CVV

Shares of CVD Equipment Corporation CVV have gained 3.3% since the company reported its earnings for the quarter ended June 30, 2026, outperforming the S&P 500 Index’s 0.7% rise over the same period. Over the past month, the stock has rallied 10.2% compared with the S&P 500’s 4.1% increase. CVD reported second-quarter 2026 revenues from continuing operations of $1.9 million, down 42.6% from $3.4 million a year earlier. Loss from continuing operations was 20 cents per share, compared with 19 cents per share in the prior-year quarter. Including discontinued operations, CVV recorded a net income of $12.6 million, or $1.81 per share, against a net loss of $1.1 million, or 15 cents per share, a year ago, largely reflecting the SDC divestiture. CVD now operates as a single reportable segment following the sale. By end market, aerospace revenues fell 40.2% to $1.2 million, industrial revenues declined 44.9% to $685,000 and research revenues decreased 49.3% to $113,000. Energy revenue was nil compared with $7,000 a year earlier. Second-quarter 2026 orders totaled $1.2 million, down from $1.5 million a year earlier. The latest figure included a $0.8 million PowderCoat 450 system order, with the balance comprising non-system orders. Backlog declined to $3.9 million as of June 30 from $4.6 million as of March 31. Gross profit fell 31.6% to $329,000 from $481,000, although gross margin improved to 16.8% from 14.1%. Research and development expenses increased 7.2% to $685,000, selling expenses declined 17.7% to $232,000 and general and administrative expenses rose 4.3% to $971,000. Interest income increased 131.7% to $190,000, benefiting from investment of the SDC sale proceeds. Cash and cash equivalents increased to $23.5 million at quarter-end from $8.7 million as of Dec. 31, 2025, while stockholders’ equity rose to $36 million from $24.7 million. CVV had no long-term debt. Working capital increased to $25.8 million as of June 30, 2026, from $14.1 million as of Dec. 31, 2025. Net cash used in operating activities totaled $1.3 million during the first six months of 2026. CVD Equipment Corporation price-consensus-eps-surprise-chart | CVD Equipment Corporation Quote CEO Emmanuel Lakios said that CVV has substantially completed the operational restructuring begun last year, which was intended to align costs with current activity and improve operating efficiency. Management expects the actions to materially lower fixed operating costs. In aerospace, CVD is installing and commissioning previously shipped equipment and has experienced increased demand for consumables and spare parts, which management said generally carry favorable gross margins. However, the PVT silicon-carbide market remains saturated, and management reported no meaningful commercial development from that business during the quarter. The revenue decline primarily reflected weaker system bookings during 2025 and the first half of 2026, while the higher gross margin resulted from a greater proportion of non-system revenue. Broader economic and geopolitical uncertainty continued to weigh on orders. Management also cited delayed university funding and lingering disruptions related to the government shutdown as impediments to prospective orders. Meanwhile, several newer aerospace products still require installation, commissioning and customer adoption before potentially generating follow-on business. Management did not provide formal revenue or earnings guidance, citing the nature and size of the business. CVD completed the sale of its SDC division on April 1 for $17.4 million. Net cash proceeds after transaction costs and employee-related liabilities were $15.7 million, with approximately $0.7 million of estimated related income taxes expected to be paid in the third quarter of 2026. The transaction generated a $13.5 million net gain, including first-quarter transaction costs. CVV retained its Saugerties, NY, facility and leased it to the buyer for an initial two-year term. The company is continuing to evaluate strategic alternatives, including potential sales, divestitures or acquisitions of assets or business lines. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVD Equipment Corporation (CVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Completed the sale of SDC business, significantly strengthening the balance sheet with approximately $23.5 million in cash and no long-term debt. Substantially completed operational restructuring, expected to materially reduce fixed operating costs going forward. Gross margin improved to 16.8% from 14.1% in the prior year quarter, driven by a higher proportion of non-system revenues. Stockholders' equity increased to approximately $36 million from $24.7 million at year-end 2025. Reported net income of $12.6 million for the quarter, largely due to the gain on the SDC divestiture. Revenue from continuing operations declined 43% year-over-year to $2 million, reflecting weaker bookings. Orders during the quarter were only $1.2 million, with backlog at $3.9 million, indicating continued soft demand. Operating loss from continuing operations was approximately $1.6 million, with a net loss of $1.4 million from continuing operations. A customer associated with a $0.8 million system order filed for Chapter 11 bankruptcy, potentially impacting the order and backlog. Market conditions remain challenging, with customer orders adversely affected by economic and geopolitical uncertainty, and no clear timeline for recovery in key sectors like PVT and aerospace. Warning! GuruFocus has detected 5 Warning Sign with CVV. Is CVV fairly valued? Test your thesis with our free DCF calculator. Q: What macroeconomic headwinds need to change for orders to start flowing to the company?A: Emmanuel Lakios, President and CEO, highlighted several key factors: a shift in federal government funding priorities for university research, which drives the FirstNano product lines and seeds future production systems; the lingering impact of the government shutdown that delayed funding for prospects, requiring opportunities to be "reborn, requoted, and funding resubmitted"; and noted some interesting demand in the defense area, though it's too early to quantify. He also mentioned that the silicon carbide wafer market remains saturated by Chinese suppliers, and new aerospace products still need to be installed and commissioned before generating future orders. Q: Given the heavy CapEx from major engine OEMs targeting CMC component capacity, how are you thinking about the timing and sizing of potential follow-on orders in the aerospace business?A: Emmanuel Lakios, President and CEO, stated that aerospace has seen a tick up in production of gas turbine engines utilizing ceramic matrix composite materials. The company is in the middle of adding capacity for customers who ordered previously, with tools in the installation and commissioning phase. He noted an uptick in consumables and spare parts from the aerospace segment, which are proprietary parts with very reasonable gross margins, and expects this trend to continue as customers utilize the equipment. Q: Has the visibility from the PVT and Stony Brook collaboration translated into any broader commercial engagement or pipeline conversations?A: Emmanuel Lakios, President and CEO, explained that the PVT system produces quality boules but serves a market saturated by silicon carbide wafers. While they continue to characterize the equipment and see potential for the future, there is nothing to report on the commercial side at this point in time. Q: Do you have any progress on boule quality or wafer quality to share beyond your last press release on the Stony Brook system?A: Emmanuel Lakios, President and CEO, noted that under their agreement with Stony Brook University, they co-release or allow the university to release characterization information first. Since no new information has been released since the last press release, he had nothing more to share, but confirmed that Stony Brook continues to run boules on their equipment. Q: Have you retained an outside investment bank to help with strategic initiatives, or are you doing it all internally?A: Emmanuel Lakios, President and CEO, responded that in the past, when they had something to speak about regarding strategic alternatives, they did so. At this point, they do not have anything substantive to discuss or disclose, but will inform all stakeholders as developments occur. Q: Is there any way to know what the revenue amount to break even would be?A: Richard Catalano, Executive Vice President and CFO, stated that historically, the company has not provided guidance given the nature and size of the business. They are not able to make those types of forecasts and expose them publicly. Q: If the Democrats take the House in November, will that loosen up the spigots for university funding, or do we have to wait for a change in the executive branch?A: Emmanuel Lakios, President and CEO, declined to discuss politics, stating that whichever party is more favorable to university funding will be a positive for universities and therefore for all equipment suppliers, including CVD Equipment. Q: Was the powder coat system intended for battery applications?A: Emmanuel Lakios, President and CEO, confirmed that the system is in the energy space, and one could assume it is in battery applications. