UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD: From to Commission File Number: 001-11703 GENCOR INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 59-0933147 (State or other jurisdiction ...

Exhibit 99.1 GENCOR RELEASES FIRST QUARTER FISCAL 2026 RESULTS February 6, 2026 (PRIME NEWSWIRE) - Gencor Industries, Inc. (the "Company" or "Gencor") (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2025 was $23,577,000 compared with $31,416,000 for the quarter ended December 31, 2024 a decrease of $7,839,000. Net revenue from contract equipment sales decreased in the quarter ended December 31, 2025. The decrease in contract equipment sales was due primarily to delays an ...

Core Viewpoint - Gencor Industries, Inc. reported a decline in net revenue for the quarter ended December 31, 2025, primarily due to delays and uncertainty surrounding federal infrastructure spending, although gross profit margins improved due to higher sales of parts and components [1][7]. Financial Performance - Net revenue for the quarter was $23,577,000, down from $31,416,000 in the same quarter of 2024, representing a decrease of $7,839,000 [1]. - Gross profit margins increased to 28.7% from 27.6% year-over-year, driven by higher-margin parts and components sales [1]. - Operating income decreased to $3,101,000 from $4,624,000 year-over-year, attributed to lower revenues [3]. - Net income for the quarter was $3,442,000, or $0.23 per share, compared to $3,817,000, or $0.26 per share in the prior year [5]. Expenses - Product engineering and development expenses rose by $81,000 to $758,000 compared to $677,000 in the previous year [2]. - Selling, general and administrative expenses decreased by $471,000 to $2,896,000, attributed to lower commissions and professional service fees [2]. Other Income - The company reported net other income of $1,550,000, up from $534,000 in the previous year, including net realized and unrealized gains on marketable securities of $373,000 compared to losses of $(455,000) in the prior year [4]. Balance Sheet and Cash Position - As of December 31, 2025, the company had $147.7 million in cash and cash equivalents and marketable securities, an increase from $136.3 million at September 30, 2025 [6]. - Net working capital was $200.9 million, up from $197.7 million at the end of the previous quarter [6]. - The company had no short-term or long-term debt outstanding [6]. Backlog and Market Outlook - The backlog stood at $57.4 million as of December 31, 2025, compared to $54.4 million a year earlier, indicating a positive outlook for future orders [6][7]. - The president of Gencor noted a recent pickup in order activity and optimism from customers regarding large capital purchases, suggesting a solid year ahead [7].

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Core Viewpoint - Gencor Industries, Inc. announces the retirement of EJ Elliott, the Executive Chairman and founder, effective December 31, 2025, and the appointment of Marc Elliott as the new Chairman starting January 1, 2026 [1][2]. Group 1: Leadership Changes - EJ Elliott, who founded Gencor in 1968, has served as Chairman since its inception and was CEO from 1968 to 2016 [1]. - Marc Elliott, who has been on Gencor's Board since 2007 and currently serves as President, will take over as Chairman [2]. Group 2: Company Overview - Gencor is recognized as a leading manufacturer of heavy machinery utilized in highway construction equipment and materials, as well as environmental control equipment [2].

Core Viewpoint - Gencor Industries, Inc. reported mixed financial results for the fourth quarter and full fiscal year 2025, with a decline in quarterly revenues but an overall increase in annual net income, highlighting resilience amid competitive pressures and market challenges [1][7]. Financial Performance - For Q4 fiscal 2025, Gencor's net revenues were $18.8 million, down 10% from $20.9 million year-over-year, with a gross profit margin narrowing to 24.2% from 25.6% [2]. - The company experienced an operating loss of $0.2 million in Q4, compared to an operating income of $1.2 million in the same quarter last year, attributed to lower gross margins and higher SG&A expenses [2]. - Despite the quarterly challenges, net income for Q4 increased to $1.9 million from $1.5 million, supported by non-operating income and an income tax benefit [2]. Annual Overview - For the full fiscal year ended September 30, 2025, net revenue rose 2% to $115.4 million from $113.2 million, while net income increased by 7.6% to $15.7 million, or $1.07 per share, from $14.6 million, or $0.99 per share in fiscal 2024 [3]. - Gencor's gross profit for fiscal 2025 was $31.7 million, up 1.2% from $31.3 million in the prior year, with a stable gross margin of 27.5% compared to 27.7% a year earlier [4]. Expense Management - Product engineering and development expenses decreased by 16.8% to $2.8 million in fiscal 2025 from $3.3 million in fiscal 2024, while SG&A expenses rose by 4.3% to $14.9 million from $14.3 million [5]. - Operating income for the year improved by 2.4% to $14 million from $13.7 million in fiscal 2024 [5]. Liquidity and Backlog - As of September 30, 2025, Gencor held $136.3 million in cash and marketable securities, up from $115.4 million in fiscal 2024, with working capital increasing to $197.7 million from $182.2 million [6]. - However, the backlog declined sharply to $23.6 million as of December 1, 2025, down from $56.2 million a year earlier, indicating potential near-term revenue pressure [6]. Management Insights - Management characterized fiscal 2025 as a year of resilience, noting higher operating income and revenue while maintaining profit margins despite increased competition [7]. - The fourth quarter's revenue softening was attributed to market unease and extraordinary expenses impacting gross profit, yet management emphasized year-end improvements in net income and cash reserves [7]. Influencing Factors - Reduced manufacturing overhead absorption pressured quarterly gross margins, while higher SG&A expenses affected operating performance [8]. - Non-operating income for fiscal 2025 included $4.4 million from interest and dividend income, benefiting from higher interest rates, while realized and unrealized gains on marketable securities fell to $1.8 million from $3.6 million [8]. - A lower effective tax rate of 22.5% compared to 29.8% in fiscal 2024 also supported net income growth [9]. Future Outlook - The company did not provide formal quantitative guidance for fiscal 2026, focusing instead on uncertainties related to economic conditions, competitive dynamics, and potential supply chain disruptions [10]. Corporate Developments - Gencor did not report any acquisitions, divestitures, or business restructuring activities during the quarter or fiscal year, continuing to operate its diversified heavy machinery manufacturing business without material changes [11].

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]