SCI Engineered Materials, Inc. Reports 2026 Second Quarter and Six-Month Results
Rhea-AI Summary
SCI Engineered Materials (OTCQB:SCIA) reported record results for Q2 2026, with revenue up 163% to $9.49 million and six‑month revenue up 148% to $17.65 million, driven by higher raw material input costs, favorable product mix and increased volume. Order backlog rose to $7.9 million from $3.4 million a year earlier.
Q2 gross profit nearly doubled to $2.28 million, but gross margin declined to 24.0% from 32.1% due to input costs and mix. Net income increased 221% to $1.17 million ($0.26 per share) in Q2, and 142% to $1.63 million ($0.37 per share) for the first half. First‑half operating expenses included $562,026 of fraud expense linked to a February 2026 imposter scam; $336,299 has been recovered and a $250,000 cyber insurance claim has been approved. Cash and cash equivalents rose to $9.89 million, with total assets of $22.80 million and shareholders’ equity of $15.63 million at June 30, 2026.
Positive
- Q2 2026 revenue up 163% YoY to $9.49 million
- Six‑month 2026 revenue up 148% YoY to $17.65 million
- Q2 2026 net income up 221% YoY to $1.17 million
- Six‑month 2026 net income up 142% YoY to $1.63 million
- Order backlog increased to $7.9 million from $3.4 million YoY
- Cash and cash equivalents rose ~25% since year‑end to $9.89 million
Negative
- Q2 gross margin declined to 24.0% from 32.1% YoY
- Six‑month gross margin declined to 24.4% from 31.4% YoY
- First‑half operating expenses rose to $2.42 million from $1.57 million
- Fraud expense of $562,026 recorded in first quarter 2026
- Customer deposits liabilities increased to $4.55 million from $0.83 million at year‑end
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COLUMBUS, OH / ACCESS Newswire / July 30, 2026 / SCI Engineered Materials, Inc. ("SCI" or "Company") (OTCQB:SCIA), today reported financial results for the three months and six months ended July 30, 2026.
Jeremy Young, President and Chief Executive Officer, commented, "SCI's second quarter results reflect solid achievements throughout the Company. Revenue increased significantly compared to a year ago due to higher raw material input costs, favorable product mix and increased volume. We are gaining traction in key markets consistent with our growth strategy through expanded marketing initiatives, increased demand for SCI's products and services, and the addition of new customers."
Mr. Young added, "We recently ordered manufacturing equipment and added staff to enhance future growth. In addition to increased product sales, interest in SCI's breadth of services to fulfill specific customer needs is growing, including debinding capabilities for commercial additive manufacturing applications and specialty diffusion bonding. Customer emphasis on domestic manufacturing is increasing as they seek to prioritize their sourcing requirements with price sensitivity."
Revenue
Revenue increased
For the first six months of 2026, revenue increased
Order backlog was
Gross profit
Gross profit increased
Gross profit for the first six months of 2026 increased
Operating expenses
Operating expenses increased
Operating expenses for the first six months of 2026 were
Fraud expense
On February 10, 2026, the Company reported it was subjected to an imposter scam of
Net interest income
Net interest income was
Income taxes
The Company's income tax expense increased
Net income
Net income increased
For the first half of 2026, net income increased
Cash and cash equivalents and Investments in marketable securities
Cash and cash equivalents were
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer of advanced materials for PVD thin film applications and works closely with end users and OEMs to develop innovative, customized solutions. Additional information is available at www.sciengineeredmaterials.com or follow SCI Engineered Materials, Inc. at:
https://www.linkedin.com/company/sci-engineered-materials.-inc
https://www.facebook.com/sciengineeredmaterials/
https://x.com/SciMaterials
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, plans of the Company and its management. These forward-looking statements involve numerous risks and uncertainties, including without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025. One or more of these factors has affected and could affect the Company's projections in the future. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. Due to the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
Contact: Robert Lentz
(614) 439-6006
SCI ENGINEERED MATERIALS, INC.