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Completed the sale of the SDC business on April 1, 2026, significantly strengthening the balance sheet and focusing resources on the core Advanced Material Process Equipment Group. Substantially finalized an operational restructuring initiative designed to align the cost structure with current business activity levels and materially reduce fixed operating costs. Attributed the 43% revenue decline to lower system revenue resulting from weaker bookings experienced throughout 2025 and the first half of 2026. Improved gross margin to 16.8% despite lower revenue, driven by a higher proportion of nonsystem revenues, including proprietary consumables and spare parts. Maintained a disciplined approach to capital allocation and expense control to create a solid platform for future growth when market conditions improve. Identified broader economic and geopolitical uncertainty as the primary drivers for currently suppressed customer order levels. Expects the recent restructuring actions to materially reduce fixed operating costs and improve operating efficiency in future periods. Anticipates continued demand for consumables and spare parts in the aerospace segment as customers utilize the existing installed base of gas turbine engine equipment. Monitors potential demand in the defense sector, though management noted it is currently too early to quantify the timing or scale of this opportunity. Views the adoption and commissioning of recently launched aerospace products as a critical dependency for securing future system orders. Acknowledges that a recovery in university-driven orders depends on shifts in federal funding priorities for research and development. Recorded a total gain on the SDC divestiture of approximately $13.5 million, resulting in a debt-free balance sheet with $23.5 million in cash. Disclosed a potential risk regarding an $0.8 million system order from Q2 after the customer filed for Chapter 11 bankruptcy; management is currently evaluating the impact on backlog. Noted that the PVT (Physical Vapor Transport) market for silicon carbide is currently saturated by Chinese suppliers and major incumbents, limiting near-term commercial opportunities. Flagged that government shutdown-related delays in customer funding have forced the 'rebirthing' and requoting of several sales opportunities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are currently installing and commissioning tools for major engine OEMs that were ordered previously. Noted a significant uptick in high-margin consumables and spare parts as customers increase utilization of the installed equipment base. Management stated there is currently nothing to report on the commercial side for PVT equipment due to a saturated silicon carbide wafer market. Indicated that while their system produces quality boules, the market is currently dominated by large incumbents and Chinese suppliers. Identified a need for increased federal funding for universities to drive demand for the FirstNano product line. Highlighted that defense area opportunities are emerging, but the timing for these to translate into orders remains uncertain. Management declined to provide a specific break-even number, citing their historical policy of not providing financial guidance due to the nature and size of the business.

CENTRAL ISLIP, N.Y., August 12, 2026--(BUSINESS WIRE)--CVD Equipment Corporation (NASDAQ: CVV) (the "Company") today reported its financial results for the second quarter ended June 30, 2026. Highlights Completed sale of SDC division on April 1, 2026 for $17.4 million. Generated net cash proceeds of approximately $15.0 million from the transaction after transaction costs and estimated tax payments to be made in the third quarter. Ended the quarter with approximately $23.5 million of cash and cash equivalents and no long-term debt. Reported net income of $12.6 million for the quarter, reflecting the $13.9 million gain on the divestiture of SDC. Completed major operational restructuring expected to significantly reduce the Company's fixed cost structure. Manny Lakios, President and Chief Executive Officer of CVD Equipment Corporation, stated, "The successful divestiture of SDC marks a transformational milestone in the evolution of CVD Equipment. The transaction significantly strengthened our balance sheet, increased our financial flexibility, and allows us to pursue long-term growth opportunities while we continue to evaluate strategic alternatives for the Company. While customer order levels continue to be adversely affected by the broader economic and geopolitical uncertainty, we remain actively engaged with our customers and are continuing to pursue opportunities developing across our target markets. We are also focused on maintaining a disciplined approach to capital allocation and expense control, with a goal of creating long-term shareholder value." Second Quarter 2026 Performance from Continuing Operations(excluding the discontinued operations of SDC) Balance Sheet As a result of the divestiture of the SDC division: Cash increased to $23.5 million from $8.7 million at December 31, 2025. Stockholders' equity increased to $36.0 million from $24.7 million. Operations Orders: $1.2 million (includes a $0.8 million PowderCoat 450 system order), a decrease from $1.5 million in the prior year quarter, due to lower system and non-system orders. Revenue: $2.0 million, down 42.6% as compared to prior year quarter. Revenue continued to reflect lower system bookings during 2025 and early 2026. Gross margin: 16.8% versus 14.1% in the prior year quarter, principally due to a higher proportion of non-system revenues in the current quarter. Backlog: $3.9 million at June 30, 2026, as compared to $4.6 million at March 31, 2026. Earnings (Loss) Net loss from continuing operations: ($1.4 million), or ($0.20) per basic and diluted share, compared with net loss from continuing operations of ($1.3 million), or ($0.19) per basic and diluted share, in the prior year quarter. Net income from discontinued operations: $13.9 million, or $2.01 per basic and diluted share, consisting of the gain on the divestiture of SDC of $13.9 million, net of transaction expenses and income tax expense. Including $0.4 million of transaction costs recognized during the first quarter of 2026, the total net gain on the divestiture was $13.5 million. Following quarter-end, the customer associated with the $0.8 million system order filed a prepackaged Chapter 11 bankruptcy proceeding. Although unsecured trade creditors are expected to be unimpaired under the proposed plan, the Company is evaluating the potential impact on the order and its backlog, financial results, financial position, and cash flows. Conference Call A conference call reviewing these results has been scheduled for today, August 12, 2026 starting at 5:00 PM ET. To join the call, dial 1-877-407-2991 or 1-201-389-0925. A live and archived webcast of the call will also be available on the company’s website at https://cvdequipment.com/events. The archived webcast will be available approximately two hours following the end of the conference call. A telephone replay will be available for 7 days. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. The replay passcode is 13762114. About CVD Equipment Corporation CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, and related equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include aerospace & defense (ceramic matrix composites), silicon carbide (SiC) high-power electronics, electric vehicle (EV) battery materials (carbon nanotubes, graphene and silicon nanowires), and industrial applications. Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as "forward-looking statements, "as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, market and business conditions, the success of CVD Equipment Corporation’s growth and sales strategies, uncertainty as to our ability to execute on our transformation strategy, the possibility of customer changes in delivery schedules, cancellation of, or failure to receive orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements, competition in our existing and potential future product lines of business, including our aerospace equipment and PVT systems; our ability to obtain financing on acceptable terms if and when needed; uncertainty as to our ability to develop new products for growth markets; uncertainty as to our future profitability; uncertainty as to any future expansion of the Company; uncertainty as to our ability to adequately obtain raw materials and components from foreign markets in light of geopolitical developments; and other risks and uncertainties that are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor of the Private Securities Litigation Reform Act of 1995. The Company assumes no obligations to update or supplement any forward-looking statements whether as a result of new information, future events. This earnings release should be read in conjunction with the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for fiscal year ended December 31, 2025. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812320712/en/ Contacts CVD Equipment Corporation: Richard Catalano, Executive Vice President & CFO Phone: (631) 981-7081 Email: [email protected]

