Financial Performance - Net revenue for the nine months ended February 28, 2025 decreased by $1,786,000, or 5%, compared to the same period in the prior year[34]. - Gross profit for the nine months ended February 28, 2025 was $13,919,000, representing a gross margin of 45%, down from 46% in the prior year[34][35]. - Operating income for the nine months ended February 28, 2025 was $5,869,000, down from $6,966,000 in the same period last year[40]. - Net income for the nine months ended February 28, 2025 decreased by 12% compared to the prior year[34]. - For the three months ended February 28, 2025, net revenue decreased by $1,689,000, or 14%, compared to the same period in the prior year[44]. Sales and Orders - The company had 146 open sales orders in backlog with a total sales value of $33.3 million as of February 28, 2025, compared to 131 orders valued at $30.2 million a year earlier[36]. - Total sales within the U.S. decreased by 13% during the nine-month period ended February 28, 2025, while sales outside the U.S. increased by 61%[34]. - The backlog of sales orders increased to $33.3 million as of February 28, 2025, up from $33.1 million at the end of the prior year[61]. Expenses - Selling, general and administrative expenses increased by 1% to $7,731,000 for the nine months ended February 28, 2025[39]. - Research and development costs for the nine months ended February 28, 2025 were $319,000, a slight decrease of $2,000 from the prior year[38]. - Accrued expenses increased by 71% to $7,997,000 due to prepayments for a project not started[62]. Inventory and Receivables - As of February 28, 2025, total inventory increased by $1,293,000 (17%) to $8,805,000 compared to $7,512,000 at the prior year-end[54]. - Accounts receivable rose by $1,505,000 (29%) to $6,717,000 as of February 28, 2025, from $5,212,000 at the prior year-end[56]. - The average days sales outstanding (DSO) increased from 39 days to 57 days, indicating delayed collections for structural project invoices[57]. - Maintenance and other inventory decreased by $349,000 (22%) to $1,231,000 as of February 28, 2025[54]. Capital Expenditures and Project Status - Capital expenditures for the nine-month period ended February 28, 2025 were $1,158,000, an increase from $755,000 in the same period last year[52]. - The number of projects in progress decreased from 14 to 9, with the aggregate percent complete dropping from 53% to 49%[61]. Other Financial Metrics - The provision for potential inventory obsolescence was zero for the nine-month period ended February 28, 2025, compared to $369,000 for the same period in the prior year[55]. - The balance of Costs and Estimated Earnings in Excess of Billings (CIEB) decreased by $1,127,000 (26%) to $3,230,000 as of February 28, 2025[56]. - Billings in Excess of Costs and Estimated Earnings (BIEC) decreased by $2,368,000 (42%) to $3,233,000 as of February 28, 2025[60].

Core Insights - Taylor Davis and Jingwei Yu from Goodyear Tire & Rubber Company have been recognized as winners of the 2025 Women MAKE Awards, highlighting their contributions to the manufacturing industry [1][2][5] Group 1: Awards and Recognition - The Women MAKE Awards are presented by the Manufacturing Institute to honor women leaders in manufacturing, encouraging them to mentor the next generation [2][5] - Taylor Davis is recognized as an Emerging Leader for her ability to tackle engineering challenges and deliver customer-focused solutions [3][4] - Jingwei Yu is honored for her finance leadership in Goodyear's expansion and sustainability initiatives, particularly in implementing Industry 4.0 automation [4][5] Group 2: Contributions to Goodyear - Taylor Davis has initiated a reverse mentoring program and mentors students and new associates, showcasing her commitment to continuous learning and talent development [3][4] - Jingwei Yu has played a transformative role in connecting Goodyear's manufacturing plants with local universities to promote STEM education, benefiting both the company and the community [5] Group 3: Event Details - The Women MAKE Awards gala will take place on April 24 in Washington, D.C., where Davis and Yu will be recognized among 130 award recipients [5]

Group 1 - The article emphasizes the importance of simple reasoning in developing effective investment strategies and outcomes [1] - It advocates for pricing firms based on fundamentals and peer analysis to determine their value [1] - The publication aims to provide general insights without considering individual circumstances of investors [1] Group 2 - The analyst discloses no current stock or derivative positions in the companies mentioned and has no plans to initiate any within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - There is no business relationship with any of the companies discussed in the article [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results and no specific investment recommendations are provided [3] - The views expressed may not represent the overall opinions of Seeking Alpha [3] - The analysts contributing to the platform may not be licensed or certified by any regulatory body [3]

