CVD Equipment Corporation (CVV): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of CVD Equipment Corporation's (CVV) business model as of late 2025, and I can defintely give you that analyst-grade view. After two decades analyzing complex industrial plays, I see CVD Equipment Corporation actively engineering a pivot, moving its specialized reactor designs toward the booming Silicon Carbide (SiC) power electronics market, which is crucial for EVs and defense. This strategic shift is happening while the company manages its structure, reporting $8.4 million in cash as of September 30, 2025, and bringing in $20.8 million in revenue through the third quarter of 2025, all while targeting a $2.0 million annual cost reduction starting in 2026. Below, we map out exactly how their key activities, partnerships with places like Stony Brook University's SiC Center, and their dual revenue streams-from custom systems to their strong SDC gas delivery segment-fit into this transformation.

CVD Equipment Corporation (CVV) - Canvas Business Model: Key Partnerships

You're looking at how CVD Equipment Corporation (CVV) is structuring its external relationships as of late 2025, which is a critical time given their announced transformation strategy.

Outsourced fabrication partners for component manufacturing (new strategy)

CVD Equipment Corporation is actively shifting its CVD Equipment division away from full vertical integration. This new strategy involves transitioning to using outsourced fabrication partners for certain components. This move is directly tied to a cost-saving initiative; the Board approved a plan that is expected to reduce annual fixed operating costs by approximately $2.0 million beginning in fiscal 2026. To execute this, the workforce reduction within the CVD Equipment division is planned for completion by December 31, 2025.

Academic and research institutions (e.g., Stony Brook University's onsemi SiC Center)

The commitment to advanced materials research shows up clearly in recent contract wins. In October 2025, CVD Equipment Corporation secured an order from Stony Brook University. This order is for two PVT150 Physical Vapor Transport systems. These systems are specifically designated to support the university's new onsemi Silicon Carbide Crystal Growth Center. To help the center launch, the two PVT systems will be installed initially at CVD Equipment Corporation's headquarters in Central Islip, New York, for a period of six months.

Distributors and outside sales representatives for expanded market reach

As part of the same transformation, CVD Equipment Corporation is implementing a revised sales approach for its Equipment business. This involves using distributors and outside sales representatives to supplement the internal sales team. The goal here is definitely to better identify a broader range of opportunities across their target markets and geographies.

Strategic alliances for new product development (implied by SiC center support)

The partnership with Stony Brook University isn't just a sale; it's a strategic alignment with next-generation technology development, specifically in silicon carbide (SiC) and other wide bandgap (WBG) materials critical for high-power electronics. This supports CVD Equipment Corporation's internal development of its 200 mm silicon carbide crystal growth process using its PVT200 systems. The company's core markets remain aerospace & defense, SiC high-power electronics, and EV battery materials.

Here's a quick look at the financial backdrop as of the end of Q3 2025, which frames the environment these partnerships operate in:

The revenue from the CVD Equipment segment during Q3 2025 was driven by key customers, representing approximately 55% of total revenue for that quarter. Also, note that the company expects to incur about $100,000 in severance and related charges in Q4 2025 related to the transformation plan.

The SDC segment continues to show strength, with demand for its gas delivery equipment being the primary driver for Q3 2025 orders.

Finance: draft 13-week cash view by Friday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Key Activities

CVD Equipment Corporation (CVV) focuses its key activities on high-precision equipment design, manufacturing, and strategic operational realignment as of late 2025.

Engineering design, assembly, test, and installation of complex systems

CVD Equipment Corporation designs, develops, and manufactures a broad range of chemical vapor deposition (CVD), thermal processing, physical vapor transport, and gas and chemical delivery control systems. These systems are used in production environments as well as research and development centers, both academic and corporate. The company maintains an application laboratory where customers can work collaboratively with scientists and engineers to optimize process performance. Revenue from CVD Equipment segment was driven by three key customers, representing approximately 55% of total revenue for the third quarter of 2025. A contract modification during the third quarter allowed the recognition of approximately $1 million in revenue in Q3 2025.

Research and development for next-generation materials (e.g., 200mm SiC crystal growth)

Key target markets driving R&D focus include silicon carbide (SiC) high-power electronics. New orders in October 2025 were secured from Stony Brook University for PVT150 systems to support silicon carbide crystal growth research. The company's long-term strategy includes the development of new products for the high power electronics market.