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET President and Chief Executive Officer — Emmanuel Lakios Chief Financial Officer — Richard Catalano Emmanuel Lakios: Thank you, Diego, and good afternoon, everyone. We appreciate you joining us today to review our fourth quarter and full year 2025 financial results and to provide you an update on our business and strategic initiatives. Following our prepared remarks, we will be happy to take your questions. As previously disclosed, in response to continued volatility in order rates and recent decline in bookings within our CVD Equipment division, we have initiated a transformation strategy during the fourth quarter designed to significantly reduce fixed operating costs, create a more agile organization and better position the company to maximize shareholder value. Key elements of this plan included: transitioning the CVD Equipment business from a vertically integrated fabrication model to outsource fabrication for certain components, which we expect will reduce fixed costs and improve scalability; completing a workforce reduction in the CVD Equipment division during the fourth quarter, which was to rightsize the organization, and is expected to reduce annual operating costs by approximately $1.8 million in 2026; revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization; and exploring strategic alternatives for certain businesses and product lines, including potential asset sales or divestitures. As part of our strategic review on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business will be sold to Atlas Copco Group. The purchase price is approximately $16.9 million in cash, subject to certain purchase price adjustments. The transaction is expected to close during the second quarter of 2026, subject to customary closing conditions. This transaction will allow us to sharpen our focus on our core CVD Equipment business in Central Islip, New York. It is also expected to strengthen our balance sheet and provide additional financial flexibility as we continue to evaluate opportunities across the CVD Equipment business, its product lines and our facilities. We expect net cash proceeds after transaction expenses and taxes to be approximately $15 million, of which $900,000 will be held in escrow for post-closing adjustments and indemnification obligations under the agreement. We retain ownership of our Saugerties, New York facility, which will be leased to Atlas Copco Group for the initial term of 2 years following the closing. I also want to express our appreciation to our SDC employees for their contribution to the company over the years. Turning to our financial results. Fourth quarter 2025 revenue was $5 million, down 33% from prior year period and down 33% sequentially from the third quarter. For our full year 2025, revenue was $25.8 million, a decrease of 4.1% from fiscal year 2024. Orders in the fourth quarter totaled $3.5 million, driven primarily by the demand in our SDC segment for gas delivery equipment and the receipt of two orders from Stony Brook University for two PVT150 units. For the full year, orders totaled $13 million compared to $28 million in 2024, primarily driven by demand in our SDC business for gas delivery equipment and order for spare parts and service for our CVD Equipment division. At December 31, 2025, backlog was $6.6 million compared with $8 million at the end of September 30, 2025, and $19.4 million at the end of December 31, 2024. Our bookings continued to be pressured by several factors, including softer demand for our products in our CVD Equipment division, tariff-related uncertainties, reduced U.S. government spending for universities and a slower pace of adoption of our solutions in certain end markets. We continue to market -- to monitor our customer demand, the general uncertainty of the geopolitical environment and potential tariff impacts as we are -- and we are planning accordingly. Even against this backdrop, we remain focused on delivering solutions across our key targeted markets of aerospace, defense, industrial applications, including silicon carbide on graphite and silicon carbide use in high-power electronics and other emerging applications. With that, I will turn the call over to our CFO, Richard Catalano, to review the financial results in more detail. Richard Catalano: Thank you, Manny, and good afternoon, everyone. Fourth quarter 2025 revenues were $5 million. This compares to $7.4 million in the fourth quarter of 2024. This year-over-year decline was primarily driven by lower CVD systems revenue. Revenue in our CVD Equipment segment was concentrated among two key customers, which together represented approximately 53% of total fourth quarter revenue. Our SDC segment reported revenue of $2.2 million in the quarter compared to $1.9 million in the fourth quarter of fiscal '24 and $1.7 million in the third quarter of 2025. Consolidated gross profit for the quarter was $1.1 million, resulting in a gross margin of 22.2%. This compares with a gross profit of $2 million and a gross margin of 26.4% in the prior year quarter. The decrease was primarily due to lower CVD revenue, which resulted in higher unabsorbed overhead as well as a less favorable contract mix. Our operating loss for the fourth quarter of 2025 was $1.3 million compared to operating income of $34,000 in the fourth quarter of 2024. Included in the fourth quarter 2025 results was a noncash impairment charge of $163,000. This was related to certain equipment and capitalized software associated with our transition to outsourced fabrication of certain components in our CVD business. After interest income, the net loss for the quarter was $1.3 million or $0.18 per diluted share compared with net income of $132,000 or $0.02 per diluted share in the prior year quarter. For the full fiscal year, revenue was $25.8 million. This compares to $26.9 million in fiscal 2024. The year-over-year decline was primarily due to lower SDC revenue and lower MesoScribe revenue as we ceased that business. MesoScribe ceased operations in 2024. Revenue in our CVD Equipment segment was again concentrated among two key customers, which together represent 41% of total revenue for the year. Our SDC segment reported full year revenue of $7.6 million as compared to $7.8 million in fiscal 2024. Consolidated gross profit in fiscal '25 was $7.3 million or 28.3% of revenue compared to $6.1 million or 22.5% of revenue in fiscal '24. The increase in gross profit was primarily due to improved gross margins in our CVD Equipment segment. This was primarily due to a prior year charge of $1.6 million that we took last year to write down certain inventory to net realizable value. We did not incur a similar charge in fiscal '25. This improvement, not having the charge was partially offset by lower gross profit in the current year in our SDC and MesoScribe segments due principally to lower revenues. Operating loss for fiscal '25 was $1.9 million. This compares to an operating loss of $2.4 million in fiscal '24. Interest income, net loss for the year was $1.6 million or $0.23 per diluted share compared to a net loss of $1.9 million or $0.28 per diluted share in fiscal '24. At December 31, '25, we had cash and cash equivalents of $8.7 million. This compares to $12.6 million at December 31, '24. Net cash used in operating activities during fiscal '25 was $3.7 million. This was largely driven by changes in working capital and contract timing as far as milestone billings. Working capital improved to $14.1 million at year-end '25. This compares to $13.8 million at the end of '24. This was due in part to the classification of approximately $0.5 million of fixed assets that we had held for sale and for which we