Sono-Tek Corporation reported its financial results for the third quarter and the first nine months of fiscal 2026, revealing a slight decline in net sales but notable improvements in profitability. For the three months ended November 30, 2025, the company recorded net sales of $5.0 million, a decrease of 3.6% from $5.19 million in the same period last year. However, net income for the quarter increased by 24% to $340,000, compared to $274,000 in the prior year, driven by a higher gross profit margin of 50%, up from 45% a year earlier.
In the first nine months of fiscal 2026, Sono-Tek's net sales were $15.3 million, a marginal decline of 1% from $15.38 million in the same period of fiscal 2025. The company reported a significant increase in net income for the nine-month period, rising 32% to $1.25 million from $946,000 in the previous year. The gross profit for the nine months also improved by 6% to $7.77 million, reflecting a favorable product mix and reduced manufacturing costs.
Operationally, Sono-Tek experienced a record backlog of $12.26 million as of November 30, 2025, marking a 16% increase year-over-year. The company noted strong sales growth in the medical sector, which rose 37% year-over-year, attributed to robust demand for balloon catheter systems and stent coatings. Conversely, sales in the alternative energy sector declined due to reduced demand for electrolysis-related applications following changes in government policy.
The company continues to expand its market presence, with approximately 37% of sales generated outside the United States and Canada in the first nine months of fiscal 2026. Sono-Tek has also been enhancing its sales capabilities by increasing its direct sales force and establishing testing labs in key international markets, including China and Germany. Looking ahead, Sono-Tek anticipates continued growth driven by its innovative technologies and expanding customer base, despite potential fluctuations in order flow and market conditions.
About SONO TEK CORP
Sono-Tek Corporation specializes in designing and manufacturing ultrasonic coating systems for precise, thin film applications across industries such as electronics, medical, industrial, and energy. Its core technology atomizes liquids for environmentally friendly coatings that enhance surface properties. Serving OEMs, distributors, and end-users worldwide, the company emphasizes innovation, quality, and tailored solutions to address complex customer needs in demanding manufacturing environments.
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