CPI Aerostructures Signs New Long-Term Agreement With Sikorsky Valued at $17.2 Million
CPI Aerostructures to Overhaul and Repair MH-60 SEAHAWK Stabilator Assemblies
EDGEWOOD, N.Y., May 20, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced that it has entered into a new Long-Term Agreement (LTA) with Sikorsky Aircraft (“Sikorsky”), a Lockheed Martin Company, to overhaul and repair (O&R) outboard stabilator assemblies in support of the Sikorsky MH-60 SEAHAWK Performance-Based Logistics Program. The Company estimates this new LTA is valued at $17.2 million over a term that ends in 2027 and includes a single option for an additional two years.
CPI Aero has been a supplier of overhauled or repaired stabilator assemblies for the MH-60 SEAHAWK since 2012 and has delivered over 500 units to date. CPI Aero also manufactures new production assemblies for several Sikorsky platforms, including the UH-60 BLACKHAWK, S-92 and CH-53K.
Originally introduced into service in 1984, the MH-60 SEAHAWK is a maritime variant of the H-60 BLACKHAWK helicopter used for anti-submarine warfare, search and rescue, drug interdiction, anti-ship warfare, cargo lift, and special operations. The stabilator is a large horizontal structure that is part of the tail and consists of three parts: a center section and an outboard section on each side of the center. The two outboard stabilator panels fold on a SEAHAWK to make it easier to maneuver on board a ship. The US Navy has approximately 300 MH-60 helicopters in service at this time.
“This agreement further strengthens and extends the long-standing partnership between Sikorsky and CPI Aero that stretches back more than 15 years. It reflects well on our ability to meet or exceed Sikorsky’s standards where our experience in manufacturing new structural assemblies gives us a significant competitive advantage in the overhaul and repair of older structures. The H-60 'HAWK' family of helicopters remains the gold standard multi-mission aircraft for U.S. forces and Allied Partner Nations and it is our honor to continue to support this iconic aircraft,” stated Douglas McCrosson, CPI Aero’s CEO & President.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the years ended December 31, 2019, and December 31, 2020.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.
Contact:
Investor Relations Counsel:
LHA Investor Relations
Jody Burfening
(212) 838-3777
cpiaero@lhai.com
www.lhai.com
