Gencor Releases Third Quarter Fiscal 2025 Results

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].