We last wrote on Gencor Industries , Inc. (NYSE: GENC ) (a US-based manufacturer of heavy machinery for highway construction) in April of this year when we pointed to a potential long-term bottom in the stock. Shares atIndividual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions to bring in additional incom ...

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)

Core Viewpoint - Gencor Industries, Inc. reported a 5.6% increase in net revenue for the quarter ended June 30, 2025, driven by higher contract equipment sales and parts revenues, alongside improved gross profit margins due to enhanced production activities [1][3][8]. Financial Performance - Net revenue for the quarter ended June 30, 2025, was $26,986,000, up from $25,551,000 in the same quarter of 2024 [1]. - Gross profit margins improved to 26.5% in Q2 2025 from 23.9% in Q2 2024 [1]. - Operating income rose to $3,137,000 for the quarter ended June 30, 2025, compared to $1,993,000 for the same period in 2024, attributed to higher revenues and improved gross margins [3]. - Net income for the quarter ended June 30, 2025, was $3,828,000, or $0.26 per share, compared to $2,558,000, or $0.17 per share, in Q2 2024 [5]. Expense Management - Product engineering and development expenses decreased by $83,000 to $741,000 for the quarter ended June 30, 2025, due to reduced headcount [2]. - Selling, general and administrative expenses remained relatively stable at $3,265,000 for Q2 2025, compared to $3,290,000 in Q2 2024 [2]. Other Income - The company reported net other income of $2,036,000 for the quarter ended June 30, 2025, up from $1,329,000 in the same quarter of 2024, including net realized and unrealized gains on marketable securities of $894,000 compared to $363,000 in Q2 2024 [4]. Year-to-Date Performance - For the nine months ended June 30, 2025, Gencor had net revenue of $96,606,000 and net income of $13,740,000, compared to $92,245,000 and $13,106,000 for the same period in 2024, reflecting a 5% increase in revenue and a 14% increase in operating income [6][8]. Balance Sheet Highlights - As of June 30, 2025, the company had $136.0 million in cash and cash equivalents and marketable securities, an increase from $115.4 million at September 30, 2024 [7]. - Net working capital was $197.1 million at June 30, 2025, compared to $182.2 million at September 30, 2024 [7]. - The company's backlog decreased to $26.2 million at June 30, 2025, from $46.6 million at June 30, 2024 [7].

Core Insights - Gencor Industries, Inc. (GENC) shares increased by 4.1% following the earnings report for the quarter ended March 31, 2025, outperforming the S&P 500 Index's 0.1% gain during the same period [1] Financial Performance - For Q2 fiscal 2025, Gencor reported net revenues of $38.2 million, a decrease of 6.1% from $40.7 million in the same quarter last year, primarily due to lower contract equipment sales [2] - Gross profit for the quarter was $11.4 million, down 7.9% from $12.3 million a year ago, with gross margin slightly compressed to 29.7% from 30.3% due to rising material costs [2] - Net income for the quarter was $6.1 million, a 2% decline from $6.2 million in the prior year, with earnings per share remaining stable at $0.42 [2] - For the first six months of fiscal 2025, Gencor posted revenues of $69.6 million, up 4.4% from $66.7 million in the same period of 2024, while net income decreased to $9.9 million from $10.5 million [3] Key Business Metrics - Operating income for Q2 was $6.5 million, down 8.4% from $7.1 million in the same quarter last year, attributed to lower revenues [4] - Operating expenses decreased by 7.2% to $4.9 million, reflecting cost control measures, including a 23.7% reduction in product engineering and development costs due to reduced headcount [4] - Net other income increased by 74.2% to $1.8 million, supported by gains on marketable securities and higher interest and dividend income [5] Balance Sheet and Cash Position - Gencor maintained a strong balance sheet with no short- or long-term debt, holding $52.3 million in cash and $91.4 million in marketable securities as of March 31, 2025 [5] - Inventories decreased to $55.1 million from $63.8 million as of September 30, 2024, primarily due to large contract orders and strong sales [9] Management Commentary - Gencor's president expressed satisfaction with overall performance, noting that despite a slight revenue decline in Q2, six-month revenue and operating income exceeded fiscal 2024 performance [6] - Management emphasized a focus on market growth and operational efficiency for the remainder of 2025 [6] Market Dynamics - Revenue decline was attributed to the timing of equipment shipments, a cyclical aspect of the business influenced by customer seasonality in the highway construction sector [7] - Economic headwinds such as inflation, supply chain disruptions, and geopolitical uncertainties were identified as potential risks impacting material costs and customer spending [10] Guidance and Future Outlook - Gencor did not provide explicit forward guidance for the remainder of fiscal 2025 but expressed a cautious yet constructive outlook, anticipating a "more traditional market" in the latter half of the fiscal year [11] Internal Controls and Developments - No significant acquisitions or restructurings were reported, but Gencor is actively working on improving internal controls following identified material weaknesses in financial reporting [12]

