EX-99.1 2 ex99-1.htm SONO-TEK REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2026 FINANCIAL RESULTS

Exhibit 99.1

 

Sono-Tek Reports Fiscal Fourth Quarter and Full Year 2026
Financial Results

 

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 – 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 49.8%.

 

  • Net Income: $557,043, up 70% from $327,714 in Q4 FY 2025.

 

 

Fourth Quarter Fiscal 2026 Review 

(Results compared with the fourth quarter of

fiscal 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

[email protected]

 

Investor Relations

Kirin Smith, President

PCG Advisory, Inc.

[email protected]

- Financial Tables to follow –

 

 

 

SONO-TEK CORPORATION

CONSOLIDATED BALANCE SHEETS

 

   February 28,
2026		   February 28,
2025		 
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

CONSOLIDATED STATEMENTS OF INCOME

 

   February 28,
2026		   February 28,
2025		 
         
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, MARKET, AND GEOGRAPHIC SALES

(Unaudited)

 

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%