ORLANDO, Fla., Dec. 23, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) today announced the retirement of EJ Elliott, who serves as the Executive Chairman of the Company’s Board of Directors (the “Board”), effective December 31, 2025. EJ Elliott founded the Company in 1968 and has been Chairman of the Board since 1968. He served as the Chief Executive Officer of the Company from 1968 to 2016. In connection with EJ Elliott’s retirement, the Board of Director ...

Shares of Gencor Industries, Inc. (GENC) gained 4.1% since the company reported results for the quarter ended Sept. 30, 2025, against a 0.4% decline in the S&P 500 Index over the same period. Over the past month, however, Gencor shares slipped 0.8%, lagging the S&P 500’s 2.8% advance.GENC’s Earnings SnapshotFor the fourth quarter of fiscal 2025, Gencor reported net revenues of $18.8 million, a decline of 10% from $20.9 million in the year-ago period. Gross profit margin narrowed to 24.2% from 25.6% a year e ...

Financial Performance - Gencor Industries, Inc. reported net revenue of $115,437,000 for the year ended September 30, 2025, an increase of 2% from $113,166,000 in 2024[168]. - Gross profit for the same period was $31,713,000, slightly up from $31,327,000, resulting in a gross margin of approximately 27.5%[168]. - Operating income increased to $14,018,000 in 2025, compared to $13,687,000 in 2024, reflecting a growth of 2.4%[168]. - Net income rose to $15,661,000, a 7.6% increase from $14,558,000 in the previous year, with net income per share increasing to $1.07 from $0.99[168]. - Net revenue for the year ended September 30, 2025, was $115,437,000, an increase of 2.0% from $113,166,000 in 2024[205]. Assets and Liabilities - Total assets as of September 30, 2025, were $222,596,000, up from $208,121,000 in 2024, marking a growth of 6.9%[166]. - Current assets increased to $206,541,000 in 2025, compared to $192,842,000 in 2024, representing a growth of 7.1%[166]. - The company reported total liabilities of $10,794,000, a decrease from $11,980,000 in 2024, indicating a reduction of 9.8%[166]. - Shareholders' equity increased to $211,802,000 in 2025, up from $196,141,000 in 2024, reflecting an increase of 8%[166]. - The total fair value of the Company's assets measured at fair value as of September 30, 2025, was $109,714,000, compared to $89,927,000 in 2024, marking an increase of 22%[193][195]. Inventory and Allowances - The Company has an estimated allowance for slow-moving and obsolete inventories of approximately $15.57 million as of September 30, 2025[146]. - The allowance for slow-moving and obsolete inventories increased to $15,569,000 in 2025 from $13,331,000 in 2024, indicating a rise of 16.7%[201]. - Net inventories decreased to $53,503,000 in 2025 from $63,762,000 in 2024, a reduction of 16.1%[229]. - The allowance for credit losses increased to $434,000 in 2025 from $390,000 in 2024, a rise of 11.3%[217]. Cash Flow and Taxation - Cash and cash equivalents at the end of the year were $26,587,000, compared to $25,482,000 at the end of 2024, showing a growth of 4.3%[172]. - The company experienced a net cash provided by operating activities of $3,068,000 in 2025, down from $9,291,000 in 2024, indicating a decrease of 67%[172]. - Total current income tax expense for 2025 was $5,091,000, slightly up from $5,053,000 in 2024[233]. - The effective income tax rate for fiscal 2025 was 22.5%, a decrease from 29.8% in fiscal 2024[239]. - Total income taxes paid in fiscal 2025 were $4,076,000, down from $7,860,000 in fiscal 2024[1]. Employment and Operations - The Company has 318 full-time employees as of September 30, 2025[34]. - The Company manufactures and sells asphalt plants and related equipment, with a focus on environmentally friendly process technology[15]. - The majority of orders for the Company's asphalt plants and pavers are typically received between October and February, with significant shipments occurring prior to June[16]. - The Company is engaged in product engineering and development to create more energy-efficient and environmentally friendly equipment[23]. - The Company believes it manufactures the highest quality equipment in the industry, focusing on performance reliability and after-the-sale technical support[27]. Market and Sales - The Company has been involved in a series of acquisitions since 1985, expanding its product lines and market presence[17]. - The Company’s products are marketed through Company-employed sales representatives and independent dealers[28]. - Equipment sales recognized over time increased to $50,980,000 in 2025 from $45,786,000 in 2024, representing an increase of 9.5%[205]. - Contract assets increased to $12,208,000 in 2025 from $9,339,000 in 2024, reflecting a growth of 30.1%[207]. - Accounts receivable related to contracts with customers for equipment sales decreased to $80,000 in 2025 from $163,000 in 2024, a decline of 51.0%[209]. Risk and Compliance - The Company maintains cash accounts in various domestic financial institutions, which may exceed federally insured limits, indicating a potential concentration of credit risk[198]. - The Company evaluates inventory for obsolescence annually, with adjustments made based on the age of inventory, including a 50% reduction for items three to four years old[200]. - The Company’s marketable securities include investments in cash and money funds, mutual funds, exchange-traded funds, corporate bonds, and government securities, exposing it to various market risks[198]. - The Company adopted ASU 2025-05 for estimating expected credit losses, which did not have a material impact on the consolidated financial statements[183]. - The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures, which may enhance transparency in income tax disclosures[179].

