Gencor Releases Fourth Quarter and Fiscal Year 2024 Results

Core Insights - Gencor Industries, Inc. reported net revenue of $20.9 million for Q4 2024, unchanged from Q4 2023, with a gross profit margin of 25.6%, down from 31.7% in the previous year [1][2] - For the fiscal year 2024, net revenue increased by 7.7% to $113.2 million from $105.1 million in fiscal 2023, with a gross profit margin of 27.7%, slightly up from 27.6% [3][7] - The company experienced a decrease in operating income to $1.2 million in Q4 2024 from $2.7 million in Q4 2023, primarily due to reduced gross profit margins [2][5] Financial Performance - The operating income for fiscal 2024 was $13.7 million, compared to $13.4 million in fiscal 2023, indicating a slight increase despite higher selling, general, and administrative (SG&A) expenses [5][4] - SG&A expenses rose to $14.3 million in fiscal 2024 from $12.2 million in fiscal 2023, attributed to increased trade show expenses, professional fees, and sales commissions [4] - Net income for the year ended September 30, 2024, was $14.6 million, or $0.99 per share, compared to $14.7 million, or $1.00 per share, in the previous year [7][13] Cash and Assets - As of September 30, 2024, the company had $115.4 million in cash and marketable securities, an increase of $14.1 million from $101.3 million in the previous year [8] - Working capital improved to $182.2 million at September 30, 2024, compared to $164.8 million at the same date in 2023 [8] - The company's total assets increased to $208.1 million in 2024 from $195.9 million in 2023, with no short-term or long-term debt [8][14] Market Outlook - The company expressed optimism for fiscal 2025, citing a strong backlog of $56.2 million as of December 1, 2024, which is expected to support demand for its products [10][11] - The revenue growth of 7.7% year-over-year is attributed to benefits from the Infrastructure Investment and Jobs Act (IIJA) funding [10][9]