Cps Applied sciences (CPSH -1.03%), a specialist in superior metallic matrix composite supplies for high-performance industrial, electronics, and protection functions, launched its Q2 FY2025 monetary outcomes on August 1, 2025. A very powerful takeaway was document income, which rose to $8.1 million from $5.0 million (GAAP), alongside a swing again to profitability with earnings per share (GAAP) of $0.01. Whereas analyst estimates weren’t obtainable for this quarter, these outcomes set new firm highs for quarterly gross sales and reversed final yr’s GAAP web loss. Margin enchancment was additionally notable in Q1 and Q2, although nonetheless beneath administration’s targets; management recognized ongoing operational upgrades as a precedence. Total, the quarter demonstrated sturdy gross sales execution, renewed profitability, and continued R&D progress.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS | $0.01 | $(0.07) | $0.08 |
| Income | $8.1 million | $5.0 million | 62% |
| Gross Margin | 16.5% | (4.6%) | 21.1 pp |
| Working Revenue (Loss) | $0.1 million | $(1.3 million) | N/A |
| Web Earnings (Loss) | $0.1 million | $(0.9 million) | 111.1% |
About Cps Applied sciences: Enterprise Overview and Core Success Components
Cps Applied sciences designs and manufactures metallic matrix composites—high-tech supplies combining metals and ceramics to ship light-weight energy and thermal properties wanted in sectors like protection, power, and high-performance electronics. Its core providing, AlSiC, gives distinctive advantages in conductivity, weight, and reliability, important for superior circuit packaging, navy functions, and power infrastructure.
The enterprise has centered not too long ago on increasing its product catalog and market attain, significantly by way of commercialization of latest supplies like AlMax™ and Fiber Bolstered Aluminum (FRA). Success for the corporate relies on bringing modern supplies to market, sustaining a lead in high quality and efficiency, and managing dangers related to buyer focus and world competitors.
Quarter in Assessment: Monetary Efficiency, Product Developments, and Operations
Income (GAAP) reached a brand new peak at $8.1 million, up from $5.0 million within the prior-year interval. This development was attributed mainly to elevated shipments throughout core product traces and better manufacturing charges. Administration famous demand energy from the electronics, power, and protection sectors, supporting the agency’s transfer to a 3rd manufacturing shift late final yr. The order backlog and diversification throughout sectors like transportation, sensible grid, and aerospace have performed a key function.
Gross revenue (GAAP) turned optimistic, with the corporate reporting $1.3 million after having a gross loss within the prior yr. Gross margin—the amount of cash stored from every greenback of gross sales after direct prices—rose greater than 21 share factors to 16.5% (GAAP) in comparison with the prior-year interval. The development was pushed by increased gross sales volumes and operational efficiencies, together with the addition of a 3rd manufacturing shift. Nonetheless, the margin stays beneath the roughly 30% stage seen in peak quarters throughout 2023. The corporate cited yield challenges following fast manufacturing scale-up, together with a shift towards lower-margin product combine as causes for the shortfall. Administration said, “They’re nonetheless to not the extent that we wish them at and we — they’re nonetheless to not the extent they had been a yr in the past.”
Revenue swung into optimistic territory, with $0.1 million in working revenue (GAAP) in comparison with a $1.3 million loss within the prior yr. Web revenue (GAAP) moved equally, reflecting not solely income development but additionally higher dealing with of prices, whilst stock and dealing capital elevated in anticipation of additional development. The agency maintained a wholesome fairness base, with money and equivalents of $2.4 million (GAAP) and no notable long-term debt. Receivables and stock rose according to gross sales exercise, a typical sample as order volumes broaden.
On the know-how entrance, Cps Applied sciences achieved key milestones in product innovation. The commercialization of AlMax™, a brand new materials boasting superior efficiency properties to standard aluminum, moved from unique licensing to revenue-generating order in below 18 months. The agency acquired 4 Small Enterprise Innovation Analysis (SBIR) contracts in the course of the first half, with the most recent for growing light-weight options for the U.S. Marine Corps’ Amphibious Fight Car. These contracts not solely assist near-term income but additionally validate the corporate’s analysis capabilities and improve its profile in protection markets. Continued partnership with Triton Methods for FRA supplies—engineered to be each sturdy and light-weight—indicators future product avenues in segments like navy floor automobiles and aerospace.
Different operational notes included an increase in inventories to $5.2 million (GAAP) and accounts receivable to $5.6 million as of June 28, 2025.
Trying Forward: Administration Outlook and Sector Concerns
Administration offered a qualitative outlook, stating that income is anticipated to stay sturdy for the rest of fiscal 2025. The management staff forecasted additional enchancment in gross margins and total profitability, citing operational upgrading and ongoing effectivity initiatives. They had been candid in acknowledging that present margins should enhance. Key near-term initiatives embody enhancing yield after the third shift growth and streamlining product combine to optimize profitability.
No detailed monetary steering for the subsequent quarter or full yr was offered by administration. Buyers ought to look ahead to progress in margin growth, the tempo of commercialization for brand spanking new supplies reminiscent of AlMax™ and FRA, and additional SBIR or defense-related mission awards. Buyer focus and publicity to aggressive pricing, particularly from worldwide companies, stay areas to watch.
Income and web revenue offered utilizing U.S. usually accepted accounting ideas (GAAP) except in any other case famous.
JesterAI is a Silly AI, primarily based on quite a lot of Giant Language Fashions (LLMs) and proprietary Motley Idiot techniques. All articles printed by JesterAI are reviewed by our editorial staff, and The Motley Idiot takes final duty for the content material of this text. JesterAI can’t personal shares and so it has no positions in any shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
Keep forward of the curve with NextBusiness 24. Discover extra tales, subscribe to our e-newsletter, and be a part of our rising group at nextbusiness24.com
