Gencor Releases Second Quarter Fiscal 2026 Results
Rhea-AI Summary
Gencor (NYSE American: GENC) reported second quarter fiscal 2026 net revenue of $33.8 million, down from $38.2 million a year earlier, mainly from timing of contract equipment orders and freight.
Gross margin rose to 31.7%. Net income fell 37% to $3.8 million ($0.26 per share). Six‑month revenue was $57.4 million with net income of $7.3 million.
Cash and marketable securities totaled $155.1 million with no debt, and backlog increased to $60.5 million versus $27.8 million.
AI-generated analysis. Not financial advice.
Positive
- Gross profit margin increased to 31.7% from 29.7% year over year
- Backlog rose to $60.5 million from $27.8 million at March 31, 2025
- Cash and marketable securities increased to $155.1 million from $136.3 million
- Net working capital improved to $205.2 million from $197.7 million
- Company reported no short-term or long-term debt outstanding
Negative
- Quarterly net revenue declined to $33.8 million from $38.2 million year over year
- Quarterly net income decreased 37% to $3.8 million, EPS to $0.26 from $0.42
- SG&A expenses rose by $1.65 million to $5.84 million, driven by trade shows
- Trade show expenses increased to $3.53 million from $0.35 million year over year
- Total other income fell to $0.94 million from $1.76 million, reflecting securities losses
- Six‑month net revenue and net income declined versus prior‑year period
News Market Reaction – GENC
On the day this news was published, GENC declined 0.94%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Peers on Argus
GENC’s modest gain of 0.34% occurred as several construction machinery peers were also positive: AGFY +4.71%, CMCO +2.83%, TWI +2.52%, and WNC +8.49%, suggesting a broader positive sector tone.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2026-06-01 | Listing delinquency notice | Negative | +5.2% | NYSE delinquency notice for late Form 10-Q and compliance timeline. |
| 2026-05-12 | Earnings release retraction | Negative | -3.9% | Withdrawal of preliminary Q2 earnings pending financial review. |
| 2026-05-08 | Q2 results (prelim) | Positive | +2.5% | Q2 FY2026 results with higher margins, solid earnings, and strong backlog. |
| 2026-02-06 | Q1 2026 results | Positive | +12.2% | Q1 revenue decline but improved margins, profits, strong cash and backlog. |
| 2025-12-23 | Leadership transition | Neutral | +0.0% | Retirement of founder EJ Elliott and appointment of Marc Elliott as Chairman. |
Recent fundamental releases and governance updates have generally seen price moves align with the apparent news tone, with one notable divergence on the NYSE delinquency notice.
Over the past six months, GENC combined softer revenue trends with improving margins and a strengthening balance sheet. The latest Q2 and Q1 FY2026 reports showed lower net revenue but higher gross margins, solid profitability, and growing backlog, while maintaining no debt. Corporate governance developments included a leadership transition to Marc Elliott as Chairman and a May 2026 change in control within the Elliott family structure, alongside NYSE notices and filing delays now addressed by the June 12, 2026 10‑Q filing.
Regulatory & Risk Context
Market Pulse Summary
This announcement details Q2 FY2026 results where net revenue and earnings declined, but gross margin improved to 31.7% and backlog expanded to $60.5M. The balance sheet shows $155.1M in cash and marketable securities with no debt. Recent regulatory filings highlight previously disclosed internal control weaknesses, leadership changes, and a NYSE delinquency notice that has now been addressed with the 10‑Q. Investors may monitor future margins, order timing, and backlog conversion for signs of trend direction.
Key Terms
basis points financial
marketable securities financial
forward-looking statements regulatory
effective income tax rate financial
contract liabilities financial
operating lease liabilities financial
AI-generated analysis. Not financial advice.
