Sono-Tek Reports Q1 FY 2026 Earnings: Revenue Hits $5.13M, Gross Margin Expands to 52%

Sono-Tek Corporation reported Q1 FY 2026 results with net sales of $5.13 million, a 2% increase from the previous year, and a 103% rise in operating income to $483,000. The growth was fueled by shipments to the alternative/clean energy market, particularly in the U.S. and Canada. Despite a cautious full-year outlook due to potential policy impacts, the company remains optimistic about continued revenue growth and profitability in the first half of the fiscal year.

Title: Sono-Tek Corporation Reports $5.13 Million Revenue for Q1 FY 2026, Expanding Gross Margins

Milton, NY — July 2, 2025 — Sono-Tek Corporation (Nasdaq: SOTK), a leading developer and manufacturer of ultrasonic coating systems, has reported its financial results for the first quarter of fiscal year 2026, highlighting a strong performance driven by robust demand in the clean energy sector. The company reported net sales of $5.13 million, marking the fifth consecutive quarter with revenues exceeding $5 million.

The growth was primarily driven by a significant $2.95 million order in the advanced solar market, contributing to a 2% increase in net sales compared to the first quarter of fiscal year 2025. Gross margins expanded to 52%, up from 49% the previous year, reflecting improved production efficiency and a favorable product mix. This expansion led to a 103% increase in operating income, reaching $483,000.

The company's cautious outlook for the full fiscal year stems from uncertainties related to government clean energy incentives and tariff policies, which may impact order timing. Despite this, Sono-Tek expects continued revenue growth and profitability in the first half of FY 2026, supported by a $7.5 million backlog and strong demand in sectors like medical devices. However, the company projects relatively flat revenue growth for the full year due to potential market adjustments from recent policy shifts.

The alternative energy market showed a 42% year-over-year increase, driven by shipments to the solar market. However, the Electronics market declined by 40%, indicating a reliance on the Alternative/Clean Energy sector for future growth. The company's gross margins increased to 52% from 49%, primarily due to a favorable product mix.

Sono-Tek's strategy for future growth involves leveraging innovative technologies and strong customer demand while navigating potential market shifts. The company's strong balance sheet and stable backlog position it well to navigate short-term demand shifts resulting from policy changes.

References
[1] https://www.nasdaq.com/articles/sono-tek-corporation-reports-513-million-revenue-q1-fy-2026-expanding-gross-margins-and