Sono-Tek Corporation Reports 6% Increase in Net Sales for First Half of Fiscal 2027

Sono-Tek Corporation reported its financial results for the second quarter and first half of fiscal 2027, revealing a modest increase in net sales and profitability compared to the previous year. For the six months ended August 31, 2026, the company generated net sales of $10.89 million, a 6% increase from $10.30 million in the same period last year. The gross profit for the first half rose by 14% to $5.98 million, with a gross profit margin improvement to 55%, up from 51% in the prior year. Net income for the first half was $1.11 million, compared to $908,678 in the previous year, reflecting a 22% increase.

In the second quarter alone, net sales reached $5.23 million, slightly up from $5.16 million in the same quarter of fiscal 2026. Gross profit for this quarter increased by 7% to $2.77 million, with the gross profit margin expanding to 53% from 50% year-over-year. However, operating income decreased by 9% to $382,000 due to rising operating expenses, which increased by 10% to $2.39 million. The company attributed the increase in operating expenses to higher marketing and selling costs, as well as general and administrative expenses.

Sono-Tek's strategic focus on the medical sector has yielded significant results, with medical sales surging by 289% to $7.05 million in the first half of fiscal 2027. This growth was driven by strong demand for balloon coating systems and specialty stent-coating systems. Conversely, sales in the alternative/clean energy sector saw a substantial decline of 85% in the first half, reflecting ongoing lower demand in that market. The company continues to expand its sales capabilities, increasing its direct sales force and establishing testing labs in key international markets, including China and Germany.

As of August 31, 2026, Sono-Tek reported total assets of $26.40 million, with stockholders' equity increasing to $21.06 million from $19.77 million at the end of the previous fiscal period. The company maintained a strong cash position, with cash and cash equivalents totaling $10.25 million, up from $7.34 million at the end of February 2026. Looking ahead, Sono-Tek anticipates continued growth driven by its innovative product offerings and expanding market presence, particularly in the medical and industrial sectors. The company remains cautious about the ongoing challenges in the clean energy market but is optimistic about future orders and overall sales growth.