ORLANDO, Fla., June 12, 2026 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the quarter ended March 31, 2026 was
Product engineering and development expenses decreased
Operating income decreased
For the quarter ended March 31, 2026, the Company had net other income of
The effective income tax rate for both the quarters ended March 31, 2026 and March 31, 2025 was
For the six months ended March 31, 2026 the Company had net revenue of
At March 31, 2026, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President and Chairman of the Board, commented, “Gencor’s second quarter revenue decline from the previous year was due to a slow start to the season delaying asphalt plant orders typically sold earlier in the fiscal year. Despite lower revenue, gross profit margins exceeded expectations, reflecting strong manufacturing execution and effective cost management. Our
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, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net revenue | $ | 33,799,000 | $ | 38,204,000 | $ | 57,376,000 | $ | 69,620,000 | |||||||
| Cost of goods sold | 23,091,000 | 26,851,000 | 39,913,000 | 49,599,000 | |||||||||||
| Gross profit | 10,708,000 | 11,353,000 | 17,463,000 | 20,021,000 | |||||||||||
| Operating expenses: | |||||||||||||||
| Product engineering and development | 629,000 | 681,000 | 1,387,000 | 1,357,000 | |||||||||||
| Selling, general and administrative | 5,843,000 | 4,192,000 | 8,739,000 | 7,560,000 | |||||||||||
| Total operating expenses | 6,472,000 | 4,873,000 | 10,126,000 | 8,917,000 | |||||||||||
| Operating income | 4,236,000 | 6,480,000 | 7,337,000 | 11,104,000 | |||||||||||
| Other income (expense), net: | |||||||||||||||
| Interest and dividend income, net of fees | 1,111,000 | 1,158,000 | 2,288,000 | 2,147,000 | |||||||||||
| Net realized and unrealized gains (losses) on marketable securities | (174,000 | ) | 598,000 | 199,000 | 143,000 | ||||||||||
| Total other income, net | 937,000 | 1,756,000 | 2,487,000 | 2,290,000 | |||||||||||
| Income before income tax expense | 5,173,000 | 8,236,000 | 9,824,000 | 13,394,000 | |||||||||||
| Income tax expense | 1,330,000 | 2,141,000 | 2,539,000 | 3,482,000 | |||||||||||
| Net income | $ | 3,843,000 | $ | 6,095,000 | $ | 7,285,000 | $ | 9,912,000 | |||||||
| Net income per common share – basic and diluted | $ | 0.26 | $ | 0.42 | $ | 0.50 | $ | 0.68 | |||||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||||
| ASSETS | March 31, 2026 (Unaudited) | September 30, 2025 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 43,464,000 | $ | 26,587,000 | |||
| Marketable securities at fair value (cost of | 111,670,000 | 109,714,000 | |||||
| Accounts receivable, less allowance for credit losses of | 3,932,000 | 3,130,000 | |||||
| Contract assets | 7,552,000 | 12,208,000 | |||||
| Inventories, net | 51,071,000 | 53,503,000 | |||||
| Prepaid expenses and other current assets | 3,167,000 | 1,399,000 | |||||
| Total current assets | 220,856,000 | 206,541,000 | |||||
| Property and equipment, net | 11,154,000 | 11,079,000 | |||||
| Deferred income taxes | 4,843,000 | 4,584,000 | |||||
| Other long-term assets | 209,000 | 392,000 | |||||
| Total Assets | $ | 237,062,000 | $ | 222,596,000 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,834,000 | $ | 1,842,000 | |||
| Customer deposits | 7,105,000 | 3,889,000 | |||||
| Contract liabilities | 1,233,000 | - | |||||
| Accrued expenses | 2,282,000 | 2,741,000 | |||||
| Current operating lease liabilities | 156,000 | 339,000 | |||||
| Total current liabilities | 15,610,000 | 8,811,000 | |||||
| Unrecognized tax benefits | 2,365,000 | 1,983,000 | |||||
| Total liabilities | 17,975,000 | 10,794,000 | |||||
| Commitments and contingencies | |||||||
| Shareholders’ equity: | |||||||
| Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued | - | ||||||
| Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,339,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 | 1,234,000 | 1,234,000 | |||||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,319,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 | 232,000 | 232,000 | |||||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||||
| Retained earnings | 205,031,000 | 197,746,000 | |||||
| Total shareholders’ equity | 219,087,000 | 211,802,000 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 237,062,000 | $ | 222,596,000 | |||
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the Company’s beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company’s control. The Company’s actual results may differ materially from those set forth in the Company’s forward-looking statements depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments, and demand for the Company’s products. In addition, the impact of (i) the United States (“U.S.”) government’s tariff announcements, (ii) the ongoing conflicts and/or tensions involving Russia, Ukraine, Israel, Iran, the U.S., and various other countries, and (iii) any actions taken by the U.S. or other countries in response to such tariff announcements, conflicts and/or tensions, could result in a disruption in our supply chain and higher costs of our products. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2025: (a) Part I, Item 1A, “Risk Factors” and (b) Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. However, other factors besides those referenced could adversely affect the Company’s results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.
| Contact: | Raymond Cole, Interim Chief Financial Officer |
| 407-290-6000 | |
