportation segments like electric trains?A: Michael McCormack (CEO & President): The transportation segment continues to lag from the COVID hangover. Our customers are forecasting increasing demand, but that's in '23. We have design wins that have advanced from a couple of hundred to a couple of thousand pieces as they go through testing. It's a long cycle, but we are in many different phasessome at 10, some at hundreds, some in thousands. Q: You mentioned locating someone in Michigan for the defense work. A lot of the passenger EV stuff is in California. Is there an idea to have more presence there?A: Michael McCormack (CEO & President): We already have Greg Weatherman stationed in California, and he is at a show this week. We also have Tim down in Florida covering the Space Coast. Positioning Anthony in Michigan gives us a nice triangle of where we want to be executing commerce. Q: Regarding the hybrid armor work with Rafael, is CPS providing armor for some of their new vehicles?A: Michael McCormack (CEO & President): We are continuing to work with Rafael and have a very good relationship with them. We continue to provide representative target solutions and have very positive test results. We also have a joint venture with the Southwest Research Institute for advanced modeling on armor solutions. I cannot specifically address the application, but we are making progress. Q: Lucid announced a 1200-volt module. At that voltage, would AlSiC be used, or can they get away with a cheaper solution?A: Michael McCormack (CEO & President): The benefits of our metal matrix composites become even more pronounced at higher voltages like 1,200 volts. We best exceed the properties you can get with a copper solution. Chuck Griffith (CFO) added that at 1,200 volts, we're in a gray area where our solution is more efficient, but a cheaper solution is possible. Q: With car companies moving to 800-volt systems, is that a realistic timeframe of '24 or '25 before it becomes a real revenue driver?A: Michael McCormack (CEO & President): It's hard to put a number on it. We are in the material science business with a long validation cycle, but once you get in, you stay for a long time. I think you're on the right linesit's three to five years out. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in CPS Technologies Corp.? Here are five stocks we like better. Second-quarter revenue rose modestly to $8.3 million from $8.1 million a year earlier, while gross margin improved sharply from the first quarter to 14.8%. However, higher material and plating costs, increased SG&A, and one-time expenses contributed to an operating loss of about $200,000. CPS ended June with $19.2 million in cash and marketable securities after raising $9.6 million in a May secondary offering. The company is nearing a lease agreement for a new facility twice the size of its current site, with relocation and build-out costs expected to total millions of dollars. Demand and program opportunities remain strong across defense, energy infrastructure, AI, semiconductor and space markets. Potential growth drivers include tungsten-alloy components, Navy ballistic shields, and follow-on funding for the Amphibious Combat Vehicle lightweighting program. CPS Technologies (NASDAQ:CPSH) reported second-quarter revenue of $8.3 million, modestly above $8.1 million in the comparable 2025 period, as the company cited robust demand across its core product markets. The company also said revenue increased from first-quarter levels and expects shipments to continue at a similar pace based on its backlog and outlook. Gross profit totaled $1.2 million, or 14.8% of revenue, compared with $1.3 million, or 16.5% of revenue, a year earlier. While the year-over-year margin declined because of higher material and plating costs, CPS improved its gross margin by 620 basis points from 8.6% in the first quarter. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Our outlook remains strong,” President and Chief Executive Officer Brian Mackey said, pointing to demand for existing products and opportunities for newer materials and components. Selling, general and administrative expenses rose to $1.5 million from $1.2 million a year earlier. Chief Financial Officer Chris Fraser said the increase reflected certain one-time expenses, primarily non-cash stock-option expenses that occurred in the first quarter of the prior year and the second quarter of the current year. → 3 Drone Stocks That Should Soar After the Summer Slump The company recorded an operating loss of about $200,000, compared with operating income of about $100,000 in the second quarter of 2025. Including other income and tax benefits, CPS reported net income of roughly $40,000, or $0.00 per share, versus approximately $100,000, or $0.01 per share, in the prior-year quarter. CPS completed a secondary offering in May that generated $9.6 million in gross proceeds. The company ended June with $15.4 million in cash and $3.8 million in marketable securities, for a combined $19.2 million, compared with $13.2 million at the beginning of the year. Trade accounts receivable were $4.9 million at the end of June, compared with $5.2 million at the end of the second quarter of 2025. Inventory rose to $8.6 million from $5.6 million at the beginning of the year, which Fraser said reflected preparations for a planned facility move. Payables and accruals totaled $4 million, compared with $4.3 million as of Dec. 27, 2025. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Mackey said CPS is close to finalizing lease terms for a new manufacturing facility that would be twice the size of its current location. The company’s original estimates for completing the relocation process were “overly aggressive,” he said, as requirements involving power, industrial gases, floor build-out and proximity to the current site extended the search and negotiation process. Once a lease is signed, Dacon Corporation, the company’s design-build partner, is expected to complete detailed architectural and engineering work over approximately three to four months. Construction and equipment installation would then take another seven to eight months, according to Mackey. The relocation would be phased, with CPS moving work cells sequentially, validating equipment and processes, and obtaining customer approvals as necessary. Mackey said the company is discussing inventory buffers and qualification requirements with customers to minimize production and delivery disruptions. Existing equipment is expected to be moved to the new site, while new capital equipment