v3.26.1
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

Note 3 – Revenue

 

The following table represents a disaggregation of revenue from contracts by end markets for the years ended December 31, 2025 and 2024 (in thousands):

 

   Over time   Point in time   Total 
   Year Ended December 31, 2025 
   Over time   Point in time   Total 
Energy  $68   $19   $87 
Aerospace   5,767    2,205    7,972 
Industrial   10,097    1,472    11,569 
Research   4,909    1,249    6,158 
Total  $20,841   $4,945   $25,786 

 

   Over time   Point in time   Total 
   Year Ended December 31, 2024 
   Over time   Point in time   Total 
Energy  $216   $511   $727 
Aerospace   11,205    1,879    13,084 
Industrial   6,921    1,350    8,271 
Research   3,736    1,058    4,794 
Total  $22,078   $4,798   $26,876 

 

The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. Aerospace market includes customers that manufacture aircraft engines. Industrial end market consists of various end customers in diverse industries. Research market principally represents customers that are universities and other research institutions.

 

The Company has unrecognized contract revenue of approximately $4.6 million at December 31, 2025, which it expects to substantially recognize as revenue within the next twelve months based on over time revenue recognition.

 

Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine the Company’s progress towards contract completion and to calculate the corresponding amount of revenue to recognize.

 

Changes in estimates for sales of systems occur for a variety of reasons, including but not limited to (i) build accelerations or delays, (ii) product cost forecast changes, (iii) cost related change orders or add-ons, or (iv) changes

in other information used to estimate costs. Changes in estimates may have a material effect on the Company’s consolidated financial position and results of operations.

 

 

CVD EQUIPMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025 and 2024

 

Note 3 – Revenue (continued)

 

Contract assets and contract liabilities on input method type contracts in progress are summarized for the years ended December 31, 2025 and 2024 as follows (in thousands):

 

   2025   2024 
Costs incurred on contracts in progress  $21,480   $14,696 
Estimated earnings   9,965    7,052 
Costs and estimated earnings on uncompleted contracts   31,445    21,748 
Billings to date   (28,631)   (22,059)
Net cost in excess of billings   2,814    (311)
Deferred revenue related to other contracts   (196)   (598)
Contract liability in excess of contract assets  $2,618   $(909)
Included in accompanying consolidated balance sheets under the following captions (in thousands):          
           
Contract assets  $3,391   $2,226 
Contract liabilities  $773   $3,135 

 

Of the contract liability balances at December 31, 2024 and December 31, 2023, $3.1 million and $4.9 million were recognized as revenue during the years ended December 31, 2025 and 2024, respectively. Contract assets and contract liabilities at December 31, 2023 were $1.6 million and $4.9 million, respectively.