Manufacturing of CVD, thermal processing, and gas delivery equipment

The manufacturing activity supports core segments, with orders for the third quarter totaling $2.2 million, primarily driven by demand in the SDC segment for gas delivery equipment. The overall backlog stood at $8.0 million as of September 30, 2025, down from $13.2 million as of June 30, 2025. The company's year-to-date revenue for the first nine months of 2025 was $20.8 million, a 7.1% increase compared to the same period in 2024.

Here's a quick look at the recent financial performance underpinning these activities:

The company forecasts revenues of $28.89 million in FY2025.

Executing the strategic transformation plan and cost reduction initiatives

CVD Equipment Corporation approved a comprehensive transformation strategy in November 2025 aimed at significantly reducing fixed operating costs and creating a more agile organization. This is a defintely major activity right now.

• Transitioning the CVD Equipment business from vertically integrated fabrication to outsourced fabrication of certain components.
• Implementing a workforce reduction in the CVD Equipment division, planned for completion by December 31, 2025.
• This workforce reduction is expected to reduce annual operating costs by approximately $2 million beginning in fiscal 2026.
• The company expects to incur approximately $100,000 in severance and related charges in Q4 of 2025.
• Revising the sales approach by leveraging distributors and external representatives.
• Exploring strategic alternatives for certain businesses, which could include asset sales and divestitures.

Operating income for Q3 2025 was $308,000, compared to operating income of $77,000 in Q3 2024. Finance: draft 13-week cash view by Friday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Key Resources

You're looking at the core assets CVD Equipment Corporation (CVV) relies on to deliver its value proposition in late 2025. These aren't just line items; they are the engines driving their specialized manufacturing and process solutions.

Proprietary reactor designs and intellectual property form a critical foundation. The company leverages its engineering history, which includes over 40 years in process equipment development, to maintain a competitive edge in niche, high-growth markets like silicon carbide (SiC) high power electronics. This IP portfolio includes specific system designs:

• PVT150™ Physical Vapor Transport Systems, used for growing 150 mm diameter monocrystalline SiC boules.
• Development underway for PVT200™ systems targeting 200 mm SiC crystal growth.
• Patents covering scalable CVD film and nanomaterial synthesis, including technology for high-throughput CVD systems.

The firm's ability to innovate and support demanding material challenges is directly tied to its specialized engineering and scientific personnel expertise. This team has deep global manufacturing experience and is supported by highly skilled technicians and test engineers who handle everything from system integration to testing. However, as part of a strategic transformation, a workforce reduction in the CVD Equipment division is planned for completion by December 31, 2025, which is expected to reduce annual operating costs by approximately $2.0 million in fiscal 2026.

A tangible asset supporting process development is the application laboratory for collaborative process optimization. This facility allows customers to bring their process tools and work directly with CVV's scientists and engineers to fine-tune process performance.

Finally, the balance sheet provides the necessary operational runway. As of September 30, 2025, CVD Equipment Corporation held $8.4 million in cash and cash equivalents, down from $12.6 million at December 31, 2024. Management has reiterated that this cash position, combined with expected operating cash flows, should be sufficient to fund the business for at least the next 12 months. This financial footing supports ongoing operations while the company implements cost-saving measures.

Here's a quick look at some key financial metrics around that resource date:

The company also maintains on-premises manufacturing fabrication capabilities, which, despite the shift to outsourcing some components, remain a key resource. This includes on-site quartzware manufacturing, CNC machining centers, and assembly/testing facilities. This vertical integration has historically helped mitigate supply chain vulnerabilities.

Finance: draft 13-week cash view by Friday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Value Propositions

CVD Equipment Corporation provides equipment and process solutions that are central to advanced material manufacturing, a space estimated to be worth USD 18.03 billion globally in 2025 within the Semiconductor CVD Equipment Market segment.

The core value proposition centers on delivering highly specialized equipment for advanced material production and research. This includes systems designed for demanding applications across key strategic markets. You see this specialization reflected in the company's focus areas, which are critical enablers for next-generation technology.