intended to expand metal matrix composite production capacity would be delivered directly to the new facility. The company’s current lease runs through February 2028. Mackey said the costs for build-out, equipment and relocation are still being totaled but will be “in the millions of dollars.” He added that capital raised in October was intended to cover most, if not all, of those expenses. CPS said it is seeing increased interest from energy infrastructure, artificial intelligence, defense, semiconductor, space and other commercial markets. The company plans to invest in additional customer-facing business development personnel as it seeks to respond to identified sales opportunities. For its tungsten alloy business, Mackey said U.S. Army funding continues to support development of a controlled-fragmentation 40-millimeter warhead through fall 2027. CPS has also made its first small commercial sale of tungsten alloy components and is actively quoting parts for potential commercial and defense applications. The company believes its QuickSet injection molding process can produce certain tungsten alloy components more cost-effectively than competing manufacturing processes. Meanwhile, CPS expects contracts for ballistic shields on a small number of U.S. Navy destroyer-class vessels to be resolved and issued later this year. The work, to be carried out with partner Kinetic Protection, would represent a return to revenue for the company’s HybridTech Armor product. The company also highlighted a six-month option period, exercised by the U.S. Navy in June, for a program involving lightweighting of the Amphibious Combat Vehicle. Following the option period’s expected conclusion in December, CPS anticipates a potential opportunity for follow-on Phase II funding. Mackey said the program could support applications for both its AlMax material and HybridTech Armor. CPS has additional research and development efforts underway, often through government-funded programs, involving radiation shielding, impact limiters, thermal energy storage and defense applications. Mackey said several SBIR and STTR proposals remain awaiting funding decisions, though the company expects agencies to continue working through their backlog in the coming weeks and months. CPS Technologies Corp is a materials technology company specializing in the design and manufacture of advanced engineered composites and metal systems. The company develops bonded metal components, high-performance polymer composites and ceramic-to-metal brazed assemblies that address the demanding requirements of high-temperature, high-stress and high-frequency applications. CPS Technologies' product portfolio includes thermal management solutions, electromagnetic interference (EMI) shielding materials, structural composites and electronic packaging substrates tailored for critical end markets. Serving the aerospace, defense, electronics and energy industries, CPS Technologies works closely with original equipment manufacturers and system integrators to deliver custom materials solutions that reduce weight, improve thermal efficiency and enhance mechanical performance. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CPS Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of $8.3 million reflects robust demand across core markets, including energy infrastructure, AI, defense, and semiconductors. Gross margin recovered significantly to 14.8% from 8.6% in Q1, driven by improved labor and overhead efficiency which offset rising material and plating costs. Management attributed the delay in the new facility lease to specialized operating requirements, including high power needs and industrial gas provisions for molten aluminum processing. Strategic inventory builds to $8.6 million were intentionally executed to mitigate production risks during the upcoming phased relocation to the new facility. The company is pivoting toward higher-value applications for its AlMax material and tungsten alloys, leveraging its proprietary QuickSet injection molding process for cost-effective manufacturing. Growth in SG&A expenses was primarily driven by non-cash stock option timing rather than structural operational inefficiencies. Management expects shipments to maintain the Q2 pace through the remainder of the year, supported by a strong order backlog. The new facility transition is expected to follow a 3-4 month design and permitting phase, followed by 7-8 months of construction and equipment installation. Revenue from HybridTech Armor is expected to return later this year following congressional funding for ballistic shields on U.S. Navy destroyer-class vessels. The company anticipates near-term investment in customer-facing personnel to capture identified sales opportunities in the AI and space sectors. Long-term performance improvements in 2027 and beyond are predicated on the new facility's ability to optimize production flow and accommodate additional equipment to increase production capacity. A significant backlog of SBIR and STTR funding decisions from the DoD and DOE persists, with some proposals dating back to August 2025. The facility relocation involves complex equipment qualification and process validation requirements that vary by customer, posing potential temporary production disruptions. Management acknowledged that initial estimates for the facility move were overly aggressive, leading to a more measured and extended negotiation process. Recent capital raises, including a $9.6 million secondary offering in May, provide the company with sufficient resources to pursue growth opportunities, including the cost of outfitting the new facility and physically relocating. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to provide specific technical details on the record, citing the competitive nature of the market. Confirmed that copper remains a strong traditional competitor, but the company believes its current offering is well-positioned. The company will move work cells sequentially over several weeks rather than all at once to minimize downtime. New manufacturing equipment will be delivered directly to the new site to expand capacity, as the current facility has no room for additional machinery. Buffer inventory is being built on a case-by-case basis for customers to bridge the gap during the equipment validation period. Management stated the build-out, rigging, and relocation costs will total in the millions of dollars. The October capital raise was intended to cover the majority of these expenses, though a final published tally is not yet available.

