CVD Equipment Corporation

Second-quarter 2026 revenue from continuing operations was approximately $2 million, down from $3.4 million in the prior-year quarter, a decline of about 43%. Gross profit was approximately $329,000 and gross margin was 16.8%, versus gross profit of approximately $481,000 and gross margin of 14.1% last year. Operating loss from continuing operations was approximately $1.6 million; net loss from continuing operations was approximately $1.4 million, or $0.20 per share, versus a net loss of $1.3 million, or $0.19 per share, in Q2 2025. Including the SDC divestiture gain, total income was approximately $12.6 million, or $1.81 per share. The company ended the quarter with approximately $23.5 million in cash and cash equivalents, $900,000 in escrow, and no long-term debt; stockholders’ equity was approximately $36 million. Orders were approximately $1.2 million and backlog was $3.9 million. Management did not provide formal forward guidance; it said it historically does not give guidance and instead emphasized continued pursuit of orders, disciplined cost control, and a lower fixed-cost structure after restructuring.

The CEO framed the quarter as a transformational one because the SDC divestiture reshaped CVD into a debt-free, better-capitalized company focused on its core advanced material process equipment business. He said the balance sheet now gives the company financial flexibility while management works through a difficult demand backdrop. His tone was cautious but constructive: the company is still seeing market weakness, yet it is actively engaging customers, pushing new products, and expects the restructuring to improve efficiency and reduce fixed costs.

The CFO walked through the quarter’s numbers and highlighted that continuing-operations revenue fell to $2 million from $3.4 million, gross margin improved to 16.8% from 14.1%, and the net loss from continuing operations was $1.4 million, or $0.20 per share. He also noted the substantial divestiture gain, with net income from discontinued operations of approximately $13.9 million and total income of approximately $12.6 million. On the balance sheet, he cited $23.5 million in cash and cash equivalents, $900,000 held in escrow, no long-term debt, and stockholders’ equity of approximately $36 million. He also flagged a risk after quarter-end: the customer tied to a $0.8 million system order filed Chapter 11, and the company is evaluating the impact on backlog, results, financial position, and cash flows.

Analysts focused on whether aerospace CapEx, especially CMC-related capacity builds, could translate into follow-on orders, and management said it is seeing an uptick in consumables and spare parts while installed tools are being commissioned. On PVT and the Stony Brook/onsemi collaboration, management said there is no meaningful commercial update yet and that the silicon carbide boule market is currently saturated, though the company continues characterization work and may have future potential. Management also said higher university funding would help FirstNano demand, that government shutdown-related delays have slowed some opportunities, and that aerospace products still need installation and adoption before they can generate more orders. When asked about strategic alternatives and outside bankers, management said there is nothing substantive to disclose yet; it also declined to provide break-even revenue guidance, saying it has historically not guided given the size and nature of the business.