Stock Performance - Shares of Taylor Devices declined 18% since the earnings report for the quarter ended Nov 30 2024 compared to the S&P 500's 06% growth over the same period [1] - Over the past month the stock has declined 237% compared with the S&P 500's 14% decline [1] Financial Performance - Earnings per share (EPS) for the fiscal second quarter were 34 cents down from 56 cents in the prior-year period [1] - Sales for the quarter were $86 million reflecting a 17% decrease from $103 million in the prior-year quarter [2] - Net earnings declined to $11 million compared to $2 million a year earlier a 47% drop [2] Business Metrics - The company's firm order backlog increased to $345 million from $331 million at the beginning of the fiscal year [3] - First-half sales were $202 million the second-highest in company history slightly trailing last year's record of $203 million [3] - Net earnings as a percentage of sales for the first half remained stable at 185% comparable to last year's 189% [3] Management Commentary - Management is committed to pursuing growth opportunities in Aerospace/Defense Structural and Industrial markets [4] - The company's custom-engineered products are critical to its customers and there is optimism about sustaining profitable growth in these markets [4] - Despite the quarterly decline in sales and net earnings the operational pipeline remains strong with a strategic focus on core markets [4] Factors Influencing Performance - The decline in quarterly sales and net earnings was primarily due to reduced sales volume compared to the prior year [5] - The company operates in a competitive and specialized market where sales volumes significantly influence quarterly performance metrics [5]

Revenue and Sales Performance - Net revenue for the six months ended November 30, 2024 decreased by $96,000 (0%) compared to the same period in 2023, with gross profit increasing by $195,000 (2%) to $9,390,000[33] - Sales to Asia increased by 37% during the six months ended November 30, 2024, while U.S. sales decreased by 7%[33] - Net revenue for the three months ended November 30, 2024 decreased by $1,791,000 (-17%) compared to the same period in 2023, with gross profit decreasing by $925,000 (-19%)[43] - Sales to Asia increased by 34% during the three months ended November 30, 2024, while U.S. sales decreased by 21%[43] Research and Development Costs - Research and development costs decreased by $41,000 (-19%) to $172,000 for the six months ended November 30, 2024, representing 0.9% of net revenues[37] - Research and development costs increased by $19,000 (23%) to $103,000 for the three months ended November 30, 2024, representing 1.2% of net revenues[46] Selling, General and Administrative Expenses - Selling, general and administrative expenses increased by $360,000 (7%) to $5,369,000 for the six months ended November 30, 2024, primarily due to increased stock option expense[38] - Selling, general and administrative expenses increased by $166,000 (6%) to $2,839,000 for the three months ended November 30, 2024, primarily due to increased stock option expense[47] Capital Expenditures and Inventory - Capital expenditures for the six months ended November 30, 2024 were $971,000, compared to $545,000 in the same period of the prior year, with commitments for $881,000 in the next twelve months[51] - Inventory increased by $1,099,000 (15%) to $8,611,000 as of November 30, 2024, compared to $7,512,000 at May 31, 2024, with work-in-process inventory accounting for 88% of the total inventory[52][53] - Inventory turnover decreased to 2.3 as of November 30, 2024, compared to 3.0 at May 31, 2024, indicating a slower rate of inventory turnover[52] - Maintenance and other inventory decreased by $152,000 (-10%) to $1,428,000 as of November 30, 2024, compared to $1,580,000 at May 31, 2024, with no provision for potential inventory obsolescence recorded for the six-month period ended November 30, 2024[52][54] Accounts Receivable and Payable - Accounts receivable increased by $3,036,000 (58%) to $8,248,000 as of November 30, 2024, compared to $5,212,000 at May 31, 2024, with the average days sales outstanding (DSO) increasing from 39 days to 87 days[55][56] - Accounts payable decreased by 40% to $857,000 as of November 30, 2024, compared to the prior year-end, while accrued expenses decreased by 48% to $2,497,000 due to the payout of fiscal year 2024 incentive compensation[62] Backlog and Projects in Progress - The company had 156 open sales orders in its backlog as of November 30, 2024, with a total sales value of $34.5 million, expected to be recognized in fiscal years 2025 and 2026[35] - The company's backlog of sales orders increased to $34.5 million as of November 30, 2024, up from $33.1 million at the end of the prior year, with $13.1 million of the backlog for projects already in progress[61] - The number of projects in progress decreased to 18 as of November 30, 2024, compared to 19 at May 31, 2024, with an aggregate percent complete of 48% compared to 53% at the prior year-end[61] - The average total sales value of projects in progress decreased to $1,397,000 as of November 30, 2024, compared to $2,089,000 at May 31, 2024, with 51% of the total value invoiced to customers compared to 56% at the prior year-end[61] Costs and Estimated Earnings - CIEB (Costs and Estimated Earnings in Excess of Billings) decreased by $1,339,000 (-31%) to $3,018,000 as of November 30, 2024, compared to $4,357,000 at May 31, 2024[55][57] - BIEC (Billings in Excess of Costs and Estimated Earnings) decreased by $1,893,000 (-34%) to $3,708,000 as of November 30, 2024, compared to $5,601,000 at May 31, 2024[55][58]