CONDENSED BALANCE SHEETS
ASSETS | ||||||||
June 30, | December 31, | |||||||
2026 | 2025 | |||||||
(UNAUDITED) | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 9,889,753 | $ | 7,939,000 | ||||
Investments - marketable securities, short term | 799,250 | 298,125 | ||||||
Accounts receivable, less allowance for doubtful accounts | 1,041,650 | 720,364 | ||||||
Inventories | 3,624,420 | 1,091,471 | ||||||
Prepaid purchase orders and expenses | 379,820 | 196,491 | ||||||
Total current assets | 15,734,893 | 10,245,451 | ||||||
Property and Equipment, at cost | 11,491,339 | 10,854,986 | ||||||
Less accumulated depreciation and amortization | (8,018,015 | ) | (8,020,249 | ) | ||||
Property and equipment, net | 3,473,324 | 2,834,737 | ||||||
Investments, net - marketable securities, long term | 2,569,000 | 3,069,000 | ||||||
Right of use asset, net | 959,224 | 1,061,709 | ||||||
Other assets | 58,993 | 61,461 | ||||||
Total other assets | 3,587,217 | 4,192,170 | ||||||
TOTAL ASSETS | $ | 22,795,434 | $ | 17,272,358 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Operating lease, short term | $ | 232,011 | $ | 212,561 | ||||
Accounts payable | 477,280 | 245,523 | ||||||
Customer deposits | 4,546,123 | 829,158 | ||||||
Accrued expenses | 418,765 | 568,503 | ||||||
Total current liabilities | 5,674,179 | 1,855,745 | ||||||
Deferred tax liability | 763,983 | 389,572 | ||||||
Operating lease, long term | 727,212 | 849,148 | ||||||
Total liabilities | 7,165,374 | 3,094,465 | ||||||
Total shareholders' equity | 15,630,060 | 14,177,893 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,795,434 | $ | 17,272,358 | ||||
SCI ENGINEERED MATERIALS, INC
STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 9,485,119 | $ | 3,609,304 | $ | 17,645,481 | $ | 7,109,536 | ||||||||
Cost of revenue | 7,208,664 | 2,451,147 | 13,333,906 | 4,878,565 | ||||||||||||
Gross profit | 2,276,455 | 1,158,157 | 4,311,575 | 2,230,971 | ||||||||||||
General and administrative expense | 512,090 | 549,540 | 1,154,133 | 1,097,361 | ||||||||||||
Fraud expense | - | - | 562,026 | - | ||||||||||||
Research and development expense | 147,433 | 107,374 | 290,043 | 209,641 | ||||||||||||
Marketing and sales expense | 217,466 | 145,436 | 416,983 | 265,623 | ||||||||||||
Income from operations | 1,399,466 | 355,807 | 1,888,390 | 658,346 | ||||||||||||
Interest income, net | 110,359 | 115,680 | 219,445 | 213,810 | ||||||||||||
Income before provision for income taxes | 1,509,825 | 471,487 | 2,107,835 | 872,156 | ||||||||||||
Income tax expense | 339,549 | 107,028 | 475,297 | 197,980 | ||||||||||||
NET INCOME | $ | 1,170,276 | $ | 364,459 | $ | 1,632,538 | $ | 674,176 | ||||||||
Earnings per share - basic and diluted | ||||||||||||||||
Income per common share | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.08 | $ | 0.37 | $ | 0.15 | ||||||||
Diluted | $ | 0.26 | $ | 0.08 | $ | 0.37 | $ | 0.15 | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 4,450,003 | 4,574,686 | 4,460,059 | 4,571,425 | ||||||||||||
Diluted | 4,450,003 | 4,578,926 | 4,460,059 | 4,575,729 | ||||||||||||
SCI ENGINEERED MATERIALS, INC
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED JUNE 30, | ||||||||
2026 | 2025 | |||||||
CASH PROVIDED BY (USED IN): | ||||||||
Operating activities | $ | 3,088,988 | $ | 1,923,241 | ||||
Investing activities | (870,735 | ) | (705,976 | ) | ||||
Financing activities | (267,500 | ) | - | |||||
NET INCREASE IN CASH | 1,950,753 | 1,217,265 | ||||||
CASH - Beginning of period | 7,939,000 | 6,753,403 | ||||||
CASH - End of period | $ | 9,889,753 | $ | 7,970,668 | ||||
SOURCE: SCI Engineered Materials, Inc.
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