SOUTHAMPTON, Pa., Oct. 19, 2026 (GLOBE NEWSWIRE) —
Robe t L. Lau e t, J ., ETC’s Chief Executive Office a d P eside t stated, “We a e pleased with the 8.6% i c ease i ETC sales f om co ti ui g ope atio s, o 18.6% excludi g the impact of the Ae omedical buildi g sales, d ive by a i c ease i sales of E vi o me tal Test a d Simulatio Systems (“ETSS”) a d Adva ced Disaste Ma ageme t Simulato s (“ADMS”) fo the 2027 fiscal seco d qua te ”.
Subseque t to the 2027 fiscal seco d qua te close, ETC completed the sale of 100% of the equity i te ests of its wholly ow ed Polish subsidia y, ETC-PZL Ae ospace I dust ies sp. z.o.o. (“ETC-PZL). ETC a d ETC-PZL e te ed i to a sepa ate 10-yea Coope atio Ag eeme t u de which ETC-PZL will se ve as a p efe ed supplie to the Compa y fo ce tai p oducts ma ufactu ed by ETC-PZL. U de the ag eeme t, the Compa y etai s the optio to ma ufactu e the applicable p oducts i te ally. The ope atio s of ETC-PZL a e p ese ted as disco ti ued ope atio s i the co solidated fi a cial stateme ts fo the fiscal 2027 a d 2026 thi tee week a d fi st half e ded August 28, 2026 a d August 29, 2025, espectively.
Net i come f om co ti ui g ope atio s was $1.2 millio , o $0.06 diluted ea i gs pe sha e i the 2027 fiscal seco d qua te , compa ed to et i come f om co ti ui g ope atio s of $1.5 millio du i g the 2026 fiscal seco d qua te , equati g to $0.08 diluted ea i gs pe sha e. The $0.3 millio dec ease is a esult of a $0.5 millio dec ease i g oss p ofit pa tially offset by a $0.2 millio dec ease i i come tax p ovisio att ibutable to lowe ope ati g i come.
Net sales i the 2027 fiscal seco d qua te we e $18.3 millio , a i c ease of $1.4 millio , o 8.6%, compa ed to 2026 fiscal seco d qua te et sales of $16.9 millio . The i c ease i et sales was d ive by a $2.0 millio , o 468.2% i c ease i ETSS a d a $0.7 millio , o 161.1% i c ease i ADMS et sales i the 2027 fiscal seco d qua te compa ed to the 2026 fiscal seco d qua te slightly offset by a $0.6 millio , o 13.1% dec ease i Ste ilize Systems et sales a d a $0.8 millio , o 7.4% dec ease i ATS sales i the 2027 fiscal seco d qua te compa ed to the 2026 fiscal seco d qua te . Excludi g the impact of Ae omedical buildi g sales, et sales we e $2.6 millio , o 18.6% highe i the 2027 fiscal seco d qua te as compa ed to the 2026 fiscal seco d qua te .
G oss p ofit fo the 2027 fiscal seco d qua te of $4.4 millio dec eased f om $4.9 millio i the 2026 fiscal seco d qua te , a dec ease of $0.5 millio , o 9.3%. G oss p ofit ma gi of 24.1% dec eased by 4.7% i the 2027 fiscal seco d qua te compa ed to 28.8% i the 2026 fiscal seco d qua te . The dec ease i g oss p ofit ma gi as a pe ce tage of sales was p ima ily att ibutable to the sale a d subseque t leaseback of a ae omedical t ai i g device i the 2026 fiscal seco d qua te , two egative job costs evisio s i the Ae ospace Segme t i the 2027 fiscal seco d qua te , a d lowe g oss p ofit ma gi fo completed co t act p ojects i the 2027 fiscal seco d qua te as compa ed to the 2026 fiscal seco d qua te .
Ope ati g expe ses, i cludi g sales a d ma keti g, ge e al a d admi ist ative, a d esea ch a d developme t, fo the 2027 a d 2026 fiscal seco d qua te we e $2.3 millio .
Ope ati g i come fo the 2027 fiscal seco d qua te was $2.1 millio , a dec ease of $0.5 millio , o 17.7%, compa ed to $2.6 millio fo the 2026 fiscal seco d qua te . The dec ease i ope ati g i come i the 2027 fiscal seco d qua te as compa ed to the 2026 fiscal seco d qua te is att ibutable to a $0.5 millio , o 9.3% dec ease i g oss p ofit as desc ibed above, pa tially offset by a $1.4 millio , o 8.6% i c ease i et sales i the 2027 fiscal seco d qua te as compa ed to the 2026 fiscal seco d qua te .
I te est expe se, et, a d othe expe se of $0.6 millio fo the 2027 fiscal seco d qua te we e flat compa ed to the 2026 fiscal seco d qua te expe se of $0.6 millio .
