Product engineering and development expenses decreased
Operating income increased 85.0%, or
For the quarter ended
The Company’s effective income tax rate was reduced to 21% for the quarter ended
Net income for the quarter ended
Net revenue for the nine months ended
At
The Company’s backlog was
Condensed Consolidated Income Statements (Unaudited) | |||||||||||
| For the Quarters Ended | For the Nine Months Ended | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Net revenue | $ | 33,805,000 | $ | 26,986,000 | $ | 91,180,000 | $ | 96,606,000 | |||
| Cost of goods sold | 24,371,000 | 19,843,000 | 64,284,000 | 69,442,000 | |||||||
| Gross profit | 9,434,000 | 7,143,000 | 26,896,000 | 27,164,000 | |||||||
| Operating expenses: | |||||||||||
| Product engineering and development | 680,000 | 741,000 | 2,067,000 | 2,099,000 | |||||||
| Selling, general and administrative | 2,952,000 | 3,265,000 | 11,692,000 | 10,824,000 | |||||||
| Total operating expenses | 3,632,000 | 4,006,000 | 13,759,000 | 12,923,000 | |||||||
| Operating income | 5,802,000 | 3,137,000 | 13,137,000 | 14,241,000 | |||||||
| Other income, net: | |||||||||||
| Interest and dividend income, net of fees | 1,176,000 | 1,142,000 | 3,464,000 | 3,289,000 | |||||||
| Net realized and unrealized gains on marketable securities | 241,000 | 894,000 | 439,000 | 1,037,000 | |||||||
| Total other income, net | 1,417,000 | 2,036,000 | 3,903,000 | 4,326,000 | |||||||
| Income before income tax expense | 7,219,000 | 5,173,000 | 17,040,000 | 18,567,000 | |||||||
| Income tax expense | 1,536,000 | 1,345,000 | 4,075,000 | 4,827,000 | |||||||
| Net income | $ | 5,683,000 | $ | 3,828,000 | $ | 12,965,000 | $ | 13,740,000 | |||
| Net income per common share – basic and diluted | $ | 0.39 | $ | 0.26 | $ | 0.89 | $ | 0.94 | |||
| See accompanying Notes to Condensed Consolidated Financial Statements | |||||||||||
Condensed Consolidated Balance Sheets | |||
(Unaudited) | |||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 26,258,000 | 26,587,000 | |
| Marketable securities at fair value (cost of | 137,911,000 | 109,714,000 | |
| Accounts receivable, less allowance for credit losses of ( | 2,795,000 | 3,130,000 | |
| Contract assets | 6,397,000 | 12,208,000 | |
| Inventories, net | 46,985,000 | 53,503,000 | |
| Prepaid expenses and other current assets | 2,562,000 | 1,399,000 | |
| Total current assets | 222,908,000 | 206,541,000 | |
| Property and equipment, net | 11,220,000 | 11,079,000 | |
| Deferred income taxes | 4,740,000 | 4,584,000 | |
| Other long-term assets | 116,000 | 392,000 | |
| Total Assets | 238,984,000 | 222,596,000 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Accounts payable | 3,607,000 | 1,842,000 | |
| Customer deposits | 3,028,000 | 3,889,000 | |
| Contract liabilities | 2,825,000 | ||
| Accrued expenses | 2,110,000 | 2,741,000 | |
| Current operating lease liabilities | 63,000 | 339,000 | |
| Total current liabilities | 11,633,000 | 8,811,000 | |
| Unrecognized tax benefits | 2,582,000 | 1,983,000 | |
| Total liabilities | 14,215,000 | 10,794,000 | |
| Commitments and contingencies | |||
| Shareholders’ equity: | |||
| Preferred stock, par value | |||
| Common stock, par value | 1,234,000 | 1,234,000 | |
| Class | 232,000 | 232,000 | |
| Capital in excess of par value | 12,590,000 | 12,590,000 | |
| Retained earnings | 210,713,000 | 197,746,000 | |
| Total shareholders’ equity | 224,769,000 | 211,802,000 | |
| Total Liabilities and Shareholders’ Equity | 238,984,000 | 222,596,000 | |
| See accompanying Notes to Condensed Consolidated Financial Statements | |||
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the Company’s beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company’s control. The Company’s actual results may differ materially from those set forth in the Company’s forward-looking statements depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments, and demand for the Company’s products. In addition, the impact of (i) the United States (“U.S.”) government’s tariff announcements, (ii) the ongoing conflicts and/or tensions involving Russia, Ukraine, Israel, Iran, the U.S., and various other countries, and (iii) any actions taken by the U.S. or other countries in response to such tariff announcements, conflicts and/or tensions, could result in a disruption in our supply chain and higher costs of our products. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2025: (a) Part I, Item 1A, “Risk Factors” and (b) Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. However, other factors besides those referenced could adversely affect the Company’s results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.
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| 407-290-6000 |
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