Gencor (NYSE American: GENC) Q1 2026 revenue falls as backlog grows

Rhea-AI Filing Summary

Gencor Industries reported weaker first quarter fiscal 2026 results. Net revenue for the quarter ended December 31, 2025 was $23.6 million, down from $31.4 million a year earlier, mainly due to delays and uncertainty around replacement of the current five-year Federal infrastructure spending bill.

Gross margin improved to 28.7% from 27.6% as higher-margin parts and components made up more of sales, and SG&A expenses fell. However, operating income declined to $3.1 million from $4.6 million, and net income slipped to $3.4 million, or $0.23 per share, from $3.8 million, or $0.26 per share. Gencor ended the quarter with $147.7 million in cash and marketable securities, no debt, and backlog of $57.4 million, slightly above the prior year, which management says supports a more optimistic outlook.

Positive

• Stronger balance sheet and liquidity with $147.7 million in cash and marketable securities at December 31, 2025, up from $136.3 million at September 30, 2025, and no short-term or long-term debt.
• Improving quality of business and backlog as gross margin rose to 28.7% from 27.6% on higher aftermarket parts mix, and backlog increased to $57.4 million from $54.4 million year over year, supporting management’s expectation of a solid year.

Negative

• Material revenue and earnings decline with net revenue dropping to $23.6 million from $31.4 million and EPS falling to $0.23 from $0.26, reflecting weaker contract equipment demand.
• Exposure to infrastructure funding uncertainty as management cites delays and uncertainty around replacing the five-year Federal infrastructure bill expiring September 30, 2026 as a key driver of lower contract equipment sales.

Insights

Equity analyst – industrials and capital goods

Revenue and earnings declined, but margins, cash, and backlog remain solid.

Gencor saw first quarter net revenue fall to $23,577,000 from $31,416,000, reflecting softer contract equipment demand tied to uncertainty over the Federal infrastructure bill expiring on September 30, 2026. This pressured operating income, which dropped to $3,101,000 from $4,624,000.

Despite lower volumes, gross margin improved to 28.7% from 27.6%, helped by stronger aftermarket parts and components. SG&A decreased by $471,000, while product development investment rose modestly. Net income declined to $3,442,000 versus $3,817,000, and EPS slipped to $0.23 from $0.26.

The balance sheet remains robust, with $147.7 million in cash and marketable securities at December 31, 2025, up from $136.3 million at September 30, 2025, and no debt. Backlog increased to $57.4 million from $54.4 million year over year, and management notes improving order activity and customer optimism, suggesting demand could recover as infrastructure funding visibility improves.

GENCOR INDUSTRIES INC false 0000064472 0000064472 2026-02-06 2026-02-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report: February 6, 2026

(Date of earliest event reported)

GENCOR INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

5201 North Orange Blossom Trail, Orlando, Florida 32810

(Address of principal executive offices) (Zip Code)

(407) 290-6000

(Registrant’s telephone number, including area code)

Delaware		001-11703		59-0933147
(State or other jurisdiction of incorporated or organization)		Commission File Number		(I.R.S. Employer Identification No.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered or to be registered pursuant to Section 12(b) of the Act

Title of Each Class		Trading Symbol(s)		Name of Exchange on which registered
Common Stock ($.10 Par Value)		GENC		NYSE American LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2026 Gencor Industries, Inc. issued a press release announcing its financial results for the first quarter of fiscal 2026. A copy of the press release is attached as Exhibit 99.1.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1		Earnings Release dated February 6, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				GENCOR INDUSTRIES, INC.
February 6, 2026				By:		/s/ Marc G. Elliott
						Marc G. Elliott, President and Chairman of the Board
February 6, 2026				By:		/s/ Eric E. Mellen
						Eric E. Mellen, Chief Financial Officer

Exhibit 99.1

GENCOR RELEASES FIRST QUARTER FISCAL 2026 RESULTS

February 6, 2026 (PRIME NEWSWIRE) - Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2025 was $23,577,000 compared with $31,416,000 for the quarter ended December 31, 2024 a decrease of $7,839,000. Net revenue from contract equipment sales decreased in the quarter ended December 31, 2025. The decrease in contract equipment sales was due primarily to delays and uncertainty around replacement of the current five year Federal infrastructure spending bill which is scheduled to expire on September 30, 2026. As a percent of sales, gross profit margins were 28.7% in the quarter ended December 31, 2025, compared to 27.6% in the quarter ended December 31, 2024. The improved gross margins were driven by increased parts and components sales which typically have a higher margin compared to contract equipment sales.