Successful Capital Raise and Improved Company Outlook NORTON, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corp. (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for its fiscal second quarter ended June 27, 2026. Second Quarter Summary Revenue of $8.3 million, versus $8.1 million in the prior-year period, reflecting strong overall product demand. Gross margin of 14.8 percent versus 16.5 percent in the second quarter of 2025. Operating loss of $(0.2) million for the quarter compared to an operating profit of $0.1 million in the prior-year period. The Company successfully completed a secondary offering that raised gross proceeds of $9.6 million, providing additional capital to support the Company’s growth initiatives. Funded development work continues, including programs to develop a controlled fragmentation tungsten warhead for the U.S. Army and an initiative to reduce the weight of the Amphibious Combat Vehicle with funding from the U.S. Navy. CPS remains on course to build out and move to a new operating facility in the coming quarters, as previously announced. “We continue to plan for a transition to an improved manufacturing location and are now finalizing the negotiations for the best available site to support our growth,” said Brian Mackey, President and CEO. “We’re seeing strong demand across our various product lines – reflected in our increased quarterly revenue relative to both the second quarter of 2025 and first quarter of 2026 – while gross margins recovered significantly, improving 620 basis points over Q1. In addition, with trends pointing to expanding opportunities going forward, we raised over $9 million in funds through a secondary offering, positioning the Company for its upcoming move as well as investments to meet demand and commercialize our growing portfolio of offerings. Overall, we believe CPS is executing to plan and are encouraged by the broad array of industries and organizations – from defense and space to energy infrastructure and commercial markets – interested in leveraging our advanced technology to improve product performance, increase durability, and serve as the innovative basis for new applications across the board.” Results of Operations CPS reported revenue of $8.3 million for the second quarter of fiscal 2026 versus $8.1 million in the prior-year period. Gross profit was $1.2 million, or 14.8 percent of revenue, versus $1.3 million, or 16.5 percent of revenue, in the fiscal 2025 second quarter. Operating loss was $(0.2) million in the fiscal 2026 second quarter compared with an operating profit of $0.1 million in the prior-year period; SG&A expenses rose approximately $0.3 million year-over-year. Reported net income for the quarter was just under $40,000, or $0.00 per diluted share, versus a net profit of $0.1 million, or $0.01 per diluted share, in the quarter ended June 28, 2025. Conference Call The Company will be hosting its second quarter 2026 earnings call tomorrow, August 5, 2026, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following:  Call in Number: 1-844-943-2942 Participant Passcode: 255505 The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants. About CPS CPS is an advanced materials company that designs, manufactures, and sells high-performance material solutions to global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company specializes in proprietary metal matrix composites (MMCs), combining metals and ceramics to deliver superior strength, thermal management, and reliability for demanding applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure. CPS also produces hermetic packaging for high-reliability power and communications modules, supporting avionics, GPS, microprocessors, and specialized integrated circuits. Additionally, its lightweight HybridTech Armor® provides high strength-to-weight protection. CPS focuses on innovation, quality, and diversified high-growth markets to drive sustained, profitable growth. The Company’s Vision is ”to pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.” Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release. CPS Technologies Corporation111 South Worcester Street Norton, MA 02766 www.cpstechnologysolutions.com Investor Relations: Chris Witty 646-438-9385 [email protected]

Company on Track for Revenue Growth in Quarters to Come NORTON, Mass., May 04, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal first quarter ended March 28, 2026. First Quarter Summary Revenue of $7.0 million, versus $7.5 million in the prior-year period, reflecting order timing; continued revenue growth is expected in future quarters. Gross margin of 8.6 percent versus 16.4 percent in the first quarter of 2025. Operating loss of $(0.5) million for the quarter compared to an operating profit of $0.1 million in the prior-year period. The Company remains on track for its planned move to a larger, improved operating facility later in 2026, and detailed planning with the support of a general contractor is underway. CPS, after quarter end, booked a $4 million order for hermetic packaging, with shipments beginning in Q2; in addition, the Navy SBIR office recently executed its option to extend the Company’s Phase I program related to Amphibious Combat Vehicles (ACV). The Company announced that a new Chief Financial Officer, Chris Fraser, joined the Company today, May 4th. He is expected to transition into the CFO role effective May 18th. “Although the first quarter played out with lower revenue and gross margins,” said Brian Mackey, President and CEO, “we continue to book new business and remain committed to implementing the changes necessary to improve gross margins. Regarding our planned move to a larger, more advanced manufacturing complex, we are now finalizing our assessment of candidate facilities including the detailed functional requirements to support our manufacturing operations, which will enable us to share specifics about our transition plans soon. As part of our preparations, we have significantly increased our inventory levels to minimize the impact of our upcoming move on our customers and on our revenue. In addition, while margins were negatively impacted this quarter primarily due to the impact of lower revenue on fixed costs and cost accounting related to the inventory build, expected revenue growth and eventual inventory