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”) right this moment 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 said, “Our sturdy 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 development in every of our enterprise models with gross sales rising to $62.9 million, gross revenue rising to $18.5 million, and web revenue rising 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 imagine we stay nicely positioned for the longer term with a backlog of $87 million and robust pipeline of alternatives at February 28, 2025.”

Fiscal 2025 Outcomes of Operations

Internet Earnings

Internet 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 advantage of $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 belongings and sure state deferred tax belongings was reversed in fiscal 2025, as it’s now extra seemingly than not that the Firm will be capable to totally notice these deferred tax belongings.

Internet Gross sales

Internet 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 larger 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 Methods (“CIS”) in addition to larger Home gross sales of $6.2 million, $6.0 million of that are inside CIS. Additional, gross sales in fiscal 2025 elevated the best throughout the ATS enterprise unit and Sterilizer Methods 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 attributable to larger web gross sales throughout the ATS and Sterilizers System enterprise models. Gross revenue margin as a share 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 and marketing, common and administrative, and analysis and growth, 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 and marketing bills, primarily pushed by larger gross sales and a rise on the whole 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 growth bills.

Curiosity Expense, Internet

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 larger borrowing attributable to the leaseback of the Southampton, Pennsylvania demonstration tools in fiscal 2025.

Different (Earnings) Expense, Internet

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 acquire realized from the sale of the Southampton, Pennsylvania demonstration tools in fiscal 2025.

Earnings (Profit) Taxes

As of February 28, 2025, the Firm reviewed the elements of its deferred tax belongings and decided, based mostly upon all obtainable info, that it’s extra seemingly than not that deferred tax belongings regarding its federal deferred tax belongings and sure state deferred tax belongings might be realized. Accordingly, we reversed the beforehand recorded valuation allowance in opposition to these deferred tax belongings. If sooner or later there’s a change in our capability to understand these deferred tax belongings, then our tax valuation allowance might improve within the interval during which we decide that realization is now not extra seemingly than not. An revenue tax advantage of $5.6 million was recorded in fiscal 2025 in comparison with revenue tax advantage of $0.1 million recorded in fiscal 2024.

Fiscal 2025 Fourth Quarter Outcomes of Operations

Internet Earnings

Internet 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 throughout 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 tools offset barely by an 8.9% lower in gross revenue margin share, primarily attributable to elevated aeromedical heart constructing gross sales and better curiosity expense attributable to the demonstration tools 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.

Internet Gross sales

Internet 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 larger general gross sales throughout the ATS and Sterilizer Methods enterprise models.

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 share 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 heart 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 heart constructing gross sales, gross revenue margin would have been roughly 29.7%. Because the constructing development of the aeromedical heart accelerates over the following 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 and marketing, common and administrative, and analysis and growth, 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 larger common and administrative bills barely offset by decrease promoting and advertising and marketing and analysis and growth bills within the 2025 fiscal fourth quarter in comparison with the 2024 fiscal fourth quarter.

Curiosity Expense, Internet

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 tools in 2025 fiscal fourth quarter.

Different (Earnings) Expense, Internet

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 acquire realized from the sale of the Southampton, Pennsylvania demonstration tools within the 2025 fiscal fourth quarter.

Earnings (Profit) Taxes

An revenue tax advantage of $5.7 million was recorded within the fiscal 2025 fourth quarter in comparison with an revenue tax advantage of $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 belongings and sure state deferred tax belongings. This reversal is attributable to the change within the Firm’s working revenue and anticipated capability to understand these deferred tax belongings.

Liquidity and Capital Assets

As of February 28, 2025, the Firm’s availability underneath 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 underneath 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 big improve in contract belongings and discount in contract liabilities partially offset by a lower in pay as you go belongings and improve in accounts payable, commerce and a rise within the present portion of lease obligations. With unused availability underneath the Firm’s numerous present strains of credit score, the additional conversion of contract belongings 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 might 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 supplied for a line of credit score of as much as $3.0 million. The corporate is ready 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 celebration upon superior written discover. As of February 28, 2025, the Firm’s availability underneath this Financing and Safety Settlement was $3.0 million. As of June 9, 2025, the date of our report, the Firm’s availability underneath 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 on account of the rise in contract belongings 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 tools and software program growth. The Firm’s fiscal 2025 investing actions supplied $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 tools in Southampton, Pennsylvania.

Money flows from financing actions

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

About ETC

ETC was included in 1969 in Pennsylvania. For over 5 a long time, we have now supplied our clients with merchandise, providers, and assist. Innovation, steady technological enchancment and enhancement, and product high quality are core values which are important to our success. We’re a big 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 Methods (“ATS”);; (ii) Superior Catastrophe Administration Simulators (“ADMS”); (iii) steam and gasoline (ethylene oxide) sterilizer programs (“Sterilizer Methods” or “Sterilizers”); and (iv) Environmental Testing and Simulation Methods (“ETSS”).

We function in two main enterprise segments, Aerospace Options (“Aerospace”) and Business/Industrial Methods (“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 and products present clients with an providing of complete options for improved readiness and decreased 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 programs; 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 present our solely working subsidiary. ETC-PZL manufactures sure simulators and offers software program to assist merchandise manufactured domestically inside our Aerospace section.

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

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

Ahead-looking Statements

This information launch incorporates 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 reality are supposed to determine forward-looking statements, and these statements might embrace phrases resembling “might”, “will”, “ought to”, “count on”, “plan”, “anticipate”, “imagine”, “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 elements that 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.