Gencor Industries Reports $38.2M Revenue, 6.1% Decrease for Quarter Ended March 31, 2025

Gencor Industries, Inc. reported a net revenue of $38.2 million for the quarter ended March 31, 2025, reflecting a decrease of 6.1% compared to $40.7 million in the same quarter of the previous year. For the six months ending March 31, 2025, the company achieved revenues of $69.6 million, an increase of 4.4% from $66.7 million in the prior year. The decrease in quarterly revenue was primarily attributed to a decline in contract equipment sales recognized at a point in time, which was influenced by the timing of shipments. Gross profit margins slightly decreased to 29.7% for the quarter, down from 30.3% in the prior year.

Operating income for the quarter was reported at $6.5 million, down 8.4% from $7.1 million in the same quarter last year. The decline in operating income was linked to reduced net revenue, although the company experienced an increase in net other income, which rose to $1.8 million from $1.0 million year-over-year. Net income for the quarter was $6.1 million, a decrease of 2.0% from $6.2 million in the prior year, with earnings per share remaining stable at $0.42.

In terms of operational developments, Gencor's backlog decreased significantly to $27.8 million as of March 31, 2025, compared to $50.4 million a year earlier. The company reported a working capital of $193.2 million, up from $182.2 million at the end of September 2024. Cash and cash equivalents increased to $52.3 million, alongside marketable securities valued at $91.4 million. The company also noted a decrease in inventories, which fell by $8.7 million, attributed to paver sales and the completion of large contract orders.

Strategically, Gencor underwent a change in its independent registered public accounting firm, transitioning from MSL, P.A. to Forvis Mazars, and subsequently to Berkowitz Pollack Brant Advisors + CPAs. This transition has contributed to delays in filing the annual and quarterly reports, which the company is currently addressing. The company is also focused on enhancing its internal controls and has identified material weaknesses in its financial reporting processes, which it is actively working to remediate.

Looking ahead, Gencor remains cautious about the economic environment, citing potential impacts from inflation, geopolitical tensions, and fluctuations in raw material prices. The company is committed to investing in product development and improving operational efficiencies to strengthen its market position. Despite the challenges, Gencor aims to leverage its strategic initiatives to navigate the current market conditions and enhance its financial performance in the upcoming periods.