CVD Equipment Corporation (CVV): History, Ownership, Mission, How It Works & Makes Money

Do you understand the critical role CVD Equipment Corporation (CVV) plays as a specialized provider of chemical vapor deposition (CVD) and thermal process equipment, especially as the world pivots to high-power electronics? This company is a core enabler for next-generation materials like Silicon Carbide (SiC) and Electric Vehicle (EV) battery components, which explains why year-to-date revenue through Q3 2025 climbed to $20.8 million, a 7.1% increase over the prior year period. But with a backlog of only $8.0 million as of September 30, 2025, and a new strategic transformation underway, you need to know exactly how this decades-old firm is adapting its business model to capture future growth in volatile markets like aerospace and defense.

CVD Equipment Corporation (CVV) History

Given Company's Founding Timeline

You're looking for the bedrock of CVD Equipment Corporation, and it all starts with a single vision for advanced materials technology. This company has been a quiet, persistent player in specialized manufacturing for over four decades, adapting its core technology to the world's most demanding industries.

Year established

1982

Original location

The company was originally founded in Deer Park, New York, USA, before establishing its current headquarters in Central Islip, New York.

Founding team members

The company's initial driving force and founder was Leonard A. Rosenbaum.

Initial capital/funding

Specific initial funding figures from 1982 aren't public, but like many specialized manufacturing startups of that era, it likely began with founder capital and small private investments before its eventual public listing.

Given Company's Evolution Milestones

The company's journey shows a clear pivot from simply making equipment to enabling next-generation materials for high-growth markets like electric vehicles (EV) and aerospace. It's a steady, forty-year evolution. Exploring CVD Equipment Corporation (CVV) Investor Profile: Who's Buying and Why?

Given Company's Transformative Moments

The most recent and defintely transformative moment came in November 2025. Facing fluctuations in order rates, especially in the CVD Equipment division, the Board of Directors approved a major 'transformation' strategy. This isn't just cost-cutting; it's a fundamental shift in how they operate.

Here's the quick math on the near-term impact: the planned workforce reduction in the CVD Equipment division, set to finish by December 31, 2025, is expected to reduce annual operating costs by approximately $2.0 million in fiscal year 2026. That's a serious commitment to agility.

This transformation focuses on three key actions:

• Transitioning the CVD Equipment business from vertically integrated fabrication to outsourcing certain component fabrication.
• Reducing the CVD Equipment division's workforce to lower fixed operating costs.
• Implementing a revised sales strategy that uses distributors and outside sales representatives to supplement internal efforts.

For the first nine months of 2025, the company reported year-to-date revenue of $20.8 million, a 7.1% increase over the prior-year period, but the backlog dropped to $8.0 million by September 30, 2025, down from $13.2 million in June 2025. This decline in forward-looking orders is what drove the November 2025 strategic pivot. The shift is clear: move away from high fixed costs and use a more variable model to chase opportunities in advanced materials like Silicon Carbide (SiC) and EV battery components.

CVD Equipment Corporation (CVV) Ownership Structure

CVD Equipment Corporation (CVV) has a highly concentrated ownership structure, with company insiders controlling the vast majority of shares, a common trait for smaller, publicly-traded technology firms.

This means strategic decisions are defintely driven by the interests of the executive team and board, which you need to watch closely as an investor or analyst.

CVD Equipment Corporation's Current Status

CVD Equipment Corporation is a publicly-traded company, listed on the NASDAQ Capital Market under the ticker symbol CVV. It is a small-cap entity, with a reported market capitalization of approximately $22.99 million as of November 2025. Being public means the company is subject to the rigorous reporting and disclosure requirements of the U.S. Securities and Exchange Commission (SEC), which provides transparency into its operations and financials.

For example, the company recently reported its Third Quarter 2025 financial results, showing revenue of $7.4 million and a net income of $384,000 for the quarter ended September 30, 2025. This transparency is crucial, but still, the high insider control is the dominant factor in governance.

CVD Equipment Corporation's Ownership Breakdown

The company's ownership is heavily weighted toward insiders, which gives them significant voting power over corporate actions, like electing directors or approving major transactions. Honestly, this level of insider control is a double-edged sword: it aligns management's interests with long-term value creation, but it can also limit the influence of outside shareholders.

