CPS Technologies Corporation (CPSH): History, Ownership, Mission, How It Works & Makes Money

When you look at the future of defense, electric vehicles, and 5G infrastructure, do you know which small-cap player is building the foundational metal matrix composites (MMCs) that make it all work?

CPS Technologies Corporation (CPSH) is defintely one to watch, having just announced a record-breaking Q3 2025 revenue of $8.8 million, which is more than double the revenue from the prior-year period, and is on track for their best sales year ever.

This isn't just a flash in the pan; their ability to secure a new $15.5 million follow-on contract with a major semiconductor manufacturer, coupled with a return to a $0.3 million operating profit, shows their proprietary material solutions are now truly scaling in mission-critical applications.

If you want to understand how a company specializing in advanced materials for thermal management and lightweighting is capturing value in these high-growth markets, you need to look closer at their mission, ownership structure, and how they actually make money.

CPS Technologies Corporation (CPSH) History

You're looking for the foundational story of CPS Technologies Corporation (CPSH), and the truth is, it's a classic, decades-long evolution from a specialized materials science startup to a public company driving the electrification trend. The company's trajectory is a clear map of how proprietary technology-specifically metal matrix composites (MMCs)-can find new, high-value markets over time, from defense to 5G infrastructure.

Given Company's Founding Timeline

Year established

CPS Technologies was established in 1984 in Massachusetts, initially operating under the name Ceramics Process Systems Corporation.

Original location

The company was incorporated in Massachusetts, and its principal executive offices and manufacturing operations remain in Norton, MA.

Founding team members

While the initial founding team is not explicitly detailed in public filings, the company's core technology-the QuickSet Injection Molding process-was built on the expertise of key personnel like Dr. Mark Occhionero, whose work in the field spans over 40 years, aligning with the company's inception. Grant Bennett, a long-time executive, joined the firm shortly after its founding in 1985.

Initial capital/funding

The company's first major capital infusion came in July 1987 when it completed its Initial Public Offering (IPO) on the NASDAQ, selling 1.5 million shares of common stock.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most transformative period for CPS Technologies is happening right now, in the 2025 fiscal year. After a period of volatility, the company has clearly found its footing by aligning its core metal matrix composite (MMC) technology with high-growth sectors like electrification and defense.

Honstly, the 2025 financial performance is the clearest sign of a strategic inflection point. The company delivered three consecutive quarters of record revenue, culminating in $8.8 million in the third quarter alone. This growth wasn't just top-line; they reported an operating profit of $0.3 million in Q3 2025, with a gross margin expanding to 17.1 percent. That's a huge shift from prior-year losses.

Two key actions in late 2025 solidify this new trajectory:

• Securing a $15.5 million 12-month follow-on contract with a major multinational semiconductor manufacturer, starting October 1, 2025. This shows deep customer commitment to their power module components.
• Raising $9.5 million in net proceeds via a public offering. This capital is specifically earmarked for general corporate purposes and, crucially, the expansion of production capacity through a local move to a larger facility. They are putting money directly into scaling to meet demand.
• Winning a total of six new government-funded research contracts (SBIR/STTR) in 2025, including a Phase II Army STTR contract for controlled fragmentation warhead development. This diversifies their revenue and strengthens their intellectual property portfolio for the long term.

The focus is now on capacity and margin expansion, moving from a turnaround story to a growth story. If you want to dive deeper into the numbers behind this shift, you should check out Breaking Down CPS Technologies Corporation (CPSH) Financial Health: Key Insights for Investors. What this estimate hides, still, is the execution risk inherent in a facility move, but the capital is secured.

CPS Technologies Corporation (CPSH) Ownership Structure

The ownership of CPS Technologies Corporation (CPSH) is primarily held by the public, but with a significant and actively engaged stake from corporate insiders and institutional funds, creating a balanced governance structure.

This mix of ownership means the company's strategy is influenced by both long-term executive vision and the short-term performance demands of institutional money managers like BlackRock, Inc. and The Vanguard Group, Inc.. You can dive deeper into the major players in Exploring CPS Technologies Corporation (CPSH) Investor Profile: Who's Buying and Why?

