SOUTHAMPTON, PA — Environmental Tectonics Corporation (OTC Pink: ETCC) has reported substantial improvements across key financial metrics for the fiscal year ending February 28, 2025. The company attributed its strong performance to higher sales in multiple business units and a robust pipeline of opportunities.
Net income for the year rose sharply to $13.1 million, or $0.75 diluted earnings per share, compared to $1.8 million, or $0.09 diluted earnings per share, in fiscal 2024. This significant $11.2 million increase was driven by a $19.6 million rise in net sales, which totaled $62.9 million, a 45.3% year-over-year growth. Gross profit increased 48.7% to $18.5 million, up from $12.5 million the previous fiscal year, with gross profit margin improving slightly to 29.4%.
“Our strong backlog and pipeline of opportunities once again translated into increases in net sales, gross profit margin, operating income, and net income,” said Robert L. Laurent, Jr., Chief Executive Officer and President of ETC. “We believe we remain well positioned for the future with a backlog of $87 million and strong pipeline of opportunities at February 28, 2025.”
The company’s revenue growth was fueled by a $13.4 million increase in international sales and a $6.2 million rise in domestic sales. The Aircrew Training Solutions (ATS) and Sterilizer Systems business units were key contributors, accounting for $9.9 million and $7.4 million of the overall sales growth, respectively.
ETC also reported an income tax benefit of $5.6 million, primarily attributed to the partial reversal of valuation allowances on deferred tax assets. This benefit further bolstered net income.
Despite a slight increase in operating expenses to $10.3 million, up 8.1% year over year, the company maintained strong profitability. Increased selling and marketing costs, driven by higher sales, along with higher general and administrative expenses, were partially offset by lower research and development expenses.
Looking ahead, the company expects continued growth but noted that gross profit margins for fiscal 2026 could be impacted by an increase in lower-margin building construction projects, particularly within the aeromedical center segment.
“We are energized by the company’s performance this past year and our ability to support clients worldwide with innovative solutions,” added Laurent. “Our focus remains on leveraging our strong financial position and backlog to drive sustainable growth as we execute on strategic opportunities.”
With fiscal 2025 results reflecting sizable gains in operational and financial performance, ETC continues to position itself as a leader in providing advanced technology solutions to markets spanning aerospace, medical, and industrial sectors.
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