Revenue Performance - Net revenue for Q4 2025 was $18.8 million, a decrease of 10.0% from $20.9 million in Q4 2024[1] - For the fiscal year 2025, net revenue increased by 2.0% to $115.4 million from $113.2 million in fiscal 2024[3] Profitability - Gross profit margin for Q4 2025 was 24.2%, down from 25.6% in Q4 2024 due to reduced manufacturing overhead absorption[1] - Operating loss for Q4 2025 was ($0.2) million compared to operating income of $1.2 million in Q4 2024[2] - Fiscal 2025 operating income was $14.0 million, up from $13.7 million in fiscal 2024[5] - Net income for fiscal 2025 was $15.7 million, or $1.07 per diluted share, compared to $14.6 million, or $0.99 per diluted share in fiscal 2024[7] Cash and Financial Position - Cash and marketable securities increased by $20.9 million to $136.3 million as of September 30, 2025[8] Backlog and Expenses - The Company's backlog decreased to $23.6 million as of December 1, 2025, down from $56.2 million a year earlier[9] - SG&A expenses increased by $610,000 to $14.9 million in fiscal 2025, primarily due to higher professional fees and commissions[4] Taxation - The effective income tax rate for fiscal 2025 was 22.5%, down from 29.8% in fiscal 2024[7]

Core Insights - Gencor Industries, Inc. reported a net revenue of $18.8 million for Q4 2025, a decrease of 10.0% from $20.9 million in Q4 2024 [1] - The company's gross profit margin for Q4 2025 was 24.2%, down from 25.6% in Q4 2024, attributed to reduced manufacturing overhead absorption [1] - For the fiscal year 2025, net revenue increased by 2.0% to $115.4 million from $113.2 million in fiscal 2024 [3] Financial Performance - The operating loss for Q4 2025 was ($0.2) million, compared to an operating income of $1.2 million in Q4 2024, due to lower gross profit margins and higher SG&A expenses [2] - The company had net non-operating income of $1.9 million in Q4 2025, down from $2.5 million in Q4 2024 [2] - Net income for Q4 2025 was $1.9 million, an increase from $1.5 million in Q4 2024 [2] Yearly Overview - For the year ended September 30, 2025, the gross profit margin was relatively stable at 27.5%, compared to 27.7% in fiscal 2024 [3] - Operating income for fiscal 2025 was $14.0 million, up from $13.7 million in fiscal 2024, driven by increased sales [5] - The effective income tax rate for fiscal 2025 was 22.5%, down from 29.8% in fiscal 2024 [7] Expenses and Income - Product engineering and development expenses decreased by $555,000 to $2.758 million in fiscal 2025, while SG&A expenses increased by $610,000 to $14.937 million [4] - Interest and dividend income for the year ended September 30, 2025, was $4.373 million, up from $3.435 million in the previous year [6] - Net other income for the year was $6.181 million, down from $7.043 million in fiscal 2024 [6] Balance Sheet and Cash Position - As of September 30, 2025, the company had $136.3 million in cash and marketable securities, an increase of $20.9 million from $115.4 million in 2024 [8] - The company's working capital rose to $197.7 million at September 30, 2025, compared to $182.2 million at the same time in 2024 [8] - Gencor had no short-term or long-term debt as of September 30, 2025 [8] Market Position and Outlook - The company's backlog was $23.6 million as of December 1, 2025, a significant decrease from $56.2 million a year earlier [8] - Gencor's President noted that the company faced increased competition but still achieved improved net income and cash reserves [9] - The company is a diversified heavy machinery manufacturer focused on highway construction materials and environmental control machinery [10]