I come tax p ovisio fo the 2027 fiscal seco d qua te was $0.3 millio compa ed to $0.5 millio i the 2026 fiscal seco d qua te , a dec ease of $0.2 millio , o 34.8%. The dec ease is att ibutable to lowe ope ati g i come i the 2027 fiscal seco d qua te as compa ed to the 2026 fiscal seco d qua te .
(Loss) f om disco ti ued ope atio s fo the 2027 fiscal seco d qua te was ($0.4) millio compa ed to ($0.0) millio i the 2026 fiscal seco d qua te , a i c eased loss of ($0.4) millio att ibutable to limited thi d pa ty sales du i g the 2027 fiscal seco d qua te .
Net i come f om co ti ui g ope atio s was $1.8 millio , o $0.09 ea i gs pe diluted sha e, i the 2027 fiscal fi st half, compa ed to et i come f om co ti ui g ope atio s of $2.4 millio du i g the 2026 fiscal fi st half, equati g to $0.13 ea i gs pe diluted sha e. The $0.6 millio dec ease is a esult of a $0.6 millio dec ease i g oss p ofit, att ibutable to lowe g oss p ofit ma gi s a d a $0.3 millio i c ease i ope ati g expe ses, pa tially offset by a $0.6 millio i c ease i et sales a d $0.4 millio lowe i come tax p ovisio att ibutable to lowe ope ati g i come.
Net sales i the 2027 fiscal fi st half we e $34.5 millio , a i c ease of $0.6 millio , o 1.9%, compa ed to the 2026 fiscal fi st half et sales of $33.9 millio . The i c ease i et sales was d ive by a $5.2 millio , o 842.1% i c ease i ETSS a d a $0.8 millio , o 64.0% i c ease i ADMS et sales i the 2027 fiscal fi st half compa ed to the 2026 fiscal fi st half et sales, pa tially offset by a $3.3 millio , o 35.1% dec ease i Ste ilize Systems a d a $2.1 millio , o 9.5% dec ease i ATS et sales. Excludi g the impact of Ae omedical buildi g sales, et sales i c eased by $3.5 millio , o 13.1% i the 2027 fiscal fi st half as compa ed to the 2026 fiscal fi st half.
G oss p ofit fo the 2027 fiscal fi st half of $8.3 millio dec eased f om $8.9 millio i the 2026 fiscal fi st half, a dec ease of $0.6 millio , o 7.2%. G oss p ofit ma gi of 24.0% dec eased by 2.4% i the 2027 fiscal fi st half compa ed to 26.4% i the 2026 fiscal fi st half. Excludi g the impact of the lowe ma gi s ealized f om the Ae omedical ce te buildi g eve ue, g oss p ofit ma gi was 27.3% fo fiscal 2027 fi st half as compa ed to 33.7% fo 2026 fiscal fi st half. The dec ease i g oss p ofit ma gi , excludi g the Ae omedical ce te buildi g eve ue, is p ima ily att ibutable to egative job cost evisio s i the Ae ospace busi ess segme t i the 2027 fiscal fi st half a d lowe g oss p ofit ma gi s o completed co t acts i the 2027 fiscal fi st half. The g oss p ofit ma gi dec ease is also att ibutable to a sig ifica t positive job costs evisio i the ATS busi ess u it i the 2026 fiscal fi st half as well as the positive g oss p ofit ma gi i the 2026 fiscal fi st half att ibutable to the sale a d leaseback of a p oduct held i fi ished goods i ve to y.
Ope ati g expe ses, i cludi g sales a d ma keti g, ge e al a d admi ist ative, a d esea ch a d developme t, fo the 2027 fiscal fi st half we e $4.8 millio , a i c ease of $0.3 millio , o 6.1%, compa ed to $4.5 millio fo the 2026 fiscal fi st half. The i c ease i ope ati g expe ses was due p ima ily to highe ge e al admi ist ative expe se i the 2027 fiscal fi st half as compa ed to the 2026 fiscal fi st half.
Ope ati g i come fo the 2027 fiscal fi st half was $3.5 millio , a dec ease of $0.9 millio , o 21.0%, compa ed to $4.4 millio fo the 2026 fiscal fi st half. The dec ease i ope ati g i come i the 2027 fiscal fi st half as compa ed to the 2026 fiscal fi st half is att ibutable to a $0.6 millio , o 7.2% dec ease i g oss p ofit att ibutable to lowe g oss p ofit ma gi a d a $0.3 millio , o 6.1% i c ease i ope ati g expe ses i the 2027 fiscal fi st half as compa ed to the 2026 fiscal fi st half.
I te est expe se, et fo the 2027 fiscal fi st half was $1.1 millio compa ed to i te est expe se, et of $1.0 millio fo the 2026 fiscal fi st half.
