CPI Aerostructures, Inc. (NYSE: CVU) shares demonstrated resilience on Friday by recovering from losses incurred during the regular trading session, exhibiting a noteworthy 4.19% surge to $2.24 in after-hours trading. This rebound allowed CVU stock to fully offset the earlier session’s 3.59% decline, concluding the day at $2.15. The recuperation was propelled by the attainment of a substantial multi-million-dollar contract.
CPI Aerostructures (CVU) disclosed that Embraer S.A. of Brazil has issued additional orders under a previously disclosed Long Term Agreement. These orders pertain to the production of engine inlet assemblies for Embraer Phenom 300 business jets, with deliveries extending into 2024.
CPI Aero has played a pivotal role in the Phenom 300 program, showcasing expertise in the assembly and integration of intricate and diverse Aerostructures. Over the past decade, CVU has successfully delivered more than 1,600 Engine Inlet Assemblies, and the company anticipates its continued support for this significant client beyond the year 2024.
Furthermore, CPI Aero recently secured multiple purchase orders totaling $9.6 million as part of an existing contract with the U.S. Air Force, originally valued at up to $65.7 million. These orders encompass structural modification kits, program management, logistics, and other sustaining services in support of Phase 3 of the T-38C Pacer Classic III Fuselage Structural Modification Kit Integration program (“PCIII”) and the Talon Repair Inspection and Maintenance (“TRIM”) program.
The latest orders bring the total funded value of the contract to $48.3 million, extending the period of performance into 2028. The Northrop T-38 has served as the primary supersonic jet trainer for the U.S. Air Force for over five decades. The PCIII and TRIM initiatives aim to provide the aircraft with a structural overhaul, enhancing strength and longevity to extend the structural service life beyond 2030.
Moreover, the Board of Directors of CPI Aero recently appointed Pamela D. Levesque as an independent Class II Director. She will also serve on the Audit and Finance Committee of the Board.
