Gencor Releases Second Quarter Fiscal 2026 Results
Rhea-AI Summary
Gencor (NYSE American: GENC) reported Q2 fiscal 2026 net revenue of $33,799,000, down from $38,204,000 a year earlier. Gross margin rose 200 basis points to 31.7%. Operating income increased to $7,157,000 and operating margin was 21.1%. Net income was $5,990,000 or $0.41 per share. Cash and marketable securities totaled $155.1 million and the company had no debt. Backlog was $60.5 million, more than double the prior year.
AI-generated analysis. Not financial advice.
Positive
- Gross margin improved 200 basis points to 31.7%
- Operating income increased 10.4% to $7.157 million
- Backlog rose to $60.5 million, more than double prior-year level
- Cash and marketable securities totaled $155.1 million and the company had no short- or long-term debt
Negative
- Quarterly net revenue declined 11.5% to $33.799 million
- Six-month net revenue fell 17.6% to $57.376 million
Key Figures
Market Reality Check
Peers on Argus
GENC was up 1.96% with mixed peer action: AGFY gained 4.71%, MTW rose 0.59%, while CMCO, TWI, and WNC declined between 0.76% and 2.20%, suggesting stock-specific dynamics rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 06 | Q1 2026 earnings | Negative | +12.2% | Revenue declined year-over-year but backlog and cash remained strong. |
| Dec 23 | Leadership change | Neutral | +0.0% | Founder retirement and appointment of Marc Elliott as Chairman. |
| Dec 09 | FY 2025 earnings | Neutral | -1.8% | Modest full-year revenue growth and higher net income with strong cash. |
Earnings releases with softer revenue but solid balance-sheet metrics have previously seen mixed price reactions, including at least one notable positive divergence.
Recent news for GENC has centered on earnings and leadership transition. On Dec 9, 2025, fiscal 2025 results showed modest revenue growth and higher net income with strong cash of $136.3M. On Dec 23, 2025, a leadership change installed Marc Elliott as Chairman. Q1 FY2026 results on Feb 6, 2026 reported revenue pressure but strong cash of $147.7M and backlog of $57.4M. Today’s Q2 release continues the theme of lower revenue but solid margins, cash, and backlog.
Market Pulse Summary
This announcement highlights a quarter where net revenue slipped to $33.8M but profitability and the balance sheet remained strong. Gross margin improved to 31.7%, operating income increased, and net income was only modestly lower. Cash and marketable securities totaled $155.1M with no debt, and backlog reached $60.5M. Investors may track how backlog converts to revenue and whether margins around the 21.1% operating level can be sustained.
Key Terms
basis points financial
marketable securities financial
forward-looking statements regulatory
Form 10-K regulatory
AI-generated analysis. Not financial advice.
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
Product engineering and development expenses decreased
Operating income increased
For the quarter ended March 31, 2026, the Company had net other income of
The effective income tax rate for both the quarters ended March 31, 2026 and March 31, 2025 was
For the six months ended March 31, 2026 the Company had net revenue of
At March 31, 2026, the Company had
The Company’s backlog was
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
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 | $ | 69,620,000 | ||||
| Cost of goods sold | 23,091,000 | 26,851,000 | 39,913,000 | 49,599,000 | ||||||||
| Gross 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 | 1,357,000 | ||||||||
| Selling, general and administrative | 2,922,000 | 4,192,000 | 5,818,000 | 7,560,000 | ||||||||
| Total 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 | 2,147,000 | ||||||||
| Net 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 | 13,394,000 | ||||||||
| Income tax expense | 2,104,000 | 2,141,000 | 3,313,000 | 3,482,000 | ||||||||
| Net 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 | ||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
| ASSETS | March 31, 2026 (Unaudited) | September 30, 2025 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 43,464,000 | $ | 26,587,000 | |
| Marketable securities at fair value (cost of | 111,670,000 | 109,714,000 | |||
| Accounts receivable, less allowance for credit losses of | 3,932,000 | 3,130,000 | |||
| Contract assets | 7,552,000 | 12,208,000 | |||
| Inventories, net | 51,071,000 | 53,503,000 | |||
| Prepaid expenses and other current assets | 5,314,000 | 1,399,000 | |||
| Total current assets | 223,003,000 | 206,541,000 | |||
Property and equipment, net | 11,154,000 | 11,079,000 | |||
| Deferred income taxes | 4,843,000 | 4,584,000 | |||
| Other long-term assets | 209,000 | 392,000 | |||
| Total Assets | $ | 239,209,000 | $ | 222,596,000 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 4,834,000 | $ | 1,842,000 | |
| Customer deposits | 7,105,000 | 3,889,000 | |||
| Contract liabilities | 1,233,000 | - | |||
| Accrued expenses | 2,282,000 | 2,741,000 | |||
| Current operating lease liabilities | 156,000 | 339,000 | |||
| Total current liabilities | 15,610,000 | 8,811,000 | |||
| Unrecognized tax benefits | 2,365,000 | 1,983,000 | |||
| Total liabilities | 17,975,000 | 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; | |||||
| 12,339,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 | 1,234,000 | 1,234,000 | |||
| Class 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 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 207,178,000 | 197,746,000 | |||
| Total shareholders’ equity | 221,234,000 | 211,802,000 | |||
| Total 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.
| Contact: | Eric Mellen, Chief Financial Officer |
| 407-290-6000 |
