TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) reaffirmed its expectation to achieve revenue of at least $12 million in 2026, signaling confidence in its growth trajectory following a robust first half. The disinfection and decontamination solutions provider reported that sales in the first half of 2026 increased by over 100% compared to the same period in 2025, already exceeding the full-year sales figure for 2025. This performance underpins the company’s current financial outlook and validates its strategic expansion efforts across international markets and new sectors.

The company currently holds $6.2 million in booked orders and orders expected to be completed before year-end. Additionally, approximately $8.6 million of its total $35 million sales pipeline is in advanced stages. In the second quarter of 2026, all four key metrics—BIT Solution sales, mobile equipment sales, single applicator sales, and support services—demonstrated both year-over-year and sequential growth. Management attributed the increases in applicator sales and support services to initiatives implemented in late 2024 and early 2025.

Strategic Mergers and Partnerships

TOMI remains actively engaged with Carbonium Core following the signing of a definitive merger agreement, with plans to close the transaction in the second half of 2026. The merger marks a strategic pivot into the nuclear materials sector, leveraging Carbonium’s pilot study for producing nuclear-grade graphite for 4th-generation nuclear reactors, supported by the U.S. Department of Energy.

Internationally, TOMI expanded its SteraMist registrations across the European Union, securing approvals in Austria, Italy, the Netherlands, Belgium, Denmark, Germany, Hungary, Spain, Great Britain, and Northern Ireland. The company added Switzerland through an amendment and anticipates further approvals in France, Ireland, Poland, Portugal, and Romania. In Poland, a partnership with MedLine will enable marketing under the DeconLine brand pending mutual recognition. Other key partnerships include collaborations in Germany, the United Kingdom, and the Netherlands, as well as an active deployment in Israel to support Ebola containment efforts.

Sector Expansion and Regulatory Advances

The company is pursuing growth in emerging markets such as robotaxis, biosecurity, drones, and humanoid robotics. In the defense sector, TOMI received approvals from contractors in Korea and agencies in Canada, alongside ongoing engagements with U.S. government agencies including USAMRIID, NIH, and Aberdeen. A partnership with The Defense Logistics Agency (DLA) aims to streamline procurement of SteraMist iHP Technology.

Regulatory progress includes TOMI’s role in advancing Biosafety Cabinet (BSC) decontamination standards with NSF International. The industry is shifting toward performance-based criteria, favoring SteraMist iHP technology over legacy methods like paraformaldehyde. Key pipeline opportunities include a near-$1 million project for a major medical company and a Custom Engineered System valued at approximately $1 million.

What the Numbers Show

The doubling of first-half sales compared to 2025 indicates a significant acceleration in commercial adoption, likely driven by the expanded European regulatory approvals and defense sector entries. The presence of $8.6 million in advanced pipeline stages relative to the $12 million annual guidance suggests a high conversion rate is required to meet targets, highlighting the critical nature of closing current bids such as the Canadian Hybrid Systems opportunity.

Elissa J. Shane, Chief Operating Officer, stated, "We are pleased with the continued momentum across the SteraMist iHP business... TOMI is executing well on multiple fronts." Dr. Halden Shane, Chairman and CEO, emphasized the strategic importance of the Carbonium merger, noting the accelerating demand for nuclear graphite due to global decarbonization efforts.

TOMI Environmental Solutions and Carbonium Core announced a definitive agreement to merge, aiming to secure domestic supply chains for nuclear-grade graphite and critical defense materials. The merger, signed on June 29, 2026, combines TOMI's decontamination technology with Carbonium's coal-to-graphite conversion capabilities. This strategic move addresses U.S. reliance on foreign imports, particularly from Russia and China, for essential strategic materials.

Strategic Merger Details

The merger is driven by the need to onshore the production of ultra-high-purity graphite, a critical component for 4th-generation nuclear reactors and defense applications. Carbonium Core is developing technology to convert low-grade coal into nuclear-grade graphite, licensed from Oak Ridge National Laboratory (ORNL). The U.S. Department of Energy, through its Hydrocarbon and Geothermal Energy Office (HGEO), sponsors ORNL's coal-to-production projects to mitigate supply chain vulnerabilities.

Production and Pilot Testing

Carbonium has transitioned from lab-scale R&D to pilot-scale testing at its facility in Oneida, Tennessee. The pilot phase focuses on validating the conversion process under realistic conditions, optimizing protocols, and ensuring reproducibility. Following successful pilot testing, the company plans to move to full-scale commercial production, which will involve high-volume automation and stringent quality assurance systems.

Defense and Energy Applications

The combined company targets the production of graphite for Small Module Reactors (SMRs) and defense applications, including fighter aircraft, submarines, and artillery. Graphite serves as a neutron moderator and protective coating in nuclear reactors, ensuring safety and integrity. The merger aligns with national priorities to reduce dependency on foreign sources and strengthen domestic manufacturing capabilities.

Leadership and Market Outlook

Dr. Halden Shane, CEO of TOMI Environmental Solutions, emphasized the synergies between the two companies, highlighting the potential to produce graphene and lithium for biosecurity applications. Tennessee Senators Ken Yager and Jessie Seal expressed support for the project, citing economic growth and job creation opportunities in the region. The merger positions TOMI and Carbonium to capitalize on the growing demand for reliable, carbon-free energy driven by AI and electrification trends.