ETC Announces Fiscal 2025 Full Year and Fourth Quarter Results

SOUTHAMPTON, Pa., June 09, 2025 (GLOBE NEWSWIRE) — Environmental Tectonics Company (OTC Pink: ETCC) (“ETC” or the “Firm”) immediately reported its monetary outcomes for the fourteen week interval ended February 28, 2025 (the “2025 fiscal fourth quarter”) and the fifty-three week interval ended February 28, 2025 (“fiscal 2025”).

Robert L. Laurent, Jr., ETC’s Chief Govt Officer and President acknowledged, “Our robust backlog and pipeline of alternatives as soon as once more translated into will increase in web gross sales, gross revenue margin, working revenue and web revenue. These outcomes replicate progress in every of our enterprise items with gross sales growing to $62.9 million, gross revenue growing to $18.5 million, and web revenue growing to $13.1 million or $0.75 diluted earnings per share in fiscal 2025 as in comparison with web revenue of $1.8 million or $0.09 diluted earnings per share in fiscal 2024. We consider we stay effectively positioned for the long run with a backlog of $87 million and powerful pipeline of alternatives at February 28, 2025.”

Fiscal 2025 Outcomes of Operations

Web Earnings

Web revenue was $13.1 million, or $0.75 diluted earnings per share, in fiscal 2025, in comparison with web revenue of $1.8 million throughout fiscal 2024, equating to $0.09 per diluted share. The $11.2 million variance is primarily attributable to a $19.6 million improve in gross sales, a $6.1 million improve in gross revenue, barely offset by a $0.8 million improve in working bills. Fiscal 2025 can be being positively impacted by an revenue tax good thing about $5.6 million, primarily related to the partial reversal of valuation allowance beforehand recorded in opposition to the deferred tax asset. The deferred tax asset valuation allowance on federal deferred tax property and sure state deferred tax property was reversed in fiscal 2025, as it’s now extra possible than not that the Firm will be capable to absolutely notice these deferred tax property.

Web Gross sales

Web gross sales for fiscal 2025 was $62.9 million, a rise of $19.6 million, or 45.3%, in comparison with fiscal 2024 web gross sales of $43.3 million. The rise is a results of increased Worldwide gross sales of $13.4 million, of which $9.3 million are inside Aircrew Coaching Options (“ATS”) and $3.5 million are inside Business Industrial Programs (“CIS”) in addition to increased Home gross sales of $6.2 million, $6.0 million of that are inside CIS. Additional, gross sales in fiscal 2025 elevated the best inside the ATS enterprise unit and Sterilizer Programs enterprise unit, accounting for $9.9 and $7.4 million, respectively, of the general improve of $19.6 million.

Gross Revenue

Gross revenue for fiscal 2025 was $18.5 million in comparison with $12.5 million in fiscal 2024, a rise of $6.1 million, or 48.7%. The rise in gross revenue was primarily as a result of increased web gross sales inside the ATS and Sterilizers System enterprise items. Gross revenue margin as a proportion of web gross sales elevated to 29.4% in fiscal 2025 in comparison with 28.8% in fiscal 2024.

Working Bills

Working bills, together with gross sales and advertising, basic and administrative, and analysis and improvement, for fiscal 2025 was $10.3 million in comparison with $9.5 million in fiscal 2024, a rise of $0.8 million, or 8.1%. A rise in promoting and advertising bills, primarily pushed by increased gross sales and a rise basically and administrative bills, due primarily to a rise in wage and associated bills, together with a rise in skilled charges was offset barely by a lower in analysis and improvement bills.

Curiosity Expense, Web

Curiosity expense, web, for fiscal 2025 was $1.2 million in comparison with $0.9 million in fiscal 2024, a rise of $0.3 million, or 31.6%, due primarily to increased borrowing attributable to the leaseback of the Southampton, Pennsylvania demonstration gear in fiscal 2025.

Different (Earnings) Expense, Web

Different revenue, web, for fiscal 2025 was ($0.4) million, in comparison with different expense, web, of $0.3 million in fiscal 2024 a good variance of ($0.7) million, or (221.5%) attributable to a achieve realized from the sale of the Southampton, Pennsylvania demonstration gear in fiscal 2025.

Earnings (Profit) Taxes

As of February 28, 2025, the Firm reviewed the parts of its deferred tax property and decided, based mostly upon all accessible data, that it’s extra possible than not that deferred tax property referring to its federal deferred tax property and sure state deferred tax property shall be realized. Accordingly, we reversed the beforehand recorded valuation allowance in opposition to these deferred tax property. If sooner or later there’s a change in our capacity to understand these deferred tax property, then our tax valuation allowance could improve within the interval through which we decide that realization is not extra possible than not. An revenue tax good thing about $5.6 million was recorded in fiscal 2025 in comparison with revenue tax good thing about $0.1 million recorded in fiscal 2024.

