Sono-Tek Corporation Achieves Significant Growth in Fiscal 2027 Mid-Year Results
Sono-Tek Corporation, a leading provider of precision ultrasonic coating technology, has reported impressive growth in its fiscal second quarter and first half 2027 results. According to the company's recent conference call transcript, Sono-Tek achieved revenue growth, meaningful gross margin expansion, and improved operating profitability during the period ended August 31, 2026.
The company's revenue increased by 6% to approximately $10.9 million for the first half of fiscal 2027, compared to the same period in the prior year. This growth was driven by strong demand from the medical market, which saw sales increase by a staggering 289% to around $7.1 million. The company's gross margin also expanded to 55%, up from 51% in the prior year period, reflecting its ability to maintain pricing power and control costs.
Moreover, Sono-Tek's operating income rose by 41% to approximately $1.28 million, while net income increased by 22% to around $1.1 million. The company's balance sheet remains strong, with no debt on its books.
The medical market continues to be a significant growth driver for the company, as customers increasingly move from process development and qualification towards commercial manufacturing, where Sono-Tek's precision ultrasonic coating technology can play a critical role.
One notable example of this trend is the recent order from an existing alternative energy customer, which covers 10 production scale systems and represents the largest aggregate customer order in Sono-Tek's history. This order demonstrates the company's ability to support customers as they move from development into higher volume manufacturing and then expand its relationships as their processes scale.
In addition to this significant order, Sono-Tek has also announced a $3.6 million medical diagnostic production line order in August, which now represents more than $10.79 million of backlog, with the majority expected to be delivered in fiscal year 2028. These opportunities involve different customers and two distinct growth markets, further highlighting the company's potential for long-term success."