Core Insights - Gencor Industries, Inc. (GENC) was upgraded to a 'Buy' rating following the release of its Q3 earnings report in late August [1] Company Summary - Gencor Industries specializes in highway construction manufacturing [1] - The company focuses on generating income through investments in undervalued, profitable stocks with strong balance sheets and minimal debt [1] Investment Strategy - The investment approach includes writing calls against positions to generate additional income when opportunities arise [1] - Risk management is implemented through position sizing and the use of trailing stop losses over time [1]

Core Insights - Gencor Industries, Inc. (GENC) was upgraded to a 'Buy' rating following the release of its Q3 financial results in late August [1] Company Summary - Gencor Industries operates in the highway construction manufacturing sector, focusing on producing equipment for this industry [1] - The company is characterized by a strong balance sheet and minimal debt, making it an attractive investment opportunity for income-seeking investors [1] Investment Strategy - The investment approach involves purchasing undervalued profitable stocks and, when possible, writing calls against these positions to generate additional income [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Core Insights - Gencor Industries, Inc. is a US-based manufacturer specializing in heavy machinery for highway construction, with a focus on identifying potential long-term stock value [1] Group 1: Company Overview - Gencor Industries, Inc. operates in the heavy machinery sector, specifically targeting the highway construction market [1] Group 2: Investment Strategy - The investment approach involves purchasing undervalued, profitable stocks with strong balance sheets and minimal debt, while also considering writing calls to generate additional income [1] Group 3: Risk Management - Risk management is emphasized through position sizing and the use of trailing stop losses over time to mitigate potential losses [1]

Group 1 - The core viewpoint emphasizes the investment philosophy of Value Digger, which is based on Ben Graham-style value-oriented opportunities with an asymmetric risk/reward profile [1] - Value Digger has over 30 years of investing experience and a proven track record of market outperformance [1] - The investment group, Value Investor's Stock Club, focuses on identifying value stocks and dividend stocks across 11 sectors that meet strict investment criteria [2] Group 2 - The investment criteria include strong fundamentals, zero leverage, and cheap valuations [2] - The service offers comprehensive research for undiscovered value picks that have the potential to be multibaggers, as well as under-covered high-yield dividend stocks for income [2] - The group also provides excellent short ideas targeting triple-digit returns [2]

