Why Is CVD Equipment (CVV) Stock Down Over 17% After Hours Today?

CVD Equipment (NASDAQ:CVV) shares fell 17.66% in after-hours trading Thursday after the company reported a steep revenue decline and wider quarterly losses despite completing the sale of its SDC division.

CVD Equipment develops chemical vapor deposition and thermal process equipment used across aerospace, defense, electric vehicle and semiconductor-related industries.

Revenue Declines, Losses Widen

First-quarter 2026 revenue fell 70.9% year-over-year to $1.8 million as lower system bookings weighed on results. Gross margin declined to 8% from 27.4% a year earlier.

The company reported a net loss from continuing operations of $1.7 million, or 25 cents per share, compared with a loss of $229,000, or 3 cents per share, in the prior-year quarter.

Orders increased to $1.8 million from $800,000, driven by higher spare parts demand, though management said bookings continued facing pressure from geopolitical uncertainty, lower U.S. university funding and slower adoption across some end markets.

CEO Manny Lakios said the company continues evaluating strategic opportunities following the previously announced sale of its SDC division.

Balance Sheet Improves

CVD Equipment completed the sale of the SDC business on April 1, generating net cash proceeds of approximately $14.8 million. The company said it now holds roughly $23 million in cash and carries no long-term debt.

Management also said a previously announced workforce reduction tied to outsourcing certain fabrication operations is expected to lower annual operating costs by about $1.8 million in fiscal 2026.

Trading Metrics, Technical Analysis

CVD Equipment has a market capitalization of approximately $47.5 million, with a 52-week high of $8.46 and a low of $2.46.

The stock has gained more than 163% over the past 12 months despite the after-hours decline.

Benzinga’s Edge Stock Rankings indicate that CVV shares currently maintain positive short, medium and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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