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1. Company Snapshot

1.a. Company Description

CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets.It primarily offers metal matrix composites that are a combination of metal and ceramic, such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in internet switches and routers.The company also assembles housings and packages for hybrid circuits.


It primarily sells its products to microelectronics systems companies in the United States, Europe, and Asia.The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007.CPS Technologies Corporation was incorporated in 1984 and is headquartered in Norton, Massachusetts.

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1.b. Last Insights on CPSH

CPS Technologies Corporation's recent performance was negatively impacted by a Q4 loss, despite expectations of growth in 2025. The company's financial results for the quarter and year ended December 28, 2024, were marred by a decline in profitability. Additionally, the delay in the investor conference call, initially scheduled for March 6, 2025, and later rescheduled for March 13, 2025, may have contributed to market uncertainty. Furthermore, the company's Q4 loss and the subsequent earnings call may have raised concerns about its ability to meet growth expectations.

1.c. Company Highlights

2. CPS Technologies' Q3 2025 Earnings: A Strong Performance

CPS Technologies reported a record revenue of $8.8 million for the third quarter of 2025, more than doubling its revenue year-over-year and marking a 9% increase from the second quarter of 2025. The company's gross profit was $1.5 million, or approximately 17.1% of sales, driven by improved manufacturing efficiencies. Operating profit was $276,000, and net income was $200,000, or $0.01 per share.

Publication Date: Nov -12

📋 Highlights
  • Record Q3 Revenue:: CPS Technologies reported $8.8M in revenue for Q3 2025, a 9% increase from Q2 2025 and over 100% year-over-year growth.
  • Major Contract Win:: Secured a $15.5M contract with a multinational semiconductor manufacturer, marking a 16.5% year-over-year value increase.
  • Secondary Offering:: Raised $9.5M in net proceeds to fund a new manufacturing facility, doubling usable floor space by 2026 to boost production capacity.
  • Federal Research Expansion:: Earned six federally funded contracts in 2025, including a Phase 2 SBIR program with the U.S. Army and ongoing Navy/Navy SBIR projects.
  • ALMAX Commercialization:: First order for ALMAX material was delivered, with the company pursuing commercial applications and anticipating volume growth from sample distribution.

Contract Wins and Research Funding

The company announced a new contract valued at $15.5 million from a long-standing multinational semiconductor manufacturer, representing a 16.5% year-over-year increase in value. Additionally, CPS secured its fifth and sixth federally funded research contracts of 2025, including a Phase 2 SBIR program with the U.S. Army to develop a 40-millimeter controlled fragmentation warhead. According to Brian Mackey, the company is seeing opportunities in radiation shielding, with ongoing adoption discussions and testing conversations.

Expansion and Growth Initiatives

CPS completed a successful secondary offering, raising over $9.5 million in net proceeds, which will be used for general corporate purposes, including a planned move to a new manufacturing facility. The new facility will provide nearly double the usable floor space, allowing for increased production and expansion of product development capabilities. The company expects to complete the move during calendar year 2026.

Valuation and Outlook

With a P/S Ratio of 1.92 and an EV/EBITDA of -25.3, the market appears to be cautiously optimistic about CPS Technologies' growth prospects. The company's ROE and ROIC are currently negative, at -12.35% and -13.11%, respectively. As CPS continues to innovate and bring new products to market, including its radiation shielding solution and ALMAX materials, the company's technical team has made significant advancements in various programs. The ALMAX material presents a large commercial opportunity, validated by the first order delivery in the quarter.

Government Shutdown Impact

Despite the ongoing federal government shutdown, CPS has not seen a significant impact on its operations. Charles Griffith stated that payments were received promptly for submitted invoices, and ongoing contracts had minimal impact, as the technical team is executing research work.

3. NewsRoom

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Head-To-Head Analysis: Eltek (NASDAQ:ELTK) versus CPS Technologies (NASDAQ:CPSH)

Dec -02

Source: defenseworld.net

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CPS Announces Third Quarter 2025 Earnings

Nov -10

Source: globenewswire.com

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CPS to Host Conference Call on Third Quarter 2025 Earnings

Nov -07

Source: globenewswire.com

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Analyzing Integral Technologies (OTCMKTS:ITKG) & CPS Technologies (NASDAQ:CPSH)

Nov -05

Source: defenseworld.net

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CPS Technologies Posts Y/Y Rise in Q3 Earnings, Eyes Strong '26 Growth

Nov -04

Source: zacks.com

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CPS Technologies Corporation (CPSH) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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CPS Technologies Announces Third Quarter 2025 Financial Results

Oct -29

Source: globenewswire.com

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European Commission Approves KEYTRUDA® (pembrolizumab) as Part of a Treatment Regimen for Adults with Resectable Locally Advanced Head and Neck Squamous Cell Carcinoma (LA-HNSCC) Expressing PD-L1 (CPS >1)

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Metal Matrix Composites

Expected Growth: 7.5%

Growing demand for advanced materials in aerospace, automotive, and industrial applications drives the Metal Matrix Composites market. Enhanced thermal conductivity, strength, and durability of CPS Technologies' products fuel adoption, with increasing focus on energy efficiency and sustainability.

7. Detailed Products

Hermetic Packages

CPS Technologies Corporation offers hermetic packages that provide a reliable and durable solution for protecting sensitive electronic components from environmental factors.

Metal Ceramic Packages

CPS Technologies Corporation's metal ceramic packages provide a high-reliability, hermetic solution for protecting electronic components in harsh environments.

Ceramic Column Grid Arrays

CPS Technologies Corporation's ceramic column grid arrays offer a high-density, high-reliability interconnect solution for advanced electronic systems.

Hermetic Microwave Packages

CPS Technologies Corporation's hermetic microwave packages provide a high-reliability, high-frequency solution for protecting sensitive microwave components.

Custom Packages

CPS Technologies Corporation offers custom packaging solutions tailored to meet specific customer requirements for unique applications.

8. CPS Technologies Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CPS Technologies Corporation's products are specialized, but there are some substitutes available in the market. However, the company's strong brand reputation and customer loyalty reduce the threat of substitutes.

Bargaining Power Of Customers

CPS Technologies Corporation's customers are diverse and do not have significant bargaining power. The company's products are critical to its customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

CPS Technologies Corporation's suppliers have some bargaining power due to the specialized nature of their products. However, the company's long-term relationships with its suppliers reduce the threat of supplier bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry. CPS Technologies Corporation's strong brand reputation, patented technology, and high capital requirements make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players. CPS Technologies Corporation competes with these players on price, quality, and innovation, making the rivalry intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.23%
Debt Cost 3.95%
Equity Weight 98.77%
Equity Cost 11.05%
WACC 10.96%
Leverage 1.24%

11. Quality Control: CPS Technologies Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Data I/O

A-Score: 4.6/10

Value: 8.4

Growth: 1.4

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

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Wrap Tech

A-Score: 4.2/10

Value: 6.0

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

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Stock-Card
CPS Technologies

A-Score: 4.1/10

Value: 7.2

Growth: 0.8

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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BlackSky Technology

A-Score: 3.8/10

Value: 4.4

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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LightPath Technologies

A-Score: 3.6/10

Value: 6.0

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Mesa Laboratories

A-Score: 3.0/10

Value: 6.1

Growth: 4.3

Quality: 3.9

Yield: 1.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.29$

Current Price

3.29$

Potential

-0.00%

Expected Cash-Flows