sold in the early part of 2026. Looking ahead, our return to consistent profitability will depend on improved equipment order flow, disciplined cost management, successful execution of our transformation plan and continued control of capital expenditures. While our quarterly results might continue to fluctuate based on order timing, we believe our current cash position and projected cash flows will be sufficient to support our working capital and capital expenditure requirements for at least the next 12 months. In addition, upon the closing of the transaction to sell SDC, we expect net cash proceeds, excluding the $900,000 escrow amount to approximate $14 million and we currently intend to initially invest those proceeds in U.S. treasury securities. With that, I'll now turn it back to Manny. Emmanuel Lakios: Thank you, Rich. Our priorities are clear: serving our customers, supporting our employees and creating value for our shareholders and returning the business to sustained profitability. Operator, we are now ready to open the line for questions. Operator: [Operator Instructions] And our first question comes from Brett Reiss with Janney Montgomery Scott. Brett Reiss: Can you hear me? Emmanuel Lakios: We can hear you, Brett. Good to hear you again. Brett Reiss: Great. Great. Great. You're sitting on $23 million, $24 million in cash. Could you describe to us the skill sets of your existing engineers? And what I'm trying to get at is what are -- their skill sets would be complementary and enhance what type of acquisition you might be contemplating with the $23 million? Emmanuel Lakios: Yes. Well -- so Brett, we -- the number, I'll let Rich speak to the actual number on the cash -- any cash on hand plus what will net from the transaction. But as far as the talent pool, you asked, there are a couple of questions in your one question. The first is talent pool is consistent with what the talent pool was essentially from a capabilities perspective a year ago. We have a full complement of resources in the engineering and technology group for CVD equipment or CVI equipment, basically the main product line from Central Islip. So we retain that skill set. As far as the subsequent question, which is what are we going to do with cash and the proceeds, the Board is looking at opportunities and strategic alternatives for increasing shareholder value, and we'll continue to do that. At this point in time, we do not have something that is material or a [ path ] yet. This was a fair transaction for all parties, the SDC transaction. So we took advantage of that. So time will tell, but we don't have something to highlight today. Brett Reiss: Yes. Fair enough. Can you give us some sense, though, of what the pipeline of opportunities you're looking at? Are you looking at 3, 4, 5 different things? And how long have you been kicking the tires on some of these opportunities? Emmanuel Lakios: Well, we -- as a Board, we've been looking at strategic alternatives for quite several quarters, as you can imagine. You don't do a transaction in a quarter or two. And so -- but again, at this point in time, I'd be speaking out of turn -- I think in the next few quarters, we'll be able to identify and share with you certain -- some additional information. But right now, again, Brett, I don't have anything to speak of. Brett Reiss: Okay. And are you guardedly optimistic, though, you'll be able to find something that will have a less lumpy or more recurring revenue stream, perhaps with service revenue, which has always been what the company would like to have had, but just the nature of the type of businesses we're in, it's always been a kind of lumpy revenue cadence. Emmanuel Lakios: Well, the equipment business, Brett, is lumpy in itself, especially when you're a couple of hundred million dollars of revenue as we are, of course. The -- I think you've outlined nicely the objective for any strategic activity, which we want to have is have a smooth non-lumpy revenue stream, good customer value in spares and service. Those are all the attributes of entities we would like to entertain. But again, I can't speak to that at this point. Brett Reiss: Okay. I'll drop back. I don't know if there are any other people... Emmanuel Lakios: Thank you, again, Brett. Good hearing your voice. Operator: [Operator Instructions] And your next question comes from Frank Giordano, Private Investor. Unknown Shareholder: I just wanted to ask a question, of course, the money. It's something continuing on with Brett before. Regarding that, have you ever considered paying a special dividend in situations like this? Or it's something that the company doesn't pay? Emmanuel Lakios: I do not believe that in the history of the company, a special dividend was paid, at least in the period of time that I've been with the company, which is 9 years that has not been the case. But I could be corrected, but I think I'm accurate. Clearly, we believe shareholder value is based on growing the business, and utilization of our funds in a respectful manner, and we are conservative. So at this point in time, that is not actively on the table. Unknown Shareholder: Okay. And something else regarding the business itself. Are you concentrating a little bit with the military right now, let's say, in the drone companies or anything dealing with the military due to the situation that we are in? Emmanuel Lakios: Yes. Frank, thank you. Yes, we do serve aerospace and defense. That's one of our key markets. About 78% of our revenue over the last several years of our orders has come from military and defense, whether it's gas turbine engines, the use of CMCs or other ceramics, which we create -- we build the equipment that creates the material, and that goes into both commercial and also military gas turbine engines. As well as last year, we received an order, we shipped it this year. Actually, we shipped it in 2025 was for a research system that will be used for especially the ceramic materials for hypersonics. So we are in the next generation, I would say, materials. So -- and it will continue -- I foresee that it will continue to be our revenue and previously that orders will be driven by aerospace, defense for the foreseeable future. That's where these advanced materials are primarily utilized. Unknown Shareholder: Okay. I just wanted to tell you just my opinion here. You remind me of a company based out of Milan, it's called SAES Getters, was founded during Mussolini's time, the dictator Mussolini. And it survived through World War II. And then it became a company was taken over, I believe, a couple of years ago, at a much higher price than what it was in 2000. It was the only Italian company trading on the NASDAQ back in 2000, and it was around your price around $3 or $4 a share. And they used to pay a dividend every 3 months. I couldn't believe it, but it wasn't with the vapor, the decision, they do a lot of stuff, maybe different from your kind of company. But again, it was similar. It was similar. If you could research that and give you some ideas, interesting company out of Milan. Emmanuel Lakios: Yes. Drop us a line on the -- I didn't catch the name entirely, but drop us a line on that... Unknown Shareholder: All right. I repeat it again. SAES Getters. And there was a takeover, but the name is still there. There's a website. Of course, you could research it. But again, I don't know if they do have a division here still in the United States, out of Denver or something like that. But I remember that 20 years ago, when I used to deal with them. Emmanuel Lakios: We'll do. Thank you, sir. Appreciate it. Operator: And there appears to be no additional questions at this time. So I'll hand the floor back to Emmanuel Lakios for closing remarks. Thank you. Emmanuel Lakios: Thank you, Diego, and thanks to everyone for joining us today. We appreciate your continued interest and support of CVD Equipment Corporation. If you have any additional questions, as I said earlier, please reach out to myself or Rich directly. And this concludes our today's conference call. Operator: Thank you. And all parties may now disconnect. Have a good day. Before you buy stock in Cvd Equipment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cvd Equipment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CVD Equipment (CVV) Q4 2025 Earnings Transcript was originally published by The Motley Fool