I come tax p ovisio fo the 2027 fiscal fi st half was $0.4 millio compa ed to $0.8 millio i the 2026 fiscal fi st half, a dec ease of $0.4 millio , o 47.2%. The dec ease is att ibutable to lowe ope ati g i come i the 2027 fiscal fi st half as compa ed to the 2026 fiscal fi st half.
(Loss) f om disco ti ued ope atio s fo the 2027 fiscal fi st half was ($0.8) millio compa ed to i come of $0.4 millio i the 2026 fiscal fi st half, a dec ease of ($1.1) millio att ibutable to limited thi d pa ty sales du i g the 2027 fiscal fi st half.
Du i g the 2027 fiscal fi st half, the Compa y p ovided $3.7 millio of cash f om ope ati g activities, due p ima ily to et i come f om co ti ui g ope atio s a d a i c ease i co t act liabilities a d othe acc ued liabilities slightly offset by a i c ease i accou ts eceivable a d co t act assets as compa ed to p ovidi g $1.9 millio du i g the 2026 fiscal fi st half.
Cash used fo i vesti g activities was $0.1 millio du i g the 2027 a d 2026 fiscal fi st half, espectively, p ima ily elati g to fu ds used fo capital expe ditu es o equipme t.
The Compa y’s fi a ci g activities used $3.0 millio du i g the 2027 fiscal fi st half, i cluded epayme ts of $3.0 millio du i g the 2027 fiscal fi st half u de the Compa y’s c edit facility as compa ed to cash used i fi a ci g activities of $1.9 millio du i g the 2026 fiscal fi st half.
ETC was i co po ated i 1969 i Pe sylva ia. Fo ove five decades, we have p ovided ou custome s with p oducts, se vices, a d suppo t. I ovatio , co ti uous tech ological imp oveme t a d e ha ceme t, a d p oduct quality a e co e values that a e c itical to ou success. We a e a sig ifica t supplie a d i ovato i the followi g a eas: (i) softwa e d ive p oducts a d se vices used to c eate a d mo ito the physiological effects of flight, i cludi g high pe fo ma ce jet tactical flight simulatio , fixed a d ota y wi g upset p eve tio a d ecove y a d spatial diso ie tatio , a d both subo bital a d o bital comme cial huma spaceflight: altitude (hypoba ic) chambe s; hype ba ic chambe s fo multiple pe so s (multiplace chambe s) collectively, Ai c ew T ai i g Systems (“ATS”); (ii) Adva ced Disaste Ma ageme t Simulato s (“ADMS”); (iii) steam a d gas (ethyle e oxide) ste ilize systems (“Ste ilize Systems” o “Ste ilize s”); a d (iv) E vi o me tal Testi g a d Simulatio Systems (“ETSS”).
We ope ate i two p ima y busi ess segme ts, Ae ospace Solutio s (“Ae ospace”) a d Comme cial/I dust ial Systems (“CIS”). Ae ospace e compasses the desig , ma ufactu e, a d sale of: (i) ATS p oducts; (ii) altitude (hypoba ic) chambe s; (iii) hype ba ic chambe s fo multiple pe so s (multiplace chambe s); a d (iv) ADMS, as well as i teg ated logistics suppo t (“ILS”) fo custome s who pu chase these p oducts o simila p oducts ma ufactu ed by othe pa ties. These p oducts a d se vices p ovide custome s with a offe i g of comp ehe sive solutio s fo imp oved eadi ess a d educed ope atio al costs. Sales of ou Ae ospace p oducts a e made p i cipally to U.S. a d fo eig gove me t age cies a d to civil aviatio o ga izatio s. CIS e compasses the desig , ma ufactu e, a d sale of: (i) steam a d gas (ethyle e oxide) ste ilize s; a d (ii) ETSS; as well as pa ts a d se vice suppo t fo custome s who pu chase these p oducts o simila p oducts ma ufactu ed by othe pa ties. Sales of ou CIS p oducts a e made p i cipally to the healthca e, pha maceutical, a d automotive i dust ies.
The majo ity of ou et sales a e ge e ated f om lo g-te m co t acts with fo eig a d U.S. gove me ts a d age cies (i cludi g fo eig milita y sales (“FMS”) co t acted th ough the U.S. Gove me t) fo the esea ch, desig , developme t, ma ufactu e, i teg atio , a d sustai me t of ATS p oducts, as well as lo g-te m co t acts with domestic a d i te atio al custome s fo the sale of Ste ilize systems. The Compa y also e te s i to lo g-te m co t acts with domestic custome s fo the sale of ETSS. Net sales of ADMS a e ge e ally much sho te te m i atu e a d va y betwee domestic a d i te atio al custome s. We ge e ally p ovide ou p oducts a d se vices u de fixed-p ice co t acts.
