CVD Equipment Reduces Workforce by 50% and Exits New System Orders

CVD Equipment is discontinuing all new system orders and reducing its workforce by 50% as the company shifts to a service-focused business model. This restructuring follows sustained operating losses and a declining backlog in the firm's primary equipment division.

"In light of continued weakness in prospective equipment order activity, declining backlog, the CVD equipment division’s ongoing operating losses, and the lack of viable strategic alternatives for the business, we have decided to discontinue the pursuit of new equipment system orders, transitioning CVD to a spare parts, quartz and services business," said Lawrence J. Waldman, Chairman of the Board, in a statement.

Operational Restructuring and Leadership Changes

Under the new plan, CVD Equipment will cease taking new orders for its manufacturing systems. The company intends to fulfill its existing equipment backlog and maintain all active warranty obligations while shifting its core operations toward spare parts, quartz components, and ongoing service support.

This strategic shift coincides with a transition in executive leadership. Emmanuel Lakios concluded his tenure as President and CEO on September 3, 2026. Warren Cheesman, who previously served as the company’s Vice President of Manufacturing Operations, has been appointed as Acting CEO to oversee the restructuring process.

Financial Impact and Market Response

The company expects to record a restructuring charge between $0.8 million and $1.0 million in the current quarter, primarily attributed to severance and related personnel costs. Investors reacted to the news as CVD Equipment (CVV) shares closed at $4.68 on September 11, 2026, a 25.4% decline for the session.

The company maintains a debt-free balance sheet. According to its second-quarter 2026 10-Q filing, CVD Equipment reported $23.5 million in cash as of the end of the second quarter.

Why This Matters for the Equipment Division

The decision to exit the equipment market ends the firm's original manufacturing focus. By moving to a service-based model, the company aims to eliminate the operating losses associated with its equipment division, which the company noted in its 8-K filing had become unsustainable. The move illustrates the challenges smaller capital-equipment manufacturers face when trying to maintain profitable order backlogs in shifting industrial markets.