Sono-Tek Reports Fiscal Second Quarter And First Half 2027 Results Driven By Strong Medical Sector And Higher Value Production Systems
| Three Months Ended August 31, | Change | ||||||||||||
| 2026 | 2025 | $ | % | ||||||||||
| Net Sales | $ | 5,232 | $ | 5,163 | 69 | 1 | % | ||||||
| Gross Profit | $ | 2,767 | $ | 2,590 | 177 | 7 | % | ||||||
| Gross Margin | 53 | % | 50 | % | |||||||||
| Operating Income | $ | 382 | $ | 421 | (39 | ) | (9 | %) | |||||
| Operating Margin | 7 | % | 8 | % | |||||||||
| Net Income | $ | 366 | $ | 424 | (58 | ) | (14 | %) | |||||
| Net Margin | 7 | % | 8 | % | |||||||||
| Six Months Ended August 31, | Change | ||||||||||||
| 2026 | 2025 | $ | % | ||||||||||
| Net Sales | $ | 10,893 | $ | 10,295 | 596 | 6 | % | ||||||
| Gross Profit | $ | 5,981 | $ | 5,254 | 727 | 14 | % | ||||||
| Gross Margin | 55 | % | 51 | % | |||||||||
| Operating Income | $ | 1,279 | $ | 905 | 374 | 41 | % | ||||||
| Operating Margin | 12 | % | 9 | % | |||||||||
| Net Income | $ | 1,107 | $ | 909 | 198 | 22 | % | ||||||
| Net Margin | 10 | % | 9 | % |
Product Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| Fluxing Systems | $ | 27,000 | $ | 165,000 | (138,000 | ) | (84 | % | ) | $ | 119,000 | $ | 317,000 | (198,000 | ) | (62 | % | ) | ||||||||||||||
| In-Line Coating Systems | 1,778,000 | 1,530,000 | 248,000 | 16 | % | 3,937,000 | 4,584,000 | (647,000 | ) | (14 | % | ) | ||||||||||||||||||||
| Multi-Axis Coating Systems | 1,975,000 | 2,030,000 | (55,000 | ) | (3 | % | ) | 4,050,000 | 2,707,000 | 1,343,000 | 50 | % | ||||||||||||||||||||
| OEM Systems | 642,000 | 394,000 | 248,000 | 63 | % | 873,000 | 524,000 | 349,000 | 67 | % | ||||||||||||||||||||||
| Spare Parts, Services and Other | 810,000 | 1,044,000 | (234,000 | ) | (22 | % | ) | 1,914,000 | 2,164,000 | (250,000 | ) | (12 | % | ) | ||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % |
Sales of In-Line Coating Systems increased 16% in the second quarter of fiscal 2027 due to strong medical sales in the United States.
In-Line Coating Systems sales decreased 14% during the first half of fiscal 2027 primarily attributed to the shipment of six high ASP systems valued at $4.42 million that occurred in the first half of fiscal 2026 that did not repeat in fiscal 2027.
Sales of Multi-Axis Coating Systems decreased by 3% in the second quarter of fiscal 2027. In the first half of fiscal 2027, Multi-Axis Coating Systems increased 50% or approximately $1.3 million, driven by strong sales of specialty stent-coating systems to the U.S. medical device market.
Sales of OEM Systems increased 63% to $642,000 in the second quarter and 67% to $873,000 in the first half of fiscal 2027. The increase in OEM sales in the second quarter and the first half of fiscal 2027 were driven by continued strong fluxing-system sales to a European OEM partner and strong semiconductor sales to an OEM in China.
Market Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| Electronics/Microelectronics | $ | 1,204,000 | $ | 1,455,000 | (251,000 | ) | (17 | % | ) | $ | 2,068,000 | $ | 2,399,000 | (331,000 | ) | (14 | % | ) | ||||||||||||||
| Medical | 3,105,000 | 1,004,000 | 2,101,000 | 209 | % | 7,050,000 | 1,812,000 | 5,238,000 | 289 | % | ||||||||||||||||||||||
| Alternative/Clean Energy | 535,000 | 2,433,000 | (1,898,000 | ) | (78 | % | ) | 855,000 | 5,681,000 | (4,826,000 | ) | (85 | % | ) | ||||||||||||||||||
| Emerging R&D and Other | 3,000 | 33,000 | (30,000 | ) | (91 | % | ) | 5,000 | 47,000 | (42,000 | ) | (89 | % | ) | ||||||||||||||||||
| Industrial | 385,000 | 238,000 | 147,000 | 62 | % | 915,000 | 357,000 | 558,000 | 156 | % | ||||||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % |
Medical sales increased 209% to $3,105,000 in the second quarter of fiscal 2027 and 289% to $7,050,000 in the first half of fiscal 2027, led by shipments of balloon coating systems and specialty stent-coating systems.
