Weekly Update #16 - Week Ending 05/24/26
$CVU, $INX.V, $TATT & Others
Highlights
$CVU (Quarterly Results): EPS swung to $0.09 from a $(0.10) loss, driven by a strong 25.8% gross margin due to the termination of the Boeing disastrous multi-year A-10 program. We may be getting a glimpse of CVU’s earning power if the huge unfunded backlog ever turns into consistent task orders.
$INX.V (Quarterly Results): Revenue +6% YoY and EPS breakeven vs a small loss, but management is guiding to an operating loss in 2026 as it has opted to run the business at breakeven and invest in growing its software and more modern segments. The low valuation on an enterprise value to revenue basis is reason enough to at least monitor.
$TATT (Quarterly Results): Revenue and EPS dipped on supply chain disruptions, but backlog hit an all-time high of ~$580M. Management expects growth to resume in Q2 and 2H 2026.
The following will cover stocks that are either in our microcap quality indexes (MSMqi) or in our research journal (stocks that don’t quite qualify to be in the MSMqi, but might be close).
Studs (Positive News)
1) CVU | Aerospace & Defense Structures Manufacturer
Quarterly Results
CVU posted Q1 2026 revenue of $17.4 million, up from $15.4 million a year ago, along with EPS of $0.09 versus a loss per share of $(0.10).
We’ve featured CVU several times in past weekly updates, and this time we’re putting it in studs on the back of those strong EPS numbers. That result was driven mainly by a healthy 25.8% gross margin. As seen in the image below, CVU’s margins were historically dragged down by the A-10 program, but that should no longer be an issue going forward now that the program has been terminated.
