Sono-Tek (SOTK) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $20.5 million in FY 2025, up 4% year-over-year, with net income of $1.27 million, maintaining profitability despite a challenging environment.

• Strategic focus on high-ASP, complex systems for clean energy, medical, and semiconductor markets drove growth and expanded addressable market.

• Backlog at fiscal year-end was $8.67 million, including the largest orders in company history, supporting near-term revenue visibility.

• Growth driven by high ASP system shipments, especially in alternative/clean energy and medical device markets.

Financial highlights

• Net sales increased 4% to $20.5 million compared to $19.7 million in FY 2024.

• Gross profit for FY 2025 was $9.74 million, down 1% year-over-year; gross margin decreased to 47.5% from 50%.

• Operating income declined to $1.01 million from $1.18 million, and net income was $1.27 million ($0.08/share) versus $1.44 million ($0.09/share) prior year.

• Cash and marketable securities totaled $11.9 million with no debt; CapEx was $496,000 for facility upgrades.

• Fourth quarter net sales rose 7.4% year-over-year to $5.12 million; net income more than doubled to $328,000.

Outlook and guidance

• Expects continued revenue growth and profitability in the first half of FY 2026, supported by backlog and new orders.

• Visibility for the second half of FY 2026 is limited, with potential softness in clean energy but offset by opportunities in medical and semiconductor sectors.

• Guidance will be revisited with Q1 FY 2026 results.

• Eight clean energy systems in backlog are expected to ship in Q1 and Q2 of FY 2026.