Industrial sales increased 62% to $385,000 in the second quarter of fiscal 2027 and 156% to $915,000 in the first half of fiscal 2027, influenced by a system sold to the defense sector for an optics-related application.
Alternative Energy sales decreased 78% to $535,000 in the second quarter of fiscal 2027 and 85% to $855,000 in the first half of fiscal 2027. The decrease in the Alternative Energy market reflects the significant shifts in U.S. government policy and spending within the clean energy sector, particularly in green-hydrogen, electrolysis and fuel-cell applications.
Electronics/Microelectronics sales decreased 17% to $1,204,000 in the second quarter of fiscal 2027 and 14% to $2,068,000 in the first half of fiscal 2027.
Geographic Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| U.S. & Canada | $ | 3,682,000 | $ | 2,720,000 | 962,000 | 35 | % | $ | 7,212,000 | $ | 6,263,000 | 949,000 | 15 | % | ||||||||||||||||||
| Asia Pacific (APAC) | 507,000 | 930,000 | (423,000 | ) | (45 | % | ) | 1,244,000 | 1,527,000 | (283,000 | ) | (19 | % | ) | ||||||||||||||||||
| Europe, Middle East, Africa (EMEA) | 952,000 | 1,424,000 | (472,000 | ) | (33 | % | ) | 1,883,000 | 2,321,000 | (438,000 | ) | (19 | % | ) | ||||||||||||||||||
| Latin America | 91,000 | 89,000 | 2,000 | 2 | % | 554,000 | 185,000 | 369,000 | 199 | % | ||||||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % |
In the second quarter of fiscal 2027, approximately 30% of sales originated outside of the United States and Canada compared with 47% in the second quarter of fiscal 2026.
In the first half of fiscal 2027, approximately 34% of sales originated outside of the United States and Canada compared with 39% in the first half of fiscal 2026.
U.S. and Canada sales increased 35% in the second quarter of fiscal 2027 and 15% in the first half of fiscal 2027, driven by strong sales to the U.S. medical-device market, including the stent and drug-coated balloon markets.
Asia Pacific sales decreased approximately 45% in the second quarter and 19% in the first half of fiscal 2027, reflecting lower sales in South Korea, Taiwan and Japan. These decreases were partially offset by increased sales in China, including strong first-half medical and semiconductor sales.
Latin America sales increased 2% in the second quarter of fiscal 2027 and were essentially flat with the prior-year quarter. Sales increased 199% in the first half of fiscal 2027, including a $242,000 medical system shipped to Costa Rica.
EMEA sales decreased 33% in the second quarter and 19% in the first half of fiscal 2027, primarily reflecting softer clean-energy sales in the region. The first-half decrease was partially offset by strong sales to a European fluxing OEM partner and steady medical-sector sales.
Conference Call Information
The Company will hold a conference call to discuss its fiscal second quarter and first half 2027 financial results, ended August 31, 2026, today, October 14, 2026, at 10:30 am ET.
To participate, please dial 1-844-481-2752 or 1-412-317-0668 for international callers at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call.
Webcast Information
A simultaneous webcast of the call may be accessed through the Company's website, Events & Presentations | Sono-Tek or at:
A replay of the call will be available at 1-855-669-9658 or 1-412-317-0088 for international callers, access code 9211789, through October 28, 2026. A replay of the call will also be available on the Company's website for one year at .
About Sono-Tek
Sono-Tek Corporation is the global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced industrial manufacturing, and research and development sectors worldwide. Sono-Tek's inroads into the clean energy sector are showing transformative results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications.
Our product line is rapidly evolving, transitioning from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services are expected to generate unparalleled results for our clients and help some of the world's most promising companies achieve technological breakthroughs and bring them to the market. We strategically deliver our products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.
Our solutions are environmentally friendly, efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions.
Sono-Tek's growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for its customers' products and processes. For further information, visit .
