Sono-Tek (SOTK) investor relations material

Executive summary

• Achieved record first-half revenue of $10.3M and net income of $909K, up 35% year-over-year, with six consecutive quarters of revenue over $5M.

• Backlog increased 50% sequentially to $11.21M, reflecting strong new order momentum, especially in the medical device sector.

• Diversification strategy offset clean energy order declines, with strong momentum in the medical device sector and significant new orders from U.S. medical device manufacturers.

• Cash, cash equivalents, and marketable securities totaled $10.6M at quarter-end, with no debt.

Financial highlights

• Q2 revenue was $5.16M, up slightly year-over-year; gross profit rose 3% to $2.6M, with gross margin at 50%.

• Q2 net income increased 24% to $424K; operating income up 47% to $421K.

• First half revenue reached $10.3M (up 1%), gross profit $5.3M (up 6%), and net income $909K (up 35%).

• Operating margin for the first half improved to 9% from 5% year-over-year.

• Working capital increased $1.22M to $14.72M since February 2025.

Outlook and guidance

• Full-year guidance raised to reflect modest revenue growth, balancing caution due to clean energy and tariff policy shifts with optimism from medical device demand.

• Most large new orders will be recognized in FY2027, with only 10-15% expected to ship in the current fiscal year.

• Q3 expected to be slightly stronger than Q4 due to shipment timing.

• Management expects continued sales growth in medical and alternative energy markets, with order flow and shipments varying quarter to quarter.