Gencor Industries(US:GENC)2026-02-06 12:40Financial Performance - Net revenue for the quarter ended December 31, 2025, was $23,577,000, a decrease of 25.2% compared to $31,416,000 for the same quarter in 2024[13] - Gross profit for the quarter was $6,755,000, down 22.1% from $8,668,000 in the prior year[13] - Operating income decreased to $3,101,000, a decline of 32.7% from $4,624,000 year-over-year[13] - Net income for the quarter was $3,442,000, compared to $3,817,000 in the same quarter of 2024, representing a decrease of 9.8%[13] - For the quarter ended December 31, 2025, net revenue was $23,577,000, a decrease of 25.1% compared to $31,416,000 for the same quarter in 2024[50] - The net income for the quarter ended December 31, 2025, was $3,442,000, resulting in a basic and diluted net income per share of $0.23, down from $0.26 in the prior year[41] - Net revenue from the United States for the quarter ended December 31, 2025, was $22,677,000, a decrease of 24.5% from $29,991,000 in the same quarter of 2024[67] Cash Flow and Assets - Cash provided by operating activities was $11,117,000, down from $14,809,000 in the previous year, a decline of 25.3%[19] - Total assets increased to $228,913,000 as of December 31, 2025, compared to $222,596,000 at September 30, 2025, reflecting a growth of 2.0%[11] - Cash and cash equivalents at the end of the period were $36,731,000, compared to $26,587,000 at the end of the previous quarter, an increase of 38.1%[11] - The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term nature[36] Liabilities and Equity - Total liabilities rose to $13,669,000, an increase of 26.5% from $10,794,000 at the end of the previous quarter[11] - Retained earnings increased to $201,188,000, up from $197,746,000 at September 30, 2025, indicating a growth of 2.3%[15] Inventory and Contract Assets - Slow-moving and obsolete inventory reserves increased to $15,843,000 as of December 31, 2025, compared to $15,569,000 at September 30, 2025[39] - Contract assets decreased to $5,091,000 as of December 31, 2025, from $12,208,000 at September 30, 2025[51] - Customer deposits related to contracts with customers rose to $6,022,000 as of December 31, 2025, up from $3,889,000 at September 30, 2025[55] - The company anticipates that all contract assets at December 31, 2025, will be billed and collected within one year[51] Credit Losses and Provisions - The company reported a provision for credit losses of $95,000 for the quarter, indicating a proactive approach to managing credit risk[19] - The provision for credit losses increased to $95,000 for the quarter ended December 31, 2025, compared to no provision in the same quarter of 2024[59] - The balance for the allowance for credit losses at the end of the quarter was $498,000, up from $425,000 at the end of December 31, 2024, representing a 17.1% increase[59] Marketable Securities - As of December 31, 2025, the total fair value of marketable securities was $111,003,000, with Level 1 investments valued at $80,212,000 and Level 2 investments at $30,791,000[34] - The company recognized net unrealized gains of $169,000 on trading securities during the quarter ended December 31, 2025[34] Customer Concentration - Three customers accounted for 33% of net revenues for the quarter ended December 31, 2025, compared to two customers accounting for 37.6% in the same quarter of 2024[43] Lease Obligations - Operating lease costs for the quarter ended December 31, 2025, were $115,000, compared to $112,000 for the same quarter in 2024, reflecting a 2.7% increase[62] - The total long-term assets attributed to the United States as of December 31, 2025, were $16,422,000, an increase from $16,055,000 as of September 30, 2025[67] - The weighted average remaining lease term as of December 31, 2025, was 0.67 years, down from 0.92 years as of September 30, 2025[63] - The current operating lease liability as of December 31, 2025, was $248,000, consistent with the amount reported as of September 30, 2025[63] - The company recorded a right-of-use asset totaling $370,000 upon extending the lease term through August 31, 2026[61] Subsequent Events - The company did not identify any subsequent events that would require adjustment to or disclosure in the condensed consolidated financial statements[68]