Thin-Film Materials Maker Climbs 22% After Record Q2 Revenue

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Thursday, July 30, 2026

Domestic suppliers of physical vapor deposition materials get a second look when photonics and specialty thin-film customers push for North American capacity and pass-through pricing on volatile inputs. When a microcap posts record quarterly revenue with net income more than triple the year-ago print, the so-what is order flow and mix, not just a one-time spike.

SCI Engineered Materials Inc. (OTCQB: SCIA) rose Thursday after reporting financial results for the three and six months ended June 30, 2026.

Second-quarter revenue was a record $9.49M, up from $3.61M in Q2 2025. Net income was $1.17M, or $0.26 per diluted share, versus $0.36M and $0.08 a year earlier. Gross profit rose to $2.28M while gross margin fell to 24.0% from 32.1%, with management pointing to higher raw-material input costs and product mix. For the first half of 2026, revenue was $17.65M and net income was $1.63M, or $0.37 per diluted share, versus $7.11M and $0.15 a year ago.

Importantly, revenue from the photonics industry exceeded 99% of the six-month total, and the top two customers represented 87% of first-half sales. Cash and cash equivalents were $9.89M at June 30, with marketable securities of about $3.37M and working capital of about $10.1M. Customer deposits tied to uncompleted orders stood near $4.55M.

SCI manufactures advanced materials for PVD thin-film applications and works with end users and OEMs on customized solutions. Next catalysts are continued backlog conversion, any further insurance recovery accounting, and the next quarterly update.

Shares of SCIA are up 21.9% to US$8.84 on the OTCQB on volume of 64.1K shares.

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