Gencor Industries Reports 25.5% Revenue Growth in Latest Quarter, Backlog Increases to $79.2 Million

Gencor Industries, Inc. reported its financial results for the quarter and nine months ended June 30, 2026, revealing a net revenue of $33.8 million for the quarter, a 25.5% increase from $27.0 million in the same period last year. For the nine months, revenue totaled $91.2 million, down 5.6% from $96.6 million in the prior year. The company’s gross profit margin improved to 27.9% for the quarter, up from 26.5% a year earlier, while the nine-month gross profit margin increased to 29.5% from 28.1%. Net income for the quarter rose to $5.7 million, or $0.39 per share, compared to $3.8 million, or $0.26 per share, in the previous year. However, net income for the nine months decreased to $13.0 million, or $0.89 per share, from $13.7 million, or $0.94 per share, in the same period last year.

The company experienced significant operational changes, including a decrease in product engineering and development expenses, which fell to $680,000 for the quarter, down from $741,000, attributed to a reduction in headcount. Selling, general, and administrative expenses also decreased to $2.95 million from $3.27 million, primarily due to lower professional services costs. Operating income for the quarter increased by 85% to $5.8 million, reflecting higher gross profits and reduced expenses. The company’s effective income tax rate decreased to 21% for the quarter, compared to 26% in the prior year.

Gencor's backlog increased significantly to $79.2 million as of June 30, 2026, compared to $26.2 million a year earlier, indicating a strong demand for its products. The company reported a decrease in inventories to $47.0 million from $53.5 million, reflecting sales of pavers and completion of large contract orders. Cash and cash equivalents stood at $26.3 million, while marketable securities increased to $137.9 million, including various investments in equities, corporate bonds, and government securities.

The company noted that the decrease in nine-month revenue was primarily due to delayed order timing in the previous quarters. Gencor continues to focus on its strategy of investing in product engineering and development to enhance its market position. The company is also monitoring economic conditions, including inflation and geopolitical tensions, which could impact its operations and supply chain. Despite these challenges, Gencor remains optimistic about its future, emphasizing its commitment to delivering high-quality products and services while managing costs effectively.

Looking ahead, Gencor anticipates that the ongoing infrastructure investments in the U.S. will support demand for its products. The company is also evaluating the impact of recent accounting standards and market conditions on its financial performance. Management remains focused on improving internal controls and addressing identified weaknesses to enhance operational efficiency and financial reporting.