Taylor Devices Reports $41.65 Million Revenue, 10% Decrease for Fiscal Year Ending May 31, 2026

Taylor Devices, Inc. reported a net revenue of $41.65 million for the fiscal year ending May 31, 2026, a decrease of 10% from $46.29 million in the previous year. The company's net income also fell by 15%, from $9.41 million in 2025 to $8.56 million in 2026. The decline in revenue was attributed to a 25% reduction in revenue from long-term projects, despite a 22% increase in revenue from non-project sales. The company had 40 long-term projects in process during the year, up from 37 in the prior year, indicating a shift in project dynamics.

In terms of operational metrics, Taylor Devices experienced a significant decrease in sales to structural customers, which dropped by 31%. Conversely, sales to aerospace and defense customers increased by 1%, while industrial customer sales decreased by 11%. The geographic distribution of sales showed that 87% of total sales were generated in the U.S., up from 79% the previous year, while sales to Asia decreased significantly from $7 million to $3.2 million. The company’s backlog at the end of May 2026 included 139 open sales orders valued at $52.8 million, compared to 142 orders valued at $27.1 million a year earlier.

The company has made strategic investments in research and development, increasing expenditures by 75% to $776,000, primarily due to heightened activity in the aerospace and defense sectors. Selling, general, and administrative expenses decreased by 10% to $10.23 million, reflecting lower employee incentive compensation accruals. Taylor Devices continues to focus on enhancing its product offerings, particularly in the seismic dampers and shock absorption markets, which are critical for various industrial and defense applications.

As of May 31, 2026, Taylor Devices employed 135 individuals, maintaining stable employee relations without any collective bargaining agreements. The company holds 24 patents, with expiration dates extending to 2042, and has no significant dependence on any single supplier for raw materials. The company’s liquidity position remains strong, with a $10 million line of credit available, although no amounts were drawn as of the fiscal year-end.

Looking ahead, Taylor Devices anticipates recognizing the majority of its backlog revenue during the fiscal year ending May 31, 2027. The company remains cautious about market conditions and customer demand, particularly in the structural sector, which has shown volatility. Management believes that ongoing investments in R&D and strategic focus on core markets will position the company for future growth, although they acknowledge the inherent uncertainties in long-term project revenues and market dynamics.