CVD Equipment Corporation Reports 11.5% Revenue Growth to $26.9 Million for Fiscal Year 2024

CVD Equipment Corporation reported a revenue increase of 11.5% for the fiscal year ending December 31, 2024, reaching $26.9 million compared to $24.1 million in 2023. The growth was primarily driven by a $1.9 million increase in the CVD Equipment segment and an $1.3 million rise in the SDC segment. The company also noted a significant customer concentration, with one aerospace customer accounting for 29.5% of total revenues. Despite the revenue growth, CVD Equipment experienced a net loss of $1.9 million, an improvement from the $4.2 million loss reported in the previous year.

In terms of operational changes, CVD Equipment made strategic decisions to divest from its Tantaline subsidiary and cease operations of MesoScribe, focusing instead on its core equipment business. The sale of Tantaline was completed in May 2023, while MesoScribe's operations were wound down in 2024, resulting in a gain of $0.6 million from the sale of equipment. The company’s order backlog increased to approximately $19.4 million as of December 31, 2024, up from $18.4 million the previous year, indicating a positive trend in customer demand.

CVD Equipment's workforce decreased to 118 employees from 128 in the prior year, reflecting the company's restructuring efforts. The company continues to focus on growth applications in aerospace, microelectronics, and industrial markets, with recent orders including a $10 million contract for silicon carbide protective coatings and additional orders for chemical vapor infiltration systems for aerospace applications. The company is also expanding its product offerings in the power electronics market, particularly with the introduction of its PVT200 system for silicon carbide crystal growth.

The filing highlighted challenges such as lower-than-expected electric vehicle sales impacting demand for silicon carbide products, as well as supply chain disruptions and inflation affecting costs. CVD Equipment is actively working to mitigate these issues by placing orders with longer lead times and exploring alternative suppliers. The company remains optimistic about its future, emphasizing its commitment to innovation and market expansion, particularly in the context of the electrification of various industries.

Looking ahead, CVD Equipment anticipates continued growth in its core markets, although it acknowledges the potential for fluctuations in demand and revenue recognition due to the cyclical nature of its business. The company plans to leverage its expertise in chemical vapor deposition and related technologies to capitalize on emerging opportunities in advanced materials and coatings, while maintaining a focus on operational efficiency and customer satisfaction.