ETC Announces Fiscal 2026 Full Year and Fourth Quarter Results

SOUTHAMPTON, Pa., June 12, 2026 (GLOBE NEWSWIRE) — Environmental Tectonics Company (OTCID: ETCC) (“ETC” or the “Firm”) at the moment reported its monetary outcomes for the 13 week interval ended February 27, 2026 (the “2026 fiscal fourth quarter”) and the fifty-two week interval ended February 27, 2026 (“fiscal 2026”).

Robert L. Laurent, Jr., ETC’s Chief Govt Officer and President acknowledged, “Our robust backlog and pipeline of alternatives has resulted within the third consecutive 12 months of optimistic gross revenue, working revenue and web revenue. Internet revenue was $3.0 million or $0.15 diluted earnings per share in fiscal 2026. We consider we stay effectively positioned for the longer term with a backlog of $61 million and robust pipeline of alternatives at February 27, 2026. Moreover, in the course of the first quarter of fiscal 2027, ETC issued a Press Launch saying three contract awards of roughly $37.0 million, which we anticipate will improve our backlog to in extra of $80.0 million on the finish of 2027 fiscal first quarter”.

Tim Kennedy, ETC’s Chief Monetary Officer acknowledged, “On Might 26, 2026, subsequent to the tip of fiscal 2026, the maturity date of the PNC Credit score Amenities was prolonged from June 30, 2026 to June 30, 2028. This two-year extension marks one other essential milestone for ETC”.

Fiscal 2026 Outcomes of Operations

Internet Earnings

Internet revenue was $3.0 million, or $0.15 diluted earnings per share, in fiscal 2026, in comparison with web revenue of $13.1 million, or $0.75 per diluted share in fiscal 2025. The $10.0 million, or 76.7% lower is primarily attributable to a $7.8 million improve within the revenue tax provision, a $1.0 million lower in gross revenue, a $0.6 million improve in working bills, a $1.0 million improve in curiosity expense and a $0.5 million improve in different expense (revenue), web. Fiscal 2026 web revenue is negatively impacted by an revenue tax provision of $1.2 million in fiscal 2026 as in comparison with an revenue tax advantage of $5.6 million in fiscal 2025, primarily related to the partial reversal of valuation allowance beforehand recorded in opposition to the deferred tax asset in fiscal 2025. The deferred tax asset valuation allowance on federal deferred tax property and sure state deferred tax property was reversed in fiscal 2025, because it had change into and continues to be extra doubtless than not that the Firm will have the ability to totally understand these deferred tax property.

Internet Gross sales

Internet gross sales for fiscal 2026 was $62.7 million, a lower of $0.2 million, or 0.4%, in comparison with fiscal 2025 web gross sales of $62.9 million. The lower is a results of decrease Worldwide gross sales of $8.7 million inside CIS offset by larger Worldwide gross sales in Aerospace Options of $3.3 million in addition to larger Home gross sales of $5.2 million, $2.9 million of that are inside CIS and $2.3 million inside Aerospace Options.

Gross Revenue

Gross revenue for fiscal 2026 was $17.6 million in comparison with $18.5 million in fiscal 2025, a lower of $1.0 million, or 5.2%. The lower in gross revenue was primarily resulting from decrease ATS gross sales, excluding gross sales from the Aeromedical Middle constructing and decrease Sterilizer system gross sales. Gross revenue margin as a proportion of web gross sales decreased to twenty-eight.0% in fiscal 2026 in comparison with 29.4% in fiscal 2025 attributable to decrease gross revenue margin proportion from the Aeromedical Middle constructing being carried out by a 3rd celebration sub-contractor. Excluding the influence of Aeromedical Middle constructing gross sales, gross revenue margin proportion was 33.8% in fiscal 2026 as in comparison with 32.1% in fiscal 2025.

Working Bills

Working bills, together with gross sales and advertising and marketing, normal and administrative, and analysis and growth, for fiscal 2026 had been $10.9 million in comparison with $10.3 million in fiscal 2025, a rise of $0.6 million, or 6.2%. A rise in promoting and advertising and marketing bills, primarily pushed by larger proposal, commerce present and fee expense was partially offset by a slight lower usually and administrative and analysis and growth bills.

Curiosity Expense, Internet

Curiosity expense, web, for fiscal 2026 was $2.2 million in comparison with $1.2 million in fiscal 2025, a rise of $1.0 million, or 88.7%, due primarily to larger borrowing attributable to the leaseback of the demonstration tools and completed items stock.

