ETC Announces Fiscal 2027 First Quarter Results
Rhea-AI Summary
Environmental Tectonics Corporation (OTC: ETCC) reported fiscal 2027 first quarter net income of $0.2 million, or $0.01 diluted EPS, down from $1.3 million, or $0.07 diluted EPS, in the 2026 first quarter. Net sales were $16.2 million, an 8.0% decrease from $17.6 million, driven by lower Aircrew Training Systems and Sterilizer Systems revenue, partially offset by higher Environmental Testing and Simulation Systems sales.
According to ETC, backlog rose 17% year over year to $85 million, supported by $39.5 million of new contract awards. Operating income declined to $1.0 million from $2.2 million as gross margin and operating expenses worsened, but operating cash flow improved to a $1.2 million inflow versus a $2.9 million outflow a year earlier.
Positive
- Backlog up 17% to $85 million on $39.5 million awards
- Core net sales ex-aeromedical building up 2.5% to $13.9 million
- ETSS sales increased $3.1 million, or 1760.1%, year over year
- Operating cash flow improved by $4.1 million to $1.2 million inflow
- Interest expense, net, remained stable versus prior-year quarter
Negative
- Net income down 82.6% to $0.2 million; EPS $0.01 vs $0.07
- Net sales decreased 8.0% to $16.2 million year over year
- Operating income fell 53.6% to $1.0 million
- Gross margin declined to 24.1% of sales from 26.5%
- Sterilizer Systems sales down $2.7 million, or 54.4%, year over year
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SOUTHAMPTON, Pa., July 15, 2026 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTCID: ETCC) (“ETC” or the “Company”) today reported its financial results for the thirteen week period ended May 29, 2026 (the “2027 first fiscal quarter”).
Robert L. Laurent, Jr., ETC’s Chief Executive Officer and President stated, “We once again generated positive operating results and are especially pleased with the
Fiscal 2027 First Quarter Results of Operations
Net Income
Net income was
Net Sales
Net sales in the 2027 first fiscal quarter were
Gross Profit
Gross profit for the 2027 first fiscal quarter was
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2027 first fiscal quarter were
Operating Income
Operating income for the 2027 fiscal first quarter was
Interest Expense, Net
Interest expense, net, was consistent for the 2027 first fiscal quarter as compared to the 2026 first fiscal quarter.
Other Expense (Income)
Other Expense was
Income Tax Provision
Income tax provision for the 2027 first fiscal quarter was
Cash Flows from Operating, Investing, and Financing Activities
During the 2027 first fiscal quarter, cash provided by operating activities were
Cash used for investing activities primarily relates to funds used for capital expenditures of equipment and software development. The Company’s investing activities used
The Company’s financing activities used
About ETC
ETC was incorporated in 1969 in Pennsylvania. For over five decades, we have provided our customers with products, services, and support. Innovation, continuous technological improvement and enhancement, and product quality are core values that are critical to our success. We are a significant supplier and innovator in the following areas: (i) software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, fixed and rotary wing upset prevention and recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight: altitude (hypobaric) chambers; hyperbaric chambers for multiple persons (multiplace chambers) collectively, Aircrew Training Systems (“ATS”); (ii) Advanced Disaster Management Simulators (“ADMS”); (iii) steam and gas (ethylene oxide) sterilizer systems (“Sterilizer Systems” or “Sterilizers”); and (iv) Environmental Testing and Simulation Systems (“ETSS”).
We operate in two primary business segments, Aerospace Solutions (“Aerospace”) and Commercial/Industrial Systems (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) ATS products; and (ii) ADMS, as well as integrated logistics support (“ILS”) for customers who purchase these products or similar products manufactured by other parties. These products and services provide customers with an offering of comprehensive solutions for improved readiness and reduced operational costs. Sales of our Aerospace products are made principally to U.S. and foreign government agencies and to civil aviation organizations. CIS encompasses the design, manufacture, and sale of: (i) sterilizer systems; and (ii) ETSS; as well as parts and service support for customers who purchase these products or similar products manufactured by other parties. Sales of our CIS products are made principally to the healthcare, pharmaceutical, and automotive industries.
