Environmental Tectonics Corporation (ETC) recently released its financial results for the fiscal year 2025, showing significant growth in net sales, gross profit margin, operating income, and net income. With a strong backlog of $87 million and a promising pipeline of opportunities, ETC remains optimistic about its future prospects.
In fiscal 2025, ETC reported a net income of $13.1 million, or $0.75 diluted earnings per share, compared to $1.8 million in fiscal 2024. This increase was primarily driven by a $19.6 million rise in sales, a $6.1 million increase in gross profit, and a $5.6 million income tax benefit resulting from the reversal of a valuation allowance on deferred tax assets.
Net sales for fiscal 2025 reached $62.9 million, a 45.3% increase from the previous year. This growth was fueled by higher international sales in the Aircrew Training Solutions and Commercial Industrial Systems units, as well as increased domestic sales in the CIS unit. The ATS and Sterilizer Systems business units saw the greatest sales increase in fiscal 2025.
Gross profit for fiscal 2025 was $18.5 million, up 48.7% from fiscal 2024, with a gross profit margin of 29.4%. Operating expenses for the year totaled $10.3 million, an 8.1% increase from the previous year. Interest expense, net, rose to $1.2 million in fiscal 2025, primarily due to higher borrowing related to the leaseback of demonstration equipment.
In the fourth quarter of fiscal 2025, ETC reported a net income of $7.6 million, or $0.45 diluted earnings per share, compared to $2.8 million in the same period in 2024. The quarter saw a 16.4% increase in net sales, reaching $19.1 million, driven by growth in the ATS and Sterilizer Systems units.
Looking ahead, ETC remains focused on maintaining its liquidity and capital resources. With a working capital of $19.7 million as of February 28, 2025, and available credit facilities, the company is confident in its ability to fund operating activities, capital expenditures, and debt repayment obligations throughout fiscal 2025.
As a leading provider of software-driven products and services in the aerospace and commercial/industrial sectors, ETC continues to innovate and deliver high-quality solutions to its customers. With a commitment to excellence and a track record of success spanning over five decades, ETC is well-positioned for continued growth and success in the years to come.