Gencor Releases Second Quarter Fiscal 2025 Results
ORLANDO, Fla., July 25, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the "Company" or "Gencor") (NYSE:GENC) announced today net revenue for the quarter ended March 31, 2025 of $38,204,000 decreased 6.1% from net revenue for the quarter ended March 31, 2024 of $40,676,000. Revenue from contract equipment sales recognized at a point in time decreased slightly in the quarter ended March 31, 2025. As a percent of sales, gross profit margins were 29.7% in the quarter ended March 31, 2025, compared to 30.3% in the quarter ended March 31, 2024 due to a marginally higher material costs.
Product engineering and development expenses decreased $212,000 to $681,000 for the quarter ended March 31, 2025, as compared to $893,000 for the quarter ended March 31, 2024, due to reduced headcount. Selling, general and administrative ("SG&A") expenses decreased to $4,192,000 for the quarter ended March 31, 2025, compared to $4,357,000 for the quarter ended March 31, 2024 due to reduced commissions on lower revenues.
The Company had operating income of $6,480,000 for the quarter ended March 31, 2025 as compared to $7,072,000 for the quarter ended March 31, 2024. The decrease in operating income was due primarily to lower revenues in the quarter ended March 31, 2025.
For the quarter ended March 31, 2025, the Company had net other income of $1,756,000 compared to $1,008,000 for the quarter ended March 31, 2024. Included in net other income for the quarter ended March 31, 2025 were net realized and unrealized gains on marketable securities of $598,000 compared to $205,000 for the quarter ended March 31, 2024.
The effective income tax rates for the quarters ended March 31, 2025 and March 31, 2024 were 26.0% and 23.0%, respectively. Net income for the quarter ended March 31, 2025 was $6,095,000, or $0.42 per basic and diluted common share, compared to net income of $6,222,000, or $0.42 per basic and diluted common share for the quarter ended March 31, 2024.
For the six months ended March 31, 2025 the Company had net revenue of $69,620,000 and net income of $9,912,000, or $0.68 per basic and diluted common share, compared to net revenue of $66,694,000 and net income of $10,548,000 or $0.72 per basic and diluted common share for the six months ended March 31, 2024.
At March 31, 2025, the Company had $143.7 million of cash and cash equivalents and marketable securities compared to $115.4 million at September 30, 2024. Net working capital was $193.2 million at March 31, 2025 compared to $182.2 million at September 30, 2024. The Company had no short-term or long-term debt outstanding at March 31, 2025.
The Company's backlog was $27.8 million at March 31, 2025 compared to $50.4 million at March 31, 2024.
Marc Elliott, Gencor's President, commented, "We are pleased with the significant increase in revenues in our first quarter, which is traditionally our lowest revenue quarter of the year. Although second quarter revenues were slightly lower, our overall six-month year-over-year performance attained approximately $70 million net revenue and $11 million in operating income, a marked increase over fiscal 2024. As we enter a more traditional market for the remainder of 2025, we will continue to focus on our mission of market growth, and improved manufacturing efficiency while delivering high quality products and services to our customers. "
Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
GENCOR INDUSTRIES, INC.Condensed Consolidated Income Statements (Unaudited)
For the Quarters Ended March 31,
For the Six Months Ended March 31,
2025
2024
2025
2024
Net revenue
$38,204,000
$40,676,000
$69,620,000
$66,694,000
Cost of goods sold
26,851,000
28,354,000
49,599,000
46,838,000
Gross profit
11,353,000
12,322,000
20,021,000
19,856,000
Operating expenses:
Product engineering and development
681,000
893,000
1,357,000
1,694,000
Selling, general and administrative
4,192,000
4,357,000
7,560,000
7,707,000
Total operating expenses
4,873,000
5,250,000
8,917,000
9,401,000
Operating income
6,480,000
