Reports Second Consecutive Year of over $20 Million in Revenue and Eighth Consecutive Quarter above $5 Million
Significant Profitability Expansion with 51% Gross Margin for FY 2026
FY 2026 Operating Income Increased 81% and Net Income Increased 42% Year-Over-Year
Backlog Remains Strong at $9.1 Million
Anticipating Continued Revenue Growth in 1H 2027 Driven by Strong Medical Sector and High-ASP Systems
Conference call scheduled for 10:30 AM ET Today
MILTON, N.Y., May 28, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for the fiscal fourth quarter and full fiscal year 2026, ended February 28, 2026.
Steve Harshbarger, CEO & President of Sono-Tek, stated:
“We are greatly encouraged by our fiscal 2026 results, highlighted by strong profitability expansion and uninterrupted revenue consistency. We achieved our second consecutive year of revenue over $20 million and eighth consecutive quarter of revenue above $5 million, reflecting the durability and stability of our business. Additionally for FY 2026, our gross margin increased to 51%, operating income increased 81%, and net income grew by 42%, demonstrating the strength of our business model and the continuing success of our strategy focused on higher-value, high-ASP production systems.”
“Margin expansion in the year was driven primarily by favorable product mix, including a higher concentration of high-ASP production systems, as well as a greater percentage of sales in the U.S. market, where we benefit from stronger margins by bypassing international-business costs.”
“We are seeing strong momentum in the medical sector, with growing demand across applications such as stent coating, balloon catheter systems, and diagnostic devices. In addition, our electronics business continues to expand, particularly in electrically active coatings for diagnostic-related applications that leverage our core coating technologies. While clean energy remains an important long-term opportunity, near-term orders for electrolysis-related systems have declined, mirroring softening demand that has resulted from government policy changes and elimination of incentives. This was partially offset by solar system shipments earlier in the fiscal year.”
“Looking ahead, we anticipate continued revenue growth in the first half of FY 2027 and profitability driven by the medical sector and sustained demand for high-ASP production systems. For FY 2027, we anticipate relatively flat to modestly higher year over year revenue, with continued uncertainty in certain clean energy sectors and the timing of high ASP customer orders, that are more complex and typically involve longer lead times.
We believe our strategy is succeeding, and we remain confident in our ability to deliver long-term revenue growth and profitability.”
Dr. Christopher L. Coccio, Executive Chairman, added:
“We are pleased with the Company’s continued execution and improving financial performance. We are proud to report that FY 2026 marks our third consecutive year of annual revenue growth and sixteenth year in a row of profitability. Our strong backlog, supported by demand for complex, production-oriented systems, provides a solid foundation as we move forward. Sono-Tek’s ability to adapt to changing market conditions, while maintaining focus on high-value opportunities, continues to differentiate the Company. We remain confident in our long-term strategy and growth trajectory.”
Fiscal Year 2026 Highlights
Net Sales: $20.9 million, up 2% from $20.5 million in FY 2025, reflecting continued demand for high-ASP production systems and growth in medical and electronics markets.
Gross Profit: $10.56 million, up 8% from $9.74 million in the prior year. Gross margin increased to 51% from 47.5%, driven by favorable product mix and increased U.S.-based system sales.
Operating Income: $1.82 million, up 81% from $1.01 million in FY 2025, reflecting improved operating leverage and higher-margin system shipments.
Net Income: Approximately $1.8 million, up 42% from $1.27 million in FY 2025, reflecting strong margin expansion and improved profitability.
Fiscal 2026 Review | (Results compared with fiscal 2025) | ||||||||
($ in thousands) | |||||||||
Change | |||||||||
FY 2026 | FY 2025 | $ | % | ||||||
Net Sales | $ | 20,909 | $ | 20,504 | 405 | 2 | % | ||
Gross Profit | $ | 10,560 | $ | 9,739 | 821 | 8 | % | ||
Gross Profit | 51% | 48% | 3 | % | |||||
Operating Income | $ | 1,825 | $ | 1,010 | 815 | 81 | % | ||
Operating Margin | 9% | 5% | 4 | % | |||||
Net Income | $ | 1,806 | $ | 1,273 | 533 | 42 | % | ||
Net Margin | 9% | 6% | 2 | % | |||||
Fourth Quarter Fiscal 2026 Highlights
Net Sales: $5.6 million, up 10% from $5.12 million in Q4 FY 2025.
Gross Profit: $2.79 million, up 15% from $2.43 million in the prior-year period, with gross margin increasing to 50%.
Net Income: $557,043, up 70% from $327,714 in Q4 FY 2025.