Here's the quick math on the shareholder breakdown as of late 2025:

CVD Equipment Corporation's Leadership

The company is steered by an experienced management team, many of whom have deep roots in the semiconductor and advanced materials industries. The current leadership is focused on a strategic transformation designed to reduce fixed operating costs by an expected $2.0 million annually starting in fiscal 2026.

The key leaders, as of November 2025, include:

• Emmanuel N. Lakios: President, Chief Executive Officer (CEO), and Director. He has been in the CEO role since January 2021.
• Richard A. Catalano: Executive Vice President, Chief Financial Officer (CFO), Secretary, and Treasurer.
• Lawrence J. Waldman: Chairman of the Board of Directors.
• Dr. Maxim S. Shatalov: Vice President of Engineering & Technology.
• Dr. Jeffrey Alan Brogan: Vice President of Sales & Marketing.

This team is actively managing a shift to outsourced fabrication for certain components, a clear action to make the organization more agile and improve profitability. If you want to dive deeper into the overarching goals, you can review the Mission Statement, Vision, & Core Values of CVD Equipment Corporation (CVV).

CVD Equipment Corporation (CVV) Mission and Values

CVD Equipment Corporation's core purpose is centered on enabling next-generation technology by providing highly precise equipment and solutions, a mission that directly ties their operational excellence to the future of high-growth markets like electric vehicles and aerospace.

The company's cultural DNA is one of a trend-aware realist, focusing on delivering tangible results for demanding material science applications. Their strategic focus in 2025, for example, has been on driving operational efficiencies to achieve profitability, following a Q3 2025 net income of $384,000, which shows their commitment to stakeholder value.

CVD Equipment Corporation's Core Purpose

For a company like CVD Equipment Corporation (CVV), which operates in the complex world of chemical vapor deposition (CVD) and thermal processing, their purpose goes beyond simply selling machinery. It's about being the foundational technology provider for materials that enable a sustainable and advanced future.

This is defintely a high-stakes, high-precision business. Your investment decision needs to map their values to their market execution, especially when the backlog, as of September 30, 2025, stood at $8.0 million.

Official Mission Statement

The mission statement is clear: provide the tools that meet the most demanding material performance requirements while ensuring a solid return for all parties. It's a balanced view of technical precision and financial discipline.

• Provide process deposition equipment and solutions to customers with demanding material performance requirements.
• Achieve a competitive cost of ownership and return on investment for stakeholders.
• Execute through innovation, market focus, and operational excellence.

Vision Statement

The vision is about growth and market leadership, but it's anchored in a specific, forward-looking goal: solving material challenges. It's a simple, powerful target.

• Achieving company growth by 'enabling tomorrow's technologies™' to meet material challenges.
• Focusing on operating excellence and performance in everything they do.
• Maintaining a leadership position in their served markets, which include aerospace and high-power electronics.

Their long-term strategy, as stated in 2025, is intact: grow presence in key markets where their technology adds value, which is why they are pursuing opportunities in the electric vehicle (EV) battery materials market with their PowderCoat™ systems.

CVD Equipment Corporation Slogan/Tagline

The company's slogan is a perfect distillation of its vision and market position in one clean one-liner.

• 'enabling tomorrow's technologies™'

This tagline neatly summarizes their role in the supply chain for materials like silicon carbide (SiC) for high-power electronics and ceramic matrix composites (CMCs) for aerospace and defense. You can read more about their foundational principles here: Mission Statement, Vision, & Core Values of CVD Equipment Corporation (CVV).

CVD Equipment Corporation (CVV) How It Works

CVD Equipment Corporation designs and manufactures the specialized tools-primarily chemical vapor deposition (CVD) and thermal processing systems-that high-tech manufacturers and researchers need to create advanced materials. Simply put, they sell the complex machinery that builds the next generation of components for aerospace and power electronics, making money by delivering high-margin, custom-engineered equipment and supporting gas delivery systems.

CVD Equipment Corporation's Product/Service Portfolio

The company operates through two main segments: the core CVD Equipment division and its Stainless Design Concepts (SDC) division, which specializes in gas delivery. This dual focus allows them to capture both the high-value system sales and the recurring revenue from supporting infrastructure.