The company offers process solutions for high-growth markets like SiC power electronics and EV batteries. For instance, in the EV battery materials space, the company previously secured a production system order worth about USD 1.7 million from a large US-based electric car battery material producer. More recently, in early July 2025, CVD Equipment Corporation shipped its first CVD4000™ SiC coating reactor system to an industrial customer for applying a protective silicon carbide coating on graphite OEM components. Another example of specialized equipment delivery includes a follow-on order for a Chemical Vapor Infiltration system valued at $3.5 million received in late 2024.

CVD Equipment Corporation delivers custom-engineered systems with precise process and temperature control. The value of this precision engineering is suggested by the financial performance on complex projects; the gross margin for the third quarter of 2025 reached 32.7%, a significant improvement from 21.5% in the prior-year quarter, reflecting an improved contract mix. This high-margin work supports the company's ability to post a net income of $384,000 in Q3 2025.

The final proposition involves collaborative development to optimize customer-specific process performance. The nature of these emerging markets means order rates fluctuate; Q3 2025 orders were $2.2 million, while the first six months of 2025 saw orders of $7.3 million compared to $16.9 million in the first half of 2024. This dynamic requires the company to implement strategic changes, such as the planned reduction in the CVD Equipment division's workforce, expected to cut annual operating costs by approximately $2.0 million in fiscal 2026. The backlog stood at $8.0 million as of September 30, 2025.

Here's a quick look at the latest reported financials to ground this discussion:

The company's SDC segment continues to be a reliable source of demand, driving orders for gas delivery equipment. Still, the focus remains on navigating the market's dynamic nature through cost management and strategic sales adjustments.

• Equipment for advanced materials like CMCs for aerospace.
• Systems for SiC wafer production for high power electronics.
• PowderCoat™ systems for advanced anode materials in EV batteries.
• CVD Systems to coat large graphite components for the semiconductor market.

Finance: review the impact of the projected $2.0 million cost reduction on the Q4 2025 forecast by next Tuesday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Customer Relationships

You're looking at how CVD Equipment Corporation (CVV) manages its connections with the clients buying its specialized process equipment. It's not a high-volume, low-touch model; it's deep engagement, especially when a big deal closes.

Dedicated, high-touch relationships for large, custom equipment contracts

For the large capital equipment sales, the relationship is inherently high-touch. You see this reflected in the revenue recognition, which often hinges on just a few major deals. For instance, in the first quarter of 2025, revenue of $8.3 million was driven principally by just two contracts, one in the industrial market and one in aerospace. This concentration means direct, sustained engagement with those specific buyers is critical for project success and future follow-on orders. Even in the second quarter of 2025, revenue of $5.1 million was primarily driven by two customers in the industrial sector and one in aerospace, accounting for 41.1% of that quarter's revenues. The nature of these large, custom systems demands close coordination from initial specification through final acceptance.

Collaborative model via the application laboratory for process development

The application laboratory is a key relationship tool, helping de-risk the purchase of complex systems. CVV lets customers bring their own process tools to the lab to work directly with CVV's scientists and engineers. This collaborative approach helps validate equipment performance for specific process requirements and optimize the final outcome. It's about proving the technology works for the customer's unique material challenge before they commit to a full production system purchase. This is vital for emerging markets like EV battery materials, where processes are still being refined.

Post-sale support, installation, and customer service (core competency focus)

Post-sale activities aren't an afterthought; they're a stated core competency. Management explicitly noted that strategic initiatives are designed to let the company focus on its core competencies, which include engineering design, assembly, test, installation, and customer service. This focus suggests that long-term customer satisfaction and system uptime are central to the business strategy, which is important given the volatility in order rates. The company has a proven track record of customer engagement and satisfaction through on-time delivery and customer support.

Direct engagement with academic and government-funded research centers

CVV's equipment is used in production environments as well as in research and development centers, both academic and corporate. This dual-market approach means relationships with universities and government labs are important for future technology adoption. However, you can see external pressures affecting this segment; management noted in the third quarter of 2025 that bookings were impacted by factors like reduced US government funding for universities. Still, the company continues to serve these centers, which are key for developing next-generation materials like carbon nanotubes and graphene.

