Sono-Tek (SOTK) Q1 2026 earnings summary

Executive summary

• Net sales rose 2% year-over-year to $5.13M, driven by strong shipments to the Alternative/Clean Energy market and a $2.95M repeat order for advanced solar applications.

• Gross profit increased 9% to $2.7M, with gross margin expanding to 52% from 49% due to favorable product mix and higher-margin U.S. sales.

• Operating income grew to $483K, up 103% year-over-year, reflecting higher gross profit and reduced operating expenses.

• Net income rose 47% year-over-year to $485K, with EPS at $0.03 versus $0.02 in the prior year period.

• Maintains a strong balance sheet with no debt and $10.9M in cash and marketable securities as of May 31, 2025.

Financial highlights

• Net sales: $5.13M, up 2% year-over-year.

• Gross profit: $2.7M, up 9% year-over-year; gross margin 52%.

• Operating income: $483K, up 103% year-over-year.

• Net income: $485K, up 47% year-over-year.

• EPS: $0.03 basic and diluted, up from $0.02.

Outlook and guidance

• Management expects continued variability in order flow and shipments due to high ASP platform machine orders.

• Expects continued revenue growth and profitability in the first half of FY 2026, supported by a $7.5M backlog.

• Full-year revenue outlook is cautious, anticipating relatively flat growth due to uncertainty from policy shifts in clean energy incentives and tariffs.

• Anticipates sales growth in medical and alternative energy markets, with a rebound in industrial market sales expected in the second quarter of fiscal 2026.

• Backlog at May 31, 2025 was $7.48M, down 14% sequentially from February 28, 2025.