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CPSH Secures $1.15M US Army Contract for Warhead Development
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CPS Technologies Corp. (CPSH - Free Report) has reached a milestone with the award of a Phase II Small Business Technology Transfer contract valued at $1.15 million from the U.S. Army Combat Capabilities Development Command. The contract, spanning two years, will support the company’s ongoing development of a controlled fragmentation tungsten warhead, initially targeting a 40mm variant.
Building on Phase I Success
This Phase II award represents a successful continuation of work completed under a prior Phase I program. Dr. Mark Occhionero, serving as the principal investigator, will lead the project using CPSH’s proprietary injection molding process for tungsten components. This approach offers a cost-effective and precise alternative to traditional machining methods, enhancing the potential for more efficient and accurate warhead designs.
CPS will partner with the New Mexico Institute of Mining and Technology’s Energetic Materials Research and Testing Center, known for its artillery research and testing expertise. Their collaboration will accelerate research efforts and strengthen the project’s technical foundation.
Notably, this award marks CPSH’s fifth new federally funded project in 2025 and the third successful Phase I-to-Phase II transition since June 2024. These achievements highlight the company’s growing recognition as a trusted partner for U.S. defense initiatives.
Strategic Implications for Long-Term Growth
The contract is not just about near-term revenues; it underscores the long-term value of CPSH’s proprietary manufacturing capabilities. By applying its injection molding expertise to defense applications, the company is diversifying its revenue streams beyond its established presence in electric vehicles, Navy ships, 5G infrastructure, aerospace and ballistic armor products.
Repeated success in securing government-backed contracts also positions CPSH for sustained growth and strengthens its competitive edge. Each new award validates the company’s technological advantages while opening doors for collaborations with defense and research institutions.
Record Q2 Financial Results
Complementing this contract win, CPSH recently announced record revenues of $8.1 million in the second quarter of 2025, a 61% surge from the same quarter last year. The quarter also produced a net income of $100,000, an impressive turnaround from a $900,000 net loss in the second quarter of 2024.
Management expressed confidence that 2025 would be the company’s best revenue year on record, citing continued strong demand across customer categories and efficiency improvements flowing through operations. With a 4-6-month visibility window on orders, the company sees clear momentum building for the second half of the year, supported by market demand and government-backed projects like the latest Army contract.
Looking Ahead
CPS Technologies’ dual track of securing high-value defense contracts and delivering record-setting financial performance signals a transformative year ahead. The company’s ability to innovate in advanced materials while expanding its role in critical national defense projects enhances its credibility and long-term growth trajectory.
If management’s confidence is any indication, 2025 may mark a turning point in CPSH’s journey from a niche material supplier to a strategically significant defense and technology partner.
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CPSH Secures $1.15M US Army Contract for Warhead Development
CPS Technologies Corp. (CPSH - Free Report) has reached a milestone with the award of a Phase II Small Business Technology Transfer contract valued at $1.15 million from the U.S. Army Combat Capabilities Development Command. The contract, spanning two years, will support the company’s ongoing development of a controlled fragmentation tungsten warhead, initially targeting a 40mm variant.
Building on Phase I Success
This Phase II award represents a successful continuation of work completed under a prior Phase I program. Dr. Mark Occhionero, serving as the principal investigator, will lead the project using CPSH’s proprietary injection molding process for tungsten components. This approach offers a cost-effective and precise alternative to traditional machining methods, enhancing the potential for more efficient and accurate warhead designs.
CPS will partner with the New Mexico Institute of Mining and Technology’s Energetic Materials Research and Testing Center, known for its artillery research and testing expertise. Their collaboration will accelerate research efforts and strengthen the project’s technical foundation.
Notably, this award marks CPSH’s fifth new federally funded project in 2025 and the third successful Phase I-to-Phase II transition since June 2024. These achievements highlight the company’s growing recognition as a trusted partner for U.S. defense initiatives.
Strategic Implications for Long-Term Growth
The contract is not just about near-term revenues; it underscores the long-term value of CPSH’s proprietary manufacturing capabilities. By applying its injection molding expertise to defense applications, the company is diversifying its revenue streams beyond its established presence in electric vehicles, Navy ships, 5G infrastructure, aerospace and ballistic armor products.
Repeated success in securing government-backed contracts also positions CPSH for sustained growth and strengthens its competitive edge. Each new award validates the company’s technological advantages while opening doors for collaborations with defense and research institutions.
Record Q2 Financial Results
Complementing this contract win, CPSH recently announced record revenues of $8.1 million in the second quarter of 2025, a 61% surge from the same quarter last year. The quarter also produced a net income of $100,000, an impressive turnaround from a $900,000 net loss in the second quarter of 2024.
Management expressed confidence that 2025 would be the company’s best revenue year on record, citing continued strong demand across customer categories and efficiency improvements flowing through operations. With a 4-6-month visibility window on orders, the company sees clear momentum building for the second half of the year, supported by market demand and government-backed projects like the latest Army contract.
Looking Ahead
CPS Technologies’ dual track of securing high-value defense contracts and delivering record-setting financial performance signals a transformative year ahead. The company’s ability to innovate in advanced materials while expanding its role in critical national defense projects enhances its credibility and long-term growth trajectory.
If management’s confidence is any indication, 2025 may mark a turning point in CPSH’s journey from a niche material supplier to a strategically significant defense and technology partner.