Here's a quick look at the financial context surrounding these customer activities through the first three quarters of 2025:

The strategic shift announced in November 2025 also impacts customer engagement for the CVD Equipment division. The plan includes implementing a revised sales strategy that uses distributors and outside sales representatives to supplement internal efforts, aiming to better identify a broad range of opportunities across their markets.

The customer relationship focus can be summarized by the types of engagement and the markets they serve:

• Dedicated engineering support for custom equipment builds.
• Feasibility trials in the Application Laboratory.
• Focus on core competencies: installation and customer service.
• Serving Aerospace & Defense, SiC electronics, and EV battery materials.
• Engagement with academic and government R&D centers.

CVD Equipment Corporation (CVV) - Canvas Business Model: Channels

You're looking at how CVD Equipment Corporation moves its complex equipment and systems to market as of late 2025, which is clearly split between its two main operational areas.

Internal direct sales force for major equipment and system contracts remains central for the CVD Equipment division, which handles the larger, more complex systems for markets like aerospace & defense and high-power electronics. The direct sales effort is highly concentrated, as evidenced by Q3 2025 performance where revenue from this segment was driven by just three key customers, accounting for approximately 55% of that segment's total revenue for the quarter.

The company is actively shifting its approach for this division. A key element of the transformation strategy approved in November 2025 involves a revised sales strategy for our CVD Equipment business utilizing distributors and outside sales representatives to supplement internal sales efforts. This change is designed to better identify a broader range of opportunities across their target geographies. This structural change is happening concurrently with a planned workforce reduction in the CVD Equipment division, set for completion by December 31, 2025, which is projected to reduce annual operating costs by about $2.0 million starting in fiscal 2026.

SDC segment's direct channel for gas delivery equipment operates distinctly, relying on direct engagement for its gas delivery systems. Demand here is strong and direct, as shown by the order intake for the third quarter ended September 30, 2025. Orders for that quarter totaled $2.2 million, which was primarily driven by demand in our SDC segment for gas delivery equipment. For the same period, the SDC segment reported revenue of $1.7 million.

Direct shipment and installation of large-scale manufacturing systems is the physical fulfillment method for both segments' major equipment sales, often involving complex, multi-period contracts. The nature of these large systems means the revenue recognition is tied to milestones, which can cause quarterly fluctuations. For instance, year-to-date revenue through Q3 2025 was 7.1% higher than the prior-year period at $20.8 million.

Here's a quick look at the order and revenue drivers across the segments as of the latest reported quarter:

The company is actively managing its channel mix for the CVD Equipment division, moving toward a hybrid model:

• Internal direct sales force for major system contracts.
• External distributors and sales representatives supplementing internal efforts.
• Focus on core strengths: engineering design, assembly, test, installation, and customer service.

The SDC segment continues to rely on its direct channel for gas delivery equipment, which is experiencing strong demand.

Finance: draft 13-week cash view by Friday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Customer Segments

You're looking at the specific groups CVD Equipment Corporation (CVV) serves with its specialized equipment and process solutions, which is crucial for understanding where their revenue is coming from right now.

CVD Equipment Corporation targets major high-growth applications where their technology provides critical value. The company explicitly names four major target markets for its equipment and process solutions.

The focus areas for customer engagement as of late 2025 include:

• Aerospace & Defense, specifically for ceramic matrix composites (CMCs) production, with revenue in Q1 2025 being driven in part by aerospace contracts.
• Silicon Carbide (SiC) High-Power Electronics producers, a market where the company continues to focus despite past challenges like overcapacity in the SiC wafer market.
• Electric Vehicle (EV) Battery Materials developers and manufacturers, targeting materials like carbon nanotubes, graphene, and silicon nanowires.
• Industrial applications, which contributed to revenue in Q1 2025 alongside aerospace.

The SDC segment, focused on ultra-high-purity gas and chemical delivery systems, consistently shows strong demand, driving orders in Q3 2025 totaling $2.2 million.

Here's a look at the concentration within the CVD Equipment segment, where the specialized material processing equipment is sold, based on recent quarterly performance:

CVD Equipment Corporation also serves Academic and corporate Research and Development centers, as their products are used in both production environments and R&D centers. However, management noted that reduced U.S. government funding for universities impacted bookings during Q3 2025. The company supports this segment by allowing customers to use its application laboratory to work collaboratively with their scientists and engineers.

