Gencor Releases First Quarter Fiscal 2026 Results

Core Viewpoint - Gencor Industries, Inc. reported a decline in net revenue for the quarter ended December 31, 2025, primarily due to delays and uncertainty surrounding federal infrastructure spending, although gross profit margins improved due to higher sales of parts and components [1][7]. Financial Performance - Net revenue for the quarter was $23,577,000, down from $31,416,000 in the same quarter of 2024, representing a decrease of $7,839,000 [1]. - Gross profit margins increased to 28.7% from 27.6% year-over-year, driven by higher-margin parts and components sales [1]. - Operating income decreased to $3,101,000 from $4,624,000 year-over-year, attributed to lower revenues [3]. - Net income for the quarter was $3,442,000, or $0.23 per share, compared to $3,817,000, or $0.26 per share in the prior year [5]. Expenses - Product engineering and development expenses rose by $81,000 to $758,000 compared to $677,000 in the previous year [2]. - Selling, general and administrative expenses decreased by $471,000 to $2,896,000, attributed to lower commissions and professional service fees [2]. Other Income - The company reported net other income of $1,550,000, up from $534,000 in the previous year, including net realized and unrealized gains on marketable securities of $373,000 compared to losses of $(455,000) in the prior year [4]. Balance Sheet and Cash Position - As of December 31, 2025, the company had $147.7 million in cash and cash equivalents and marketable securities, an increase from $136.3 million at September 30, 2025 [6]. - Net working capital was $200.9 million, up from $197.7 million at the end of the previous quarter [6]. - The company had no short-term or long-term debt outstanding [6]. Backlog and Market Outlook - The backlog stood at $57.4 million as of December 31, 2025, compared to $54.4 million a year earlier, indicating a positive outlook for future orders [6][7]. - The president of Gencor noted a recent pickup in order activity and optimism from customers regarding large capital purchases, suggesting a solid year ahead [7].