Gencor Releases Fourth Quarter and Fiscal Year 2025 Results

Core Insights - Gencor Industries, Inc. reported a net revenue of $18.8 million for Q4 2025, a decrease of 10.0% from $20.9 million in Q4 2024 [1] - The company's gross profit margin for Q4 2025 was 24.2%, down from 25.6% in Q4 2024, attributed to reduced manufacturing overhead absorption [1] - For the fiscal year 2025, net revenue increased by 2.0% to $115.4 million from $113.2 million in fiscal 2024 [3] Financial Performance - The operating loss for Q4 2025 was ($0.2) million, compared to an operating income of $1.2 million in Q4 2024, due to lower gross profit margins and higher SG&A expenses [2] - The company had net non-operating income of $1.9 million in Q4 2025, down from $2.5 million in Q4 2024 [2] - Net income for Q4 2025 was $1.9 million, an increase from $1.5 million in Q4 2024 [2] Yearly Overview - For the year ended September 30, 2025, the gross profit margin was relatively stable at 27.5%, compared to 27.7% in fiscal 2024 [3] - Operating income for fiscal 2025 was $14.0 million, up from $13.7 million in fiscal 2024, driven by increased sales [5] - The effective income tax rate for fiscal 2025 was 22.5%, down from 29.8% in fiscal 2024 [7] Expenses and Income - Product engineering and development expenses decreased by $555,000 to $2.758 million in fiscal 2025, while SG&A expenses increased by $610,000 to $14.937 million [4] - Interest and dividend income for the year ended September 30, 2025, was $4.373 million, up from $3.435 million in the previous year [6] - Net other income for the year was $6.181 million, down from $7.043 million in fiscal 2024 [6] Balance Sheet and Cash Position - As of September 30, 2025, the company had $136.3 million in cash and marketable securities, an increase of $20.9 million from $115.4 million in 2024 [8] - The company's working capital rose to $197.7 million at September 30, 2025, compared to $182.2 million at the same time in 2024 [8] - Gencor had no short-term or long-term debt as of September 30, 2025 [8] Market Position and Outlook - The company's backlog was $23.6 million as of December 1, 2025, a significant decrease from $56.2 million a year earlier [8] - Gencor's President noted that the company faced increased competition but still achieved improved net income and cash reserves [9] - The company is a diversified heavy machinery manufacturer focused on highway construction materials and environmental control machinery [10]