ORLANDO, Fla., June 27, 2025 (GLOBE NEWSWIRE) — Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE:GENC) announced today net revenue for the fourth quarter ended September 30, 2024 of $20.9 was relatively unchanged from the quarter ended September 30, 2023. Gross profit as a percentage of net revenue was 25.6% for the quarter ended September 30, 2024, compared to 31.7% for the quarter ended September 30, 2023. The higher gross profit margin in fiscal 2023 was due to increased parts sales at higher margins, absorption, and closing out of certain equipment sales recognized over time.
Operating income for the quarter ended September 30, 2024 decreased to $1.2 million compared to $2.7 million for the quarter ended September 30, 2023 due primarily to the reduced gross profit margin. The Company had net non-operating income of $2.5 million for the quarter ended September 30, 2024 compared to $0.9 million for the quarter ended September 30, 2023. The Company’s income tax expense was $2.3 million for the quarter ended September 30, 2024 compared to $0.5 million for the quarter ended September 30, 2023. Net income for the quarter ended September 30, 2024 was $1.5 million compared to $3.1 million for the quarter ended September 30, 2023.
Net revenue for the year ended September 30, 2024 increased 7.7% to $113.2 million from $105.1 million for the year ended September 30, 2023. Gross profit margin was 27.7% in fiscal 2024 compared to 27.6% in fiscal 2023. In the fourth quarter of fiscal 2023, gross profit margin was positively impacted on closing out of certain equipment sales recognized over time.
Product engineering and development expense in fiscal 2024 decreased $145,000 to $3,313,000 from $3,458,000 in fiscal 2023 on reduced headcount. Selling, general and administrative (“SG&A”) expenses in fiscal 2024 increased $2,173,000 to $14,327,000 from $12,154,000 in fiscal 2023. The increase in SG&A expenses was primarily due to increased trade show expenses, professional fees, and sales commissions on higher net revenue.
Fiscal 2024 had operating income of $13,687,000 versus $13,425,000 in fiscal 2023. The impact of increased sales in fiscal 2024 was offset by increased SG&A expenses as compared to fiscal 2023.
For the year ended September 30, 2024, the Company had net other income of $7,043,000 compared to $5,351,000 for the year ended September 30, 2023. Interest and dividend income, net of fees, was $3,435,000 for the year ended September 30, 2024 as compared to $2,108,000 for year ended September 30, 2023. Interest income for the year ended September 30, 2024 increased, as compared to the prior year, due to higher interest rates earned on cash balances and fixed income investments. Net realized and unrealized gains on marketable securities were $3,621,000 for the year ended September 30, 2024 versus $3,243,000 for the year ended September 30, 2023. Net realized and unrealized gains in the portfolio were the result of fluctuations in the market value of fixed income securities due to interest rate changes.
The effective income tax rate for fiscal 2024 was 29.8% versus 21.9% in fiscal 2023.
Net income for the year ended September 30, 2024 was $14,558,000, or $0.99 per diluted and basic share, versus $14,666,000, or $1.00 per diluted and basic share, for the year ended September 30, 2023.
At September 30, 2024, the Company had $115.4 million in cash and marketable securities, an increase of $14.1 million over the September 30, 2023 balance of $101.3 million. The Company’s working capital was $182.2 million at September 30, 2024 versus $164.8 million at September 30, 2023. The Company has no short-term or long-term debt.
The Company’s backlog was $56.2 million at December 1, 2024 compared to $57.8 million at December 1, 2023.
Marc Elliott, Gencor’s President, stated, “Our fourth quarter revenues remained solid and in step with our prior year although we experienced some softening of margins late in the year as a result of a more competitive marketplace, especially in aftermarket sales.
Our 7.7% year-over-year revenue growth reflected our upward trajectory and solid path forward as we continued to reap the benefits of the IIJA infrastructure funding. Our strong backlog going into fiscal 2025 will carry us well into the first half of the year as demand for our products remains steady.
Looking forward we remain optimistic for fiscal 2025 as we continue to focus on our mission of market growth 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. Consolidated Income Statements For the Years Ended September 30, 2024 and 2023 (Unaudited) |
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| 2024 | 2023 | ||||
| Net revenue | $113,166,000 | $105,075,000 | |||
| Cost of goods sold | 81,839,000 | 76,038,000 | |||
| Gross profit | 31,327,000 | 29,037,000 | |||
| Operating expenses: | |||||
| Product engineering and development | 3,313,000 | 3,458,000 | |||
| Selling, general and administrative | 14,327,000 | 12,154,000 | |||
| Total operating expenses | 17,640,000 | 15,612,000 | |||
| Operating income | 13,687,000 | 13,425,000 | |||