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Gencor Releases First Quarter Fiscal 2025 Results

1. GENC reported $31.4M revenue, a 20.7% increase from last year. 2. Gross profit margins decreased to 27.6% from 29.0% in 2023. 3. Net income was $3.8M, down from $4.3M in the previous year. 4. Cash and equivalents rose to $130.1M, indicating strong liquidity. 5. Backlog decreased to $54.4M, suggesting potential future revenue challenges.

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FAQ

Why Bullish?

The revenue growth and maintained cash reserves bode well for investor confidence. However, declining net income and backlog could signal caution, as historical examples show fluctuating demand impacting stock prices.

How important is it?

The financial results indicate solid performance despite backlogs, enhancing GENC's attractiveness. The combination of revenue growth and liquidity underlines the company's resilience against economic fluctuations.

Why Short Term?

Immediate impacts from revenue growth are evident, but backlog drop may affect future performance. Market reactions to recent earnings calls often trend positively in the short term but respond adversely to backlog concerns.

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CATDEJLG
July 25, 2025 07:02 ET  | Source: Gencor Industries Inc. 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 December 31, 2024 of $31,416,000 increased 20.7% over net revenue for the quarter ended December 31, 2023 of $26,018,000. Revenue from contract equipment sales recognized over time increased significantly and was slightly offset by a decrease in parts sales. As a percent of sales, gross profit margins were 27.6% in the quarter ended December 31, 2024, compared to 29.0% in the quarter ended December 31, 2023 due to a smaller contribution of parts sales to total sales in the quarter ended December 31, 2024. Product engineering and development expenses decreased $124,000 to $677,000 for the quarter ended December 31, 2024, as compared to $801,000 for the quarter ended December 31, 2023, due to lower headcount. Selling, general and administrative (“SG&A”) expenses increased slightly to $3,367,000 for the quarter ended December 31, 2024, compared to $3,350,000 for the quarter ended December 31, 2023. The Company had operating income of $4,624,000 for the quarter ended December 31, 2024 as compared to $3,383,000 for the quarter ended December 31, 2023. The increased operating income was due primarily to higher net revenues for the quarter ended December 31, 2024. For the quarter ended December 31, 2024, the Company had net other income of $534,000 compared to $2,235,000 for the quarter ended December 31, 2023. Higher yields negatively impacted the value of our bond holdings. Included in net other income for the quarter ended December 31, 2024 were net realized and unrealized losses on marketable securities of ($455,000) compared to net realized and unrealized gains of $1,519,000 for the quarter ended December 31, 2023. The effective income tax rates for the quarters ended December 31, 2024 and December 31, 2023 were 26.0% and 23.0%, respectively. Net income for the quarter ended December 31, 2024 was $3,817,000, or $0.26 per basic and diluted common share, compared to net income of $4,326,000, or $0.30 per basic and diluted common share for the quarter ended December 31, 2023. At December 31, 2024, the Company had $130.1 million of cash and cash equivalents and marketable securities compared to $115.4 million at September 30, 2024. Net working capital was $186.5 million at December 31, 2024 compared to $182.2 million at September 30, 2024. The Company had no short-term or long-term debt outstanding at December 31, 2024. The Company’s backlog was $54.4 million at December 31, 2024 compared to $61.3 million at December 31, 2023. 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 StatementsFor the Quarters Ended December 31, 2024 and 2023(Unaudited)  2024  2023    Net revenue$31,416,000 $26,018,000 Cost of goods sold 22,748,000  18,484,000 Gross profit 8,668,000  7,534,000    Operating expenses:  Product engineering and development 677,000  801,000 Selling, general and administrative 3,367,000  3,350,000 Total operating expenses 4,044,000  4,151,000    Operating income 4,624,000  3,383,000    Other income, net:  Interest and dividend income, net of fees 989,000  716,000 Realized and unrealized gains (losses) on marketable securities, net (455,000) 1,519,000 Total other income, net 534,000  2,235,000    Income before income tax expense 5,158,000  5,618,000 Income tax expense 1,341,000  1,292,000 Net income$3,817,000 $4,326,000       Net income per common share – basic and diluted$0.26 $0.30     GENCOR INDUSTRIES, INC.Condensed Consolidated Balance SheetsASSETSDecember 31, 2024(Unaudited) September 30, 2024Current assets:   Cash and cash equivalents$39,972,000 $25,482,000 Marketable securities at fair value (cost of $89,550,000 at December 31,   2024 and $88,777,000 at September 30, 2024) 90,133,000  89,927,000 Accounts receivable, less allowance for credit losses of $425,000 at   December 31, 2024 and $390,000 at September 30, 2024 3,596,000  1,980,000 Contract assets 7,921,000  9,339,000 Inventories, net 59,668,000  63,762,000 Prepaid expenses 1,825,000  2,352,000 Total current assets 203,115,000  192,842,000 Property and equipment, net 11,169,000  11,472,000 Deferred income taxes 3,572,000  3,424,000 Other long-term assets 294,000  383,000 Total Assets$218,150,000 $208,121,000 LIABILITIES AND SHAREHOLDERS’ EQUITY   Current liabilities:   Accounts payable$3,720,000 $2,001,000 Customer deposits 7,407,000  5,018,000 Contract liabilities 2,157,000  - Accrued expenses 3,136,000  3,255,000 Current operating lease liabilities 241,000  330,000 Total current liabilities 16,661,000  10,604,000     Unrecognized tax benefits 1,531,000  1,376,000 Total liabilities 18,192,000  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 December 31, 2024 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 December 31, 2024 and   September 30, 2024 232,000  232,000 Capital in excess of par value 12,590,000  12,590,000 Retained earnings 185,902,000  182,085,000 Total shareholders’ equity 199,958,000  196,141,000 Total Liabilities and Shareholders’ Equity$218,150,000 $208,121,000      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, 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

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