Sono-Tek Plans Expansion to Lift Manufacturing Capacity to $45 Million

Sono-Tek outlined a phased facility expansion that could raise manufacturing capacity to $33 million to $36 million, with a longer-term target of $44 million to $45 million as it scales production for medical and industrial markets.

The plan would increase capacity at the company’s manufacturing operations. Sono-Tek is also expanding its engineering teams and focusing on systems integration as it pursues opportunities in medical coating, defense and microelectronics.

Its backlog exceeded $10.7 million, mostly tied to deliveries in fiscal 2028. The backlog supports future production, while the company’s outlook for fiscal 2027 revenue is flat to modest.

Gross margins may be lower in coming quarters because the company expects a different mix of systems, including fewer systems with the same high average selling prices. Margins can also vary for several reasons.

Sono-Tek’s expansion plans aim to increase manufacturing capacity while it pursues demand across its target markets.