Fourth Quarter Fiscal 2026 Review | (Results compared with the fourth quarter offiscal 2025) | ||||||||
($ in thousands) | |||||||||
Change | |||||||||
FY 2026 | FY 2025 | $ | % | ||||||
Net Sales | $ | 5,609 | $ | 5,121 | 488 | 10 | % | ||
Gross Profit | $ | 2,793 | $ | 2,425 | 368 | 15 | % | ||
Gross Profit | 50% | 47% | 3 | % | |||||
Operating Income (Loss) | $ | 601 | $ | 288 | 313 | 109 | % | ||
Operating Margin | 11% | 6% | 5 | % | |||||
Net Income | $ | 557 | $ | 328 | 229 | 70 | % | ||
Net Margin | 10% | 6% | 4 | % | |||||
Balance Sheet, Backlog and Outlook
Balance Sheet: The Company ended the fiscal year with $14.8 million in cash, cash equivalents and marketable securities and no outstanding debt.
Backlog: Equipment and service-related backlog remained strong at approximately $9.12 million at fiscal year-end, an increase of 5% compared to $8.67 million at the end of FY 2025, and near record levels.
Outlook: Sono-Tek anticipates continued revenue growth and profitability in the first half of fiscal year 2027 compared to the first half of FY 2026, driven by expanding demand in the medical sector and continued adoption of high-ASP, production-scale coating systems across multiple end markets. Total FY 2027 revenue is currently projected to be relatively flat to modestly higher compared to FY 2026 as visibility beyond the first half remains limited due to continued uncertainty in certain clean energy sectors and the timing of high ASP customer orders, which can create significant shifts in quarterly delivery timing.
Fiscal Year 2026 Product and Market Highlights
End Markets:
Medical: Increased 54%, driven by strong demand for balloon catheter coating systems, specialty stent applications, and expanding activity in new medical applications.
Electronics: Increased 16%, supported by strong demand for electrically active coatings in diagnostic-related applications.
Alternative/Clean Energy: Declined 19% due to reduced electrolysis demand driven by government policy shifts, partially offset by solar system shipments earlier in the fiscal year.
Product Categories:
In-Line Coating Systems (formerly referred to as Integrated Coating Systems): Increased 91%, driven by shipments of eight high-ASP systems to a solar customer.
Fluxing Systems: Increased 53%, supported by strong sales in Asia.
Multi-Axis Systems: Declined due to reduced demand in electrolysis-related applications.
Conference Call Dial-in Information
To participate, please call 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.
A simultaneous webcast of the call may be accessed through the Company's website, Events & Presentations | Sono-Tek or at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=6cEJqpHo
A replay of the call will be available at 1-855-669-9658 or 1-412-317-0088 for international callers, access code 7754993, through June 4, 2026. A replay of the call will also be available on the Company’s website for one year at www.sono-tek.com.
About Sono-Tek
Sono-Tek Corporation is a 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 have shown 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.
Our growth strategy is focused on leveraging our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for our customers’ products and processes. For further information, visit www.sono-tek.com
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 and electronics markets; continued private and public funding for the clean energy sector; 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; evolving tariff policies; 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; timing of large orders and completion 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 first half and annual revenues and profitability within the forecasted ranges of guidance. We undertake no obligation to update any forward-looking statement.
For more information:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com
Investor Relations
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
- Financial Tables to follow –
SONO-TEK CORPORATION | ||||||||||
February 28, | February 28, | |||||||||
ASSETS | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | $ | 7,339,403 | $ | 5,202,361 | ||||||
Marketable securities | 7,469,649 | 6,727,678 | ||||||||
Accounts receivable (less allowance for credit losses of $12,225, respectively) | 3,350,953 | 2,347,764 | ||||||||
Inventories | 3,923,350 | 4,474,401 | ||||||||
Prepaid expenses and other current assets | 743,295 | 236,261 | ||||||||
Total current assets | 22,826,650 | 18,988,465 | ||||||||
Land | 250,000 | 250,000 | ||||||||