Different Expense (Earnings), Internet

Different expense, web, for fiscal 2026 was $0.2 million, in comparison with different (revenue), web, of ($0.4) million in fiscal 2025 an unfavorable variance of $0.5, or 142.1% attributable to a acquire realized from the sale of the Southampton, Pennsylvania demonstration tools in fiscal 2025.

Earnings Tax Provision (Profit)

An revenue tax provision of $1.2 million was recorded in fiscal 2026 in comparison with an revenue tax advantage of ($5.6) million in fiscal 2025. As of February 28, 2025, the Firm reviewed the parts of its deferred tax property and decided, primarily based upon all accessible data, that it’s extra doubtless than not that deferred tax property regarding its federal deferred tax property and sure state deferred tax property might 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 comprehend these deferred tax property, then our tax valuation allowance might improve within the interval wherein we decide that realization is not extra doubtless than not.

Fiscal 2026 Fourth Quarter Outcomes of Operations

Internet Earnings

Internet revenue was $0.1 million, or $0.00 diluted earnings per share, within the 2026 fiscal fourth quarter, in comparison with web revenue of $7.6 million in the course of the 2025 fiscal fourth quarter, equating to $0.45 diluted earnings per share. The $7.5 million variance is a results of $3.6 million lower in gross sales, $0.5 million improve in working bills and a $0.6 million improve in different expense attributable to the acquire on the sale of the Firm’s demonstration tools in fiscal fourth quarter 2025. The 2026 fiscal fourth quarter was additionally negatively impacted by revenue tax provision of $0.3 million as in comparison with an revenue tax advantage of ($5.7) million in 2025 fiscal fourth quarter attributable to the reversal of the deferred tax asset valuation allowance. The above lower is partially offset by a 13.8% improve in gross revenue margin proportion.

Internet Gross sales

Internet gross sales for the 2026 fiscal fourth quarter had been $15.5 million, a lower of $3.6 million, or 19.0%, in comparison with web gross sales of $19.1 million for the 2025 fiscal fourth quarter. The lower is primarily attributable to a $3.7 million, or 59.0% lower in Sterilizer Techniques gross sales and a $1.1 million, or 33.8% lower in Aeromedical Middle Constructing gross sales. The lower was partially offset by a $1.5 million, or 140.7% and $0.7 million, or 96.0% improve in ETSS and ADMS gross sales, respectively.

Gross Revenue

Gross revenue was $4.3 million within the 2026 fiscal fourth quarter, a lower of $0.4 million, or 7.9% in comparison with gross revenue of $4.7 million for the 2025 fiscal fourth quarter. The vast majority of the lower was a direct results of diminished gross sales. Gross revenue margin as a proportion of web gross sales elevated to twenty-eight.0% within the 2026 fiscal fourth quarter in comparison with 24.6% in 2025 fiscal fourth quarter. The rise in gross revenue margin is primarily attributable to diminished Aeromedical Middle constructing gross sales within the 2026 fiscal fourth quarter.

Working Bills

Working bills, together with gross sales and advertising and marketing, normal and administrative, and analysis and growth, for the 2026 fiscal fourth quarter had been $3.2 million, a rise of $0.5 million, or 20.6%, in comparison with $2.7 million for the 2025 fiscal fourth quarter. The rise in working bills was due primarily to larger gross sales and advertising and marketing expense and analysis and growth expense partially offset by decrease normal and administrative expense within the 2026 fiscal fourth quarter in comparison with the 2025 fiscal fourth quarter.

Curiosity Expense, Internet

Curiosity expense, web, for the 2026 fiscal fourth quarter was $0.6 million within the 2026 fiscal fourth quarter, a lower of $0.1 million, or 9.6%. The lower in curiosity expense, web is primarily attributable to decrease rates of interest on the ETC Line of Credit score throughout 2026 fiscal fourth quarter as in comparison with 2025 fiscal fourth quarter.

Different Expense (Earnings), Internet

Different expense, web, for 2026 fiscal fourth quarter was $0.1 million, in comparison with different revenue, web, of ($0.5) million in 2025 fiscal fourth quarter, a unfavorable variance of $0.6 million, or 124.6% attributable to a acquire realized from the sale of the Southampton, Pennsylvania demonstration tools within the 2025 fiscal fourth quarter.

