Dj Dir Bennett Receives 4000 Of Cps Technologies Corp >Cpsh

(12:34 GMT) CPS Technologies Price Target Announced at $6.00/Share by Roth Capital

Shares of CPS Technologies Corporation CPSH have lost 20.5% since reporting results for the third quarter of 2025. This compares to the S&P 500 index’s 0.6% decline over the same period. Over the past month, the stock has fallen 7.2% against the S&P 500’s 1.9% growth, as investors reacted to the company’s quarterly results and near-term guidance.

CPS Technologies reported record third-quarter 2025 revenues of $8.8 million, more than doubling the $4.2 million posted in the year-ago quarter, reflecting robust demand for its core product lines. The company’s gross profit improved to $1.5 million, translating to a 17.1% margin, against a gross loss of $0.5 million or a negative 12.3% margin in the prior year.

Operating profit came in at $0.3 million, reversing from a $1.5-million operating loss a year earlier, while net income was $0.2 million (1 cent per share) versus a net loss of $1 million (7 cent per share) in the same period of 2024. The year-over-year gains were largely attributed to higher sales volumes, improved capacity utilization and efficiency gains.

CPS Technologies Corp. Price, Consensus and EPS Surprise

CPS Technologies Corp. price-consensus-eps-surprise-chart | CPS Technologies Corp. Quote

Expanding Revenue Base & Improved Margins

CPS Technologies’ third consecutive quarter of record revenues underscores the company’s accelerating growth trajectory. Management highlighted increased shipping volumes and continued strong customer demand as the primary drivers of the top-line expansion.

The gross margin also improved sequentially, aided by enhanced manufacturing efficiencies and rising production throughput. Selling, general and administrative expenses (SG&A) totaled $1.2 million versus $1 million last year, indicating disciplined cost control despite higher activity levels.

The record quarter also marked a notable turnaround in profitability, as the company generated a modest operating and net profit for the second consecutive period. CFO Charles Griffith attributed the margin gains to “higher revenue and improved manufacturing efficiencies,” while reaffirming the company’s commitment to margin expansion as it scales output.

Management Commentary & Growth Initiatives

CEO Brian Mackey described the quarter as one of the most productive in company history, citing growing customer demand, federal research funding wins and a strengthened balance sheet, following a successful capital raise.

Management expressed confidence in the company’s trajectory, highlighting its $9.5-million secondary offering completed in early October, which included share purchases by executives and board members. The proceeds are earmarked for a planned move to a larger, more efficient manufacturing facility, which is expected to be completed by the end of calendar year 2026. The new site is anticipated to nearly double CPSH’s usable floor space and support long-term growth.

Mackey also emphasized that while the fourth quarter of 2025 may not set another record due to seasonal factors such as holidays and customer shutdowns, fiscal 2026 is expected to be strong. The company remains encouraged by robust demand trends and an expanding base of both commercial and government customers.

Factors Influencing the Headline Numbers

The quarter’s performance was boosted by higher utilization rates and stronger order flow across the company’s metal matrix composites and hermetic packaging segments.

CPSH also secured a $15.5-million contract from a multinational semiconductor manufacturer for the delivery of advanced power module components, marking a 16.5% year-over-year increase in value from this long-standing customer. The contract will be fulfilled over 12 months beginning Oct. 1, 2025, and management expects relatively stable revenue recognition throughout the term.

Beyond the commercial segment, CPSH continues to benefit from its expanding presence in federally funded research. In the quarter, the company received two contracts — a $1.15-million Phase II STTR award from the U.S. Army for its controlled fragmentation tungsten warhead project and a $125,000 Phase I SBIR contract from the Department of Energy focused on high-performance impact limiters for nuclear waste transport.

These awards bring CPS’s total 2025 federal program count to six, positioning the company favorably within the defense and energy research domains.

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Management commentary suggested confidence in sustaining growth momentum into 2026. The company anticipates completing its manufacturing relocation next year, which should enable expanded production capacity and improved operational efficiency. Mackey stated that CPSH “is in great shape to take advantage of the various opportunities that lie ahead” and remains focused on improving gross margins and scaling production.

CPSH’s outlook also includes growing contributions from its ALMAX material and radiation shielding solutions, which began commercial shipments in the quarter. Management highlighted ALMAX as a “large commercial opportunity” with multiple potential industrial applications and confirmed that CPSH is actively sending product samples to potential customers.

Other Developments

In addition to the capital raise and contract wins, CPSH continued to expand its technical and manufacturing teams, adding a manufacturing engineer and a Ph.D. researcher to support growth initiatives. Although these hires modestly increased short-term costs, management views them as investments to sustain innovation and productivity improvements.

The balance sheet remained healthy at quarter-end, with $3.2 million in cash and $1.1 million in marketable securities before the capital raise. Inventories increased to $5.4 million from $4.3 million at the start of 2025, reflecting higher production to meet rising demand. The company’s total assets rose to $20.4 million from $18.9 million at the end of 2024, underscoring its strengthened financial position.

In a nutshell, CPS Technologies delivered a record-setting third quarter, underpinned by broad-based demand, operational gains, and an expanding portfolio of commercial and government programs. While near-term seasonal softness may temper the sequential growth trajectory, management’s investments in capacity and innovation, along with a robust contract pipeline, position the company for continued expansion through 2026 and beyond.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Q3 2025 saw revenue more than double year-over-year, with gross margin improving to 17% and net income turning positive. A $9.5M equity raise post-quarter will fund facility expansion to meet strong demand, while inflation, tariffs, and FX remain key risks.

Original document: CPS Technologies Corp. [CPSH] SEC 10-Q Quarterly Report — Oct. 30 2025