To give you some context on the market these segments operate in, the global Chemical Vapour Deposition (CVD) Equipment Market size was valued at around USD 26.87 Billion in 2024 and is projected to reach USD 57.04 Billion by 2034, growing at a CAGR of 7.82% between 2025 and 2034.

CVD Equipment Corporation (CVV) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive CVD Equipment Corporation's operations as of late 2025, focusing on the heavy lifting involved in building specialized machinery and managing transformation costs.

Cost of Goods Sold (COGS) for complex, custom-built equipment

For the third quarter ended September 30, 2025, the total Cost of Goods Sold, which directly relates to the complex equipment manufacturing, was approximately $5.0 million, calculated from the reported $7.4 million in revenue and $2.4 million in gross profit. The gross margin for that quarter stood at 32.7%, which management noted reflected an improved contract mix within the CVD Equipment segment. This margin compares favorably to the prior-year quarter's 21.5%.

Engineering and R&D expenses for new product development (e.g., PVT200™)

Research and development spending is a constant for a technology-driven company like CVD Equipment Corporation, supporting products like the PVT200™ system and the newer PVT150™ systems for silicon carbide crystal growth. Here are the latest figures:

• Year-to-date (nine months of 2025) Research and development expenses: $2,061,000.
• Third Quarter 2025 Research and development expenses: $594,000.
• Third Quarter 2024 Research and development expenses: $644,000.

The company continues to support its installed base and pursue new orders for its PVT systems, despite the silicon carbide market being challenging due to overcapacity in 2024.

Operating expenses, targeted for a $2.0 million annual reduction starting 2026

CVD Equipment Corporation approved a comprehensive transformation strategy in November 2025, specifically targeting fixed operating costs. This is a major structural shift in the cost base you need to track.

This reduction specifically excludes the SDC division.

Workforce and severance costs, including approximately $0.1 million in Q4 2025 charges

The cost to execute the workforce reduction is a near-term hit to the P&L. You should expect this charge to hit in the current period.

• Severance and other charges anticipated in Q4 2025: Approximately $100,000 (or $0.1 million).

Also, keep an eye out for potential non-cash impairment charges if certain long-lived assets are disposed of below their book values as part of this transformation plan.

Finance: draft 13-week cash view by Friday.

CVD Equipment Corporation (CVV) - Canvas Business Model: Revenue Streams

You're looking at how CVD Equipment Corporation brings in its money right now, late in 2025. Honestly, the revenue picture is a bit mixed, showing strength in margins even as top-line revenue for the quarter dipped compared to last year. Here's the quick math on the latest figures we have through the third quarter.

Year-to-date revenue through September 30, 2025, totaled $20.8 million, which was actually 7.1% higher than the same period in 2024. However, the third quarter itself brought in $7.4 million, a 9.6% decrease from Q3 2024, though it was up 44.9% sequentially from Q2 2025. A key positive is that the gross margin improved significantly to 32.7%, up from 21.5% in the prior-year quarter, reflecting a better mix of contracts.

The revenue streams break down across the core business segments, which you can see detailed below using the Q3 2025 figures:

The sales of CVD Equipment segment systems, which includes reactors like the PVT and CVI, accounted for the bulk of the third-quarter revenue. This segment saw its profitability lift due to an improved contract mix, which included recognizing about $1 million in revenue from a contract modification that changed the timing of booking that revenue. It's important to note that revenue from this division was driven by three key customers, representing approximately 55% of the total revenue for the quarter.

The sales of gas and chemical delivery systems, the SDC segment, showed strong demand in terms of new orders, with Q3 bookings totaling about $2.2 million, which was the primary driver for that quarter's order intake. Still, the revenue recognized from this segment in Q3 was $1.9 million, a slight dip. Non-system sales and service/parts revenue contribute to the overall top line, and their presence within the better contract mix helped drive the gross margin improvement to 32.7% for the quarter. This focus on higher-margin work is definitely helping the bottom line, even with softer system bookings.

• CVD Equipment division revenue in Q3 2025 was $5.7 million.
• SDC segment revenue in Q3 2025 was $1.9 million.
• Gross margin for Q3 2025 reached 32.7%.
• Backlog converting to shipments stood at $8.0 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.