CPS Technologies Corporation's Current Status

CPS Technologies Corporation is a publicly traded company, listed on the NASDAQ exchange under the ticker symbol CPSH. This public status means the company is subject to rigorous regulatory oversight from the Securities and Exchange Commission (SEC), ensuring a degree of transparency in its financial reporting and governance.

As of November 2025, the company's market capitalization stands at approximately $62.03 million, placing it firmly in the small-cap segment of the market. This smaller size often means the stock can be more volatile, but the recent insider buying activity, with executives and directors purchasing over 70,166 shares in the last quarter of 2025, is a strong signal of internal confidence.

CPS Technologies Corporation's Ownership Breakdown

The company's shareholder base is distributed across three main groups: insiders, institutional investors, and the general public (retail investors). The calculated public float is the largest segment, but the combined influence of insiders and institutions is substantial.

Here's the quick math on the breakdown using the latest available data as of November 2025:

CPS Technologies Corporation's Leadership

The company is steered by a seasoned, if small, leadership team with an average management tenure of around 2.8 years, suggesting a relatively recent but experienced set of hands at the helm. The board of directors, however, is very experienced, with an average tenure of 17.4 years.

The executive team is focused on advancing the company's core metal matrix composites (MMCs) technology for high-growth markets like electric vehicles and defense applications.

• Brian Mackey: Chief Executive Officer (CEO) & President. His total compensation for the most recent fiscal period was approximately $333.39K.
• Charles K. Griffith Jr.: Chief Financial Officer (CFO) & Secretary. His compensation was around $240.39K for the same period.
• Daniel Barton: Vice President of Operations.
• Dr. Stephen Kachur, Ph.D.: Vice President of Technology, managing new product development for next-generation composite materials.
• Dr. Mark A. Occhionero: Vice President of Marketing. His compensation was approximately $190.95K.
• Francis J. Hughes, Jr.: Independent Chairman of the Board.

The recent insider purchases by key figures like Mr. Mackey and Director Ivo James Cavoli in October and November 2025, totaling over 70,166 shares, defintely shows their alignment with shareholder interests.

CPS Technologies Corporation (CPSH) Mission and Values

CPS Technologies Corporation's core purpose is to drive the next wave of electrification and defense technology by engineering advanced material solutions, specifically metal matrix composites (MMCs), that solve complex thermal and structural challenges.

This commitment is defintely grounded in their values, which prioritize customer needs and innovation, enabling them to secure significant contracts like the $15.5 million deal with a global semiconductor manufacturer in October 2025.

CPS Technologies Corporation's Core Purpose

The company's cultural DNA is built around being a premier provider of high-performance material solutions for mission-critical applications, focusing on material engineering innovation to enhance reliability and efficiency in modern infrastructure systems.

Official mission statement

While the company focuses on its Vision, its operational mission is to be a technology and manufacturing leader that produces high-performance energy management components, facilitating the electrification of the economy and supporting national defense.

• Manufacture advanced material solutions (metal matrix composites) for transportation, energy, aerospace, and defense.
• Provide components that are critical to the technology puzzle for electric vehicles, wind turbines, and the smart electric grid.
• Exceed customer expectations by delivering the highest quality product on time with unmatched engineering support.

Vision statement

CPS Technologies Corporation articulates a clear, forward-looking vision that maps directly to their product development in advanced materials science (metal matrix composites, or MMCs).

• To pioneer the next generation of high-performance materials and solve the world's toughest engineering challenges.

This vision is backed by real growth; the company reported record sales of $8.8 Million in Q3 2025, putting them on track for their best revenue year in company history.

CPS Technologies Corporation slogan/tagline

The company uses a simple, direct tagline that summarizes the impact of their specialized components on large-scale, complex systems.

• Smart parts powering the big picture.

Honestly, that is a clean one-liner that captures what they do.

To learn more about how these principles guide the company's strategy, you can review this analysis: Mission Statement, Vision, & Core Values of CPS Technologies Corporation (CPSH).

CPS Technologies Corporation (CPSH) How It Works

CPS Technologies Corporation is a high-performance materials manufacturer that engineers and produces advanced metal matrix composites (MMCs) like Aluminum Silicon Carbide (AlSiC) and AlMax, which solve critical thermal management and structural challenges in mission-critical electronic and defense systems. The company makes money by selling these custom-engineered components, which enhance the reliability and power density of systems in the electrification, defense, and internet infrastructure markets.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational framework centers on proprietary material science and precision manufacturing, allowing them to create composites with unique properties that traditional materials can't match. Honestly, this is a niche where material science is the product.

