Sono-Tek Achieves Record Revenue and Profit Growth in First Quarter FY 2026

Sono-Tek Corporation reports fifth consecutive quarter of revenue exceeding $5 million, with gross margins expanding to 52% and operating income increasing by 103% year over year. They anticipate continued growth and profitability in the first half of FY 2026 despite cautious full-year revenue outlook due to potential customer response to policy shifts.

In the first quarter of fiscal year 2026, Sono-Tek saw net sales of $5.13 million, up 2% from the previous year, with gross profit increasing by 9% to $2.7 million. Operating income rose by 103% to $483 thousand, and net income increased by 47% to $485 thousand. Interest and dividend income remained steady at $142 thousand.

For FY 2026, Sono-Tek expects continued revenue growth and profitability in the first half of the year, driven by shipments from their backlog and ongoing strength in key markets like medical devices. However, they anticipate relatively flat revenue growth for the full year due to uncertainty related to clean energy incentives and tariff policies.

In terms of product and market sales, Sono-Tek saw growth in the alternative/clean energy market, with sales to the US/Canada increasing by 15% year over year. Integrated coating systems sales rose by 309%, driven by a repeat order for high ASP systems in the clean energy sector. Meanwhile, multi-axis coating systems declined by 75% due to reduced R&D funding in the clean energy sector.

At the end of May 31, 2025, Sono-Tek had cash, cash equivalents, and marketable securities totaling $10.9 million, with no debt on their balance sheet and stockholders’ equity at $18.3 million. Capital expenditures for the first quarter of fiscal year 2026 were $52,000. The company remains focused on leveraging its innovative technologies and global reach for long-term growth and success.

Read more at GlobeNewswire: Sono-Tek Reports First Quarter FY 2026 Financial Results