CVD Equipment posts Q2 profit on $17.4M SDC division sale

CVD Equipment Corporation (NASDAQ: CVV) reported net income of $12.6 million for the second quarter ended June 30, 2026, driven primarily by a $13.9 million gain from the sale of its SDC division, according to a company press release.

The company completed the SDC divestiture on April 1, 2026, for $17.4 million, generating approximately $15.0 million in net cash proceeds after transaction costs and estimated tax payments. As a result, cash and cash equivalents rose to $23.5 million from $8.7 million at December 31, 2025, and the company carried no long-term debt at quarter-end. Stockholders' equity increased to $36.0 million from $24.7 million over the same period.

Excluding the discontinued SDC operations, the company reported a net loss from continuing operations of $1.4 million, or ($0.20) per share, compared with a net loss of $1.3 million, or ($0.19) per share, in the prior-year quarter. Revenue from continuing operations fell 42.6% to $2.0 million, reflecting lower system bookings during 2025 and early 2026. Gross margin improved to 16.8% from 14.1% in the prior-year period. Orders totaled $1.2 million, down from $1.5 million a year earlier, and backlog stood at $3.9 million at June 30, 2026, compared with $4.6 million at March 31, 2026.

After the quarter ended, the customer associated with a $0.8 million system order included in backlog filed a prepackaged Chapter 11 bankruptcy proceeding. The company said it is evaluating the potential impact on the order, backlog, and financial results, while noting that unsecured trade creditors are expected to be unimpaired under the proposed plan.

The company also said it completed a major operational restructuring intended to reduce its fixed cost structure, and that it continues to evaluate strategic alternatives.

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