Sono-Tek (SOTK) Q1 2027 earnings summary

Executive summary

• Net sales/revenue rose 10% year-over-year to $5.66 million, driven by strong medical market demand and higher-value production systems.

• Gross profit increased 21% to $3.21 million, with gross margin expanding to 57% from 52% due to favorable product mix and higher-value medical device sales.

• Operating income surged 86% to $897,000, reflecting higher gross profit and improved margins.

• Net income grew 53% to $741,000 ($0.05 per diluted share), up from $485,000 in the prior year period.

• Cash, cash equivalents, and marketable securities totaled $16.65 million with no outstanding debt as of May 31, 2026.

Financial highlights

• Net sales: $5.66 million (up 10% year-over-year).

• Gross profit: $3.21 million (up 21% year-over-year); gross margin: 57%.

• Operating income: $897,000 (up 86% year-over-year); operating margin: 16% (up from 9%).

• Net income: $741,000 (up 53% year-over-year); net margin: 13% (up from 9%).

• Earnings per share: $0.05 basic and diluted (up from $0.03).

Outlook and guidance

• Management expects continued sales growth in medical and alternative energy markets, with a rebound in industrial market sales anticipated in the second quarter of fiscal 2027.

• Full-year fiscal 2027 revenue projected to be flat to modestly higher than fiscal 2026, with shipment timing of large orders impacting quarterly results.

• Order backlog increased to $7.73 million, up 3% year-over-year.

• Ongoing investments in sales force, engineering, and R&D to support growth and innovation.

• Visibility beyond the first half remains limited due to uncertainty in clean energy sectors.