Shares of CPI Aerostructures Inc. climbed Friday after the aerospace company posted first-quarter revenue gains driven by newly acquired Welding Metallurgy Inc.
Before Friday's market open, the Edgewood aerospace contractor posted revenue of $25.6 million for the period ended March 31, compared with $18.2 million in the 2018 quarter.
Net income increased to $1.7 million, or 14 cents per diluted share, from $1.3 million, or 14 cents per diluted share, in the previous year's period when there were fewer shares outstanding.
CPI Aero's shares jumped 9.3 percent to close Friday at $7.20.
CPI Aero president and chief executive Douglas McCrosson said in a statement the increased revenue was driven "predominantly" by the acquisition of its WMI subsidiary and an increase in production of a pod structure used to house electronic warfare equipment under a contract with Raytheon Co.
On Dec. 20 CPI acquired WMI for $9 million from Bay Shore-based Air Industries Group after a monthslong court battle that put the deal in jeopardy.
McCrosson said the company's work on the F-16V for Lockheed Martin and expected authorization from Raytheon on additional pod orders will serve as "revenue catalysts" for the rest of 2019 and 2020.
He said that the 2020 Pentagon budget includes funding to replace the wings of A-10 attack jets, informally known as Warthogs. McCrosson said that is "one of the largest potential future awards" in the 2019 bid pipeline.
"CPI Aero has extensive experience on the A-10 ... so we feel we have a competitive edge to be part of the winning contractor’s supply chain," he said.