Gencor Industries Reports 7.5% Revenue Growth to $113.2 Million for Fiscal Year 2024

Gencor Industries, Inc. reported a net revenue of $113.2 million for the fiscal year ending September 30, 2024, marking an increase of 7.5% from the previous year's revenue of $105.1 million. The company's gross profit also rose to $31.3 million, up from $29.0 million in 2023. However, net income slightly decreased to $14.6 million, compared to $14.7 million in the prior year, resulting in a net income per share of $0.99, down from $1.00.

The company experienced notable changes in its financial position, with total assets increasing to $208.1 million from $195.9 million in 2023. Current assets rose to $192.8 million, driven by a significant increase in cash and cash equivalents, which reached $25.5 million, up from $17.0 million. Additionally, contract assets surged to $9.3 million from $1.5 million, reflecting a growing backlog of unbilled revenue. Conversely, total liabilities decreased to $12.0 million from $14.3 million, primarily due to a reduction in accounts payable and customer deposits.

Strategically, Gencor Industries has focused on enhancing its product offerings and operational efficiency. The company reported a significant increase in revenue from custom equipment sales, which rose to $45.8 million from $34.2 million in the previous year. This growth is attributed to the successful execution of contracts recognized over time, which aligns with the company's strategy to cater to the unique needs of its customers in the highway construction sector. The company continues to operate three manufacturing facilities in the United States, maintaining its commitment to domestic production.

Operationally, Gencor Industries reported a decrease in employee headcount, reflecting a strategic decision to streamline operations. The company also noted an increase in its allowance for slow-moving and obsolete inventories, which rose to $13.3 million from $9.8 million, indicating a proactive approach to managing inventory risks. The company’s customer base remains diverse, with one customer accounting for 11.3% of net revenue in 2024, down from 14.8% in 2023, suggesting a slight improvement in revenue concentration risk.

Looking ahead, Gencor Industries expressed optimism about its growth trajectory, citing ongoing investments in product development and operational improvements. The company is actively working to address identified material weaknesses in its internal control over financial reporting, as highlighted in the audit report. Management is committed to implementing remediation plans to enhance the effectiveness of its internal controls, which is expected to support the company's long-term financial stability and growth.