Taylor Devices Reports 15% Decline in Net Sales for Quarter Ending August 31, 2025

Taylor Devices, Inc. reported a decline in financial performance for the three months ending August 31, 2025, with net sales of $9.9 million, a decrease of 15% from $11.6 million in the same period last year. The company's gross profit also fell by 19% to $4.4 million, resulting in a gross margin of 45%, down from 47% in the prior year. Net income for the quarter was $2.2 million, reflecting an 18% decrease compared to $2.7 million in the previous year. Basic and diluted earnings per share were $0.70, down from $0.85 in the same quarter of 2024.

The decrease in revenue was attributed to a 23% decline in sales from long-term projects, despite an increase in the number of such projects from 23 to 25. Sales to the aerospace and defense sector dropped by 26%, while industrial customer sales decreased by 19%. However, sales to customers involved in construction of buildings and bridges increased by 11%. The company noted that total sales in the U.S. decreased by 9%, while sales to Asia saw a significant decline of 44%. The changes in sales were attributed to normal fluctuations in structural project activity.

In terms of operational metrics, Taylor Devices had 127 open sales orders with a total value of $27.9 million as of August 31, 2025, compared to 118 orders valued at $28.4 million a year earlier. The company’s inventory increased by 5% to $8.5 million, with 88% classified as work-in-process. Accounts receivable decreased by 19% to $4.5 million, and the average days sales outstanding rose from 32 to 41 days. The company’s liquidity remains stable, with cash and cash equivalents increasing to $2.2 million from $1.2 million at the end of the previous fiscal year.

Looking ahead, Taylor Devices expects to recognize revenue from the majority of its backlog during the current fiscal year. The company is also evaluating additional capital expenditures to expand capacity, with commitments totaling $2.75 million over the next twelve months. Management indicated that the fluctuations in revenue, gross profits, and net income are not necessarily indicative of future results, and they remain cautious about market conditions and customer demand.