Safe Harbor Statement
This news release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ materially. These“forward-looking statements' are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device market; continued private and public funding for the clean energy sector and continued strong demand for Sono-Tek's suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement.
For more information, contact:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
...
Investor Relations:
Kirin Smith
PCG Advisory, Inc.
...
| SONO-TEK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| August 31, 2026 | February 28, 2026 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,249,779 | $ | 7,339,403 | ||||
| Marketable securities | 7,505,420 | 7,469,649 | ||||||
| Accounts receivable (less allowance of $12,225, respectively) | 1,230,260 | 3,350,953 | ||||||
| Inventories | 3,833,809 | 3,923,350 | ||||||
| Prepaid expenses and other current assets | 535,491 | 743,295 | ||||||
| Total current assets | 23,354,759 | 22,826,650 | ||||||
| Land | 250,000 | 250,000 | ||||||
| Buildings, equipment, furnishings and leasehold improvements, net | 2,036,827 | 2,173,443 | ||||||
| Intangible assets, net | 26,316 | 29,791 | ||||||
| Deferred tax asset | 731,673 | 1,141,611 | ||||||
| TOTAL ASSETS | $ | 26,399,575 | $ | 26,421,495 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 779,158 | $ | 1,038,885 | ||||
| Accrued expenses | 1,988,412 | 2,227,401 | ||||||
| Customer deposits | 2,324,246 | 3,069,743 | ||||||
| Income taxes payable | 188,503 | 255,398 | ||||||
| Total current liabilities | 5,280,319 | 6,591,427 | ||||||
| Deferred tax liability | 54,324 | 55,909 | ||||||
| Total liabilities | 5,334,643 | 6,647,336 | ||||||
| Commitments and Contingencies (Note 10) | ||||||||
| Stockholders' Equity | ||||||||
| Common stock, $.01 par value; 25,000,000 shares authorized, 15,716,723 and 15,710,389 issued and outstanding as of August 31, 2026 and February 28, 2026 | 157,167 | 157,104 | ||||||
| Additional paid-in capital | 10,370,106 | 10,186,858 | ||||||
| Accumulated earnings | 10,537,659 | 9,430,197 | ||||||
| Total stockholders' equity | 21,064,932 | 19,774,159 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 26,399,575 | $ | 26,421,495 |
See notes to unaudited condensed consolidated financial statements.
| SONO-TEK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||
| Six Months Ended August 31, | Three Months Ended August 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Sales | $ | 10,893,312 | $ | 10,295,469 | $ | 5,232,153 | $ | 5,162,696 | ||||||||
| Cost of Goods Sold | 4,912,537 | 5,041,218 | 2,465,298 | 2,572,959 | ||||||||||||
| Gross Profit | 5,980,775 | 5,254,251 | 2,766,855 | 2,589,737 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and product development costs | 1,296,143 | 1,295,748 | 679,160 | 627,278 | ||||||||||||
| Marketing and selling expenses | 2,025,731 | 1,729,504 | 1,000,747 | 871,353 | ||||||||||||
| General and administrative costs | 1,380,209 | 1,324,477 | 705,417 | 669,952 | ||||||||||||
| Total Operating Expenses | 4,702,083 | 4,349,729 | 2,385,324 | 2,168,583 | ||||||||||||
| Operating Income | 1,278,692 | 904,522 | 381,531 | 421,154 | ||||||||||||
| Interest and Dividend Income | 268,559 | 223,660 | 153,936 | 81,562 | ||||||||||||
| Net unrealized (loss)/gain on marketable securities | (63,704 | ) | 1,570 | (37,433 | ) | 23,493 | ||||||||||
| Income Before Income Taxes | 1,483,547 | 1,129,752 | 498,034 | 526,209 | ||||||||||||
| Income Tax Expense | 376,085 | 221,074 | 131,740 | 102,516 | ||||||||||||
| Net Income | $ | 1,107,462 | $ | 908,678 | $ | 366,294 | $ | 423,693 | ||||||||
| Basic Earnings Per Share | $ | 0.07 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
| Diluted Earnings Per Share | $ | 0.07 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
| Weighted Average Shares - Basic | 15,714,954 | 15,727,844 | 15,716,723 | 15,721,162 | ||||||||||||
| Weighted Average Shares - Diluted | 15,789,915 | 15,740,384 | 15,806,121 | 15,731,571 |
See notes to unaudited condensed consolidated financial statements.
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