Fiscal 2025 Fourth Quarter Outcomes of Operations

Web Earnings

Web revenue was $7.6 million, or $0.45 diluted earnings per share, within the 2025 fiscal fourth quarter, in comparison with web revenue of $2.8 million in the course of the 2024 fiscal fourth quarter, equating to $0.17 diluted earnings per share. The $4.8 million variance is a results of $2.7 million of elevated gross sales, $0.6 million improve in different revenue attributable to the sale of the Firm’s demonstration gear offset barely by an 8.9% lower in gross revenue margin proportion, primarily attributable to elevated aeromedical middle constructing gross sales and better curiosity expense attributable to the demonstration gear lease. The 2025 fiscal fourth quarter can be being positively impacted by a $5.5 million improve in revenue tax profit attributable to the reversal of the deferred tax asset valuation allowance.

Web Gross sales

Web gross sales for the 2025 fiscal fourth quarter had been $19.1 million, a rise of $2.7 million, or 16.4%, in comparison with web gross sales of $16.4 million for the 2024 fiscal fourth quarter. The rise displays increased general gross sales inside the ATS and Sterilizer Programs enterprise items.

Gross Revenue

Gross revenue was $4.7 million within the 2025 fiscal fourth quarter, a lower of $0.8 million, or 14.5% in comparison with gross revenue of $5.5 million for the 2024 fiscal fourth quarter. Gross revenue margin as a proportion of web gross sales decreased to 24.6% within the 2025 fiscal fourth quarter in comparison with 33.5% in 2024 fiscal fourth quarter. The vast majority of the lower was a direct results of the rise in aeromedical middle constructing gross sales, which is decrease margin then ETC’s core enterprise because the work is being carried out by a sub-contracted development agency. Excluding the aeromedical middle constructing gross sales, gross revenue margin would have been roughly 29.7%. Because the constructing development of the aeromedical middle accelerates over the subsequent yr, ETC expects gross revenue margin to be decrease in fiscal 2026 as in comparison with fiscal 2025.

Working Bills

Working bills, together with gross sales and advertising, basic and administrative, and analysis and improvement, for the 2025 fiscal fourth quarter had been $2.7 million, a rise of $0.2 million, or 6.1%, in comparison with $2.5 million for the 2024 fiscal fourth quarter. The rise in working bills was due primarily to increased basic and administrative bills barely offset by decrease promoting and advertising and analysis and improvement bills within the 2025 fiscal fourth quarter in comparison with the 2024 fiscal fourth quarter.

Curiosity Expense, Web

Curiosity expense, web, for the 2025 fiscal fourth quarter was $0.6 million in comparison with $0.2 million within the 2024 fiscal fourth quarter, a rise of $0.4 million, or 146.6%, reflecting elevated borrowing attributable to the leaseback of the demonstration gear in 2025 fiscal fourth quarter.

Different (Earnings) Expense, Web

Different revenue, web, for 2025 fiscal fourth quarter was ($0.5) million, in comparison with different expense, web, of $0.1 million in 2024 fiscal fourth quarter, a good variance of ($0.6) million, or (721.0%) attributable to a achieve realized from the sale of the Southampton, Pennsylvania demonstration gear within the 2025 fiscal fourth quarter.

Earnings (Profit) Taxes

An revenue tax good thing about $5.7 million was recorded within the fiscal 2025 fourth quarter in comparison with an revenue tax good thing about $0.2 million within the 2024 fiscal fourth quarter. The rise within the revenue tax provision within the 2025 fiscal fourth quarter was pushed primarily by the reversal of the valuation allowance on federal deferred tax property and sure state deferred tax property. This reversal is attributable to the change within the Firm’s working revenue and anticipated capacity to understand these deferred tax property.

Liquidity and Capital Sources

As of February 28, 2025, the Firm’s availability below the PNC Revolving Line of Credit score was $2.2 million. This mirrored money borrowings of $14.3 million and web excellent standby letters of credit score of roughly $3.5 million. As of June 9, 2025, the date of our most present Revolving Line of Credit score assertion, the Firm’s availability below the PNC Revolving Line of Credit score was roughly $1.2 million. The Firm had working capital of $19.7 million as of February 28, 2025 in comparison with working capital of $8.7 million as of February 23, 2024. The rise in working capital was primarily the results of a major improve in contract property and discount in contract liabilities partially offset by a lower in pay as you go property and improve in accounts payable, commerce and a rise within the present portion of lease obligations. With unused availability below the Firm’s varied present strains of credit score, the additional conversion of contract property and stock into money, the gathering of milestone funds related to a number of Worldwide contracts, and anticipated deposits on fiscal 2026 bookings, the Firm anticipates its sources of liquidity shall be enough to fund its working actions, anticipated capital expenditures, and debt compensation obligations all through fiscal 2025.