Buildings, equipment, furnishings and leasehold improvements, net | 2,173,443 | 2,610,600 | ||||||||
Intangible assets, net | 29,791 | 37,386 | ||||||||
Deferred tax asset | 1,141,611 | 1,525,185 | ||||||||
TOTAL ASSETS | $ | 26,421,495 | $ | 23,411,636 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current Liabilities: | ||||||||||
Accounts payable | $ | 1,038,885 | $ | 859,483 | ||||||
Accrued expenses | 2,227,401 | 1,718,574 | ||||||||
Customer deposits | 3,069,743 | 2,413,195 | ||||||||
Income taxes payable | 255,398 | 496,055 | ||||||||
Total current liabilities | 6,591,427 | 5,487,307 | ||||||||
Deferred tax liability | 55,909 | 132,134 | ||||||||
Total Liabilities | 6,647,336 | 5,619,441 | ||||||||
Commitments and Contingencies (Note 13) | ||||||||||
Stockholders’ Equity | ||||||||||
Common stock, $.01 par value; 25,000,000 shares authorized, 15,751,153 issued and 15,749,037 outstanding as of February 28, 2025, and 15,750,880 issued and outstanding as of February 29, 2024 | 157,104 | 157,512 | ||||||||
Additional paid-in capital | 10,186,858 | 10,018,034 | ||||||||
Accumulated earnings | 9,430,197 | 7,624,516 | ||||||||
Treasury stock, at cost, 2,116 shares | - | (7,867 | ) | |||||||
Total stockholders’ equity | 19,774,159 | 17,792,195 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 26,421,495 | $ | 23,411,636 | ||||||
SONO-TEK CORPORATION | |||||||||
February 28, | February 28, | ||||||||
Net Sales | $ | 20,909,315 | $ | 20,504,381 | |||||
Cost of Goods Sold | 10,349,373 | 10,765,362 | |||||||
Gross Profit | 10,559,942 | 9,739,019 | |||||||
Operating Expenses | |||||||||
Research and product development | 2,553,898 | 2,724,482 | |||||||
Marketing and selling | 3,525,239 | 3,677,915 | |||||||
General and administrative | 2,655,836 | 2,326,582 | |||||||
Total Operating Expenses | 8,734,973 | 8,728,979 | |||||||
Operating Income | 1,824,969 | 1,010,040 | |||||||
Other Income: | |||||||||
Interest and dividend income | 443,588 | 488,504 | |||||||
Net unrealized gain on marketable securities | (1,498 | ) | 35,548 | ||||||
Income before Income Taxes | 2,267,059 | 1,534,092 | |||||||
Income Tax Expense | 461,378 | 260,678 | |||||||
Net Income | $ | 1,805,681 | $ | 1,273,414 | |||||
Basic Earnings Per Share | $ | 0.11 | $ | 0.08 | |||||
Diluted Earnings Per Share | $ | 0.11 | $ | 0.08 | |||||
Weighted Average Shares – Basic | 15,718,796 | 15,750,997 | |||||||
Weighted Average Shares – Diluted | 15,733,825 | 15,770,102 | |||||||
SONO-TEK CORPORATION | ||||||||||||||||||||||||
Product Sales: | ||||||||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||
February 28, | % of | February 28, | % of | Change | ||||||||||||||||||||
2026 | Total | 2025 | total | $ | % | |||||||||||||||||||
Fluxing Systems | $ | 713,000 | 3 | % | $ | 467,000 | 2 | % | $ | 246,000 | 53 | % | ||||||||||||
In-Line Coating Systems | 7,070,000 | 34 | % | 3,703,000 | 18 | % | 3,367,000 | 91 | % | |||||||||||||||
Multi-Axis Coating Systems | 8,055,000 | 39 | % | 10,678,000 | 52 | % | (2,623,000 | ) | (25 | %) | ||||||||||||||
OEM Systems | 1,210,000 | 6 | % | 1,484,000 | 7 | % | (274,000 | ) | (18 | %) | ||||||||||||||
Other | 3,861,000 | 18 | % | 4,172,000 | 21 | % | (311,000 | ) | (7 | %) | ||||||||||||||
TOTAL | $ | 20,909,000 | $ | 20,504,000 | $ | 405,000 | 2 | % | ||||||||||||||||
Market Sales: | ||||||||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||
February 28, | % of | February 29, | % of | Change | ||||||||||||||||||||
2026 | Total | 2025 | total | $ | % | |||||||||||||||||||
Electronics/Microelectronics | $ | 6,290,000 | 30 | % | $ | 5,426,000 | 27 | % | $ | 864,000 | 16 | % | ||||||||||||
Medical | 5,004,000 | 24 | % | 3,250,000 | 16 | % | 1,754,000 | 54 | % | |||||||||||||||
Alternative Energy | 7,974,000 | 38 | % | 9,838,000 | 48 | % | (1,864,000 | ) | (19 | %) | ||||||||||||||
Emerging R&D and Other | 66,000 | 0 | % | 67,000 | 0 | % | (1,000 | ) | (1 | %) | ||||||||||||||
Industrial | 1,575,000 | 8 | % | 1,923,000 | 9 | % | (348,000 | ) | (18 | %) | ||||||||||||||
TOTAL | $ | 20,909,000 | $ | 20,504,000 | $ | 405,000 | 2 | % | ||||||||||||||||
Geographic Sales: | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
February 28, | February 28, | Change | ||||||||||||||
2026 | 2026 | $ | % | |||||||||||||
U.S. & Canada | $ | 13,946,000 | $ | 12,506,000 | $ | 1,440,000 | 12 | % | ||||||||
Asia Pacific (APAC) | 2,630,000 | 2,758,000 | (128,000 | ) | (5 | %) | ||||||||||
Europe, Middle East, Africa (EMEA) | 3,742,000 | 4,431,000 | (689,000 | ) | (16 | %) | ||||||||||
Latin America | 591,000 | 809,000 | (218,000 | ) | (27 | %) | ||||||||||
TOTAL | $ | 20,909,000 | $ | 20,504,000 | $ | 405,000 | 2 | % | ||||||||