Shares of CVD Equipment Corporation CVV have plunged 12.7% since the company reported results for the quarter ended March 31, 2026, underperforming the S&P 500 Index’s 0.7% decline over the same period. Over the past month, however, the stock gained 23.9%, outpacing the S&P 500’s 4.9% rise. CVD Equipment reported first-quarter 2026 revenue from continuing operations of $1.8 million, down 70.9% year over year from $6.3 million, reflecting lower CVD systems revenue tied to reduced system bookings. Net loss from continuing operations widened to $1.7 million, or 25 cents per diluted share, from $0.2 million, or 3 cents per diluted share, in the year-ago quarter. Gross profit fell to $147,000 from $1.7 million, while gross margin contracted to 8% from 27.4% a year earlier. Orders rose to $1.8 million from $0.8 million in the prior-year quarter, driven primarily by higher spare-parts demand, while backlog remained flat at $4.7 million as of both March 31, 2026, and Dec. 31, 2025. Management said bookings continued to be pressured by geopolitical uncertainty, reduced U.S. government funding for universities and slower adoption of its solutions in certain end markets. CVV noted that lower system bookings significantly affected revenue and gross margin during the quarter. Revenue concentration also remained high, with three customers accounting for 27.2%, 21.7% and 17.3% of first-quarter revenues. Gross profit benefited from a contract modification that contributed $0.3 million during the quarter. Research and development expenses were relatively flat year over year at $727,000 compared with $734,000, while selling expenses declined 34.6% to $240,000 from $367,000 because of lower personnel costs. General and administrative expenses increased 7.2% to $1 million from $0.9 million due to higher personnel and building maintenance costs. By end market, aerospace revenue totaled $1.1 million compared with $2.5 million in the prior-year period (down 56.1%), while industrial revenue declined sharply to $0.4 million from $3.7 million. Research market revenue increased to $333,000 from $120,000 a year ago. The energy market generated no revenue during the quarter versus $7,000 in the year-earlier period. CVD Equipment Corporation price-consensus-eps-surprise-chart | CVD Equipment Corporation Quote Chief Executive Officer Emmanuel Lakios said CVV continued implementing a transformation strategy introduced late last year to lower fixed operating costs and improve operational flexibility. Measures include transitioning portions of fabrication to outsourced manufacturing, workforce reductions and expanded use of distributors and external sales representatives. The workforce reduction in the CVD Equipment division is expected to lower annual operating costs by approximately $1.8 million in 2026. Management highlighted continued focus on aerospace and defense applications, silicon carbide technologies and emerging nuclear-energy opportunities. During the earnings call, Lakios said CVD Equipment was seeing an increase in requests for quotations compared with 2025 levels, though management cautioned that converting those opportunities into firm orders could take several quarters. CVV also pointed to opportunities in silicon carbide power electronics and applications tied to AI-related data-center infrastructure, although management acknowledged that competition from Chinese silicon carbide wafer suppliers has slowed demand for domestic wafer-production equipment. CVD Equipment ended the quarter with cash and cash equivalents of $8.2 million, compared with $8.7 million as of Dec. 31, 2025. Net cash used in operating activities totaled $0.9 million during the quarter. Working capital improved to $12.8 million as of March 31, 2026. Following the April 1 completion of the Stainless Design Concepts (SDC) division sale, CVV said its cash balance increased to approximately $23 million, with no long-term debt outstanding after repayment of its remaining equipment loan. Management said proceeds from the transaction have been invested in short-term Treasury securities and are expected to enhance financial flexibility. CVV did not provide formal financial guidance. However, management said a return to sustained profitability would depend on improved equipment order flow, disciplined cost management and successful execution of its transformation strategy. Management also warned that macroeconomic and geopolitical uncertainties, including tariffs, export controls, inflationary pressures and supply-chain disruptions, could continue affecting customer spending and project timing. CVD Equipment completed the previously announced sale of its SDC division to Atlas Copco on April 1, 2026, for approximately $16.9 million in cash, subject to adjustments. After transaction costs and employee-related liabilities, net cash proceeds totaled $14.8 million. CVV retained ownership of its Saugerties, NY, facility, which is being leased to the buyer for an initial two-year term. The divestiture leaves CVD Equipment with a single reportable segment focused on chemical vapor deposition, physical vapor transport and thermal process equipment. Management said it continues evaluating strategic alternatives for certain business lines and facilities as part of broader shareholder-value initiatives. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVD Equipment Corporation (CVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CVD Equipment Corp (NASDAQ:CVV) successfully completed the sale of its SDC business to Atlas Copco for approximately $16.9 million, strengthening its balance sheet. The company has no long-term debt and a cash balance of approximately $23 million following the sale of SDC. CVD Equipment Corp (NASDAQ:CVV) has initiated a transformation strategy to reduce fixed operating costs and improve scalability by transitioning to an outsourced fabrication model. The company is focusing on its core CBD equipment business, which includes emerging applications such as nuclear energy and high-power electronics. CVD Equipment Corp (NASDAQ:CVV) is actively pursuing strategic opportunities and exploring potential sales of assets or divestitures to maximize shareholder value. First quarter 2026 revenue was $1.8 million, a significant decline of 70.9% from the prior year quarter. The company reported a net loss from continuing operations of $1.7 million for the first quarter of 2026. Gross profit for the quarter was only $147,000, resulting in a low gross margin of 8%, primarily due to lower revenues and higher unabsorbed overhead costs. Bookings and revenue were negatively impacted by geopolitical uncertainties, reduced U.S. government funding for universities, and slower adoption of solutions in certain markets. The company is facing challenges in the silicon carbide market due to competition from Chinese vendors, affecting its PVT market and order flow. Warning! GuruFocus has detected 2 Warning Sign with CVV. Is CVV fairly valued? Test your thesis with our free DCF calculator. Q: With the STC sale complete and $23 million in cash on the balance sheet, can you help us think about the book value of the Central Islip property? Is the PP&E value of $10.4 million reflective of its market worth? A: Emmanuel Lakios, President and CEO: We previously considered a sale leaseback, and the valuation was higher than that figure. We believe the $10.4 million is a conservative estimate, but we can't provide multiple valuations at this time. Q: With geopolitical uncertainty and reduced government funding, how are you addressing new market opportunities like data centers and nuclear energy? Are these translating into active pipeline conversations for your systems? A: Emmanuel Lakios, President and CEO: We are seeing increased RFQs, especially in silicon carbide and nuclear energy, but it takes time for these to convert into orders. We are more focused on three-dimensional products rather than wafer-level processes. Q: Is the PVT-200 system that was placed with a customer, presumably Stony Brook, still under evaluation? A: Emmanuel Lakios, President and CEO: We continue to collaborate with Stony Brook, but the customer for the PVT-200 system is in a waiting pattern due to the downturn in U.S. demand for silicon carbide wafers. Q: The strategic alternatives language has been consistent for a few quarters. Is there any update on whether you're evaluating the business as a whole or specific product lines? A: Emmanuel Lakios, President and CEO: The sale of STC was a strategic initiative. We continue to explore options but have nothing specific to announce at this time. Q: Is gallium arsenide or gallium nitride still a product line for you? A: Emmanuel Lakios, President and CEO: Yes, it's still a product line, but demand is low. We are seeing some early-stage interest in new applications, but it's too early to discuss specifics. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET President and Chief Executive Officer — Emmanuel Lakios Chief Financial Officer — Richard Catalano Emmanuel Lakios: Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to review our first quarter 2026 financial results and to provide an update on our business and strategic initiatives. Following our prepared remarks, we'll be happy to take your questions. As previously disclosed, in response to continued volatility in our order rates and a recent decline in bookings within our CVD Equipment division, we initiated a transformation strategy late last year designed to specifically reduce fixed operating costs, create a more agile organization and better position the company to maximize shareholder value. Key elements of this plan included transitioning the CVD Equipment business from a vertically integrated fabrication model to an outsourced fabrication for certain components, which we will expect to reduce fixed costs and improve scalability. Workforce reduction in CVD Equipment division during the fourth quarter, which is expected to reduce annual operating costs by approximately $1.8 million in 2026. Revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization and broaden market reach; and finally, exploring strategic alternatives for certain business product lines, including potential sale of assets or divestitures. As part of our strategic review, on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business was to be sold to Atlas Copco. The purchase price was approximately $16.9 million in cash and is subject to certain purchase price adjustments. The transaction closed on April 1, 2026. The sale of SDC enables us to concentrate our attention on our core CVD Equipment business. The divestiture has strengthened our balance sheet and provided additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines and our facilities. We continue to drive operational efficiencies, allowing for reduced operating costs and increased flexibility. Our objective remains to maximize shareholder value. Net cash proceeds from the sale of the SDC division received by the company in April 2026 after payment of transaction costs and employee-related liabilities were $14.8 million. Immediately following the sale of SDC, CVD Equipment had approximately $23 million in cash and no long-term debt. as we repaid the remaining balance of an equipment loan during the quarter. Under the agreement, an additional $900,000 was placed in escrow for post-closing adjustments and indemnification obligations under the agreement. We have retained ownership of our Saugerties, New York facility that is being leased to the buyer for an initial term of 2 years. Turning to our financial results for our continuing CVD Equipment operations. First quarter 2026 revenue was $1.8 million, down 70.9% from the prior year quarter, revenue of $6.3 million and down 30.9% sequentially from the fourth quarter of 2026 revenue of $2.7 million. Orders in the first quarter totaled $1.8 million, driven primarily from the demand of spare parts. At March 31, 2026, backlog was $4.7 million, similar to the CVD Equipment backlog at December 31, 2025. Our bookings for our business continue to be affected by several factors, including geopolitical uncertainty, reduced U.S. government funding for universities and a slower pace of adoption of our solutions in certain end markets. We are actively monitoring customer demand, the broader geopolitical uncertainties and potential future tariff impacts and are adjusting our plans accordingly. Even against this backdrop, we remain focused on delivering solutions across our key markets, including aerospace and defense, industrial applications such as silicon carbide on graphite, silicon carbide for high-power electronics as well as emerging applications, including nuclear energy. With that, I will turn the call over to our CFO, Richard Catalano, to review the financial results in more detail. Richard Catalano: Thank you, Manny, and good afternoon, everyone. The financial results of SDC are now reflected in our financial statements as discontinued operations for all periods presented and the SDC assets and liabilities are considered held for sale as of March 31, 2026. With the sale of the SDC business in 2026, we now have one reportable segment consisting of our CVD Equipment division that manufactures chemical vapor deposition, physical vapor transport, thermal process and related equipment. I will review first the results from continuing operations. As Manny said, our first quarter 2026 revenue was $1.8 million. This compares to $6.3 million in the first quarter of 2026 and $2.7 million in the fourth quarter of 2025. The year-over-year decline as well as the decline from the fourth quarter was primarily driven by lower CVD systems revenue. Our revenue was concentrated among 3 key customers, which together represented 66% of total first quarter revenue. Gross profit for the quarter was $147,000, resulting in a gross margin of 8%. This compares with gross profit of $1.7 million and a gross margin of 27.4% in the prior year quarter. The decrease in gross profit was primarily the result of lower revenues, which led to higher unabsorbed overhead costs. Gross profit during the quarter ended March 31, 2026, did benefit by about $0.3 million or $317,000 from a contract modification with one of our customers. Our operating loss from continuing operations for the first quarter of 2026 was $1.8 million compared to $0.3 million in the first quarter of 2025. Included in the first quarter of 2026 was a gain of $46,000 from the sale of equipment. After interest income, net loss from continuing operations for the quarter was $1.7 million or $0.25 per basic and diluted share compared with a net loss of $229,000 or $0.03 per basic and diluted share in the prior year quarter. Income from discontinued operations before transaction costs of our SDC business division declined from $0.6 million in the prior year quarter to $0.5 million in the current year quarter. This was due to lower gross margins on higher revenues. Transaction costs associated with the sale of SDC consisted of legal and investment banking fees of $0.4 million for the quarter ended March 31, 2026. Thus, the total income from discontinued operations was $63,000 for the quarter as compared to $0.6 million for the prior year quarter. And again, this is principally due to the transaction costs incurred in connection with the sale of SDC that was consummated on April 1, 2026. At December -- sorry, at March 31, 2026, we have cash and cash equivalents of $8.2 million and immediately following the sale of SDC, our cash balance was approximately $23 million. The net proceeds from the sale of SDC totaling $14.8 million has been invested in short-term treasury securities. Cash flows for the quarter. Net cash used in operating activities during the first quarter of 2026 was $0.9 million, principally as a result of a loss from continuing operations. This amount is net of approximately $0.4 million of cash that was contributed by SDC during the first quarter. During the quarter, we did receive $556,000 from the sale of equipment, and we used a portion of those proceeds to pay off an equipment loan in the amount of $181,000. Our working capital improved to $12.8 million at March 31, 2026. And of course, it increased after we closed the sale of SDC in April. Looking ahead, our return to consistent profitability will depend on improved equipment order flow, disciplined cost management, successful execution of our transformation plan as well as continued control of capital expenditures. With that, I will now turn it back to Manny. Emmanuel Lakios: Thank you, Rich. Our priorities are clear: serving our customers, supporting our employees, creating value for our shareholders and returning our core CVD equipment business to sustained profitability. Operator, we are now ready to open the line for questions. Operator: [Operator Instructions] our first question is from Neil Cataldi with Blueprint Capital Management. Neil Cataldi: The first question, with the SDC sale complete, and as you said, $23 million in cash on the balance sheet, can you help us think a little bit about the book value of the Central Islip property? The PP&E on that is like $10.4 million. Is that reflective of what you believe the property is worth in today's market? Emmanuel Lakios: I think we can speak to the fact that we, a while back had looked at a sale leaseback that the valuation was north of that. And we can't talk about a write-up or anything of that sort. But what we can speak about is that we think that, that is a conservative number for the valuation. We can't speak to having multiple valuations on the property at this point. Neil Cataldi: Okay. But that number that was previously in a transaction would be a fair number for investors to sort of think about? Richard Catalano: It was a number of years ago, correct? Real estate prices have been fairly moderate. Yes. Emmanuel Lakios: Obviously, there are dynamics associated during that period of time that was post-COVID, a