Core Insights - Taylor Devices, Inc. reported record-breaking revenues and net earnings for Q1 fiscal 2025, with EPS rising to 85 cents, a 63.5% increase from 52 cents in the prior-year quarter [1][7] - First-quarter sales grew by 17% year-over-year, reaching $11.6 million compared to $9.9 million in Q1 fiscal 2024, driven primarily by the Aerospace/Defense markets [2][3] - The company’s net earnings surged 44% year-over-year, increasing from $1.9 million in Q1 fiscal 2024 to $2.7 million in Q1 fiscal 2025, reflecting successful growth strategies [5] Business Performance - The strong business momentum is attributed to steady performance across three key product groups: Aerospace/Defense, Structural, and Industrial, with Aerospace/Defense being the primary growth driver [3][4] - Despite challenges in the Structural market due to high interest rates and adverse foreign exchange conditions, the company maintained solid order flow, ensuring a robust order book [4] Key Metrics - The order backlog at the end of Q1 fiscal 2025 was $28.4 million, slightly up from $28.3 million in Q1 fiscal 2024, indicating healthy demand, particularly in Aerospace/Defense [6] - The increase in EPS was also supported by a reduction in shares outstanding from 3.52 million to 3.12 million, reflecting management's confidence in the company's long-term financial health [7]

Core Insights - Taylor Devices, Inc. reported first quarter sales of $11,617,856, a 17% increase from $9,923,628 in the same period last year [1][2] - Net earnings for the first quarter reached $2,666,655, representing a significant 44% increase from $1,847,863 in the previous year [1][2] - The company set new records for both sales and net earnings in this quarter, driven by strong performance in the Aerospace/Defense sector [2] Financial Performance - First quarter sales for fiscal 2024 were $9,923,628, while the current quarter sales are $11,617,856 [3] - Net earnings increased from $1,847,863 to $2,666,655 year-on-year [1][3] - Earnings per share for the previous year was $0.52, with shares outstanding at 3,520,910 [3] Market and Strategic Focus - The Aerospace/Defense market continues to show favorable momentum, helping to offset challenges in the Structural markets due to high interest rates and unfavorable foreign exchange rates [2] - The firm order backlog at the end of Q1 was $28.4 million, slightly up from $28.3 million in the previous year and significantly above the five-year average of $21.9 million [2] - The company remains committed to growth strategies through investments in team, technologies, and facilities [2]

