CVV · CVD Equipment Corporation

CVD Equipment Corporation reported challenging fourth quarter and fiscal year 2025 results, marked by declining revenues and a net loss, juxtaposed against a significant strategic divestiture announcement. For the fourth quarter ended December 31, 2025, revenue fell 33.1% year-over-year to $5.0 million, primarily due to lower CVD system revenue. This revenue decline, coupled with a $0.2 million impairment charge, resulted in a net loss of $1.3 million, or $0.18 per share, compared to net income of $0.1 million in the prior year quarter. Gross margin compressed to 22.1% from 26.4%, reflecting the unfavorable mix shift. For the full fiscal year, revenue decreased 4.1% to $25.8 million, though the net loss of $1.6 million showed a slight improvement from the $1.9 million loss in fiscal 2024, aided by the absence of the prior year's $1.6 million inventory charge. The Company ended the year with $8.7 million in cash, down from $12.6 million. Management attributed booking pressures to softer demand, tariff-related uncertainty, and reduced government funding. To mitigate costs, a workforce reduction was implemented in Q4, expected to save approximately $1.8 million annually in fiscal 2026. Strategically, the Company announced the sale of its SDC business division to Atlas Copco Group for approximately $16.9 million in cash. The transaction, expected to close in Q2 2026, will yield net proceeds of roughly $15.0 million. Management stated the divestiture allows a focus on the core CVD Equipment business and strengthens the balance sheet, with the Saugerties facility being retained and leased back to the buyer for two years.