lot of demand for high volumetric real estate. The building is still a valued asset of the corporation. Neil Cataldi: Okay. Just trying to establish the substantial amount of value that's here with the company between the $23 million in cash and what that property was previously transacted for establishes sort of a floor here of like $7 per share in cash. So very helpful. Second question pertains to the language that you're using in the press release. So you're citing geopolitical uncertainty, reduced government funding, but yet you're sort of simultaneously adding themes like data center and nuclear to your investor deck and filings of target markets, seeing your R&D not really change. And most of your presumably end market customers across the semiconductor wafer space, whether it's 200-millimeter silicon carbide in active production or the 300-millimeter coming as well as all the activity in the nuclear space. These are themes that are -- have very elevated activity right now. And so I'm just sort of wondering like is any of that translating into active pipeline conversations for either your PVT or your CVI systems? Emmanuel Lakios: So a couple of things. One is silicon carbide. We've spoken about silicon carbide and the impact on our value proposition in silicon carbide, which is the actual process equipment that makes the boule. Clearly, there was a deflation of that market from 2022, '23 highs. And the reasoning for that is really the Chinese vendors really flooding the market with wafers, making it economically unviable for U.S. wafer providers to buy -- to ramp up and buy additional equipment. So that's what deflated the PVT market. We are not primarily a 2-dimensional wafer-level process equipment company. We are a 3-dimensional for the most part. Most of our orders come from preform CVI, where we are infiltrating a 3-dimensional product or by growing a boule, which is a 3-dimensional product. So we typically are not 2-dimensional. A small portion of our business is wafer level, semiconductor wafer level. We are in more the industrial and aerospace element of the food chain. We are seeing RFQs coming in at a higher rate than what we had previously seen last year in 2025. We are seeing that and in general, I think we've seen that money now has freed up after the opening up after the shutdown. But it takes several months to a few quarters for those and sometimes several quarters for those RFQs to turn into orders. So we are in the waiting period at this point, and we continue to prosecute RFQs as they come in to process those. As far as you mentioned, whether it's -- I think you mentioned AI, nuclear, et cetera. In the area of nuclear, we do see RFQs for CVI, CVD equipment in that space. But again, we are very early in that process. As far as AI, we -- AI is a buzzword. We provide some wafer-level processing and -- but we don't advocate to be an AI-enabling company at this point. And again, we are -- I just want to go back and underscore, we are a more 3-dimensional product or substrate company than planar wafers. Neil Cataldi: Okay. Yes, that's very helpful. I used the word data center, which was the language that I think had been added to your filings. So I was just trying to figure out the sort of reason behind adding that language. And really just because there's so much activity in the space right now, it seems like you guys could be sitting in a good position. Emmanuel Lakios: Look, there are a few of our products that would address that in the ramp-up, whether it's silicon carbide PVT system. But again, that requires -- that's going to require some competitive position against the Chinese wafer suppliers. And then we also have other products in the past that we've sold to -- that would assist AI centers, but not on the chip level, more so on sometimes the power transport, whether it's superconducting tape or something of that sort. Neil Cataldi: Okay. Is the -- you previously used to talk about the PVT200 system that was placed to an unknown customer other than, I guess, presumably Stony Brook. Is that still under evaluation? Emmanuel Lakios: Well, Stony Brook, we have a relationship with Stony Brook where we sold them two tools. We continue to collaborate with Stony Brook and that will be in the future. The customer on the 200 that we had sold also was impacted by the downturn in the U.S. demand -- well, the U.S. supply of silicon carbide wafers. So they're still in a waiting pattern if there was news to share, we would have. Neil Cataldi: Okay. And last question. The strategic alternatives language has been pretty consistent for a few quarters. Is there any additional color on whether you're evaluating the business as a whole, specific product lines or what's left to the facilities? And any sort of time line on when investors may hear if there's a conclusion to the review? Emmanuel Lakios: Well, the SDC was a strategic initiative, the SDC sale, great group. We've, I think, benefited the shareholders by sort of the cash on the balance sheet and also all the employees have a new home. So we're pleased with that. As far as additional actions, we continue to look at options. We don't have anything to speak to today -- when we do, we'll, of course, our shareholders will be aware of that. Operator: Our next question is from Paul Chayka with MS&E Resource. Unknown Analyst: The previous caller, nice to have him call in because he answered -- you guys answered a lot of my questions based on his questions. I just want to say I'm very bullish on CVV near term and long term. You've got a lot of great potential for success in multiple applications from my perspective as a materials engineer who's worked in aerospace and the electronics area. So I was intrigued by the silicon carbide boule project with Stony Brook. You've covered that already. The chip manufacturers, I think that's looking good. I want to just voice my support for not using any of this cash that you have in hand for any kind of investor dividend or anything. You've been very good over the years in being very responsible and very methodical in using the cash you have. I'm really happy to hear that you've got this added cash for your basis for acquisitions or further developing your opportunities. So I just wanted to throw that in there. Is there any other further work? I guess it's 2-dimensional related, but gallium arsenide, gallium nitride, is that still a product line at all? Emmanuel Lakios: It's still a product line, of course. So let me just jump into that. It's a product line. There's not a lot of -- we don't see a lot of demand in that area. We are seeing some exploratory, I would say, exploratory because it's early stage bubbling up of some new applications for some of the products that we had in the past, but it's really too early to really discuss that. But the -- we don't play in -- we play in the advanced materials area, not specifically in, let's say, LEDs or something of that sort on GaN. That's not our strength. Unknown Analyst: Yes, sure. I just hadn't seen anything in press releases. And I guess it's for a good reason because it's not happening much. Operator: There are no further questions at this time. I'd like to hand the floor back over to management for any closing remarks. Emmanuel Lakios: Thank you, operator, and thanks to everyone for joining us today. We appreciate your continued interest and support of CVD Equipment Corporation. If you have any questions, please feel free, some of you do as well, to reach out to Rich or myself. This concludes today's call. Thank you. Operator: Thank you again for your participation. You may now disconnect your lines. Before you buy stock in Cvd Equipment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cvd Equipment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $468,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,445,212!