reduction should positively impact margins in the future.” Recently, CPS was notified that Navy will exercise its 6-month, $100,000 option to extend the Company’s Phase I SBIR effort to reduce the weight of the Amphibious Combat Vehicle. Mackey continued, “The Navy’s funding decision provides continued affirmation of our technical success, and this funded research win is coupled nicely with the continued strength of our commercial bookings, as evidenced by the $4 million hermetic packaging order. With a new CFO now being onboarded and an expanding number of opportunities on the horizon, we remain well positioned to build a solid year of performance going forward.” Results of Operations CPS reported revenue of $7.0 million for the first quarter of fiscal 2026 versus $7.5 million in the prior-year period, primarily reflecting order timing. Gross profit was $0.6 million, or 8.6 percent of revenue, versus $1.2 million, or 16.4 percent of revenue, in the fiscal 2025 first quarter, with the year-over-year decrease due to several factors including the impact of lower revenue on fixed costs as well as cost accounting related to adding over $1.5 million to inventory. Operating loss was $(0.5) million in the fiscal 2026 first quarter compared with an operating profit of $0.1 million in the prior-year period; SG&A expenses were roughly flat year-over-year, approximately $1.1 million in both fiscal 2026 and 2025. Reported net loss for the quarter was $(0.3) million, or $(0.02) per diluted share, versus a net profit of $0.1 million, or $0.01 per diluted share, in the quarter ended March 29, 2025. Conference Call The Company will be hosting its first quarter 2026 earnings call tomorrow, May 5, 2026, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following: Call in Number: 1-844-943-2942 Participant Passcode: 545169 The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants. About CPS CPS is an advanced materials company that designs, manufactures, and sells high-performance material solutions to global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company specializes in proprietary metal matrix composites (MMCs), combining metals and ceramics to deliver superior strength, thermal management, and reliability for demanding applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure. CPS also produces hermetic packaging for high-reliability power and communications modules, supporting avionics, GPS, microprocessors, and specialized integrated circuits. Additionally, its lightweight HybridTech Armor® provides high strength-to-weight protection. CPS focuses on innovation, quality, and diversified high-growth markets to drive sustained, profitable growth. The Company’s Vision is ”to pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.” Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2026 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward-looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release. CPS Technologies Corporation 111 South Worcester Street Norton, MA 02766 www.cpstechnologysolutions.com Investor Relations: Chris Witty 646-438-9385 [email protected]

Q1 results: Revenue fell to $7.0M (from $7.5M a year earlier) with a gross margin decline to 8.6% and an operating loss of about $500k, while cash plus marketable securities totaled $12.5M and inventories were increased to support a planned facility transition. Order and product momentum: Management attributes the sales dip to order timing but says backlog and intake remain strong, highlighted by a $4M hermetic packaging contract to be fulfilled within 12 months and growing interest in AlMax and QuickSet tungsten components; HybridTech Armor revenue is currently near zero but potential Navy contracts are expected later this year. Corporate developments: Chris Fraser will become CFO later this month as the company evaluates relocation sites (current lease runs to Feb 2028), and Congress reauthorized SBIR/STTR through FY2031 while the Navy added $100k to an ACV Phase 1 option for CPS. Interested in CPS Technologies Corp.? Here are five stocks we like better. CPS Technologies (NASDAQ:CPSH) reported first-quarter fiscal 2026 revenue of $7.0 million, down from $7.5 million a year earlier, with management attributing the decline primarily to order timing rather than demand. President and CEO Brian Mackey said the lower sales “does not diminish our positive outlook for 2026, nor reflect a lack of orders or demand,” while the company continues to evaluate sites for a future manufacturing facility relocation. The call featured an introduction of Chris Fraser, who is set to become CPS’s next chief financial officer later in the month. Mackey said Fraser will spend time working with outgoing CFO Chuck Griffith before officially taking the role, and he thanked Griffith for seven years of service. Griffith said his departure is “tentatively scheduled for the end of this month.” → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Fraser told investors his background includes serving as controller at Precision Castparts Corp. and CFO roles tied to federally funded early-stage ventures at the Advanced Regenerative Manufacturing Institute. He noted familiarity with SBIR and STTR programs and said he is excited to help CPS improve financial performance and pursue growth opportunities. Griffith reported gross profit of $0.6 million, or 8.6% of revenue, compared with $1.2 million, or 16.4% of revenue, in the first quarter of fiscal 2025. He said the decline was largely driven by lower revenue and the current period impact of an inventory build. Griffith said that “in future quarters, due to expected revenue growth and changes in product mix, we anticipate margins will grow,” and he added the company expects operating efficiencies to improve following the move to a new facility. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Selling, general and administrative expenses were $1.1 million, unchanged from the year-ago quarter. CPS posted an operating loss of about $500,000, compared with operating profit of approximately $100,000 in the prior-year period. Net loss was roughly $300,000, or negative $0.02 per share, versus net income of just under $100,000, or $0.01 per share, in the first quarter of fiscal 2025. On the balance sheet, CPS ended the quarter with $5.7 million in cash and $6.8 million in marketable securities, for $12.5 million combined, down from $13.2 million combined at the beginning of fiscal 2026. Accounts receivable totaled $3.8 million as of March 28, 2026, down from $5.2 million at Dec. 27, 2025. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Inventories increased to $7.1 million from $5.6 million at the start of the fiscal year. Griffith said the inventory growth is intended to support sales during the facility transition and is “acceptable as it will allow us to continue shipping and generating revenue during the transition to our new facility.” Payables and accruals were $3.9 million, compared with $4.3 million at the end of fiscal 2025. Mackey said the facility search is taking longer than expected due to the complexity of CPS’s requirements. He cited considerations such as “power requirements, industrial gas supply, floor space, et cetera,” and said the company is focused on evaluating top candidate sites. Mackey noted CPS’s current lease runs through February 2028, giving the company time to choose what it believes is the best location rather than rushing the decision. Griffith said the specific timing of the move is not yet finalized, but management remains optimistic it can be executed “in the coming quarters,” which he said would position CPS for stronger growth. Mackey said the SBIR and STTR programs have been fully reauthorized by Congress through fiscal 2031, which he described as providing a “long runway of clarity and certainty.” He said CPS’s ongoing programs had continued to be funded even before reauthorization, and that new research topics are being released, enabling the company to bid on additional work. He said CPS continues work on funded programs including radiation shielding, energy storage for long-range missiles, and controlled fragmentation 40-millimeter warheads made from tungsten alloys. Mackey also said the Navy SBIR office executed an option to extend CPS’s Phase 1 program related to Amphibious Combat Vehicles, providing $100,000 in additional funding and extending the program six months beginning in June. The work includes methods to reduce ACV weight, potentially incorporating CPS’s HybridTech Armor as ballistic protection in place of steel plates, he said, while the Navy’s decision on potential Phase 2 funding will come later. Mackey said there has been “some recent softening of product deliveries, particularly in metal matrix composites,” but added that CPS’s backlog and order intake remain strong and that the company is familiar with revenue lumpiness in its markets. As an example of recent demand, Mackey said CPS booked a $4 million Hermetic Packaging contract that the company expects to fulfill in less than 12 months, with shipments expected to begin soon. He also said CPS’s proprietary AlMax material is seeing increased interest, with more samples being provided to customers across different markets. In addition, CPS shipped its first small order for tungsten alloy components using its proprietary QuickSet Injection Molding process, describing it as an order received in March and fulfilled in April. Mackey said the same technology is being used in the company’s Army Phase II program for 40-millimeter controlled fragmentation warheads, and he noted that CPS has also engaged with a commercial customer seeking tungsten alloy components that are difficult to produce cost-effectively using other methods. During the Q&A, Mackey said HybridTech Armor revenue is currently “effectively zero” after the company completed aircraft carrier-related Navy orders that ran from 2021 until about April 2024. However, he said Kinetic Protection has advised that new U.S. Navy-related contracts are anticipated in the latter half of the current calendar year. Mackey said the potential new business would involve a small quantity of Navy destroyers, with congressional funding already secured for ballistic shields on a handful of vessels and detailed contract negotiations expected to begin soon. Asked about the mix among CPS’s product areas, Mackey said metal matrix composites versus hermetic packaging is “maybe 60-40, 70-30,” while emphasizing there can be significant fluctuation. He also estimated SBIR funding represents “probably 5%” of revenue. On costs, Griffith said raw materials are not a large part of the cost structure for metal matrix composites compared with labor and overhead, and he described aluminum price increases as modest in overall product cost. He noted that tungsten prices have “skyrocketed,” but said CPS can price accordingly and added that its manufacturing process reduces tungsten waste compared with machining. Mackey said the company remains upbeat about 2026 and beyond, pointing to continued demand, ongoing bidding activity, and efforts to broaden its technology portfolio as it works toward a larger manufacturing footprint. CPS Technologies Corp is a materials technology company specializing in the design and manufacture of advanced engineered composites and metal systems. The company develops bonded metal components, high-performance polymer composites and ceramic-to-metal brazed assemblies that address the demanding requirements of high-temperature, high-stress and high-frequency applications. CPS Technologies' product portfolio includes thermal management solutions, electromagnetic interference (EMI) shielding materials, structural composites and electronic packaging substrates tailored for critical end markets. Serving the aerospace, defense, electronics and energy industries, CPS Technologies works closely with original equipment manufacturers and system integrators to deliver custom materials solutions that reduce weight, improve thermal efficiency and enhance mechanical performance. The article "CPS Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: March 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CPS Technologies Corp (NASDAQ:CPSH) achieved a new quarterly revenue record of $8.1 million for Q2, marking an 8% sequential growth from Q1. The company reported a significant year-over-year revenue increase of 61%, driven by strong customer demand and improved manufacturing output. CPS Technologies Corp (NASDAQ:CPSH) posted a gross profit of $1.3 million, a substantial improvement from a gross loss in the previous year. The company secured its fourth new SBIR