On February 3, 2025, the Firm entered right into a Financing and Safety Settlement with Coeur Capital, Inc. that offered for a line of credit score of as much as $3.0 million. The corporate is in a position to attract on the road transferring and assigning acceptable accounts receivable to Coeur Capital. The Financing and Safety Settlement stays in full power till terminated by both get together upon superior written discover. As of February 28, 2025, the Firm’s availability below this Financing and Safety Settlement was $3.0 million. As of June 9, 2025, the date of our report, the Firm’s availability below this Financing and Safety Settlement with Coeur Capital was $3.0 million.

Money flows from working actions

Throughout fiscal 2025, money flows utilized by working actions had been $3.9 million, a rise of $0.2 million in comparison with fiscal 2024 money flows utilized by working actions of $3.7 million. Money flows in fiscal 2025 elevated because of the rise in contract property and reduce in contract liabilities partially offset by web revenue for the fiscal yr.

Money flows from investing actions

Money flows from investing actions primarily pertains to funds for capital expenditures in property, plant, and gear and software program improvement. The Firm’s fiscal 2025 investing actions offered $3.6 million as in comparison with fiscal 2024 investing actions which used $0.3 million. The change in investing actions is attributable to $4.0 million from the sale leaseback of the demonstration gear in Southampton, Pennsylvania.

Money flows from financing actions

Throughout fiscal 2025, the Firm’s financing actions offered $1.7 million from borrowings below the Firm’s credit score facility to help the numerous improve in manufacturing, in comparison with fiscal 2024 borrowings of $2.7 million.

About ETC

ETC was integrated in 1969 in Pennsylvania. For over 5 many years, we’ve offered our clients with merchandise, companies, and help. Innovation, steady technological enchancment and enhancement, and product high quality are core values which are vital to our success. We’re a major provider and innovator within the following areas: (i) software program pushed services and products used to create and monitor the physiological results of flight, together with excessive efficiency jet tactical flight simulation, fastened and rotary wing upset prevention and restoration and spatial disorientation, and each suborbital and orbital business human spaceflight: altitude (hypobaric) chambers; hyperbaric chambers for a number of individuals (multiplace chambers) collectively, Aircrew Coaching Programs (“ATS”);; (ii) Superior Catastrophe Administration Simulators (“ADMS”); (iii) steam and gasoline (ethylene oxide) sterilizer techniques (“Sterilizer Programs” or “Sterilizers”); and (iv) Environmental Testing and Simulation Programs (“ETSS”).

We function in two major enterprise segments, Aerospace Options (“Aerospace”) and Business/Industrial Programs (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) ATS merchandise; and (ii) ADMS, in addition to built-in logistics help (“ILS”) for purchasers who buy these merchandise or comparable merchandise manufactured by different events. These services and products present clients with an providing of complete options for improved readiness and diminished operational prices. Gross sales of our Aerospace merchandise are made principally to U.S. and international authorities companies and to civil aviation organizations. CIS encompasses the design, manufacture, and sale of: (i) sterilizer techniques; and (ii) ETSS; in addition to elements and repair help for purchasers who buy these merchandise or comparable merchandise manufactured by different events. Gross sales of our CIS merchandise are made principally to the healthcare, pharmaceutical, and automotive industries.

ETC-PZL Aerospace Industries Sp. z o.o. (“ETC-PZL”), our 100%-owned subsidiary in Warsaw, Poland, is at present our solely working subsidiary. ETC-PZL manufactures sure simulators and offers software program to help merchandise manufactured domestically inside our Aerospace phase.

The vast majority of our web gross sales are generated from long-term contracts with U.S. and international authorities companies (together with international army gross sales (“FMS”) contracted by way of the U.S. Authorities) for the analysis, design, improvement, manufacture, integration, and sustainment of ATS merchandise, together with Chambers and the simulators manufactured and bought by way of ETC-PZL, collectively, ATS. The Firm additionally enters into long-term contracts with home and worldwide clients for the sale of sterilizer techniques and ETSS. Web gross sales of ADMS are typically a lot shorter time period in nature and differ between home and worldwide clients. We typically present our services and products below fixed-price contracts.

ETC’s distinctive capacity to supply full techniques, designed and produced to excessive technical requirements, units it other than its competitors. ETC’s headquarters is situated in Southampton, PA. For extra details about ETC, go to http://www.etcusa.com/.

Ahead-looking Statements

This information launch comprises forward-looking statements, that are based mostly on administration’s present expectations and are topic to uncertainties and modifications in circumstances. Phrases and expressions reflecting one thing apart from historic truth are meant to establish forward-looking statements, and these statements could embody phrases equivalent to “could”, “will”, “ought to”, “count on”, “plan”, “anticipate”, “consider”, “estimate”, “future”, “predict”, “potential”, “intend”, or “proceed”, and comparable expressions. We base our forward-looking statements on our present expectations and projections about future occasions or future monetary efficiency. Our forward-looking statements are topic to recognized and unknown dangers, uncertainties and assumptions about ETC and its subsidiaries, the economic system and different components which will trigger precise outcomes to be materially totally different from any future outcomes implied by these forward-looking statements. We warning you to not place undue reliance on these forward-looking statements.