* Now, it’s worth noting Stock Advisor’s total average return is 1,013% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 15, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CVD Equipment (CVV) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Completed the Previously Announced Sale of its SDC Division CENTRAL ISLIP, N.Y., May 14, 2026--(BUSINESS WIRE)--CVD Equipment Corporation (NASDAQ: CVV) (the "Company") today reported financial results for the first quarter ended March 31, 2026. As previously announced, the Company entered into an asset purchase agreement with a buyer to sell its SDC business division on March 23, 2026. This transaction was completed on April 1, 2026, whereby substantially all the business assets related to SDC were sold. The financial results of SDC are reflected in the Company’s condensed consolidated financial statements as discontinued operations for all periods presented and SDC’s assets and liabilities are considered held for sale as of March 31, 2026. The Company now has one reportable segment consisting of its CVD Equipment division which manufactures chemical vapor deposition, physical vapor transport, thermal process and related equipment. After payment of transaction costs and employee related liabilities, the net cash proceeds from the sale of SDC were $14.8 million. As a result, as of April 1, CVD Equipment had approximately $23 million in cash and no long-term debt. Manny Lakios, President and Chief Executive Officer of CVD Equipment Corporation, stated, "The sale of SDC has significantly strengthened our balance sheet, providing additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines, and our facilities. In addition, we are continuing to drive operational efficiencies and reduce our operational costs, with an ongoing commitment to maximizing shareholder value. This included, as previously announced, a workforce reduction within the CVD Equipment division during the fourth quarter as we transitioned from a vertically integrated fabrication model to outsource fabrication for certain components. This action is expected to reduce our annual operating costs by approximately $1.8 million in fiscal 2026." Lakios added, "In addition, we remain focused on delivering solutions across our key target markets, including aerospace and defense, industrial applications such as silicon carbide (SiC) on graphite, and SiC for high-power electronics, as well as emerging applications, including nuclear energy." First Quarter 2026 Performance from Continuing Operations (excluding the discontinued operations of SDC) Orders: $1.8 million, an increase from $0.8 million in the prior year quarter, due to higher non-system orders for spare parts. Bookings for the CVD Equipment business continued to be pressured by several factors, including geopolitical uncertainty, reduced U.S. government funding for universities, and a slower pace of adoption of our solutions in certain end markets. Revenue: $1.8 million, down 70.9% as compared to prior year quarter, primarily reflecting lower CVD system revenue due to a reduced level of system bookings. Backlog: $4.7 million at both March 31, 2026 and December 31, 2025. Gross margin: 8.0% versus 27.4% in the prior year quarter, primarily due to lower CVD system revenue and lower absorption of fixed manufacturing costs. Decreases in revenue and gross margin for the quarter ended March 31, 2026 from reduced system bookings were partially offset by a $0.3 million benefit from a contract modification. Net loss from continuing operations: ($1.7 million), or ($0.25) per basic and diluted share, compared with net loss from continuing operations of ($0.2 million), or ($0.03) per basic and diluted share, in the prior year quarter. Conference Call A conference call reviewing these results has been scheduled for today, May 14, 2026 starting at 5:00 PM ET. To join the call, dial 1-877-407-2991 or 1-201-389-0925. A live and archived webcast of the call will also be available on the company’s website at www.cvdequipment.com/events. The archived webcast will be available approximately two hours following the end of the conference call. A telephone replay will be available for 7 days. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. The replay passcode is 13760600. About CVD Equipment Corporation CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, and related equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include aerospace & defense (ceramic matrix composites), silicon carbide (SiC) high-power electronics, electric vehicle (EV) battery materials (carbon nanotubes, graphene and silicon nanowires), and industrial applications. Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as "forward-looking statements, "as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, market and business conditions, the success of CVD Equipment Corporation’s growth and sales strategies, uncertainty as to our ability to execute on our transformation strategy, the possibility of customer changes in delivery schedules, cancellation of, or failure to receive orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements, competition in our existing and potential future product lines of business, including our aerospace equipment and PVT systems; our ability to obtain financing on acceptable terms if and when needed; uncertainty as to our ability to develop new products for growth markets; uncertainty as to our future profitability; uncertainty as to any future expansion of the Company; uncertainty as to our ability to adequately obtain raw materials and components from foreign markets in light of geopolitical developments; and other risks and uncertainties that are described in the Company’s Annual Report on Form 10-Kfor the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor of the Private Securities Litigation Reform Act of 1995. The Company assumes no obligations to update or supplement any forward-looking statements whether as a result of new information, future events. This earnings release should be read in conjunction with the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for fiscal year ended December 31, 2025. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514766429/en/ Contacts CVD Equipment Corporation: Richard Catalano, Executive Vice President & CFO Phone: (631) 981-7081 Email: [email protected]

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. Management initiated a transformation strategy to address order volatility by transitioning from a vertically integrated fabrication model to outsourced fabrication for specific components. The divestiture of the SDC business to Atlas Copco for approximately $16.9 million was a key strategic move to concentrate resources on the core CVD Equipment business. Performance was significantly impacted by a 70.9% year-over-year revenue decline, primarily driven by lower CVD systems revenue and unabsorbed overhead costs. The silicon carbide (SiC) market experienced deflation due to Chinese vendors flooding the market with wafers, making it economically unviable for U.S. providers to expand equipment capacity. Management attributes current booking headwinds to geopolitical uncertainty, reduced U.S. government funding for universities, and a slower pace of solution adoption in certain end markets. The company is shifting its sales approach by leveraging external distributors and representatives to complement internal teams and broaden market reach. The return to consistent profitability is contingent upon improved equipment order flow, disciplined cost management, and the successful execution of the transformation plan. Workforce reductions implemented in late 2025 are expected to reduce annual operating costs by approximately $1.8 million in 2026. Management is monitoring a recent increase in RFQ (Request for Quote) activity, though they cautioned that it typically takes several months to several quarters for these to convert into orders. Future growth initiatives are focused on emerging applications, including nuclear energy and high-power electronics, where early-stage RFQs for CVI and CVD equipment are being observed. The company continues to evaluate strategic alternatives for remaining product lines and facilities to further maximize shareholder value. Following the SDC sale, the company holds approximately $23 million in cash and has eliminated all long-term debt after repaying an equipment loan. The company retained ownership of its Saugerties, New York facility, which is currently leased to the buyer of SDC for an initial 2-year term. Management indicated that the $10.4 million book value for the Central Islip property is likely conservative based on previous sale-leaseback valuations. Revenue concentration remains high, with three key customers representing 66% of total first-quarter revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that they primarily serve 3D product markets (boule growth and CVI infiltration) rather than 2D planar wafer processing. The PVT market for silicon carbide is currently stalled as U.S. wafer providers wait for market conditions to improve against Chinese competition. Management confirmed the SDC sale was the first major step in their strategic review but declined to provide a specific timeline for further divestitures or asset sales. The company continues to look at options for the remaining business and facilities but has no new actions to disclose at this time. While 'AI' is a market buzzword, CVD's involvement is limited to power transport components like superconducting tape rather than chip-level processing. The nuclear energy sector is showing early-stage RFQ activity for CVI/CVD equipment, but management noted it is very early in the adoption cycle.