Taylor Devices(TAYD) - 2026 Q2 - Quarterly Report

Financial Performance - For the six months ended November 30, 2025, net revenue increased by 7% to $21,522,000 compared to $20,167,000 for the same period in 2024[35] - Net income for the six months ended November 30, 2025, rose by 13% to $476,000, up from $421,000 in the prior year[33] - Operating income for the six months ended November 30, 2025, was $4,475,000, an increase from $3,849,000 in the same period last year[41] - For the three months ended November 30, 2025, net revenue increased by 36% to $11,603,000 compared to $8,549,000 in the prior year[45] - Other income for the six months ended November 30, 2025, was $808,000, an 18% increase driven by short-term investment interest income[42] Expenses - Research and development costs increased by 72% to $295,000, representing 1.4% of net revenue, compared to 0.9% in the prior year[39] - Selling, general and administrative expenses decreased by 4% to $5,128,000, accounting for 24% of net revenue, down from 27%[40] - Capital expenditures for the six-month period ended November 30, 2025, were $1,491,000, compared to $971,000 in the same period last year[53] Sales and Orders - Total sales within the U.S. increased by 15%, while total sales outside the U.S. decreased by 32% during the six-month period[35] - The company had 134 open sales orders in its backlog with a total sales value of $25.1 million as of November 30, 2025, down from $34.5 million the previous year[37] - The company's backlog of sales orders at November 30, 2025, was $25.1 million, down from $27.1 million at the end of the prior year[62] Inventory and Receivables - As of November 30, 2025, total inventory decreased by $246,000 to $7,867,000, with 88% classified as work-in-process, 5% as finished goods, and 7% as raw materials[55] - Accounts receivable decreased by $419,000 to $5,181,000, with an increase in the average days sales outstanding (DSO) from 32 days to 40 days[57][58] - Finished goods inventory increased by 48% to $388,000, while raw materials inventory decreased by 18% to $516,000[54] Project and Billing Metrics - Costs and Estimated Earnings in Excess of Billings (CIEB) dropped by 55% to $2,424,000, reflecting the normal flow of long-term projects through production[59] - Billings in Excess of Costs and Estimated Earnings (BIEC) decreased by 63% to $1,622,000, indicating a reduction in unrecognized revenues[61] - The average total sales value of projects in progress decreased from $1,846,000 to $1,394,000[62] - The aggregate percent complete for projects in progress increased from 65% to 71%[62] Liabilities - Accounts payable increased by 44% to $1,617,000 compared to the prior year-end[63] - The provision for potential inventory obsolescence was recorded at $145,000 for the six-month period ended November 30, 2025[56]