Latest news with #GencorIndustries
Globe and Mail
4 days ago
- Business
- Globe and Mail
Gencor Posts 6 Percent Q2 Revenue Drop
Key Points - GAAP revenue fell 6.1% in Q2 FY2025 from the prior-year period, and backlog dropped sharply by 44.8% year-over-year, from March 31, 2024, to March 31, 2025. - GAAP gross profit margin declined slightly in Q2 FY2025, while net income per share remained steady at $0.42 for the quarter ended March 31, 2025, compared to the same period in 2024. - Cash and marketable securities increased to $143.7 million as of Q2 FY2025, with no debt outstanding. These 10 stocks could mint the next wave of millionaires › Gencor Industries (NYSEMKT:GENC), a maker of equipment for the highway construction industry, reported its fiscal second quarter results on July 25, 2025. The most significant news was a 6.1% year-over-year decline in GAAP revenue, down to $38.2 million in Q2 FY2025, and a sharp drop in backlog to $27.8 million as of Q2 FY2025. Earnings per share (GAAP) held steady at $0.42 in Q2 FY2025. No analyst estimates were available for comparison. The quarter reflected stable underlying profitability and strong liquidity, but revealed cautionary signals, including declining sales, margin compression, and a materially lower backlog from a year ago, as reflected in GAAP results for Q2 FY2025. Business Overview and Success Factors Gencor Industries is a leading manufacturer of heavy machinery and systems used mainly in the production of asphalt and highway construction materials. Its main clients are highway construction firms that depend on federal and state infrastructure budgets to fund their purchases. The company's most critical success factors are the level of government infrastructure spending, its investment in technology-driven products, and its operational efficiency. Demand is closely tied to highway funding, which can cause order and revenue swings. Gencor emphasizes innovative, energy-efficient, and environmentally friendly equipment--often tailored to meet strict regulatory standards in roadbuilding and materials production. Quarter in Review: Revenue, Margin, and Backlog Trends During the quarter, GAAP revenue dropped 6.1% in Q2 FY2025. The revenue figure also reflected a decrease in contract equipment sales recognized at a point in time. Backlog, a leading indicator of future revenue, fell sharply to $27.8 million as of Q2 FY2025 from $50.4 million as of Q2 FY2024. Gross profit margin (GAAP) narrowed slightly to 29.7% from 30.3% in Q2 FY2025. Management attributed this dip to modestly higher material costs. Despite this, operating expenses declined as the company reduced product engineering and development costs to $681,000 for the quarter ended March 31, 2025, down from $893,000 a year earlier. This cut reflected a reduction in headcount. Selling, general, and administrative expenses also decreased. Net income for the quarter ended March 31, 2025, totaled $6.1 million, with EPS of $0.42 for the quarter ended March 31, 2025, unchanged from the same period in 2024. This steady performance was supported in part by higher net other income, which rose to $1.8 million from $1.0 million, thanks to gains on marketable securities in Q2 FY2025. Operating income was $6.5 million for the quarter ended March 31, 2025, down 8.4% from the same period in 2024. Increased other income helped offset this shortfall. The effective tax rate increased to 26.0% for the quarter ended March 31, 2025, up from 23.0% a year earlier. The company remains focused on disciplined cost control, with lower expenses across key categories. As of March 31, 2025, Gencor held $143.7 million in cash, cash equivalents, and marketable securities and reported zero debt. Gencor's main product families include portable and stationary asphalt plants, which are large-scale production facilities for making asphalt used in highway construction. The company is recognized for its counter flow drum mix technology, which improves efficiency and environmental performance. Recent innovation investment has been a business focus, but product engineering and development spending was reduced in Q2 FY2025. Management attributed this primarily to reduced headcount. Monitoring product development spending is important to assess the company's ongoing commitment to maintaining its technology leadership amid growing regulatory and customer demands for greener solutions. Looking Ahead: Guidance and Industry Dynamics In its commentary, it noted the return to a "more traditional market" for the rest of the year and repeated its focus on improving manufacturing efficiency and delivering high quality products and services. While legislative support for government infrastructure spending is expected to benefit the industry, the company highlighted risks related to timing of orders, competitive pressures, and higher input costs. With backlog sharply lower as of Q2 FY2025, investors may want to watch for signs of order growth and a rebound in sales metrics in coming quarters. In addition to order timing and seasonality, further reductions in product engineering investments or continued easing of margins could also impact results. GENC does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,040%* — a market-crushing outperformance compared to 182% for the S&P 500. 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Yahoo
4 days ago
- Business
- Yahoo
Gencor Releases First Quarter Fiscal 2025 Results