Product engineering and development expenses increased $81,000 to $758,000 for the quarter ended December 31, 2025, as compared to $677,000 for the quarter ended December 31, 2024. Selling, general and administrative (“SG&A”) expenses decreased $471,000 to $2,896,000 for the quarter ended December 31, 2025, compared to $3,367,000 for the quarter ended December 31, 2024 due to lower commissions and professional service fees.

The Company had operating income of $3,101,000 for the quarter ended December 31, 2025 as compared to $4,624,000 for the quarter ended December 31, 2024. The decrease in operating income was due to lower revenues in the quarter ended December 31, 2025.

For the quarter ended December 31, 2025, the Company had net other income of $1,550,000 compared to $534,000 for the quarter ended December 31, 2024. Included in net other income for the quarter ended December 31, 2025 were net realized and unrealized gains on marketable securities of $373,000 compared to net realized and unrealized losses of $(455,000) for the quarter ended December 31, 2024.

The effective income tax rates for the quarters ended December 31, 2025 and December 31, 2024 were 26.0%. Net income for the quarter ended December 31, 2025 was $3,442,000, or $0.23 per basic and diluted common share, compared to net income of $3,817,000, or $0.26 per basic and diluted common share for the quarter ended December 31, 2024.

At December 31, 2025, the Company had $147.7 million of cash and cash equivalents and marketable securities compared to $136.3 million at September 30, 2025. Net working capital was $200.9 million at December 31, 2025 compared to $197.7 million at September 30, 2025. The Company had no short-term or long-term debt outstanding at December 31, 2025.

The Company’s backlog was $57.4 million at December 31, 2025 compared to $54.4 million at December 31, 2024.

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 $57 million suggests a solid year ahead with continued optimism.”

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
		December 31, 2025 (Unaudited)				September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	36,731,000			$	26,587,000
Marketable securities at fair value (cost of $108,356,000 at December 31, 2025 and $107,237,000 at September 30, 2025)			111,003,000				109,714,000
Accounts receivable, less allowance for credit losses of $498,000 at December 31, 2025 and $434,000 at September 30, 2025			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

How did Gencor (GENC) perform in its first quarter of fiscal 2026?

Gencor’s first quarter fiscal 2026 results softened, with net revenue falling to $23.6 million from $31.4 million a year earlier. Net income declined to $3.4 million, or $0.23 per share, compared with $3.8 million, or $0.26 per share, in fiscal 2025.

Why did Gencor (GENC) revenue decline year over year?

Net revenue declined primarily because contract equipment sales weakened in the quarter. Management attributes this to delays and uncertainty surrounding replacement of the current five-year Federal infrastructure spending bill, which is scheduled to expire on September 30, 2026, affecting customer confidence and timing of large purchases.

What were Gencor (GENC) margins and operating income for the quarter?

Gencor’s gross margin improved to 28.7% from 27.6%, helped by stronger aftermarket parts and components sales. Operating income, however, decreased to $3.1 million from $4.6 million, as lower revenue more than offset the benefit of higher margins and reduced SG&A expenses.

What is Gencor’s (GENC) cash position and debt level after Q1 2026?

At December 31, 2025, Gencor held $147.7 million in cash, cash equivalents, and marketable securities, up from $136.3 million at September 30, 2025. The company reported no short-term or long-term debt, highlighting a very strong balance sheet and financial flexibility.

How did Gencor’s (GENC) backlog change and what does management say about demand?

Backlog increased to $57.4 million at December 31, 2025 from $54.4 million a year earlier. Management notes a recent pickup in order activity and greater customer optimism on large capital purchases, suggesting a potentially solid year ahead if these trends continue.

What were Gencor’s (GENC) key expense trends in the quarter?

Product engineering and development expenses rose to $758,000 from $677,000, reflecting continued investment. Selling, general and administrative expenses fell to $2.9 million from $3.4 million, mainly because of lower commissions and professional service fees, partially offsetting the impact of lower revenue.