ORLANDO, Fla., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended June 30, 2026 of $33,805,000 compared with $26,986,000 net revenue for the quarter ended June 30, 2025. The increase in net revenue was primarily due to an increase in contract equipment revenues recognized over time and associated freight revenue. As a percent of net revenue, gross profit margins increased 140 basis points to 27.9% in the quarter ended June 30, 2026, compared to 26.5% in the quarter ended June 30, 2025.
Product engineering and development expenses decreased $61,000 to $680,000 for the quarter ended June 30, 2026, as compared to $741,000 for the quarter ended June 30, 2025 due to lower headcount. Selling, general and administrative (“SG&A”) expenses decreased $313,000 to $2,952,000 for the quarter ended June 30, 2026, compared to $3,265,000 for the quarter ended June 30, 2025 primarily due to reduced professional services expenses.
Operating income increased 85.0%, or $2,665,000, from $3,137,000 for the quarter ended June 30, 2025 to $5,802,000 for the quarter ended June 30, 2026, primarily due to higher gross profits and lower SG&A expenses. Operating margin was 17.2% for the quarter ended June 30, 2026 compared with 11.6% for the quarter ended June 30, 2025.
For the quarter ended June 30, 2026, the Company had net other income of $1,416,000, compared to $2,036,000 for the quarter ended June 30, 2025. Interest and dividend income, net of fees, was $1,176,000 in the quarter ended June 30, 2026 as compared to $1,142,000 in the quarter ended June 30, 2025. The net realized and unrealized gains on marketable securities were $241,000 for the quarter ended June 30, 2026, compared to net realized and unrealized gains of $894,000 for the quarter ended June 30, 2025. The decline in net realized and unrealized gains was due to slightly higher interest rates.
The Company’s effective income tax rate was reduced to 21% for the quarter ended June 30, 2026, based on an expected annual effective income tax rate of 24%, compared to prior income tax rate of 26% for the quarter ended June 30, 2025.
Net income for the quarter ended June 30, 2026 increased $1,855,000, or 48.5%, to $5,683,000, or $0.39 basic and diluted net income per common share, from $3,828,000, or $0.26 basic and diluted net income per common share, for the quarter ended June 30, 2025. The higher net income resulted primarily from the impact of higher net revenues, improved margins and lower SG&A expenses, offset by lower net non-operating income.
Net revenue for the nine months ended June 30, 2026 and 2025 were $91,180,000 and $96,606,000, respectively. The decrease of $5,426,000, or 5.6%, was primarily due to delayed timing of orders in the quarters ended December 31, 2025 and March 31, 2026.
At June 30, 2026, the Company had $164.2 million of cash and cash equivalents and marketable securities compared to $136.3 million at September 30, 2025. Net working capital was $211.3 million at June 30, 2026 compared to $197.7 million at September 30, 2025. The Company had no short-term or long-term debt outstanding at June 30, 2026.
The Company’s backlog was $79.2 million at June 30, 2026 compared to $26.2 million at June 30, 2025.
Marc Elliott, Gencor’s President and Chairman of the Board, commented, “Gencor’s third quarter revenue and profits exceeded our expectations, reflecting our strong manufacturing execution and effective cost management of our overall Operations. Our showing at the recent Conexpo-Con/Agg, coupled with the continued industry momentum, contributed to our record $79.2 million backlog. As remaining IIJA funding obligations continue to flow to states, and optimism surrounds the proposed Build America 250 highway funding bill, we believe we are well-positioned for sustainable performance throughout the remainder of the current fiscal year and into fiscal 2027.”
Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
GENCOR INDUSTRIES, INC.Condensed Consolidated Income Statements
(Unaudited)
For the Quarters Ended
June 30, For the Nine Months Ended
June 30, 2026
2025
2026
2025
Net revenue$33,805,000 $26,986,000 $91,180,000 $96,606,000Cost of goods sold 24,371,000 19,843,000 64,284,000 69,442,000Gross 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 2,099,000Selling, general and administrative 2,952,000 3,265,000 11,692,000 10,824,000Total 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 3,289,000Net 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 18,567,000Income tax expense 1,536,000 1,345,000 4,075,000 4,827,000Net 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
June 30, 2026
(Unaudited) September 30, 2025ASSETS Current assets: Cash and cash equivalents26,258,000 26,587,000Marketable securities at fair value (cost of $136,069,000 at June 30, 2026 and $107,237,000 at September 30, 2025)137,911,000 109,714,000Accounts receivable, less allowance for credit losses of ($438,000 at June 30, 2026 and $434,000 at September 30, 2025)2,795,000 3,130,000Contract assets6,397,000 12,208,000Inventories, net46,985,000 53,503,000Prepaid expenses and other current assets2,562,000 1,399,000Total current assets222,908,000 206,541,000Property and equipment, net11,220,000 11,079,000Deferred income taxes4,740,000 4,584,000Other long-term assets116,000 392,000Total Assets238,984,000 222,596,000
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable3,607,000 1,842,000Customer deposits3,028,000 3,889,000Contract liabilities2,825,000 Accrued expenses2,110,000 2,741,000Current operating lease liabilities63,000 339,000Total current liabilities11,633,000 8,811,000 Unrecognized tax benefits2,582,000 1,983,000Total liabilities14,215,000 10,794,000Commitments and contingencies Shareholders’ equity: Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,338,845 shares issued and outstanding at June 30, 2026 and September 30, 20251,234,000 1,234,000Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at June 30, 2026 and September 30, 2025232,000 232,000Capital in excess of par value12,590,000 12,590,000Retained earnings210,713,000 197,746,000Total shareholders’ equity224,769,000 211,802,000Total Liabilities and Shareholders’ Equity238,984,000 222,596,000 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.
Contact:Raymond Cole, Interim Chief Financial Officer 407-290-6000