Core Insights - Gencor Industries reported a 6.1% year-over-year decline in GAAP revenue, totaling $38.2 million in Q2 FY2025, alongside a significant drop in backlog to $27.8 million [1][5] - Earnings per share (GAAP) remained stable at $0.42, unchanged from the same period in the previous year [1][7] - The company experienced margin compression, with gross profit margin narrowing to 29.7% from 30.3% due to higher material costs [6][7] Financial Performance - Revenue decreased from $40.7 million in Q2 FY2024 to $38.2 million in Q2 FY2025, reflecting a 6.1% decline [2][5] - Operating income fell by 8.4% to $6.5 million in Q2 FY2025 compared to $7.1 million in Q2 FY2024 [2][7] - Backlog decreased significantly by 44.8%, from $50.4 million in Q2 FY2024 to $27.8 million in Q2 FY2025 [2][5] Business Overview - Gencor Industries specializes in manufacturing heavy machinery and systems for asphalt production and highway construction [3] - The company’s primary clients are highway construction firms reliant on federal and state infrastructure budgets [3][4] - Key success factors include government infrastructure spending, investment in technology-driven products, and operational efficiency [4] Operational Insights - The company has focused on cost control, reducing product engineering and development costs to $681,000 in Q2 FY2025 from $893,000 a year earlier [6][8] - Gencor held $143.7 million in cash and marketable securities with zero debt as of March 31, 2025 [8] - Recent innovations have been a focus, although product engineering spending was reduced due to headcount cuts [9] Industry Dynamics - The company anticipates a return to a "more traditional market" for the remainder of the year, emphasizing improved manufacturing efficiency [10] - Legislative support for infrastructure spending is expected to benefit the industry, but risks include order timing, competitive pressures, and higher input costs [10][11] - Investors are advised to monitor order growth and sales metrics in upcoming quarters due to the sharp decline in backlog [11]

