ETC Announces Fiscal 2027 First Quarter Results

SOUTHAMPTON, Pa., July 15, 2026 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTCID: ETCC) ("ETC" or the "Company") today reported its financial results for the thirteen week period ended May 29, 2026 (the "2027 first fiscal quarter").

Robert L. Laurent, Jr., ETC's Chief Executive Officer and President stated, "We once again generated positive operating results and are especially pleased with the 17% increase in backlog vs. prior year driven by $39.5 million in contract awards during the 2027 first fiscal quarter. We are well positioned for continued positive results as we exit the quarter with a sales backlog of $85 million."

Fiscal 2027 First Quarter Results of Operations

Net Income

Net income was $0.2 million, or $0.01 diluted earnings per share, in the 2027 first fiscal quarter, compared to net income of $1.3 million during the 2026 first fiscal quarter, or $0.07 diluted earnings per share. The $1.1 million, or 82.6% decrease is primarily attributable to a $0.8 million, or 16.4% decrease in gross profit, a $0.4 million, or 15.8% increase in operating expense and a $0.2 million, or 203.8% increase in other expense (income), net partially offset by a $0.2 million, or 61.5% decrease in income tax provision in the 2027 first fiscal quarter as compared to 2026 first fiscal quarter.

Net Sales

Net sales in the 2027 first fiscal quarter were $16.2 million, a decrease of $1.4 million, or 8.0%, compared to 2026 first fiscal quarter net sales of $17.6 million. Excluding sales related to the construction of the aeromedical center building, sales were $0.3 million or 2.5% higher for first fiscal quarter 2027 at $13.9 million as compared to $13.6 million for first fiscal quarter 2026. The decrease in net sales was mainly a result of a $1.8 million, or 16.5% decrease in ATS sales, all of which relates to aeromedical center building revenue as well as a $2.7 million or 54.4% decrease in Sterilizer Systems sales partially offset by a $3.1 million, or 1760.1% increase in ETSS sales in the 2027 first fiscal quarter as compared to 2026 first fiscal quarter.

Gross Profit

Gross profit for the 2027 first fiscal quarter was $3.9 million, or 24.1% of net sales compared to $4.7 million, or 26.5% of net sales in the 2026 first fiscal quarter. Excluding the impact of the aeromedical center building revenue, gross profit margin was 27.9% for first fiscal quarter 2027 as compared to 34.3% for first fiscal quarter 2026. The decrease in gross profit margin as a percentage of sales was attributable to two ATS projects that had negative job costs revisions in the first fiscal quarter of 2027 as well as one ATS project having a significant positive impact on gross profit margin in the first fiscal quarter 2026.