• Proprietary Material Production: Manufacture Metal Matrix Composites (MMCs) through a specialized process, primarily Aluminum Silicon Carbide (AlSiC), which is crucial for thermal management in power electronics.
• Capacity Expansion: Actively using the net proceeds of $9.5 million raised in a public offering in October 2025 to expand production capacity, including financing a move to a new, larger, and more efficient manufacturing facility scheduled for 2026.
• R&D Pipeline: Leverage government-funded research contracts, such as Small Business Innovation Research (SBIR) awards, to develop new products like AlMax and radiation shielding, effectively using external funding for new product commercialization.
• Just-in-Time Delivery: Fulfill large, recurring orders like the $15.5 million follow-on contract for advanced power module components over a 12-month period, which began October 1, 2025, demonstrating an ability to scale production for major customers.

The company is on track for its best sales year ever in fiscal 2025, with Q3 revenue hitting a record $8.8 million, showing the production ramp is working.

Given Company's Strategic Advantages

CPS Technologies Corporation's market success is defintely driven by its intellectual property (IP) and deep integration into high-barrier-to-entry sectors like defense and electrification.

• Unique IP and Material Science: Hold exclusive global rights to AlMax, a high-strength aluminum alloy composite, and possess patented processes for AlSiC, creating a high barrier to entry for competitors.
• Mission-Critical Market Focus: Concentrated revenue in high-growth, high-reliability sectors like electric vehicles, high-speed rail, and military applications where component failure is not an option. For example, a single power module component failure can shut down a subway car.
• Government-Funded R&D: Strategic use of government research awards (like the $1.15 million Phase II Army STTR announced in Q3 2025) which acts as a form of non-dilutive funding, or free R&D, to develop next-generation technologies.
• Financial Turnaround and Momentum: Achieved a significant financial turnaround in 2025, moving from a gross loss in Q3 2024 to a gross margin of 17.1 percent and an operating profit of $0.3 million in Q3 2025, demonstrating improved operational efficiencies.

The company's focus on pioneering the next generation of high-performance materials is clearly articulated in their Mission Statement, Vision, & Core Values of CPS Technologies Corporation (CPSH).

CPS Technologies Corporation (CPSH) How It Makes Money

CPS Technologies Corporation makes money by designing, manufacturing, and selling high-performance material solutions, primarily metal matrix composites (MMCs) like Aluminum Silicon Carbide (AlSiC) and hermetic packaging components, which are critical for thermal management and structural integrity in high-power applications. The company's revenue is driven by product sales to industries undergoing electrification-such as electric vehicles, high-speed rail, and wind energy-as well as the aerospace and defense sectors.

CPS Technologies Corporation's Revenue Breakdown

CPS Technologies Corporation's revenue mix has shifted significantly in 2025, moving away from past large defense armor contracts and focusing entirely on its core advanced materials business. For the first nine months of fiscal year 2025, total revenue reached approximately $24.4 million, driven by the core product lines. The table below represents a grounded estimate of the revenue mix based on public disclosures of product emphasis and contract values.

Business Economics

The core of CPS Technologies Corporation's business economics lies in its proprietary material science expertise, which allows it to charge a premium for high-performance, mission-critical components that manage heat and stress better than traditional materials. This is a high-barrier-to-entry manufacturing model, but it is highly sensitive to production volume.

• Pricing Strategy: The company uses a value-based pricing model, especially for its AlSiC (Aluminum Silicon Carbide) power module baseplates. These components are essential for the reliability of Insulated Gate Bipolar Transistor (IGBT) modules used in electric grid infrastructure and high-power transportation, allowing for premium pricing due to superior thermal management.
• Operating Leverage: The company is currently benefiting from improved operating leverage. Because fixed costs are spread over higher sales volume, the gross margin has expanded in 2025, reaching 17.1% in the third quarter. This is a key indicator of manufacturing efficiency improving as the company increased production throughput, including adding a third production shift.
• Capital for Expansion: To meet accelerating demand, the company secured net proceeds of over $9.5 million from a public offering in October 2025. This capital is earmarked for general corporate purposes, including the move to a larger manufacturing facility in 2026 to nearly double production capacity. You can review the strategic priorities driving this expansion in the Mission Statement, Vision, & Core Values of CPS Technologies Corporation (CPSH).
• Contract Visibility: The business has strong near-term revenue visibility, underscored by a major 12-month follow-on contract valued at $15.5 million with a multinational semiconductor manufacturer, which began in October 2025. This single contract alone provides a significant baseline for the next fiscal year.

