CPS Tech (CPSH) delivered robust financial results in the fourth quarter of 2025, with revenue rising 18% year-over-year to $214 million and adjusted EBITDA reaching $69 million. The performance reflects increased demand for mission-critical defense technology solutions.
- CPSH Q4 2025 revenue: $214 million, up 18% YoY
- Adjusted EBITDA: $69 million, +22% YoY
- Backlog increased to $830 million, up 14% QoQ
- Tactical communications segment grew 31% YoY
- Full-year 2026 revenue guidance: $840M–$860M
- 25% of EBITDA allocated to R&D for AI and autonomous systems
CPS Tech (CPSH) posted a strong finish to 2025, reporting fourth-quarter revenue of $214 million, up 18% from the same period in 2024. Adjusted EBITDA for the quarter reached $69 million, marking a 22% increase compared to prior-year levels. The company attributed growth to expanded contracts with U.S. Department of Defense (DoD) programs and accelerated adoption of its advanced signal processing and electronic warfare systems. The results come amid heightened defense spending and strategic modernization efforts across U.S. military platforms. CPSH’s revenue mix showed particular strength in the tactical communications segment, which grew 31% year-over-year, driven by integration into next-generation battlefield networks. The company also highlighted progress in securing long-term contracts with prime defense contractors, including RTX and LMT, as part of broader supply chain consolidation. CPSH’s backlog increased to $830 million at quarter-end, a 14% rise from Q3 2025, signaling sustained near-term visibility. Management reiterated guidance for full-year 2026 revenue in the range of $840 million to $860 million, reflecting confidence in contract execution and demand trends. The company plans to reinvest approximately 25% of its adjusted EBITDA into R&D to expand its portfolio in autonomous systems and AI-driven threat detection. The market responded positively, with CPSH shares rising 7.3% in after-hours trading. Investors appear to be pricing in continued momentum within the defense technology sector, particularly for firms with niche capabilities in secure communications and electronic warfare. The performance may also influence investor sentiment toward peers like RTX and LMT, which rely on subcontracting relationships with specialized suppliers.