SCI Engineered Materials, Inc. (OTC: SCIA)

SCI Engineered Materials, Inc. is a global supplier and manufacturer of advanced materials for Physical Vapor Deposition (PVD) thin film applications. The company enables customers to produce nano layers of metals and oxides for advanced material systems. Its products serve markets such as aerospace, automotive, defense, glass, optical coatings, and solar. SCI Engineered Materials, Inc. develops customized solutions through close collaboration with end users and original equipment manufacturers. The firm leverages its material science expertise to address complex coating challenges across diverse industries. By focusing on niche opportunities where core competencies provide advantage, the company seeks sustainable long term growth.

Revenue is generated primarily from the sale of sputtering targets, evaporation sources, ceramic powders, metal alloys, and related thin film materials. The company also provides toll manufacturing services including diffusion bonding, indium bonding, powder processing, engineering fees, and vacuum hot pressing. Toll manufacturing revenue increased in 2025 compared to 2024 reflecting higher demand for customized production. For the year ended December 31, 2025, total revenue was $19,606,123 compared to $22,870,192 for the year ended December 31, 2024. Product mix along with a decrease in volume were the primary factors that contributed to the decrease in total revenue. Substantially all revenues come from customers with multinational operations. The largest customer represented approximately 66% of total revenue in 2025 and 74% in 2024.

The company operates through the following segments. It has determined that its operations constitute a single reportable segment focused on advanced materials for PVD thin film applications.

• Advanced Materials for PVD Thin Film Applications: This segment supplies sputtering targets, evaporation sources, ceramic and metal powders, and provides toll manufacturing services to support thin film deposition across aerospace, automotive, defense, glass, optical coatings, and solar markets, while also developing proprietary products such as rotatable targets and transparent conductive oxides to meet evolving customer needs.

SCI Engineered Materials, Inc. competes with domestic and international firms such as Vacuum Engineering & Materials, Process Materials, Inc., and Materion in the ceramic and metal sputtering target markets. The company differentiates itself through its deep material science expertise, custom product development, and a portfolio of patents covering rotatable targets and transparent conductive oxides. Its patents include a high efficiency rotatable sputter target and processes for removing contaminants from sputtering target substrates, which enhance product performance and longevity. The ability to offer toll manufacturing and rapid prototyping provides a competitive edge in serving niche applications and accelerating time to market. SCI Engineered Materials, Inc. maintains strong relationships with universities and research institutions, fostering innovation and technology transfer. These strengths enable the company to maintain a solid position within the PVD supply chain and pursue growth in emerging markets such as additive manufacturing and roll to roll coating.

The company serves a diverse base of domestic and multinational corporations, universities, and leading research institutions. Its largest customer accounted for approximately 66% of total revenue in 2025 and 74% in 2024, although the customer’s name is not disclosed. Applications of its products span everyday items such as anti scratch eyeglass coatings and kitchen faucet finishes to advanced uses in semiconductors, flat panel displays, photonics, and thin film solar. SCI Engineered Materials, Inc. also supplies target materials to the roll to roll coating industry, enabling flexible substrate coating for high volume consumer goods. By working closely with original equipment manufacturers, the firm helps develop next generation coating solutions for aerospace, defense, and energy sectors.