COLUMBUS, OH / ACCESS Newswire / October 31, 2025 / SCI Engineered Materials, Inc. ("SCI" or "Company") (OTCQB:SCIA), today reported financial results for the three months and nine months ended September 30, 2025.

Jeremy Young, President and Chief Executive Officer, commented "Our 2025 third quarter financial results reflect solid improvement over the same period last year. We are encouraged by the recent increase in orders across SCI's growing customer base. Market response to products launched earlier this year has been positive as reflected in the strong order backlog at September 30, 2025."

Mr. Young added, "We remain focused on implementing plans to accelerate future growth. During the most recent quarter we updated our long-term strategy and identified new market opportunities for SCI's products and value-added services. They involve investments in manufacturing equipment which complement our existing production capabilities and development of targeted marketing initiatives which are underway."

Revenue

The Company's revenue was $12,398,652 for the first nine months of 2025 compared to $17,819,042 for the same period in 2024. The 30% decrease in 2025 year-to-date revenue versus a year ago was due to product mix, lower raw material costs, and lower volume.

Quarterly revenue for the three months ended September 30, 2025, increased 36% to $5,289,116 from $3,883,237 a year ago due to higher volume and product mix.

Order backlog was $5.8 million at September 30, 2025, versus $3.4 million on June 30, 2025, and $3.8 million on the same date last year.

Gross profit

Gross profit was $3,562,116 for first nine months of 2025 versus $3,883,348 in the same period last year, a decrease of 8%. Lower raw material costs and volume were the key factors in the year-over-year comparison.

The third quarter of 2025 gross profit increased 22% to $1,331,145 from $1,089,293 a year ago due to the increase in revenue compared to last year.

Operating expenses

Operating expenses increased approximately 2% to $2,363,601 for the first nine months of 2025 versus $2,320,771 last year. Lower research and development expenses primarily offset higher general, administrative, and marketing and sales expenses.

For the three months ended September 30, 2025, operating expenses increased 8% to $790,976 from $730,182 the prior year. Increased staff plus higher compensation and rent expense were key factors which contributed to the increase compared to the same period in 2024.

Net interest income

Net interest income increased approximately 15% to $333,769 for the 2025 year-to-date period from $290,908 last year.

For the third quarter of 2025, net interest income increased approximately 12% to $119,959 from $107,391 for the same period a year ago. Both periods in 2025 benefited from higher cash and cash equivalents plus investments in marketable securities of approximately $3.3 million.

Income taxes

For the nine months ended September 30, 2025, income tax expense was $347,829 compared to $421,077 for the same period a year ago, a decrease of 17%.

The Company's third quarter 2025 income tax expense increased 41% to $149,849 from $105,924 last year. The effective tax rate remained at 22.7% for the nine month and three-month periods ended September 30, 2025, and 2024. The deferred tax liability was $261,154 at September 30, 2025, compared to $121,649 at December 31, 2024.

Net income

Net income of $1,184,455 for the nine months ended September 30, 2025, was 17% below the $1,432,408 for the same period last year. Lower gross profit for the first nine months of 2025 was partially offset by higher interest income compared to a year ago.

Third quarter 2025 net income increased approximately 42% to $510,279, primarily led by higher gross profit, compared to $360,578 a year ago.

Net income per diluted share was $0.26 for the nine months ended September 30, 2025, compared to $0.31 last year. For the third quarter of 2025, net income increased to $0.11 from $0.08 in 2024.

Cash and cash equivalents and Investments in marketable securities

Cash and cash equivalents totaled $9,478,260 at September 30, 2025, an increase of 40% versus $6,753,403 at December 31, 2024. The Company received approximately $2 million in customer deposits late in the third quarter of this year which will be used to purchase inventory and manufacture products to be shipped in future months. Investments in marketable securities totaled $3,296,563 at September 30, 2025, versus $2,758,478 at 2024 year-end, an increase of approximately 20%.

Debt outstanding

The Company had no debt outstanding at September 30, 2025, or December 31, 2024.

About SCI Engineered Materials, Inc.

SCI Engineered Materials is a global supplier and manufacturer of advanced materials for PVD thin film applications and works closely with end users and OEMs to develop innovative, customized solutions. Additional information is available at www.sciengineeredmaterials.com or follow SCI Engineered Materials, Inc. at:

https://www.linkedin.com/company/sci-engineered-materials.-inc

https://www.facebook.com/sciengineeredmaterials/

https://x.com/SciMaterials

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, plans of the Company and its management. These forward-looking statements involve numerous risks and uncertainties, including without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024. One or more of these factors has affected and could affect the Company's projections in the future. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. Due to the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

Contact: Robert Lentz
(614) 439-6006

SCI ENGINEERED MATERIALS, INC.
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SOURCE: SCI Engineered Materials, Inc.