ORLANDO, Fla., May 08, 2026 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended March 31, 2026 was $33,799,000 compared with $38,204,000 net revenue for the quarter ended March 31, 2025. The decrease in net revenue was primarily due to lower contract equipment revenues recognized over time and associated freight revenue, which resulted from the timing of orders and shipments. As a percentage of net revenue, gross profit margins increased 200 basis points to 31.7% in the quarter ended March 31, 2026, compared to 29.7% in the quarter ended March 31, 2025.
Product engineering and development expenses decreased $52,000 to $629,000 for the quarter ended March 31, 2026, as compared to $681,000 for the quarter ended March 31, 2025 primarily due to lower headcount. Selling, general and administrative (“SG&A”) expenses decreased $1,270,000 to $2,922,000 for the quarter ended March 31, 2026, compared to $4,192,000 for the quarter ended March 31, 2025 primarily due to reduced professional services expenses.
Operating income increased 10.4%, or $677,000, from $6,480,000 for the quarter ended March 31, 2025 to $7,157,000 for the quarter ended March 31, 2026, primarily due to lower SG&A expenses. The operating margin was 21.1% for the quarter ended March 31, 2026 compared with 17.0% for the quarter ended March 31, 2025.
For the quarter ended March 31, 2026, the Company had net other income of $937,000, compared to $1,756,000 for the quarter ended March 31, 2025. Interest and dividend income, net of fees, was $1,111,000 in the quarter ended March 31, 2026 as compared to $1,158,000 in the quarter ended March 31, 2025. The net realized and unrealized losses on marketable securities were $174,000 for the quarter ended March 31, 2026, compared to net realized and unrealized gains of $598,000 for the quarter ended March 31, 2025. The decline in net realized and unrealized gains was due to slightly higher interest rates on longer duration bonds that caused a decline in value.
The effective income tax rate for both the quarters ended March 31, 2026 and March 31, 2025 was 26.0% based on the expected annual effective income tax rate. Net income for the quarter ended March 31, 2026 decreased $105,000 or 1.7% to $5,990,000, or $0.41 basic and diluted net income per common share, from $6,095,000, or $0.42 basic and diluted net income per common share, for the quarter ended March 31, 2025. The slightly lower net income resulted primarily from the impact of lower net revenues and net non-operating income partially offset by improved margins and lower SG&A expenses.
For the six months ended March 31, 2026 the Company had net revenue of $57,376,000 and net income of $9,432,000, or $0.64 per basic and diluted common share, compared to net revenue of $69,620,000 and net income of $9,912,000 or $0.68 per basic and diluted common share for the six months ended March 31, 2025.
At March 31, 2026, the Company had $155.1 million of cash and cash equivalents and marketable securities compared to $136.3 million at September 30, 2025. Net working capital was $207.4 million at March 31, 2026 compared to $197.7 million at September 30, 2025. The Company had no short-term or long-term debt outstanding at March 31, 2026.
The Company’s backlog was $60.5 million at March 31, 2026 compared to $27.8 million at March 31, 2025.
Marc Elliott, Gencor’s President and Chairman of the Board, commented, “Gencor’s second quarter revenue decline from the previous year was due to a slow start to the season delaying asphalt plant orders typically sold earlier in the fiscal year. Despite lower revenue, gross profit margins exceeded expectations, reflecting strong manufacturing execution and effective cost management. Our $60.5 million backlog was more than double the prior year as remaining IIJA funding obligations continued to flow to states. With this record backlog entering the third quarter, we are well-positioned for sustainable performance through the remainder of this 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
March 31, For the Six Months Ended
March 31, 2026 2025 2026 2025 Net revenue$33,799,000 $38,204,000 $57,376,000 $69,620,000Cost of goods sold 23,091,000 26,851,000 39,913,000 49,599,000Gross profit 10,708,000 11,353,000 17,463,000 20,021,000
Operating expenses: Product engineering and development 629,000 681,000 1,387,000 1,357,000Selling, general and administrative 2,922,000 4,192,000 5,818,000 7,560,000Total operating expenses 3,551,000 4,873,000 7,205,000 8,917,000 Operating income 7,157,000 6,480,000 10,258,000 11,104,000 Other income (expense), net: Interest and dividend income, net of fees 1,111,000 1,158,000 2,288,000 2,147,000Net realized and unrealized gains (losses) on marketable securities (174,000) 598,000 199,000 143,000 Total other income, net 937,000 1,756,000 2,487,000 2,290,000 Income before income tax expense 8,094,000 8,236,000 12,745,000 13,394,000Income tax expense 2,104,000 2,141,000 3,313,000 3,482,000Net income$5,990,000 $6,095,000 $9,432,000 $9,912,000 Net income per common share – basic and diluted$0.41 $0.42 $0.64 $0.68
Condensed Consolidated Balance Sheets
ASSETSMarch 31, 2026
(Unaudited) September 30, 2025Current assets: Cash and cash equivalents$43,464,000 $26,587,000Marketable securities at fair value (cost of $109,533,000 at March 31, 2026 and $107,237,000 at September 30, 2025) 111,670,000 109,714,000Accounts receivable, less allowance for credit losses of $529,000 at March 31, 2026 and $434,000 at September 30, 2025 3,932,000 3,130,000Contract assets 7,552,000 12,208,000Inventories, net 51,071,000 53,503,000Prepaid expenses and other current assets 5,314,000 1,399,000Total current assets 223,003,000 206,541,000
Property and equipment, net 11,154,000 11,079,000Deferred income taxes 4,843,000 4,584,000Other long-term assets 209,000 392,000Total Assets$239,209,000 $222,596,000
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable$4,834,000 $1,842,000Customer deposits 7,105,000 3,889,000Contract liabilities 1,233,000 -Accrued expenses 2,282,000 2,741,000Current operating lease liabilities 156,000 339,000Total current liabilities 15,610,000 8,811,000 Unrecognized tax benefits 2,365,000 1,983,000Total liabilities 17,975,000 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; 12,339,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 1,234,000 1,234,000Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,319,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 232,000 232,000Capital in excess of par value 12,590,000 12,590,000Retained earnings 207,178,000 197,746,000Total shareholders’ equity 221,234,000 211,802,000Total Liabilities and Shareholders’ Equity$239,209,000 $222,596,000
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.