ETC-PZL Aerospace Industries Sp. z o.o. (“ETC-PZL”), our
The majority of our net sales are generated from long-term contracts with U.S. and foreign government agencies (including foreign military sales (“FMS”) contracted through the U.S. Government) for the research, design, development, manufacture, integration, and sustainment of ATS products, including Chambers and the simulators manufactured and sold through ETC-PZL, collectively, ATS. The Company also enters into long-term contracts with domestic and international customers for the sale of sterilizer systems and ETSS. Net sales of ADMS are generally much shorter term in nature and vary between domestic and international customers. We generally provide our products and services under fixed-price contracts.
ETC’s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC’s headquarters is located in Southampton, PA. For more information about ETC, visit http://www.etcusa.com/. The information contained on our website is not incorporated by reference in this news release.
Forward-looking Statements
This news release contains forward-looking statements, which are based on management’s expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, and these statements may include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “future”, “predict”, “potential”, “intend”, or “continue”, and similar expressions. We base our forward-looking statements on our current expectations and projections about future events or future financial performance. Our forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries that may cause actual results to be materially different from any future results implied by these forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward looking statements.
- Financial Table Follows -
| Table A | ||||||||||||||||
| ENVIRONMENTAL TECTONICS CORPORATION | ||||||||||||||||
| SUMMARY TABLE OF RESULTS | ||||||||||||||||
| (in thousands, except per share information) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Thirteen weeks ended | Variance | |||||||||||||||
| (in thousands, except per share information) | May 29, 2026 | May 30, 2025 | ($) | (%) | ||||||||||||
| Net sales | $ | 16,186 | $ | 17,601 | $ | (1,415) | -8.0 | |||||||||
| Cost of goods sold | 12,290 | 12,939 | (649) | -5.0 | ||||||||||||
| Gross Profit | 3,896 | 4,662 | (766) | -16.4 | ||||||||||||
| Gross profit margin % | 24.1% | 26.5% | - | - | ||||||||||||
| Operating expenses | 2,892 | 2,498 | 394 | 15.8 | ||||||||||||
| Operating income | 1,004 | 2,164 | (1,160) | -53.6 | ||||||||||||
| Operating margin % | 6.2% | 12.3% | - | - | ||||||||||||
| Interest expense, net | 549 | 563 | (14) | -2.5 | ||||||||||||
| Other expense (income), net | 81 | (78) | 159 | -203.8 | ||||||||||||
| Income before income taxes | 374 | 1,679 | (1,305) | -77.7 | ||||||||||||
| Pre-tax margin % | 2.3% | 9.5% | - | - | ||||||||||||
| Income tax provision | 150 | 390 | (240) | -61.5 | ||||||||||||
| Net income | 224 | 1,289 | (1,065) | -82.6 | ||||||||||||
| Preferred Stock dividends | (121) | (121) | - | 0.0 | ||||||||||||
| Income attributable to common and | ||||||||||||||||
| participating shareholders | $ | 103 | $ | 1,168 | $ | (1,065) | -91.2 | |||||||||
| Per share information: | ||||||||||||||||
| Basic earnings per common and participating share: | ||||||||||||||||
| Distributed earnings per share: | ||||||||||||||||
| Common | $ | - | $ | - | $ | - | ||||||||||
| Preferred | $ | 0.02 | $ | 0.02 | $ | - | 0.0 | |||||||||
| Undistributed earnings per share: | ||||||||||||||||
| Common | $ | 0.01 | $ | 0.07 | $ | (0.06) | -85.7 | |||||||||
| Preferred | $ | 0.01 | $ | 0.07 | $ | (0.06) | -85.7 | |||||||||
| Diluted earnings per share | $ | 0.01 | $ | 0.07 | $ | (0.06) | -85.7 | |||||||||
| Total basic weighted average common and participating shares | 15,704 | 15,665 | ||||||||||||||
| Total diluted weighted average shares | 16,631 | 16,998 | ||||||||||||||
Contact:Tim Kennedy, CFO Phone:(215) 355-9100 x1531 E-mail:tkennedy@etcusa.com