Financial Performance - Net revenues for the three months ended August 31, 2024, increased by 17% to $11,618,000 compared to $9,924,000 for the same period in 2023[31]. - Gross profit for the same period was $5,504,000, representing a 26% increase from $4,385,000 in the prior year, with a gross margin of 47%[31][32]. - Operating income improved to $2,905,000 for the three months ended August 31, 2024, compared to $1,920,000 in the same period last year[35]. Expenses - Research and development costs decreased by 47% to $69,000, down from $129,000 in the previous year, accounting for 0.6% of net revenues[34]. - Selling, general, and administrative expenses rose by 8% to $2,530,000, representing 22% of net revenues, primarily due to increased employee compensation costs[34]. - Accrued expenses decreased by 49% from the prior year-end to $2,396,000 due to the payout of fiscal year 2024 incentive compensation[46]. Sales and Orders - The company had 118 open sales orders in backlog with a total sales value of $28.4 million as of August 31, 2024, compared to 131 orders valued at $28.3 million a year earlier[32]. - Total sales to Asia increased by 38% compared to the prior year, while sales to aerospace/defense customers rose by 20%[31]. - The company's backlog of sales orders decreased to $28.4 million from $33.1 million at the end of the prior year[45]. Accounts and Inventory - Accounts receivable increased by 30% to $6,780,000, with an average days sales outstanding (DSO) rising from 39 days to 53 days[41]. - Inventory as of August 31, 2024, was $8,154,000, an increase of 9% from $7,512,000 at the prior year-end[38]. - Accounts payable as of August 31, 2024, is $1,848,000, which is 28% higher than the prior year-end[46]. Capital and Projects - Capital expenditures for the three months ended August 31, 2024, were $247,000, down from $428,000 in the same period last year[36]. - The number of projects in progress increased from 14 to 15 between May 31, 2024, and August 31, 2024[42]. - The aggregate percent complete for projects in progress increased from 53% to 58% between May 31, 2024, and August 31, 2024[45]. - The average total sales value of projects in progress is $2,043,000 as of August 31, 2024[45]. Balances - The balance of CIEB as of August 31, 2024, is $4,333,000, which is 1% lower than the prior year-end balance[42]. - The balance of BIEC at August 31, 2024, is $2,984,000, down 47% from $5,601,000 at the end of the prior year[42]. - 34% of the CIEB balance was billed to customers in the quarter ended August 31, 2024[42]. - The percentage of total value invoiced to customers remained stable at 56%[45].

Investment Thesis - Taylor Devices designs and manufactures shock absorption, rate control, and energy storage products, with Aerospace & Defense (A&D) being the largest and fastest-growing revenue category, contributing 60% of revenues and growing 71% in the last two quarters of FY24 [3][5] - The company has achieved record revenues and backlog, with margins widening and cash position nearing 20% of market cap, while carrying zero debt and engaging in share buybacks [3][20] - Despite a 130% increase in stock price year-to-date, shares remain attractively priced for further upside due to strong free cash flow potential [3] Revenue Dynamics - A&D revenues have shown a significant shift, comprising over 70% of backlog in 2024, indicating strong demand and stability due to contract-based nature [5][6] - The U.S. market accounted for 86% of revenues in 2024, with total sales in the U.S. increasing by 18%, while sales to Asia decreased by 55% [7][8] - The cyclicality of Structural revenues is expected to improve with increased backlog and the introduction of new products, such as the Taylor Dampened Moment Frame [9] Market Trends - Increased global conflicts and defense spending, particularly in the U.S. and EU, are driving growth in the A&D sector, with the commercial and military space industry projected to reach nearly $1 trillion by 2030 [8] - The A&D segment's recurring revenue model is expected to reduce overall cyclicality for Taylor Devices, providing more stability during economic downturns [8] Competitive Positioning - Taylor Devices holds a strong market position with proprietary products and technology, supported by 10 patents expiring up to 2040, creating competitive barriers [10][11] - The company has established long-term customer relationships and benefits from government-funded product development, enhancing its competitive durability [10] Financial Performance - The company has achieved record highs in operating income, net income, and free cash flow in 2024, with operating leverage at its strongest in a decade [12] - Returns on capital and margins have significantly improved, effectively doubling the company's 5-year averages [12] Future Outlook - Revenue growth is expected to average 7.5% annually over the next decade, with gross margins projected to remain in the mid-40s [21] - Estimated free cash flow margins are anticipated to average 10% through the forecast period, with shares currently trading at a 34% discount to intrinsic value [22]

Core Insights - Taylor Devices, Inc. reported a strong fourth quarter for fiscal 2024, with earnings per share (EPS) of 80 cents, up from 59 cents in the same quarter last year [1] - The company achieved quarterly revenues of $12.1 million, reflecting a 12.6% year-over-year increase from $10.7 million in Q4 2023 [2] - The Aerospace/Defense segment was a key growth driver, benefiting from sustained demand, while the Structural segment faced challenges due to macroeconomic factors [3] Financial Performance - The net income for Q4 2024 was $2.5 million, a 19.7% increase from $2.1 million in Q4 2023, driven by improved operational efficiency and strategic pricing [4] - The number of shares outstanding decreased to 3.1 million from 3.5 million in the prior-year quarter, positively impacting EPS [5] - For the full fiscal year 2024, sales reached $44.6 million, a 10.9% increase from $40.2 million in the previous year, with net income growing 43% to $9 million from $6.3 million [7] Order Backlog and Market Outlook - The company reported a record order backlog of $33.1 million entering fiscal year 2025, slightly surpassing the previous record of $32.5 million, indicating strong revenue visibility and demand stability in key markets [6]