CPS Technologies Corporation's Financial Performance

CPS Technologies Corporation has successfully executed a financial turnaround in 2025, achieving three consecutive quarters of record revenue and returning to profitability. The focus has shifted from a reliance on large, finite defense contracts to consistent commercial and government R&D sales.

• Revenue Growth: For the first nine months of fiscal year 2025 (Q1-Q3), total revenue was approximately $24.4 million. Q3 2025 revenue was a record $8.8 million, more than doubling the prior-year period's $4.2 million. That's defintely a strong growth signal.
• Profitability Turnaround: The company achieved a net income of $0.2 million in Q3 2025, a significant reversal from a net loss of $1.0 million in the same quarter last year. Operating profit for Q3 2025 was $0.3 million, showing that the core operations are now generating cash after expenses.
• Gross Margin Expansion: Gross profit in Q3 2025 was $1.5 million, translating to a gross margin of 17.1%, up from a gross loss in the prior-year period. This expansion is crucial and indicates that the manufacturing efficiencies and higher sales volume are starting to pay off.
• Balance Sheet Health: As of the end of Q3 2025, the company had strengthened its cash position with the recent capital raise, and inventories had increased to $5.4 million to support the rising customer demand and production rates. The company is also debt-free as of Q1 2025.

CPS Technologies Corporation (CPSH) Market Position & Future Outlook

CPS Technologies Corporation is positioned for a significant near-term trajectory shift, moving from a volatile, contract-dependent revenue model to a more stable, growth-oriented one, driven by the electrification and defense markets. The company's core strength in Aluminum Silicon Carbide (AlSiC) metal matrix composites (MMCs) places it in a rapidly expanding market, projected to reach $351.71 million in 2025, with CPS expecting to post its best sales year ever with trailing twelve-month revenue around $30.3 million as of late 2025.

Competitive Landscape

In the specialized Aluminum Silicon Carbide (AlSiC) market for power module components and hermetic packages, CPS Technologies Corporation holds a strong niche position against larger, diversified advanced materials firms. The estimated available AlSiC market for CPS's products is a fraction of the broader AlSiC market, but the company's proprietary technology gives it a clear competitive edge in mission-critical applications.

Opportunities & Challenges

The company is capitalizing on two major macro trends: the global push for electrification and increasing defense spending, but still faces execution risks associated with scaling operations. You need to watch how they manage the upcoming facility transition. The company's Q3 2025 revenue of $8.8 million shows the demand is defintely there.

Industry Position

CPS Technologies Corporation is a small-cap technology leader in the niche field of metal matrix composites (MMCs), specifically Aluminum Silicon Carbide (AlSiC). The company's position is defined by its technological specialization and its focus on high-reliability, mission-critical applications where thermal management is paramount.

• Technology Focus: The company is a premier provider of materials that offer superior thermal expansion matching and high thermal conductivity, which is essential for Insulated Gate Bipolar Transistor (IGBT) power modules used in electric vehicles, high-speed rail, and wind turbines.
• Growth Momentum: After a challenging 2024, the company has demonstrated a strong turnaround in 2025, with year-to-date revenue through Q3 2025 reaching $24.4 million, a 61% increase over the same period in 2024.
• Financial Trajectory: The company has returned to profitability in Q3 2025, reporting a net income of $0.2 million, and analysts project a full-year 2025 Earnings Per Share (EPS) of $0.03.
• Strategic Capital: A secondary offering in late 2025 raised over $9.5 million in net proceeds, earmarked to fund the capacity expansion necessary to meet the growing demand.

This is a company that is currently punching above its weight in a high-growth, high-value segment of the advanced materials market. You can read more about the investor base here: Exploring CPS Technologies Corporation (CPSH) Investor Profile: Who's Buying and Why?