Earnings Tax Provision (Profit)

An revenue tax expense of $0.3 million was recorded within the fiscal 2026 fourth quarter in comparison with an revenue tax advantage of ($5.7) million within the 2025 fiscal fourth quarter. The rise within the revenue tax expense within the 2026 fiscal fourth quarter was pushed primarily by the reversal of the valuation allowance on federal deferred tax property and sure state deferred tax property within the 2025 fiscal fourth quarter. This reversal is attributable to the change within the Firm’s working revenue and anticipated capacity to comprehend these deferred tax property.

Liquidity and Capital Sources

As of February 27, 2026, the Firm’s availability beneath the PNC Revolving Line of Credit score was $1.2 million. This mirrored money borrowings of $12.6 million and web excellent standby letters of credit score of roughly $6.2 million. As of June 12, 2026, the date of our most present Revolving Line of Credit score assertion, the Firm’s availability beneath the PNC Revolving Line of Credit score was roughly $1.9 million. The Firm had working capital of $22.0 million as of February 27, 2026 in comparison with working capital of $19.7 million as of February 28, 2025. The rise in working capital was primarily the results of a rise in accounts receivable and contract property and a lower in accounts payable partially offset by a rise in contract liabilities. With unused availability beneath the Firm’s varied present traces 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 2027 bookings, the Firm anticipates its sources of liquidity might be enough to fund its working actions, anticipated capital expenditures, and debt reimbursement obligations all through fiscal 2027.

Money flows from working actions

Throughout fiscal 2026, money flows utilized by working actions had been $0.4 million, a lower of $3.5 million in comparison with fiscal 2025 money flows utilized by working actions of $3.9 million. Money flows in fiscal 2026 improved on account of elevated contract liabilities and web revenue partially offset by a rise in accounts receivable and contract property for the fiscal 12 months.

Money flows from investing actions

Money flows from investing actions primarily pertains to funds for capital expenditures in property, plant, and tools and software program growth. The Firm’s fiscal 2026 investing actions used $0.3 million as in comparison with fiscal 2025 investing actions which offered $3.6 million. The change in investing actions is attributable to $4.0 million from the sale leaseback of the demonstration tools in Southampton, Pennsylvania in fiscal 2025.

Money flows from financing actions

Throughout fiscal 2026, the Firm’s financing actions used $1.2 million from repayments beneath the Firm’s credit score facility in comparison with fiscal 2025 borrowings of $1.7 million. The lower in borrowings in fiscal 2026 is attributable to the timing of funds obtained on contracts.

About ETC

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

We function in two main enterprise segments, Aerospace Options (“Aerospace”) and Industrial/Industrial Techniques (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) ATS merchandise; and (ii) ADMS, in addition to built-in logistics assist (“ILS”) for patrons who buy these merchandise or comparable merchandise manufactured by different events. These services 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 overseas authorities businesses and to civil aviation organizations. CIS encompasses the design, manufacture, and sale of: (i) sterilizer methods; and (ii) ETSS; in addition to components and repair assist for patrons 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 the moment our solely working subsidiary. ETC-PZL manufactures sure simulators inside our Aerospace phase.

The vast majority of our web gross sales are generated from long-term contracts with U.S. and overseas authorities businesses (together with overseas navy gross sales (“FMS”) contracted by means of the U.S. Authorities) for the analysis, design, growth, manufacture, integration, and sustainment of ATS merchandise, together with Chambers and the simulators manufactured and bought by means of ETC-PZL, collectively, ATS. The Firm additionally enters into long-term contracts with home and worldwide clients for the sale of sterilizer methods and ETSS. Internet gross sales of ADMS are usually a lot shorter time period in nature and fluctuate between home and worldwide clients. We usually present our services beneath fixed-price contracts.

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

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Ahead-looking Statements

This information launch comprises forward-looking statements, that are primarily based on administration’s present expectations and are topic to uncertainties and modifications in circumstances. Phrases and expressions reflecting one thing aside from historic reality are meant to determine forward-looking statements, and these statements might embody phrases reminiscent of “might”, “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 identified and unknown dangers, uncertainties and assumptions about ETC and its subsidiaries, the financial system and different components which will trigger precise outcomes to be materially completely different from any future outcomes implied by these forward-looking statements. We warning you to not place undue reliance on these forward-looking statements.