Gencor Releases First Quarter Fiscal 2026 Results
Rhea-AI Summary
Gencor (NYSE: GENC) reported Q1 FY2026 net revenue of $23.577M, down from $31.416M a year earlier, driven by weaker contract equipment sales and government spending uncertainty. Gross margin improved to 28.7%. Operating income was $3.101M and net income was $3.442M ($0.23/share). Cash and marketable securities totaled $147.7M, backlog was $57.4M, and the company reported no short- or long-term debt.
Positive
- Selling, general and administrative expenses decreased by $471,000 (to $2.896M)
- Other income rose to $1.55M, supported by $373,000 gains on marketable securities
- No short-term or long-term debt outstanding at December 31, 2025
Negative
- Net revenue declined ~25% year-over-year to $23.577M
- Operating income fell ~33% to $3.101M versus $4.624M prior year
- Contract equipment sales decreased due to delays and uncertainty around the federal infrastructure spending bill
Key Figures
Market Reality Check
Peers on Argus
GENC was down 3.76% while peers were mixed: AGFY +4.71%, MTW +1.11%, WNC +8.41%, CMCO -1.55%, TWI -0.94%, indicating stock-specific pressure rather than a uniform sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 23 | Leadership transition | Neutral | +0.0% | Founder EJ Elliott retirement and Marc Elliott’s appointment as Chairman. |
| Dec 09 | FY2025 earnings | Positive | -1.8% | Modest FY2025 revenue and earnings growth with strong cash and no debt. |
| Aug 08 | Q3 2025 earnings | Positive | +2.0% | Q3 revenue, margin, and net income growth with strong cash position. |
Recent earnings-type news has seen one aligned positive reaction and one mild divergence where shares slipped despite stronger annual results.
Over the past several months, GENC has reported generally solid fundamentals with some softening in demand indicators. Q3 2025 results showed revenue and earnings growth with a positive price reaction. Fiscal 2025 earnings in December highlighted modest annual growth and a strong balance sheet but drew a -1.84% move. A leadership transition announcement in late December 2025 had a flat reaction. Today’s softer quarterly revenue fits into that mixed but fundamentally resilient backdrop.
Market Pulse Summary
This announcement highlighted a mixed quarter: net revenue declined to $23.6M and EPS to $0.23, but gross margin improved to 28.7% and cash plus marketable securities climbed to $147.7M. Backlog of $57.4M exceeded the prior year, suggesting some recovery in orders. Relative to prior reports, investors may watch future quarters for revenue re-acceleration, backlog trends, and how cost discipline sustains margins.
Key Terms
marketable securities financial
allowance for credit losses financial
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
ORLANDO, Fla., Feb. 06, 2026 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2025 was
Product engineering and development expenses increased
The Company had operating income of
For the quarter ended December 31, 2025, the Company had net other income of
The effective income tax rates for the quarters ended December 31, 2025 and December 31, 2024 were
At December 31, 2025, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President and Chairman of the Board, commented, “Despite a first quarter decline in revenues, Gencor realized a higher gross profit margin on sales due primarily to robust aftermarket sales activity. We started our fiscal year with weaker-than-normal backlog and a government shutdown that affected customer confidence in the first quarter. In recent months, however, we have seen a pickup in order activity and more optimism from our customers on large capital purchases. Our current backlog of over
Gencor is a leading manufacturer of heavy machinery used in the production of highway construction equipment and materials and environmental control equipment.
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||||
ASSETS | December 31, 2025 (Unaudited) | September 30, 2025 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 36,731,000 | $ | 26,587,000 | |||
| Marketable securities at fair value (cost of 2025 and | 111,003,000 | 109,714,000 | |||||
| Accounts receivable, less allowance for credit losses of December 31, 2025 and | 3,498,000 | 3,130,000 | |||||
| Contract assets | 5,091,000 | 12,208,000 | |||||
| Inventories, net | 53,249,000 | 53,503,000 | |||||
| Prepaid expenses | 2,919,000 | 1,399,000 | |||||
| Total current assets | 212,491,000 | 206,541,000 | |||||
| Property and equipment, net | 11,510,000 | 11,079,000 | |||||
| Deferred income taxes | 4,611,000 | 4,584,000 | |||||
| Other long-term assets | 301,000 | 392,000 | |||||
| Total Assets | $ | 228,913,000 | $ | 222,596,000 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,991,000 | $ | 1,842,000 | |||
| Customer deposits | 6,022,000 | 3,889,000 | |||||
| Accrued expenses | 3,286,000 | 2,741,000 | |||||
| Current operating lease liabilities | 248,000 | 339,000 | |||||
| Total current liabilities | 11,547,000 | 8,811,000 | |||||
| Unrecognized tax benefits | 2,122,000 | 1,983,000 | |||||
| Total liabilities | 13,669,000 | 10,794,000 | |||||
| Commitments 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 December 31, 2025 and September 30, 2025 | 1,234,000 | 1,234,000 | |||||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | |||||||
| 2,318,857 shares issued and outstanding at December 31, 2025 and September 30, 2025 | 232,000 | 232,000 | |||||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||||
| Retained earnings | 201,188,000 | 197,746,000 | |||||
| Total shareholders’ equity | 215,244,000 | 211,802,000 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 228,913,000 | $ | 222,596,000 | |||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Income Statements For the Quarters Ended December 31, 2025 and 2024 (Unaudited) | |||||||
| 2025 | 2024 | ||||||
| Net revenue | $ | 23,577,000 | $ | 31,416,000 | |||
| Cost of goods sold | 16,822,000 | 22,748,000 | |||||
| Gross profit | 6,755,000 | 8,668,000 | |||||
| Operating expenses: | |||||||
| Product engineering and development | 758,000 | 677,000 | |||||
| Selling, general and administrative | 2,896,000 | 3,367,000 | |||||
| Total operating expenses | 3,654,000 | 4,044,000 | |||||
| Operating income | 3,101,000 | 4,624,000 | |||||
| Other income, net: | |||||||
| Interest and dividend income, net of fees | 1,177,000 | 989,000 | |||||
| Realized and unrealized gains (losses) on marketable securities, net | 373,000 | (455,000) | |||||
| Total other income, net | 1,550,000 | 534,000 | |||||
| Income before income tax expense | 4,651,000 | 5,158,000 | |||||
| Income tax expense | 1,209,000 | 1,341,000 | |||||
| Net income | $ | 3,442,000 | $ | 3,817,000 | |||
| Net income per common share – basic and diluted | $ | 0.23 | $ | 0.26 | |||
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 U.S. government’s recent tariff announcements, (ii) actions taken by other countries, including the U.S., in response to such tariff announcements and conflicts, 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: | Eric Mellen, Chief Financial Officer 407-290-6000 |
FAQ
What were Gencor's Q1 FY2026 revenue and EPS (GENC)?
Why did Gencor (GENC) see lower contract equipment sales in Q1 2026?
How did Gencor's margins and profitability change in Q1 FY2026?
What is Gencor's cash, liquidity and debt position at Dec 31, 2025 (GENC)?
What does Gencor's backlog of $57.4M mean for FY2026 outlook (GENC)?
