Gencor Industries (GENC) investor relations material

Executive summary

• Net revenue for the quarter ended June 30, 2026 increased 25.2% year-over-year to $33.8 million, driven by higher contract equipment revenues and freight revenue.

• Gross profit margin improved to 27.9% from 26.5% in the prior year quarter, reflecting better pricing and cost management.

• Operating income rose 85% to $5.8 million, with operating margin expanding to 17.2% from 11.6% year-over-year.

• Net income for the quarter was $5.7 million ($0.39 per share), up 48.5% from $3.8 million ($0.26 per share) in the prior year quarter.

• For the nine months ended June 30, 2026, net revenue declined 5.6% to $91.2 million, primarily due to delayed order timing in earlier quarters.

Financial highlights

• Quarterly net revenue: $33.8 million (up from $27.0 million year-over-year); nine-month net revenue: $91.2 million (down from $96.6 million year-over-year).

• Quarterly gross profit: $9.4 million (up from $7.1 million year-over-year); nine-month gross profit: $26.9 million (down from $27.2 million year-over-year).

• Quarterly operating income: $5.8 million (up from $3.1 million year-over-year); nine-month operating income: $13.1 million (down from $14.2 million year-over-year).

• Quarterly net income: $5.7 million (up from $3.8 million year-over-year); nine-month net income: $13.0 million (down from $13.7 million year-over-year).

• Quarterly EPS: $0.39 (up from $0.26 year-over-year); nine-month EPS: $0.89 (down from $0.94 year-over-year).

Outlook and guidance

• Backlog at June 30, 2026 was $79.2 million, up significantly from $26.2 million a year earlier, indicating strong future demand.

• Management expects liquidity needs to be met through operations and investment returns in both the short and long term.