Development Contract of the year with the US Navy, highlighting its ongoing partnership and potential for future contracts. CPS Technologies Corp (NASDAQ:CPSH) received its first purchase order for Almax materials, indicating promising commercial traction and expanded interest across multiple markets. The company's cash and marketable securities decreased from $3.3 million at the end of 2024 to $2.4 million at the end of Q2 2025. CPS Technologies Corp (NASDAQ:CPSH) faced headwinds in improving margins due to tariffs impacting domestic pricing. A previously held radiation shielding contract was fully canceled, although the company is being compensated for work done prior to cancellation. The company is experiencing capacity constraints despite adding a third shift, indicating challenges in meeting growing demand. There is uncertainty regarding the reconstitution of a terminated radiation shielding contract, which could impact future revenue opportunities. Warning! GuruFocus has detected 2 Warning Signs with CPSH. Is CPSH fairly valued? Test your thesis with our free DCF calculator. Q: Could you talk a little bit about your visibility into future revenues, what type of pipeline you may have, and just kind of get into the sales cycle and how it all develops? A: Our visibility into future revenues varies by customer. Some customers order a couple of months out, while others have a 4 to 6 month timeframe, and occasionally up to 12 months. On average, our window is 4 to 6 months, and we continue to see strong demand. Q: Does CPS expect to benefit from the build-out in data centers and the associated spending? A: While data centers are not directly relevant to CPS, the high voltage DC lines (HVDC) projects, particularly in Europe, are of interest. These projects, which include wind farms, require our base plates for high power electronics, presenting a new opportunity for CPS. Q: You had a radiation shielding contract that was terminated. Is there any chance it might be reconstituted? A: The specific contract was canceled and will not be reinstated. However, we are optimistic about future opportunities in radiation shielding and are being compensated for the work done prior to the cancellation. Q: With the addition of a third shift, are you seeing any capacity constraints in the near future? A: The third shift was added to address growing demand, and while it is a challenge, we have plans to manage it. Demand remains robust, and we are strategically addressing capacity needs to support anticipated growth. Q: Regarding the fiber-reinforced aluminum, do you bring proprietary technologies beyond what you're licensing? A: Yes, we are the exclusive global licensee of Triton Systems' reinforced aluminum. We bring our metal matrix composite expertise to enhance and potentially combine this material with others for various applications, generating significant interest. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CPS posted a record fiscal 2025 with $32.6 million in sales and Q4 revenue of $8.2 million (up from $5.9M a year earlier), and Q4 gross profit improved to $1.2 million (~14.6%) though margins were pressured by sharply higher gold costs. The company raised $9.5 million in a fourth-quarter secondary offering and is moving to a larger manufacturing facility to expand capacity, support its third shift, and position CPS for longer-term growth, with a site decision and move expected in the coming weeks to months. Defense and government R&D remain key drivers: management expects resumed U.S. Navy orders for HybridTech Armor in H2, CPS has received 13 DoD/DOE awards with four ongoing SBIR/STTR contracts, and has invested in higher-capacity equipment for Army and DOE programs. Interested in CPS Technologies Corp.? Here are five stocks we like better. CPS Technologies (NASDAQ:CPSH) closed out fiscal 2025 with what management described as the best revenue year in the company’s history, driven by strong product demand, higher shipments, and expanded production capabilities. On the company’s fourth quarter earnings call, President and CEO Brian Mackey and CFO Chuck Griffith also outlined plans for a manufacturing facility relocation, provided an update on HybridTech Armor, and discussed federally funded research programs and recent capital equipment investments. Mackey said fiscal 2025 sales totaled $32.6 million, calling the result a milestone and a “strong comeback” from the prior year. For the fourth quarter, Griffith reported revenue of $8.2 million, up from $5.9 million in the fourth quarter of fiscal 2024. He said the year-over-year increase was driven by strong demand and higher shipments, supported by the company’s third shift and expanded production capabilities. → Defense Stocks Are Soaring—AeroVironment's Earnings Could Close the Gap Griffith noted fourth quarter revenue declined from third quarter levels primarily due to extended customer holiday periods, particularly for overseas customers. Fourth quarter gross profit was $1.2 million, or about 14.6% of sales, compared with a gross loss of $0.3 million a year earlier. Griffith attributed the improvement to higher revenue and greater manufacturing efficiencies, but said margins stepped down versus the third quarter due to lower revenue and the “dilutive impact” of sharply higher gold costs. He explained that some CPS products are gold-plated and that the company’s margin on the added gold cost is “nominally zero,” meaning higher gold prices can weigh on gross margin percentage. → IonQ in Rebound Mode: Buy the Thesis, Respect the Risk In the question-and-answer session, Griffith said gold prices had more than doubled from about a year earlier and estimated the impact can be “maybe a point or two” of margin depending on quarterly volume. He also cited inventory growth as a headwind to margins because of conservative inventory valuation practices, which can result in costs being expensed before corresponding sales occur. He added that during the relocation period—when production is reduced—there could be an opposite effect. Selling, general, and administrative expenses were $1.3 million in the fourth quarter, compared with $1.0 million in the prior-year period. Griffith said CPS continued to manage costs while ramping production and investing for growth, noting SG&A remained “fairly constant” through