SCI Stock Slips Post Q3 Earnings Despite Revenue Growth, Margin Down

SCI Engineered Materials (SCIA) reported Q3 2026 revenues of $8.1 million, up 52.3% year-over-year, with net income rising 68.9% to $0.9 million and EPS increasing 72.7% to 19 cents. However, gross margins contracted to 21% from 25.2% due to higher raw material costs. The company has strengthened its liquidity position with $11 million in cash and installed new plasma spheroidization equipment to expand manufacturing capabilities, though management cited ongoing inflationary pressures and supply chain uncertainties.