CVD Equipment Corporation's Operational Framework

You need to see the value-creation process as a shift from a vertically integrated model to a more agile engineering-focused one. Here's the quick math: the company is actively shedding fixed costs to improve profitability, which is a smart move given fluctuating order flow. For the nine months ended September 30, 2025, the company reported year-to-date revenue of $20.8 million, a 7.1% increase over the prior year, but orders remain volatile.

This is how the operational process works in practice as of November 2025:

• Design and Engineering Focus: The core value is in the proprietary process design for materials like SiC and CMCs, not just the metal fabrication.
• Outsourced Fabrication: A key strategic initiative, approved in November 2025, is transitioning the CVD Equipment division from in-house fabrication to outsourced manufacturing for certain components. This cuts fixed costs.
• Cost Reduction: The company is implementing a workforce reduction in the CVD Equipment division, expected to reduce annual operating costs by approximately $2.0 million starting in fiscal 2026.
• Application Laboratory: Customers can bring their process tools to the company's lab to work collaboratively with scientists and engineers, which helps optimize process performance before a major system purchase.

They are trying to be a high-end engineering shop that manages a supply chain, not a full-scale factory. It's defintely a leaner model.

CVD Equipment Corporation's Strategic Advantages

The company's advantage isn't scale; it's precision and a deep presence in emerging, high-barrier-to-entry materials markets. Their systems are enabling technologies for major global trends, which gives them a long runway if they can manage execution risk.

• Niche Market Specialization: They focus on chemical vapor deposition (CVD) and physical vapor transport (PVT) equipment, which are critical, high-precision tools for advanced materials like SiC and CMCs. This specialized focus creates a high barrier for new competitors.
• Improved Gross Margin: The shift in contract mix and cost management is showing results; the gross margin for the third quarter of 2025 was 32.7%, a significant jump from the prior-year quarter.
• Backlog and Recurring Revenue: As of September 30, 2025, the backlog stood at $8.0 million, providing near-term revenue visibility. Plus, the SDC segment provides a steady stream of orders for gas delivery equipment, which is a crucial, high-turnover component for all their target industries.
• Strategic Pivot to Agility: The move to outsource fabrication and reduce fixed costs by $2.0 million annually positions the company to be more resilient to the volatile order rates inherent in the emerging growth markets they serve.

To be fair, the backlog of $8.0 million is down from earlier in the year, but the strategic cost cuts are a clear, actionable response to that reality. If you want to dive deeper into the financial health supporting this strategy, you should read Breaking Down CVD Equipment Corporation (CVV) Financial Health: Key Insights for Investors.

CVD Equipment Corporation (CVV) How It Makes Money

CVD Equipment Corporation (CVV) primarily makes money by designing, developing, and manufacturing high-precision chemical vapor deposition (CVD) and thermal process equipment used to create advanced materials, plus a steady revenue stream from its gas and chemical delivery systems.

You can think of it as a two-part business: one part sells the large, complex fabrication tools for cutting-edge materials like silicon carbide, and the other sells the specialized, high-purity gas delivery systems (the SDC segment) that are essential for running those tools and other semiconductor processes. The latter offers a more consistent, product-based revenue stream, while the former drives large, lumpy contract revenue.

CVD Equipment Corporation's Revenue Breakdown

The company's revenue for the first nine months of fiscal 2025 (YTD Q3 2025) totaled $20.8 million. This revenue is heavily weighted toward the core equipment segment, though the gas delivery systems provide a crucial base. Here's the quick math on the breakdown, based on segment revenues of $5.24 million for SDC and $15.56 million for the CVD Equipment segment through Q3 2025:

Business Economics

The economics of CVD Equipment Corporation are characterized by high-value, low-volume equipment sales in a cyclical, technology-driven market, balanced by a more stable component business. The large-scale Chemical Vapor Deposition (CVD) and Physical Vapor Transport (PVT) systems, like the PVT150™ for silicon carbide (SiC) production, carry high price tags and long lead times, meaning revenue recognition is lumpy.