ORLANDO, Fla., July 25, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the 'Company' or 'Gencor') (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2024 of $31,416,000 increased 20.7% over net revenue for the quarter ended December 31, 2023 of $26,018,000. Revenue from contract equipment sales recognized over time increased significantly and was slightly offset by a decrease in parts sales. As a percent of sales, gross profit margins were 27.6% in the quarter ended December 31, 2024, compared to 29.0% in the quarter ended December 31, 2023 due to a smaller contribution of parts sales to total sales in the quarter ended December 31, 2024. Product engineering and development expenses decreased $124,000 to $677,000 for the quarter ended December 31, 2024, as compared to $801,000 for the quarter ended December 31, 2023, due to lower headcount. Selling, general and administrative ('SG&A') expenses increased slightly to $3,367,000 for the quarter ended December 31, 2024, compared to $3,350,000 for the quarter ended December 31, 2023. The Company had operating income of $4,624,000 for the quarter ended December 31, 2024 as compared to $3,383,000 for the quarter ended December 31, 2023. The increased operating income was due primarily to higher net revenues for the quarter ended December 31, 2024. For the quarter ended December 31, 2024, the Company had net other income of $534,000 compared to $2,235,000 for the quarter ended December 31, 2023. Higher yields negatively impacted the value of our bond holdings. Included in net other income for the quarter ended December 31, 2024 were net realized and unrealized losses on marketable securities of ($455,000) compared to net realized and unrealized gains of $1,519,000 for the quarter ended December 31, 2023. The effective income tax rates for the quarters ended December 31, 2024 and December 31, 2023 were 26.0% and 23.0%, respectively. Net income for the quarter ended December 31, 2024 was $3,817,000, or $0.26 per basic and diluted common share, compared to net income of $4,326,000, or $0.30 per basic and diluted common share for the quarter ended December 31, 2023. At December 31, 2024, the Company had $130.1 million of cash and cash equivalents and marketable securities compared to $115.4 million at September 30, 2024. Net working capital was $186.5 million at December 31, 2024 compared to $182.2 million at September 30, 2024. The Company had no short-term or long-term debt outstanding at December 31, 2024. The Company's backlog was $54.4 million at December 31, 2024 compared to $61.3 million at December 31, 2023. Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications. GENCOR INDUSTRIES, Consolidated Income StatementsFor the Quarters Ended December 31, 2024 and 2023 2024 2023 Net revenue $ 31,416,000 $ 26,018,000 Cost of goods sold 22,748,000 18,484,000 Gross profit 8,668,000 7,534,000 Operating expenses: Product engineering and development 677,000 801,000 Selling, general and administrative 3,367,000 3,350,000 Total operating expenses 4,044,000 4,151,000 Operating income 4,624,000 3,383,000 Other income, net: Interest and dividend income, net of fees 989,000 716,000 Realized and unrealized gains (losses) on marketable securities, net (455,000 ) 1,519,000 Total other income, net 534,000 2,235,000 Income before income tax expense 5,158,000 5,618,000 Income tax expense 1,341,000 1,292,000 Net income $ 3,817,000 $ 4,326,000 Net income per common share – basic and diluted $ 0.26 $ 0.30GENCOR INDUSTRIES, Consolidated Balance Sheets ASSETS December 31, 2024 September 30, 2024 Current assets: Cash and cash equivalents $ 39,972,000 $ 25,482,000 Marketable securities at fair value (cost of $89,550,000 at December 31, 2024 and $88,777,000 at September 30, 2024) 90,133,000 89,927,000 Accounts receivable, less allowance for credit losses of $425,000 at December 31, 2024 and $390,000 at September 30, 2024 3,596,000 1,980,000 Contract assets 7,921,000 9,339,000 Inventories, net 59,668,000 63,762,000 Prepaid expenses 1,825,000 2,352,000 Total current assets 203,115,000 192,842,000 Property and equipment, net 11,169,000 11,472,000 Deferred income taxes 3,572,000 3,424,000 Other long-term assets 294,000 383,000 Total Assets $ 218,150,000 $ 208,121,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,720,000 $ 2,001,000 Customer deposits 7,407,000 5,018,000 Contract liabilities 2,157,000 - Accrued expenses 3,136,000 3,255,000 Current operating lease liabilities 241,000 330,000 Total current liabilities 16,661,000 10,604,000 Unrecognized tax benefits 1,531,000 1,376,000 Total liabilities 18,192,000 11,980,000 Commitments and contingencies Shareholders' equity: Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued - - Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,338,845 shares issued and outstanding at December 31, 2024 and September 30, 2024 1,234,000 1,234,000 Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at December 31, 2024 and September 30, 2024 232,000 232,000 Capital in excess of par value 12,590,000 12,590,000 Retained earnings 185,902,000 182,085,000 Total shareholders' equity 199,958,000 196,141,000 Total Liabilities and Shareholders' Equity $ 218,150,000 $ 208,121,000 Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain 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 (the 'Exchange Act'), including statements about the Company's beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The Company's actual results may differ materially from those set forth in the Company's forward-looking statements depending on a variety of important factors, including the financial condition of the Company's customers, changes in the economic and competitive environments, demand for the Company's products and the timing and consequences of the delays in the Company's regaining compliance with its SEC filing obligations. In addition, the impact of (i) the U.S. government's recent tariff announcements, (ii) the invasion by Russia into Ukraine, and (iii) the conflict between Israel and Hamas, including hostilities involving Iran, as well as actions taken by other countries, including the U.S., in response to such tariff announcements and conflicts, could result in a disruption in our supply