SCI Engineered Materials, Inc. reported total revenue of $19.6 million for the fiscal year ending December 31, 2025, a decrease of 14.3% from $22.9 million in 2024. The decline in revenue was attributed primarily to a shift in product mix and a reduction in sales volume. Despite the drop in revenue, the company achieved a gross profit of $5.0 million, slightly down from $5.1 million in the previous year, while gross margin improved to 25.7% from 22.2%, benefiting from a favorable product mix and lower raw material costs.
The company’s operating expenses increased to $3.2 million in 2025 from $3.0 million in 2024, driven by higher compensation costs due to an increase in headcount and rising professional fees. Net income for 2025 was reported at $1.7 million, compared to $1.9 million in 2024. The company also noted a significant reliance on its largest customer, which accounted for approximately 66% of total revenue in 2025, down from 74% in 2024, indicating a slight diversification in its customer base.
In terms of strategic developments, SCI Engineered Materials introduced two new products in 2025, including a rotatable target and an indium tin oxide product, aimed at enhancing its market offerings. The company is also focusing on expanding its capabilities in niche markets, particularly in defense applications with its Enriched Boron Carbide products. Additionally, the company has initiated a share repurchase program, authorizing the buyback of up to $1 million of its common stock, with $500,000 already utilized by the end of 2025.
Operationally, SCI Engineered Materials maintained a workforce of 25 employees as of December 31, 2025, up from 23 the previous year. The company continues to invest in research and development, with a focus on innovative applications and accelerating time to market for new products. The company’s cash position improved to $7.9 million at year-end, compared to $6.8 million in 2024, reflecting strong cash flow from operations.
Looking ahead, SCI Engineered Materials anticipates ongoing challenges from global economic conditions, including inflation and supply chain disruptions, which may impact its operations and profitability. The company remains committed to pursuing growth opportunities in its core markets while adapting to changing market dynamics. Management believes that its strategic initiatives and product development efforts will position the company for future success, although it acknowledges the inherent risks and uncertainties in the current business environment.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. is a global supplier and manufacturer of advanced materials for Physical Vapor Deposition (PVD) thin film applications across industries such as aerospace, automotive, defense, glass, optical coatings, and solar. The company develops customized solutions, including ceramic and metal targets, to serve multinational customers and research institutions, leveraging proprietary patents and a focus on innovation, quality, and niche markets.
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