fiscal 2025. → Super Micro: Why the Shadow of NVIDIA Is a Profitable Place to Be The company posted an operating loss of about $100,000 for the quarter, compared with approximately $1.3 million last year. CPS reported net income of around $12,000, or $0.00 per share, compared with a net loss of about $1.0 million, or $0.07 per share, in the prior-year fourth quarter. Mackey highlighted a secondary offering completed in the fourth quarter that raised $9.5 million in net proceeds, saying the strengthened balance sheet leaves the company in better shape than in “recent memory.” He added that management expects 2026 to position CPS for higher growth longer term. Griffith said CPS ended the year with $4.5 million of cash and $8.8 million in marketable securities. He also discussed working capital items, noting trade accounts receivable totaled $5.2 million at the end of the period, while inventories increased to $4.5 million from $3.5 million at the start of the fiscal year, reflecting increased production and customer demand. Payables and accruals were $4.3 million, compared with $4.0 million in fiscal 2024. A central theme of the call was CPS’s plan to relocate to a larger manufacturing facility nearby, funded in part by capital raised in October. Mackey said the current site is space-constrained and limits the company’s ability to respond to demand, particularly now that the third shift of metal matrix composite manufacturing is fully operational. The company recently selected Dacon Corporation as general contractor to help evaluate sites, negotiate a lease, and manage build-out work to meet manufacturing requirements. Mackey said the move is anticipated to begin “several months” from now, with the total move taking several months as equipment and work centers are transferred and revalidated. In response to analyst questions, management said CPS had narrowed its search to a short list of facilities and expected to make a site decision within several weeks to about a month. Mackey said CPS is building inventory ahead of the move to help support customers during periods of disruption. He also said prospective sites are close to the current facility, which should help minimize workforce disruption by limiting commute changes. Looking beyond the move, Mackey said the new facility should provide operational efficiencies, reduced facility maintenance expense, and a better working environment. He also said CPS expects additional capacity in the new facility, supported by both increased floor space and equipment that will be delivered directly to the new site, with some “generally uncommitted” space earmarked for future opportunities. On HybridTech Armor, Mackey said that following passage of the FY 2026 Defense Bill, Kinetic Protection—CPS’s partner and prime contractor—is optimistic that U.S. Navy-related orders will resume in the latter half of the current calendar year. He said earlier orders (2021–2024) supported crew-served weapon stations on aircraft carriers, while the anticipated future orders would cover a small quantity of Navy destroyers, with funding secured for ballistic shields on “a handful” of vessels. Mackey said detailed contract negotiations are expected to begin in the coming months. Mackey also discussed government-funded R&D efforts. Since re-engaging in the SBIR and STTR programs in 2021, he said CPS has received 13 awards from the Department of Defense or Department of Energy. He noted the programs lapsed at the end of the prior federal fiscal year (September 30, 2025) because they have not yet been reauthorized, limiting proposal reviews and new topic publication. However, he said CPS’s four ongoing contracts—one Phase I and three Phase II—continue to be executed and funded without interruption. He added that CPS had recently seen indications that Congress reached a compromise enabling reauthorization, potentially through September 30, 2031, with full approval possibly later in the month. Mackey highlighted recent investments in capital equipment, including a higher-capacity mill for the AlMax product line that now processes ceramic fiber at twice the previous rate, and a new sintering oven supporting Phase II of an Army-funded controlled fragmentation tungsten warhead program. He said CPS is producing 40-millimeter warhead samples with unique geometries intended to exceed Army performance benchmarks. He also pointed to ongoing DOE-funded work in radiation shielding, including development and testing of larger-scale samples and evaluation of lightweight MMC radiation shielding applications across industries. During Q&A, management also addressed commodity exposure. Mackey said aluminum is a relatively small portion of product cost and does not have a large margin impact, though he described it as a potential headwind and noted the sales team can incorporate cost changes into pricing for customers with more frequent ordering patterns. The call also included leadership commentary, with Mackey noting Griffith’s plans for retirement and saying the company is actively searching for a successor. Looking ahead, Mackey said CPS expects 2026 to be “a year of solid revenue” as it completes the relocation and lays groundwork for longer-term growth, with the new facility intended to support higher demand, additional gross margin initiatives, and expansion into new markets over time. CPS Technologies Corp is a materials technology company specializing in the design and manufacture of advanced engineered composites and metal systems. The company develops bonded metal components, high-performance polymer composites and ceramic-to-metal brazed assemblies that address the demanding requirements of high-temperature, high-stress and high-frequency applications. CPS Technologies' product portfolio includes thermal management solutions, electromagnetic interference (EMI) shielding materials, structural composites and electronic packaging substrates tailored for critical end markets. Serving the aerospace, defense, electronics and energy industries, CPS Technologies works closely with original equipment manufacturers and system integrators to deliver custom materials solutions that reduce weight, improve thermal efficiency and enhance mechanical performance. The article "CPS Technologies Q4 Earnings Call Highlights" was originally published by MarketBeat.

