ETC Announces Fiscal 2026 Full Year and Fourth Quarter Results

About this update from Environmental Tectonics Corp.

SOUTHAMPTON, Pa., June 12, 2026 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTCID: ETCC) (“ETC” or the “Company”) today reported its financial results for the thirteen week period ended February 27, 2026 (the “2026 fiscal fourth quarter”) and the fifty-two week period ended February 27, 2026 (“fiscal 2026”). Robert L. Laurent, Jr., ETC’s Chief Executive Officer and President stated, “Our strong backlog and pipeline of opportunities has resulted in the third consecutive year of positive gross profit, operating income and net income. Net income was $3.0 million or $0.15 diluted earnings per share in fiscal 2026. We believe we remain well positioned for the future with a backlog of $61 million and strong pipeline of opportunities at February 27, 2026. Additionally, during the first quarter of fiscal 2027, ETC issued a Press Release announcing three contract awards of approximately $37.0 million, which we anticipate will increase our backlog to in excess of $80.0 million at the end of 2027 fiscal first quarter”. Tim Kennedy, ETC’s Chief Financial Officer stated, “On May 26, 2026, subsequent to the end of fiscal 2026, the maturity date of the PNC Credit Facilities was extended from June 30, 2026 to June 30, 2028. This two-year extension marks another important milestone for ETC”. Fiscal 2026 Results of Operations Net Income Net income was $3.0 million, or $0.15 diluted earnings per share, in fiscal 2026, compared to net income of $13.1 million, or $0.75 per diluted share in fiscal 2025. The $10.0 million, or 76.7% decrease is primarily attributable to a $7.8 million increase in the income tax provision, a $1.0 million decrease in gross profit, a $0.6 million increase in operating expenses, a $1.0 million increase in interest expense and a $0.5 million increase in other expense (income), net. Fiscal 2026 net income is negatively impacted by an income tax provision of $1.2 million in fiscal 2026 as compared to an income tax benefit of $5.6 million in fiscal 2025, primarily associated with the partial reversal of valuation allowance previously recorded against the deferred tax asset in fiscal 2025. The deferred tax asset valuation allowance on federal deferred tax assets and certain state deferred tax assets was reversed in fiscal 2025, as it had become and continues to be more likely than not that the Company will be able to fully realize these defe...

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