The company operates with a significant backlog, which stood at $8.0 million as of September 30, 2025. This backlog represents future revenue, but its decline from $13.2 million in Q2 2025 signals a recent slowdown in new orders being booked. The shift to a transformation strategy, announced in November 2025, aims to move the CVD Equipment division from vertically integrated fabrication to outsourced fabrication, which should reduce fixed operating costs by approximately $2.0 million annually starting in fiscal 2026. That's a clear move to improve operating leverage.

• Pricing is premium, reflecting specialized engineering and intellectual property.
• Cost of Goods Sold (COGS) is high, but the Q3 2025 gross margin of 32.7% shows an improvement due to a better contract mix in the CVD Equipment segment.
• Key markets-aerospace & defense (ceramic matrix composites), SiC high-power electronics, and electric vehicle (EV) battery materials-drive demand, but market-specific issues, like the overcapacity challenge in the SiC market, create volatility [cite: 4 (from first search), 12 (from first search)].

CVD Equipment Corporation's Financial Performance

The company's financial health as of November 2025 shows a mixed picture: strong year-over-year revenue growth but softening commercial momentum and a tight cash position. Year-to-date revenue through Q3 2025 reached $20.8 million, a 7.1% increase over the prior-year period.

The Q3 2025 performance was a positive step toward profitability, showing net income of $384,000, or $0.06 per diluted share. This net income is a defintely a good sign, despite the overall nine-month period still reflecting a net loss of $317,000.

• Total Revenue (YTD Q3 2025): $20.8 million.
• Gross Margin (Q3 2025): 32.7%, up from 21.5% in the prior-year quarter.
• Net Cash Used in Operating Activities (YTD Q3 2025): $4.1 million, which has impacted the cash reserves.
• Cash and Cash Equivalents (Sep 30, 2025): $8.4 million.
• New Orders (YTD Q3 2025): $9.5 million, a significant drop from the $21 million recorded in the same period last year.

The drop in new orders is the biggest near-term risk. You need to watch the conversion of the remaining $8.0 million backlog into revenue and the success of the new cost-saving strategy. For a deeper dive into who is betting on this turnaround, you might want to check out Exploring CVD Equipment Corporation (CVV) Investor Profile: Who's Buying and Why?

CVD Equipment Corporation (CVV) Market Position & Future Outlook

CVD Equipment Corporation (CVV) is a highly specialized, small-cap player in the global Chemical Vapor Deposition (CVD) equipment market, which is projected to be worth approximately $26.71 billion in 2025. The company's future outlook hinges on successfully executing its November 2025 transformation strategy and capturing demand in high-growth, niche markets like Silicon Carbide (SiC) and aerospace composites.

Competitive Landscape

In the broader CVD equipment space, CVD Equipment Corporation competes with industry behemoths, but its core competitive advantage lies in highly customized, low-volume, precision-engineered systems for advanced materials, rather than high-volume semiconductor fabrication.

Here's the quick math: CVD Equipment Corporation's trailing twelve months revenue of approximately $28.25 million as of Q3 2025 positions it as a niche provider against the global market size of over $26 billion, hence the small market share percentage. To be fair, this estimate hides the company's stronger position in specific segments, like Physical Vapor Transport (PVT) systems for SiC crystal growth.

Opportunities & Challenges

The company is strategically repositioning to capitalize on emerging technology segments, but still faces the inherent risks of a cyclical, capital-intensive industry.

Industry Position

CVD Equipment Corporation is a specialized equipment provider, not a mass-market semiconductor tool vendor. Its strength is in the deep engineering required for complex, low-volume applications.

• Maintain a strong balance sheet with a current ratio of 4.0 and a quick ratio of 3.49 as of October 2025, indicating defintely strong liquidity.
• Focus on the PVT200™ system for 200 mm SiC wafers, a critical future standard for high-power electronics.
• The transformation strategy, approved in November 2025, shifts the CVD Equipment division from vertical integration to outsourced fabrication to reduce fixed operating costs.
• Year-to-date revenue through Q3 2025 was $20.8 million, a 7.1% increase over the prior-year period, showing growth despite a challenging order environment.

The company is betting its future on its ability to be the go-to partner for emerging advanced materials, which requires a highly technical and collaborative approach. You can learn more about their core values here: Mission Statement, Vision, & Core Values of CVD Equipment Corporation (CVV).