Company Closes Out Year with Record Sales of $32.6 Million and Improved Balance Sheet to Support Future Growth NORTON, Mass., March 02, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal fourth quarter ended December 27, 2025. Fourth Quarter Summary Revenue of $8.2 million, versus $5.9 million in the prior-year period, reflecting strong demand for the Company’s core product lines and expanded production. Gross margin of 14.6 percent versus a gross loss in the fourth quarter of 2024. Operating loss of $(0.1) million for the quarter compared to $(1.3) million in the prior-year period. As previously announced, CPS won a $15.5 million follow-on order with a major multinational semiconductor manufacturer during the quarter. On October 8, 2025 the Company closed on a public offering that brought in net proceeds of $9.5 million to be used for general corporate purposes, including the expansion of CPS’ production capabilities through the move to a larger facility. “As expected, we closed 2025 with the strongest revenue in our Company’s history, $32.6 million, an increase in revenue of 54% over 2024, marking a great comeback for CPS as we position the organization for the future,” said Brian Mackey, President and CEO. “With the capital raise under our belt, we’re now able to focus on the array of growth opportunities we have developed. This includes increasing production, advancing our product portfolio, entering additional markets, winning new customers, and positioning ourselves to accelerate our revenue and profitability growth in the quarters to come. We are nearing the completion of our evaluation of potential sites for a larger, advanced CPS manufacturing facility and look forward to making this transition over the course of the remainder of 2026. Overall, we’re in great shape for another year of strong revenue, continued margin expansion, and an even stronger outlook going forward.” Results of Operations CPS reported revenue of $8.2 million for the fourth quarter of fiscal 2025 versus $5.9 million in the prior-year period, reflecting greater production rates and increased shipments, along with the impact from higher gold prices. Gross profit was $1.2 million, or 14.6 percent of revenue, versus a gross loss of $(0.3) million, or (5.1) percent of revenue, in the fiscal 2024 fourth quarter, with the year-over-year increase due to higher sales and greater production efficiencies. Operating loss was $(0.1) million in the fiscal 2025 fourth quarter compared with an operating loss of $(1.3) million in the prior-year period; SG&A expenses totaled $1.3 million during the quarter, compared to $1.0 million in the same quarter of fiscal 2024. The increase was primarily due to higher variable compensation expense, reflecting the increase in annual revenue and profit. In addition, the higher revenue generated a significant increase in sales commission expense. Reported net income for the quarter was $0.0 million, or $0.00 per diluted share, versus a net loss of $(1.0) million, or $(0.07) per diluted share, in the quarter ended December 28, 2024. Conference Call The Company will be hosting its fourth quarter 2025 earnings call tomorrow, March 3, 2026, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following: Call in Number: 1-844-943-2942 Participant Passcode: 641664 The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants. About CPS CPS is an advanced materials company that designs, manufactures, and sells high-performance material solutions to global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company specializes in proprietary metal matrix composites (MMCs), combining metals and ceramics to deliver superior strength, thermal management, and reliability for demanding applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure. CPS also produces hermetic packaging for high-reliability power and communications modules, supporting avionics, GPS, microprocessors, and specialized integrated circuits. Additionally, its lightweight HybridTech Armor® provides high strength-to-weight protection. CPS focuses on innovation, quality, and diversified high-growth markets to drive sustained, profitable growth. The Company’s Vision is “to pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.” Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2026 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release. CPS Technologies Corporation 111 South Worcester Street Norton, MA 02766 www.cpstechnologysolutions.com Investor Relations: Chris Witty 646-438-9385 [email protected]