CVD Equipment Corporation Charts Course to Revitalization with Strategic Initiatives
In a bid to navigate through turbulent market conditions, CVD Equipment Corporation has embarked on a comprehensive transformation strategy. The move aims to reduce fixed operating costs, create a more agile organization, and position the company for maximum shareholder value.
During the fourth quarter of 2025, the company initiated a plan to outsource fabrication for certain components, which is expected to slash fixed costs and enhance scalability. Additionally, CVD Equipment Corporation has undergone a workforce reduction, a move that will help rightsize the organization and result in an estimated annual operating cost reduction of $1.8 million in 2026.
A key aspect of this strategy involves revising the sales approach by leveraging distributors and external representatives to complement its internal sales organization. The company is also exploring strategic alternatives for certain businesses and product lines, including potential asset sales or divestitures.
One such divestiture has already been announced, as CVD Equipment Corporation entered into a definitive agreement with Atlas Copco Group to sell its SDC business on March 23rd, 2026. The transaction is expected to close during the second quarter of this year and will generate approximately $16.9 million in cash, subject to certain purchase price adjustments.
The sale will allow CVD Equipment Corporation to sharpen its focus on its core CVD Equipment business, situated in Central Islip, New York, while also strengthening its balance sheet and providing additional financial flexibility. The company retains ownership of its Saugerties, New York facility, which will be leased to Atlas Copco Group for the initial term of two years following the closing.
Commenting on this strategic move, Emmanuel Lakios, President and Chief Executive Officer of CVD Equipment Corporation, expressed appreciation to the SDC employees for their contribution to the company over the years. 'This transaction will enable us to concentrate our efforts on our core business,' he stated.
The fourth quarter 2025 revenue was reported at $5 million, a decline of 33% from the prior year period and sequentially down by 33% from the third quarter. For the full year 2025, revenue stood at $25.8 million, a decrease of 4.1% from fiscal year 2024.
Orders in the fourth quarter totaled $3.5 million, driven primarily by demand for gas delivery equipment and two orders received from Stony Brook University for PVT150 units. For the full year, orders stood at $13 million compared to $28 million in 2024, mainly due to increased demand for spare parts and service for our CVD Equipment division.
At December 31st, 2025, the backlog was reported at $6.6 million, a decrease from the end of September 2025, but an increase compared to $19.4 million at the end of December 2024. The company's bookings have been pressured by various factors including softer demand for products in its CVD Equipment division and tariff-related uncertainties.
