Gencor Releases Second Quarter Fiscal 2025 Results
Rhea-AI Summary
Gencor Industries (NYSE American: GENC) reported its Q2 fiscal 2025 results with net revenue of $38.2 million, down 6.1% from $40.7 million in Q2 2024. Gross profit margins slightly decreased to 29.7% from 30.3% due to higher material costs.
For the six months ended March 31, 2025, the company achieved net revenue of $69.6 million and net income of $9.9 million ($0.68 per share), compared to revenue of $66.7 million and net income of $10.5 million ($0.72 per share) in the same period of 2024. The company maintains a strong financial position with $143.7 million in cash and marketable securities and no debt. However, backlog decreased to $27.8 million from $50.4 million year-over-year.
Positive
- Strong cash position of $143.7 million, up from $115.4 million in September 2024
- Six-month revenue increased to $69.6 million from $66.7 million year-over-year
- Operating income for six months improved to $11.1 million from $10.5 million
- Company maintains zero debt position
- Reduced operating expenses through lower headcount and SG&A costs
Negative
- Q2 revenue declined 6.1% year-over-year to $38.2 million
- Gross profit margins decreased to 29.7% from 30.3% due to higher material costs
- Backlog significantly decreased to $27.8 million from $50.4 million year-over-year
- Net income per share for six months declined to $0.68 from $0.72 year-over-year
- Higher effective tax rate of 26.0% compared to 23.0% in previous year
News Market Reaction
On the day this news was published, GENC gained 9.65%, reflecting a notable positive market reaction. Argus tracked a peak move of +9.1% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $21M to the company's valuation, bringing the market cap to $240M at that time.
Data tracked by StockTitan Argus on the day of publication.
ORLANDO, Fla., July 25, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended March 31, 2025 of
Product engineering and development expenses decreased
The Company had operating income of
For the quarter ended March 31, 2025, the Company had net other income of
The effective income tax rates for the quarters ended March 31, 2025 and March 31, 2024 were
For the six months ended March 31, 2025 the Company had net revenue of
At March 31, 2025, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President, commented, “We are pleased with the significant increase in revenues in our first quarter, which is traditionally our lowest revenue quarter of the year. Although second quarter revenues were slightly lower, our overall six-month year-over-year performance attained approximately
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, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Net revenue | |||||||||||
| Cost of goods sold | 26,851,000 | 28,354,000 | 49,599,000 | 46,838,000 | |||||||
| Gross profit | 11,353,000 | 12,322,000 | 20,021,000 | 19,856,000 | |||||||
| Operating expenses: | |||||||||||
| Product engineering and development | 681,000 | 893,000 | 1,357,000 | 1,694,000 | |||||||
| Selling, general and administrative | 4,192,000 | 4,357,000 | 7,560,000 | 7,707,000 | |||||||
| Total operating expenses | 4,873,000 | 5,250,000 | 8,917,000 | 9,401,000 | |||||||
| Operating income | 6,480,000 | 7,072,000 | 11,104,000 | 10,455,000 | |||||||
| Other income (expense), net: | |||||||||||
| Interest and dividend income, net of fees | 1,158,000 | 803,000 | 2,147,000 | 1,519,000 | |||||||
| Net realized and unrealized gains on marketable securities | 598,000 | 205,000 | 143,000 | 1,724,000 | |||||||
| Total other income (expense), net | 1,756,000 | 1,008,000 | 2,290,000 | 3,243,000 | |||||||
| Income before income tax expense | 8,236,000 | 8,080,000 | 13,394,000 | 13,698,000 | |||||||
| Income tax expense | 2,141,000 | 1,858,000 | 3,482,000 | 3,150,000 | |||||||
| Net income | |||||||||||
| Net income per common share – basic and diluted | |||||||||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
| ASSETS | March 31, 2025 (Unaudited) | September 30, 2024 | |||
| Current assets: | |||||
| Cash and cash equivalents | |||||
| Marketable securities at fair value (cost of | 91,405,000 | 89,927,000 | |||
| Accounts receivable, less allowance for credit losses of | 5,155,000 | 1,980,000 | |||
| Contract assets | 4,380,000 | 9,339,000 | |||
| Inventories, net | 55,092,000 | 63,762,000 | |||
| Prepaid expenses | 841,000 | 2,352,000 | |||
| Total current assets | 209,143,000 | 192,842,000 | |||
| Property and equipment, net | 10,726,000 | 11,472,000 | |||
| Deferred income taxes | 3,483,000 | 3,424,000 | |||
| Other long-term assets | 575,000 | 383,000 | |||
| Total Assets | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | |||||
| Customer deposits | 5,550,000 | 5,018,000 | |||
| Contract liabilities | 2,796,000 | - | |||
| Accrued expenses | 3,676,000 | 3,255,000 | |||
| Current operating lease liabilities | 366,000 | 330,000 | |||
| Total current liabilities | 15,940,000 | 10,604,000 | |||
| Unrecognized tax benefits | 1,778,000 | 1,376,000 | |||
| Non-current operating lease liabilities | 156,000 | - | |||
| Total liabilities | 17,874,000 | 11,980,000 | |||
| 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 March 31, 2025 and September 30, 2024 | 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 March 31, 2025 and September 30, 2024 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 191,997,000 | 182,085,000 | |||
| Total shareholders’ equity | 206,053,000 | 196,141,000 | |||
| Total Liabilities and Shareholders’ Equity | |||||
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, demand for the Company’s products and the timing and consequences of the delays in the Company’s regaining compliance with its SEC filing obligations. In addition, the impact of (i) the U.S. government’s recent tariff announcements, (ii) the invasion by Russia into Ukraine, and (iii) the conflict between Israel and Hamas, including hostilities involving Iran, as well as 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, 2024: (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 (GENC) Q2 2025 earnings results?
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How did Gencor's (GENC) gross profit margins change in Q2 2025?
What was Gencor's (GENC) six-month performance for fiscal 2025?
