Aerospace and defense manufacturers continue to operate in a demanding environment shaped by evolving defense priorities, commercial aviation recovery trends and ongoing supply chain challenges. Within this landscape, SIFCO Industries, Inc. SIF and CPI Aerostructures, Inc. CVU, also known as CPI Aero, represent two specialized aerospace suppliers with distinct operational focuses. SIF primarily produces forgings, machined components and sub-assemblies for aerospace, defense, energy and commercial space applications, leveraging its metallurgical and forging expertise across multiple end markets. By contrast, CVU specializes in aerostructures, integrated systems and kitting services, supporting military aircraft, electronic warfare systems and commercial aerospace programs through build-to-print manufacturing and assembly operations.
SIFCO’s business model emphasizes diversified aerospace and industrial exposure, supported by capabilities in high-performance alloys and precision forging processes. CPI Aero, meanwhile, maintains deeper exposure to defense-oriented programs and long-term subcontracting relationships with major aerospace and defense contractors. While both companies operate within the broader aerospace supply chain, their differing customer mix, manufacturing capabilities and program exposure create distinct operational and financial profiles. This raises an important question for investors: which company appears better positioned within the evolving aerospace and defense market? Let’s take a closer look.
Stock Performance & Valuation: SIF vs. CVU
SIF (up 44%) has outperformed CVU (up 16%) over the past three months. In the past year, SIFCO has rallied 581.3% compared with CPI Aero’s gain of 69%.
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Meanwhile, SIF is trading at a trailing 12-month enterprise value-to-sales (EV/S) ratio of 1.4X, above its median of 0.3X over the past five years. CVU’s trailing sales multiple sits at 1.2X, above its last five-year median of 0.6X. SIF and CVU both appear to be cheap when compared with the Zacks Aerospace sector’s average of 3.3X.
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Factors Driving SIFCO’s Stock
Strong aerospace demand and improving backlog trends are supporting SIFCO’s growth trajectory. Management highlighted that demand for its products remains strong despite global uncertainty, with backlog expansion benefiting the company’s aerospace-focused forgings and machined components business. SIF’s exposure to aerospace and energy markets positions it to benefit from sustained demand for high-performance components and aftermarket activity.
Operational improvements are also driving stronger profitability and investor confidence. Management pointed to gains in efficiency, throughput and cost control stemming from continuous improvement initiatives, engineering focus and workforce stabilization efforts. These operational changes helped expand gross profit meaningfully and supported the company’s return to profitability after prior-period losses, indicating that SIFCO’s recovery is being driven by execution rather than only end-market demand.
SIFCO’s balance sheet and business simplification efforts are further strengthening the investment case. The company completed the sale of its CBlade business to streamline operations and improve focus on its core aerospace forging operations. At the same time, lower revolver borrowings, improved operating cash flow and rising shareholders’ equity reflect SIF’s improving financial flexibility and reduced operational complexity.
Factors Driving CPI Aero Stock
A large and diversified defense backlog is providing strong visibility into future growth for CPI Aero. The company exited the first quarter of 2026 with a backlog approaching $500 million, supported by recent contract awards and follow-on orders across multiple defense platforms. Its long-standing relationships with major defense contractors such as Northrop Grumman, Lockheed Martin and RTX position CVU to benefit from sustained military aircraft modernization and electronic warfare spending.
Expansion into higher-growth missile and autonomous systems markets is creating a new avenue for long-term growth. Management noted that CVU has already begun preparing for production tied to previously announced missile-related work, while recent awards in hypersonic missile wings and electronic warfare pod structures deepen its exposure to advanced defense technologies. This broadens CPI Aero’s program mix beyond traditional aerostructures and strengthens its strategic relevance within the defense supply chain.
Operational execution and manufacturing specialization are also supporting the stock. CPI Aero highlighted improved product mix and operational efficiencies that materially expanded margins and restored profitability. Its specialized capabilities in welded assemblies, pod structures and integrated aerospace systems continue to help secure repeat business and long-duration contracts extending through the decade.
Choose SIF Over CVU Now
While both SIFCO and CPI Aero operate within the aerospace and defense supply chain, their current positioning reflects different investment profiles. SIF has benefited from improving operational execution, stronger profitability trends and growing confidence in its aerospace forgings business. The company’s efforts to streamline operations and sharpen focus on core manufacturing capabilities have also strengthened the broader turnaround narrative, helping support investor sentiment.
CVU, meanwhile, continues to benefit from a sizable defense-oriented backlog, long-term program participation and expanding exposure to advanced aerospace systems, including missile and electronic warfare platforms. Its deep relationships with major defense contractors provide meaningful revenue visibility and reinforce its position within mission-critical aerospace programs. However, CPI Aero remains more closely tied to the pace of defense program execution and contract flow, which can create greater sensitivity to program timing and customer concentration.
From a valuation perspective, both stocks continue to trade at levels that appear relatively modest compared with the broader aerospace sector, suggesting investors remain selective toward smaller aerospace suppliers despite improving industry conditions. However, SIF’s stronger operational momentum and broader end-market diversification suggest the market may be assigning greater confidence to the sustainability of its recovery.
Given the current backdrop, SIF appears to offer the more compelling balance of execution, visibility and near-term growth potential, making it the stronger aerospace components stock right now.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
