Core Insights - Sono-Tek Corporation will hold a conference call on October 14, 2025, to discuss its fiscal second quarter and first half 2026 financial results, which ended on August 31, 2025 [1][2]. Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, serving various industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [5][6]. - The company is making significant advancements in the clean energy sector, particularly in next-generation solar cells, fuel cells, green hydrogen generation, and carbon capture applications [5]. Product and Market Strategy - Sono-Tek's product line is evolving from research and development to high-volume production machines, indicating a shift towards higher average selling prices and showcasing market leadership [6]. - The company employs a strategic distribution network that includes direct sales personnel, independent distributors, and experienced sales representatives to ensure efficient market reach across diverse sectors globally [6]. Environmental Impact - The solutions provided by Sono-Tek are environmentally friendly and efficient, leading to significant reductions in overspray, raw material usage, water and energy consumption, while improving process repeatability and reducing emissions [7]. Growth Strategy - Sono-Tek's growth strategy focuses on leveraging innovative technologies and proprietary know-how to enhance thin film coating technologies, aiming for better outcomes for customers' products and processes [8].

Core Insights - Sono-Tek Corporation reported a record revenue of $20.5 million for FY 2025, marking a 4% increase from $19.7 million in FY 2024, driven by strong demand in the Alternative/Clean Energy market [8][10][31] - The company has maintained a strong backlog of $8.6 million, indicating continued demand for its products [1][8] - The first half of FY 2026 is projected to see continued revenue growth and profitability, particularly in the medical device industry [2][4] Financial Performance - Net Sales for FY 2025 reached $20.5 million, up 4% from FY 2024 [10][28] - Gross Profit was $9.74 million, a slight decrease of 1% from the previous year, with a gross margin of 47.5%, down from 50% [8][10] - Operating Income decreased to $1.01 million, down 14.5% from $1.18 million in FY 2024 [10][28] - Net Income for FY 2025 was approximately $1.3 million, down from $1.4 million in FY 2024 [8][10] Market and Product Insights - The Alternative/Clean Energy market saw a significant increase of 64%, contributing $9.84 million to total sales [15][31] - The medical market experienced a decline of 22%, with sales dropping to $3.25 million [31] - The company is focusing on high average selling price (ASP) orders, which are expected to drive future growth [5][19] Geographic Performance - Sales in the U.S. and Canada increased by 15%, totaling $12.51 million [32] - Sales in the Asia Pacific region decreased by 16%, while sales in Europe, the Middle East, and Asia remained relatively stable with a 2% increase [32] Future Outlook - The company anticipates continued revenue growth and profitability in the first half of FY 2026, supported by a strong backlog and steady demand across key markets [4][9] - Visibility beyond the first half of FY 2026 is limited due to uncertainties regarding governmental clean energy incentives and evolving tariff policies [4][9]