ETC’s u ique ability to offe complete systems, desig ed a d p oduced to high tech ical sta da ds, sets it apa t f om its competitio . ETC’s headqua te s is located i Southampto , PA. Fo mo e i fo matio about ETC, visit http://www.etcusa.com/. The i fo matio co tai ed o ou website is ot i co po ated by efe e ce i this ews elease.
This ews elease co tai s fo wa d-looki g stateme ts, which a e based o ma ageme t’s expectatio s a d a e subject to u ce tai ties a d cha ges i ci cumsta ces. Wo ds a d exp essio s eflecti g somethi g othe tha histo ical fact a e i te ded to ide tify fo wa d-looki g stateme ts, a d these stateme ts may i clude wo ds such as “may”, “will”, “should”, “expect”, “pla ”, “a ticipate”, “believe”, “estimate”, “futu e”, “p edict”, “pote tial”, “i te d”, o “co ti ue”, a d simila exp essio s. We base ou fo wa d-looki g stateme ts o ou cu e t expectatio s a d p ojectio s about futu e eve ts o futu e fi a cial pe fo ma ce. Ou fo wa d-looki g stateme ts a e subject to k ow a d u k ow isks, u ce tai ties a d assumptio s about ETC a d its subsidia ies that may cause actual esults to be mate ially diffe e t f om a y futu e esults implied by these fo wa d-looki g stateme ts. We cautio you ot to place u due elia ce o these fo wa d-looki g stateme ts. Except as equi ed by law, we assume o obligatio to update o evise a y fo wa d looki g stateme ts.
| (i thousa ds, except pe sha e i fo matio ) | Cost of goods sold | 13,906 | 12,010 | 1,896 | 15.8 | Ope ati g expe ses | 2,310 | 2,312 | (2 | ) | -0.1 | I te est expe se, et | 564 | 531 | 33 | 6.2 | Othe expe se, et | 54 | 89 | (35 | ) | -39.3 | I come tax p ovisio | 292 | 448 | (156 | ) | -34.8 | (Loss) f om disco ti ued ope atio s | (364 | ) | (6 | ) | (358 | ) | -5966.7 | P efe ed Stock divide ds | (121 | ) | (121 | ) | – | 0.0 | Pe sha e i fo matio : | Basic ea i gs pe commo a d pa ticipati g sha e: | Dist ibuted ea i gs pe sha e: | Commo | $ | – | $ | – | $ | – | P efe ed | $ | 0.02 | $ | 0.02 | $ | – | U dist ibuted ea i gs pe sha e – co ti ui g ope atio s: | Commo – co ti ui g ope atio s | $ | 0.07 | $ | 0.09 | $ | (0.02 | ) | P efe ed – co ti ui g ope atio s | $ | 0.07 | $ | 0.09 | $ | (0.02 | ) | U dist ibuted (loss) pe sha e – disco ti ued ope atio s: | Commo – disco ti ued ope atio s | $ | (0.02 | ) | $ | – | $ | (0.02 | ) | P efe ed – disco ti ued ope atio s | $ | (0.02 | ) | $ | – | $ | – | Total basic weighted ave age commo a d pa ticipati g sha es | 15,704 | 15,704 | Total diluted weighted ave age sha es | 17,408 | 16,628 |
| (i thousa ds, except pe sha e i fo matio ) | Cost of goods sold | 26,197 | 24,920 | 1,277 | 5.1 | Ope ati g expe ses | 4,822 | 4,543 | 279 | 6.1 | I te est expe se, et | 1,089 | 1,048 | 41 | 3.9 | Othe expe se, et | 135 | 127 | 8 | 6.3 | I come tax p ovisio | 442 | 837 | (395 | ) | -47.2 | (Loss) i come f om disco ti ued ope atio s | (753 | ) | 388 | (1,141 | ) | -294.1 | P efe ed Stock Divide ds | (242 | ) | (242 | ) | – | 0.0 | Basic ea i gs pe commo a d pa ticipati g sha e: | Dist ibuted ea i gs pe sha e: | Commo | $ | – | $ | – | P efe ed | $ | 0.04 | $ | 0.04 | $ | – | U dist ibuted ea i gs pe sha e – co ti ui g ope atio s: | Commo – co ti ui g ope atio s | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | P efe ed – co ti ui g ope atio s | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | U dist ibuted (loss) ea i gs pe sha e – disco ti ued ope atio s: | Commo – disco ti ued ope atio s | $ | (0.05 | ) | $ | 0.02 | $ | (0.07 | ) | P efe ed – disco ti ued ope atio s | $ | (0.05 | ) | $ | 0.02 | $ | 0.02 | Total basic weighted ave age commo a d pa ticipati g sha es | 15,704 | 15,684 | Total diluted weighted ave age sha es | 16,659 | 16,649 |
CONTACT: Co tact: Tim Ke edy, CFO
Pho e: (215) 355-9100 x1531
E-mail: tke edy@etcusa.com