[GENCOR First Quarter Fiscal 2025 Results](index=1&type=section&id=GENCOR%20RELEASES%20FIRST%20QUARTER%20FISCAL%202025%20RESULTS) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Gencor's Q1 FY2025 net revenue grew **20.7%** to **$31.4 million**, but net income decreased to **$3.8 million** due to marketable securities losses Key Financial Metrics | Metric | Q1 FY2025 (ended Dec 31, 2024) | Q1 FY2024 (ended Dec 31, 2023) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $31,416,000 | $26,018,000 | +20.7% | | Operating Income | $4,624,000 | $3,383,000 | +36.7% | | Net Income | $3,817,000 | $4,326,000 | -11.8% | | EPS (basic and diluted) | $0.26 | $0.30 | -13.3% | - Gross profit margin decreased from **29.0%** to **27.6%** year-over-year, attributed to a smaller contribution from higher-margin parts sales in the current quarter's revenue mix[1](index=1&type=chunk) - Net other income fell sharply to **$534,000** from **$2,235,000**, primarily due to net realized and unrealized losses on marketable securities of **($455,000)** compared to gains of **$1,519,000** in the prior-year quarter[4](index=4&type=chunk) - Product engineering and development expenses decreased by **$124,000** due to lower headcount, while SG&A expenses remained relatively flat[2](index=2&type=chunk) [Financial Position and Backlog](index=1&type=section&id=Financial%20Position%20and%20Backlog) Gencor maintained a strong, debt-free balance sheet with **$130.1 million** in cash and securities, but backlog declined to **$54.4 million** Financial Position Summary | Financial Position | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | Cash, Cash Equivalents & Marketable Securities | $130.1 million | $115.4 million | | Net Working Capital | $186.5 million | $182.2 million | - The company had no short-term or long-term debt outstanding as of December 31, 2024[6](index=6&type=chunk) - The company's backlog was **$54.4 million** at December 31, 2024, a decrease from **$61.3 million** at December 31, 2023[7](index=7&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Unaudited statements detail Gencor's financial health, highlighting revenue growth, non-operating impacts, and increased assets and equity [Condensed Consolidated Income Statements](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statements) Condensed Consolidated Income Statements (in thousands, except per share data) | (In thousands, except per share data) | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Net revenue** | **$31,416** | **$26,018** | | Gross profit | $8,668 | $7,534 | | Operating income | $4,624 | $3,383 | | Total other income, net | $534 | $2,235 | | Income before income tax expense | $5,158 | $5,618 | | **Net income** | **$3,817** | **$4,326** | | **Net income per common share** | **$0.26** | **$0.30** | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | (In thousands) | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$203,115** | **$192,842** | | Cash and cash equivalents | $39,972 | $25,482 | | Marketable securities | $90,133 | $89,927 | | **Total Assets** | **$218,150** | **$208,121** | | **Total current liabilities** | **$16,661** | **$10,604** | | **Total liabilities** | **$18,192** | **$11,980** | | **Total shareholders' equity** | **$199,958** | **$196,141** | [Caution Concerning Forward Looking Statements](index=4&type=section&id=Caution%20Concerning%20Forward%20Looking%20Statements) Forward-looking statements face significant risks from customer financial health, economic conditions, and geopolitical conflicts - Forward-looking statements are subject to change based on factors often beyond the company's control[12](index=12&type=chunk) - Key risk factors cited include: - Financial condition of customers - Economic and competitive environments - Demand for products - Impact of U.S. government tariffs - Geopolitical conflicts (Russia/Ukraine, Israel/Hamas) potentially disrupting supply chains and increasing costs[12](index=12&type=chunk) - The company directs investors to its Annual Report on Form 10-K for a more detailed discussion of risk factors[13](index=13&type=chunk)

Core Viewpoint - Gencor Industries, Inc. reported a decrease in net revenue and operating income for the quarter ended March 31, 2025, compared to the same period in 2024, primarily due to lower revenues and increased material costs, although net other income showed improvement [1][3][4]. Financial Performance - Net revenue for the quarter ended March 31, 2025, was $38.204 million, a decrease of 6.1% from $40.676 million in the same quarter of 2024 [1]. - Gross profit margin was 29.7% for the quarter ended March 31, 2025, down from 30.3% in the same quarter of 2024, attributed to higher material costs [1]. - Operating income decreased to $6.480 million for the quarter ended March 31, 2025, compared to $7.072 million for the same quarter in 2024 [3]. - Net income for the quarter ended March 31, 2025, was $6.095 million, or $0.42 per share, compared to $6.222 million, or $0.42 per share, for the same quarter in 2024 [5]. Expense Management - Product engineering and development expenses decreased by $212,000 to $681,000 for the quarter ended March 31, 2025, due to reduced headcount [2]. - Selling, general and administrative expenses decreased to $4.192 million for the quarter ended March 31, 2025, from $4.357 million in the same quarter of 2024, due to lower commissions on reduced revenues [2]. Other Income and Taxation - Net other income for the quarter ended March 31, 2025, was $1.756 million, up from $1.008 million in the same quarter of 2024, with realized and unrealized gains on marketable securities contributing $598,000 compared to $205,000 in the prior year [4]. - The effective income tax rate increased to 26.0% for the quarter ended March 31, 2025, from 23.0% in the same quarter of 2024 [5]. Six-Month Performance - For the six months ended March 31, 2025, net revenue was $69.620 million, compared to $66.694 million for the same period in 2024 [6]. - Net income for the six months ended March 31, 2025, was $9.912 million, or $0.68 per share, down from $10.548 million, or $0.72 per share, for the same period in 2024 [6]. Balance Sheet Highlights - As of March 31, 2025, the company had $143.7 million in cash and cash equivalents and marketable securities, an increase from $115.4 million at September 30, 2024 [7]. - Net working capital was $193.2 million at March 31, 2025, compared to $182.2 million at September 30, 2024 [7]. - The company's backlog decreased to $27.8 million at March 31, 2025, from $50.4 million at the same time in 2024 [7]. Management Commentary - The President of Gencor expressed satisfaction with the overall performance, highlighting a significant increase in revenues for the first quarter, despite a slight decline in the second quarter [8].