Part I. Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show increased assets and revenues but a year-over-year decrease in net income [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $218.15 million, driven by a significant increase in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $39,972 | $25,482 | | Marketable securities | $90,133 | $89,927 | | Inventories, net | $59,668 | $63,762 | | Total current assets | $203,115 | $192,842 | | **Total Assets** | **$218,150** | **$208,121** | | **Liabilities & Equity** | | | | Total current liabilities | $16,661 | $10,604 | | Total liabilities | $18,192 | $11,980 | | Total shareholders' equity | $199,958 | $196,141 | | **Total Liabilities and Shareholders' Equity** | **$218,150** | **$208,121** | [Condensed Consolidated Income Statements](index=7&type=section&id=Condensed%20Consolidated%20Income%20Statements) Quarterly net revenue grew 20.7% year-over-year, though net income declined due to investment losses Condensed Consolidated Income Statement (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net revenue | $31,416 | $26,018 | | Gross profit | $8,668 | $7,534 | | Operating income | $4,624 | $3,383 | | Income before income tax | $5,158 | $5,618 | | **Net income** | **$3,817** | **$4,326** | | **Net income per share (basic and diluted)** | **$0.26** | **$0.30** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved significantly to $14.81 million, boosting the company's cash position Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $3,817 | $4,326 | | Cash flows provided by operating activities | $14,809 | $1,894 | | Cash flows used in investing activities | ($319) | ($366) | | Net increase in cash and cash equivalents | $14,490 | $1,528 | | Cash and cash equivalents at end of period | $39,972 | $18,559 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue sources, and significant customer concentration - The company is evaluating the impact of new accounting standards updates (ASU 2023-07, ASU 2023-09, ASU 2024-03) related to segment reporting, income tax disclosures, and expense disaggregation[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) Revenue by Source (in thousands) | Revenue Source | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Equipment sales recognized over time | $16,831 | $9,833 | | Equipment sales recognized at a point in time | $7,588 | $7,181 | | Parts and component sales | $6,151 | $7,796 | | Freight revenue | $745 | $1,135 | | Other | $101 | $73 | | **Total Net Revenue** | **$31,416** | **$26,018** | - For the quarter ended December 31, 2024, two customers represented significant portions of net revenue, accounting for **26.8%** and **10.8%** respectively[53](index=53&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue increased 20.7% driven by equipment sales, though gross margin declined due to product mix [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Net revenue grew 20.7% year-over-year, but net income fell due to losses on marketable securities - Net revenues increased **20.7%** to **$31,416,000** in Q1 2025 from $26,018,000 in Q1 2024, driven by contract equipment sales recognized over time[87](index=87&type=chunk) - Gross profit margins decreased to **27.6%** from **29.0%** year-over-year, attributed to reduced sales of higher-margin parts and components[88](index=88&type=chunk) - Net income decreased primarily due to a net loss on marketable securities of **$(455,000)** in Q1 2025, compared to a gain of **$1,519,000** in Q1 2024[91](index=91&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong, debt-free liquidity position with robust operating cash flow - The company had **no long-term or short-term debt** outstanding as of December 31, 2024[94](index=94&type=chunk) Key Liquidity Metrics (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Cash and cash equivalents | $39.97 million | | Marketable securities | $90.13 million | | Working capital | $186.5 million | | Backlog | $54.4 million | - Cash flows provided by operations were **$14,809,000** for the quarter ended December 31, 2024[96](index=96&type=chunk) [Critical Accounting Policies, Estimates and Assumptions](index=19&type=section&id=Critical%20Accounting%20Policies%2C%20Estimates%20and%20Assumptions) Key policies include revenue recognition over time, inventory valuation, and fair value of securities - Revenue from custom equipment contracts is recognized over time, proportional to actual labor costs incurred versus total estimated labor costs[102](index=102&type=chunk) - Inventories are valued at the lower of cost or net realizable value, with specific allowances for obsolescence based on the age of the inventory[111](index=111&type=chunk) - Marketable securities are categorized as trading securities and marked to market at fair value, with changes in value reported in the income statement[112](index=112&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company, as a smaller reporting company, is not required to provide this information - The company has indicated that this item is not applicable[115](index=115&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to unremediated material weaknesses in internal control - The President and CFO concluded that disclosure controls and procedures were **not effective** as of December 31, 2024, due to existing material weaknesses[116](index=116&type=chunk) - The material weaknesses, which were not remediated as of the quarter-end, include ineffective IT general controls, controls over third-party reports, period-end close processes, inadequate control design, and an inadequate risk assessment framework[118](index=118&type=chunk)[119](index=119&type=chunk) - Management is implementing remediation plans, including a risk assessment and expansion of mitigating controls, with oversight from the Audit Committee[120](index=120&type=chunk)[122](index=122&type=chunk) Part II. Other Information [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to have a material impact - The company does not believe any current legal proceedings are **material** to its business[123](index=123&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Annual Report on Form 10-K - **No material changes** to risk factors were reported during the quarter ended December 31, 2024. The company refers to its most recent Form 10-K for a full description of risk factors[124](index=124&type=chunk) [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter[125](index=125&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications and Interactive Data Files - The report includes certifications from the Principal Executive Officer and Chief Financial Officer as required by the Securities Exchange Act of 1934[127](index=127&type=chunk)