chain and higher costs of our products. The words 'may,' 'could,' 'should,' 'would,' 'believe,' 'anticipate,' 'estimate,' 'expect,' 'intend,' 'plan,' 'target,' 'goal,' and similar expressions are intended to identify forward-looking statements. For information concerning these factors and related matters, see the following sections of the Company's Annual Report on Form 10-K for the year ended September 30, 2024: (a) Part I, Item 1A, 'Risk Factors' and (b) Part II, Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations'. However, other factors besides those referenced could adversely affect the Company's results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law. Unless the context otherwise indicates, all references in this press release to the 'Company,' 'Gencor,' 'we,' 'us,' or 'our,' or similar words are to Gencor Industries, Inc. and its subsidiaries. Contact: Eric Mellen, Chief Financial Officer 407-290-6000Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Gencor Stock Dips After Q4 Earnings Despite Full-Year Revenue Gain
Shares of Gencor Industries, Inc. GENC have lost 0.8% since the company reported its earnings for the quarter ended Sept. 30, 2024. This compares to the S&P 500 Index's 1.5% gain over the same time frame. Over the past month, the stock gained 2.9% compared with the S&P 500's 4.4% rise. Gencor's net revenues for the fourth quarter of fiscal 2024 came in at $20.92 million, essentially flat compared to $20.87 million in the year-ago period. In the fourth quarter of fiscal 2024, gross profit margin was 25.6% compared with 31.7% in the fourth quarter of fiscal 2023. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) In the fiscal fourth quarter, operating income decreased to $1.2 million from $2.7 million, while net income fell to $1.5 million from $3.1 million, primarily due to higher tax expenses and lower margins. For fiscal 2024, Gencor posted net revenues of $113.2 million, marking a 7.7% increase from the $105.1 million reported in fiscal 2023. Despite this top-line growth, net income dipped 0.7% to $14.6 million, or $0.99 per share, from $14.7 million, or $1.00 per share, in the prior year. The gross profit margin remained essentially flat at 27.7% compared with 27.6% in the previous year. Operating income inched up 1.9% to $13.7 million from $13.4 million, as higher revenue was offset by a 17.9% rise in selling, general and administrative (SG&A) expenses, which totaled $14.3 million in fiscal 2024 compared with $12.2 million. Product engineering and development costs declined 4.2% to $3.3 million from $3.5 million, attributed to reduced headcount. By contrast, higher trade show costs, professional fees and sales commissions drove the SG&A increase. Gencor's revenue growth was primarily driven by a 34.1% increase in equipment sales recognized over time, which rose from $34.2 million in fiscal 2023 to $45.8 million in fiscal 2024. However, this was partly offset by a 13.3% decline in equipment sales recognized at a point in time, which dropped from $40.1 million to $34.8 million. Parts and component sales rose 4.6% to $26.5 million from $25.3 million. Freight revenue contributed $5.2 million, a 10.9% increase from $4.7 million in fiscal 2023. Gencor Industries Inc. price-consensus-eps-surprise-chart | Gencor Industries Inc. Quote Net other income for fiscal 2024 surged 31.6% to $7 million from $5.4 million in fiscal 2023, largely due to an increase in interest and dividend income to $3.4 million (up 62.9% from $2.1 million) and realized/unrealized gains on marketable securities which climbed 11.7% to $3.6 million from $3.2 million. The increase in interest income reflects a strategic shift toward fixed-income investments in a higher rate environment. The company's effective tax rate rose significantly to 29.8% from 21.9%, mainly due to a $1.2 million increase in reserves for unrecognized tax benefits. Gencor ended fiscal 2024 with $115.4 million in cash and marketable securities, up from $101.3 million in the prior fiscal year, and it remained debt-free. Working capital stood at $182.2 million in fiscal 2024, up from $164.8 million in fiscal 2023. President Marc Elliott emphasized GENC's steady revenue in the fourth quarter of fiscal 2024 despite margin compression, particularly in aftermarket sales. Elliott highlighted the 7.7% full-year revenue growth as a testament to the company's resilience and positioning amid continued IIJA (Infrastructure Investment and Jobs Act) infrastructure funding. Elliott noted that a strong backlog will support the first half of fiscal 2025 and reaffirmed management's focus on market growth and delivering high-quality products and services. The decrease in gross margin in the fiscal fourth quarter from 31.7% in 2023 to 25.6% in 2024 was a significant contributor to the decline in quarterly operating income, which fell to $1.2 million from $2.7 million. This margin pressure stemmed from a more competitive aftermarket landscape and less favorable absorption of fixed costs. These dynamics underscore the challenge of maintaining profitability in a maturing product cycle. Gencor did not provide specific financial guidance for fiscal 2025. However, management's qualitative outlook remains optimistic. Elliott's remarks suggest confidence in the company's operational momentum, particularly as demand for infrastructure-related equipment remains buoyed by government spending. There were no reported acquisitions, divestitures or business restructurings for the quarter ended Sept. 30, 2024. However, management alluded to ongoing investments in engineering and product development, underscoring a strategic emphasis on innovation rather than structural realignment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gencor Industries Inc. (GENC): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
