1. GENC's Q4 revenue fell 10% year-over-year to $18.8 million. 2. Gross profit margin decreased to 24.2% due to overhead absorption issues. 3. Operating income dropped to a loss of $0.2 million, impacted by SG&A expenses. 4. Annual net revenue increased 2%, marking slight overall growth despite Q4 challenges. 5. Backlog decreased significantly from $56.2M to $23.6M in a year.
FAQ
Why Bearish?
The reported decline in Q4 revenue and backlog indicates weak demand conditions. Reduced gross profit margins and an operating loss also exacerbate concerns for investors.
How important is it?
The financial results directly reflect GENC's performance, influencing investor perceptions and stock price. Immediate concerns over revenue, margins, and backlog are critical for market sentiment.
Why Short Term?
Current operational and financial weaknesses could lead to immediate market reactions. A decreased backlog may signal potential future revenue drops.
Gencor Industries, Inc. (GENC) Reports Fourth Quarter and Fiscal Year 2025 Financial Results
ORLANDO, Fla., Dec. 9, 2025 (GLOBE NEWSWIRE) — Gencor Industries, Inc. (NYSE American: GENC) has released its financial results for the fourth quarter and fiscal year ended September 30, 2025, revealing a decline in quarterly revenues but an overall increase for the year.
Fourth Quarter Financial Overview
Gencor Industries reported net revenue of $18.8 million for the fourth quarter, representing a 10.0% decrease from $20.9 million in the same quarter last year. The company experienced a reduced gross profit margin of 24.2%, down from 25.6% in Q4 2024, primarily attributed to decreased manufacturing overhead absorption.
- Operating Loss: The company recorded an operating loss of ($0.2) million compared to an operating income of $1.2 million in Q4 2024.
- Non-Operating Income: Non-operating income fell to $1.9 million from $2.5 million year-over-year.
- Net Income: Gencor reported a net income of $1.9 million, slightly up from $1.5 million in the previous year.
Fiscal Year 2025 Performance Summary
For the fiscal year ending September 30, 2025, Gencor's net revenue increased by 2.0% to $115.4 million, up from $113.2 million in 2024. The gross profit margin remained steady at 27.5%, marginally lower than 27.7% in fiscal 2024.
- Operating Income: Increased to $14.0 million from $13.7 million in the prior year.
- SG&A Expenses: These rose by $610,000 to $14.9 million, driven by professional fees and commissions.
- Net Income for the Year: Showed an improvement to $15.7 million, or $1.07 per diluted share, compared to $14.6 million, or $0.99 per diluted share, in 2024.
Fiscal 2025 Financial Details
Gencor's effective income tax rate decreased to 22.5%, compared to 29.8% in fiscal 2024, enhancing net income for shareholders. The balance sheet also showed significant liquidity:
- Cash and Marketable Securities: Totaled $136.3 million, representing an increase of $20.9 million year-over-year.
- Working Capital: Increased to $197.7 million from $182.2 million.
- No Debt: Gencor reported having no short-term or long-term debt, indicating strong financial positioning.
Backlog and Outlook
As of December 1, 2025, Gencor's backlog decreased to $23.6 million compared to $56.2 million a year prior. Marc Elliott, President of Gencor, commented on the results, stating:
“Our overall performance for the year resulted in increased operating income and revenue, while maintaining profit margins comparable to fiscal 2024 in the face of increased competition in the marketplace. We experienced some top line softening in the last quarter due to lingering Liberation Day unease, as well as one-time extraordinary expenses that negatively affected gross profit. Despite this, we ended the year with improved net income over 2024, yielding $1.07 EPS for our stockholders and an increase in our cash reserves.”
About Gencor Industries, Inc.
Gencor Industries, Inc. is a diversified heavy machinery manufacturer focused on producing highway construction materials and equipment, along with environmental control machinery utilized across various applications. Their performance and strategic investments underline their commitment to growth and reliability in the industry.