Core Viewpoint - Gencor Industries, Inc. reported a significant increase in net revenue for the quarter ended December 31, 2024, driven by higher contract equipment sales, despite a decrease in parts sales and a decline in gross profit margins compared to the previous year [1][5]. Financial Performance - Net revenue for the quarter ended December 31, 2024, was $31,416,000, representing a 20.7% increase from $26,018,000 in the same quarter of 2023 [1][8]. - Gross profit margins decreased to 27.6% in Q4 2024 from 29.0% in Q4 2023, attributed to a smaller contribution from parts sales [1]. - Operating income rose to $4,624,000 for the quarter ended December 31, 2024, compared to $3,383,000 for the same period in 2023, primarily due to increased net revenues [3]. Expenses - Product engineering and development expenses decreased by $124,000 to $677,000 in Q4 2024 from $801,000 in Q4 2023, due to a reduction in headcount [2]. - Selling, general and administrative expenses slightly increased to $3,367,000 in Q4 2024 from $3,350,000 in Q4 2023 [2]. Other Income and Net Income - Net other income for the quarter ended December 31, 2024, was $534,000, down from $2,235,000 in Q4 2023, impacted by losses on marketable securities [4]. - Net income for Q4 2024 was $3,817,000, or $0.26 per share, compared to $4,326,000, or $0.30 per share, in Q4 2023 [5][9]. Balance Sheet and Cash Position - As of December 31, 2024, the company had $130.1 million in cash and cash equivalents and marketable securities, up from $115.4 million at September 30, 2024 [6]. - Net working capital increased to $186.5 million at December 31, 2024, compared to $182.2 million at September 30, 2024 [6]. - The company reported no short-term or long-term debt outstanding as of December 31, 2024 [6]. Backlog - The company's backlog was $54.4 million at December 31, 2024, down from $61.3 million at the same time in 2023 [6].

Core Viewpoint - Gencor Industries, Inc. reported mixed financial results for fiscal 2024, with revenue growth but declining net income and margins, indicating challenges in maintaining profitability amid competitive pressures and increased costs [2][3][9]. Financial Performance - Gencor's net revenues for Q4 fiscal 2024 were $20.92 million, nearly unchanged from $20.87 million in the same quarter last year [2]. - The gross profit margin for Q4 fiscal 2024 decreased to 25.6% from 31.7% in Q4 fiscal 2023 [2]. - For the full fiscal year 2024, Gencor reported net revenues of $113.2 million, a 7.7% increase from $105.1 million in fiscal 2023, while net income fell 0.7% to $14.6 million [3]. - Operating income for fiscal 2024 increased slightly by 1.9% to $13.7 million, despite a 17.9% rise in SG&A expenses [4]. Segmental and Operational Breakdown - Equipment sales recognized over time increased by 34.1% to $45.8 million, while equipment sales recognized at a point in time declined by 13.3% to $34.8 million [5]. - Parts and component sales rose 4.6% to $26.5 million, and freight revenue increased by 10.9% to $5.2 million [5]. Other Key Business Metrics - Net other income surged 31.6% to $7 million, driven by a 62.9% increase in interest and dividend income [6]. - The effective tax rate rose to 29.8% from 21.9%, primarily due to increased reserves for unrecognized tax benefits [7]. - Gencor ended fiscal 2024 with $115.4 million in cash and marketable securities, up from $101.3 million in the previous year [7]. Management Commentary - President Marc Elliott noted steady revenue in Q4 despite margin compression and highlighted a strong backlog supporting the first half of fiscal 2025 [8]. - Management emphasized a focus on market growth and high-quality product delivery amid ongoing infrastructure funding [8]. Factors Influencing Performance - The decline in gross margin from 31.7% to 25.6% in Q4 was a significant factor in the drop in operating income, reflecting competitive pressures in the aftermarket [9]. Guidance and Developments - Gencor did not provide specific financial guidance for fiscal 2025 but expressed optimism regarding operational momentum and demand for infrastructure-related equipment [10]. - There were no reported acquisitions or restructurings, with ongoing investments in engineering and product development highlighted [11].