Latest news with #highwayconstruction
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
25-05-2025
- Automotive
- Yahoo
Summer highway construction season is here. What to know about Missouri road projects
Aside from serving as the unofficial kickoff to summer, Memorial Day also serves as a kickoff to the summer highway construction season in Missouri. The Missouri Department of Transportation is warning motorists to expect delays as several projects are either already underway or will start this summer. "We're working to deliver more improvements to the state's transportation system than ever, and we need everyone's help to keep our highway workers — and each of us who use the roads — safe in that effort," said State Highway Safety and Traffic Engineer Jon Nelson. "Your cooperation and decisions behind the wheel could be the reason a family gets home safely — including your own. Buckle up, put your phone down, slow down, and drive sober this summer, especially in work zones." MoDOT notes 10 people were killed and 83 were seriously injured in crashes over the Memorial Day holiday last year, and officials are aiming for zero fatalities this year. Information on road construction, lane closures, and delays is available through MoDOT's Traveler Information Map. Major projects to be aware of include: Northwest Missouri: Interstate 29 in Atchison County is narrowed to one lane in each direction for repairs to the north and southbound Mill Creek bridges between Mound City and Corning. Northeast Missouri: Interstate 72 and U.S. Highway 36 in Marion County has both east and westbound lanes narrowed to one lane with a 12-foot width restriction from Missouri Route 79 to Illinois Route 106 for bridge rehabilitation work on the Mark Twain Memorial Bridge over the Mississippi River in Hannibal. A full closure begins May 30 for up to 30 days. Kansas City area: Interstate 435 in Clay County has closed left northbound and southbound lanes from Parvin Rd. to 48th St. for bridge rehabilitation until approximately Dec. 1, meaning a new traffic configuration is in place on I-435. Central Missouri: Multiple projects are underway as part of the Improve I-70 Columbia to Kingdom City project. Interstate 70 eastbound between mile markers 137 and 144 (Route J to Route M) is shifted with narrow lanes, and the ramps to and from Route J at Exit 137 are closed; U.S. Highway 63 south of I-70 in Columbia is narrowed to one lane each direction between the Broadway overpass and the Conley Road underpass. Jefferson City: Multiples bridges in Jefferson City are undergoing rehabilitation projects. Projects are along U.S. Highway 54, which is narrowed to one lane in each direction from just south of Missouri Boulevard to just south of Stadium Boulevard. St. Louis area: There are multiple projects in the St. Louis area. Work began in mid-March to add a third lane on Interstate 64 in St. Charles County between Route K and the I-70/I-64 interchange, part of the Improve I-70 Warrenton to Wentzville section. Motorists traveling in both directions of I-64 will notice crews working behind barrier walls on the median between Route K and Lake Saint Louis Boulevard this summer. I-64 lanes will be narrowed slightly, and the speed limit will be reduced in this work zone. Additionally, the westbound I-64 Boone Bridge over the Missouri River is undergoing routine major maintenance. Median crossovers are on both sides of the Missouri River, and two westbound I-64 lanes are on the eastbound I-64 bridge, separated by a barrier wall. The outside auxiliary lanes will be closed in each direction, but three eastbound and westbound lanes will remain open through this work, scheduled to be completed by the winter. Southwest Missouri: Interstate 44 corridor upgrades are underway in Springfield between Kansas Expressway and U.S. Highway 65, and U.S. 65 widening is underway in Christian County. Some narrowed lanes may be present in these work zones. I-44 bridge rehabilitation work in Joplin at Missouri Routes 86/43 (Exit 6) has westbound I-44 traffic split with one lane (right) open and one lane (left) head-to-head in eastbound lanes. Both westbound and eastbound on-ramps are closed. Southeast Missouri: Missouri Route 74 will be reduced to one lane with a 12-foot width restriction as construction crews perform maintenance on the Bill Emerson Memorial Bridge, which is located across the Mississippi River between Cape Girardeau, Missouri and East Cape Girardeau, Illinois. Work is underway and will continue through November 2025. This article originally appeared on Columbia Daily Tribune: These Missouri highway projects are under construction this summer
