ORLANDO, Fla., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the "Company" or "Gencor") (NYSE:GENC) announced today net revenue for the quarter ended June 30, 2026 of $33,805,000 compared with $26,986,000 net revenue for the quarter ended June 30, 2025. The increase in net revenue was primarily due to an increase in contract equipment revenues recognized over time and associated freight revenue. As a percent of net revenue, gross profit margins increased 140 basis points to 27.9% in the quarter ended June 30, 2026, compared to 26.5% in the quarter ended June 30, 2025.

Product engineering and development expenses decreased $61,000 to $680,000 for the quarter ended June 30, 2026, as compared to $741,000 for the quarter ended June 30, 2025 due to lower headcount. Selling, general and administrative ("SG&A") expenses decreased $313,000 to $2,952,000 for the quarter ended June 30, 2026, compared to $3,265,000 for the quarter ended June 30, 2025 primarily due to reduced professional services expenses.

Operating income increased 85.0%, or $2,665,000, from $3,137,000 for the quarter ended June 30, 2025 to $5,802,000 for the quarter ended June 30, 2026, primarily due to higher gross profits and lower SG&A expenses. Operating margin was 17.2% for the quarter ended June 30, 2026 compared with 11.6% for the quarter ended June 30, 2025.

For the quarter ended June 30, 2026, the Company had net other income of $1,416,000, compared to $2,036,000 for the quarter ended June 30, 2025. Interest and dividend income, net of fees, was $1,176,000 in the quarter ended June 30, 2026 as compared to $1,142,000 in the quarter ended June 30, 2025. The net realized and unrealized gains on marketable securities were $241,000 for the quarter ended June 30, 2026, compared to net realized and unrealized gains of $894,000 for the quarter ended June 30, 2025. The decline in net realized and unrealized gains was due to slightly higher interest rates.

The Company’s effective income tax rate was reduced to 21% for the quarter ended June 30, 2026, based on an expected annual effective income tax rate of 24%, compared to prior income tax rate of 26% for the quarter ended June 30, 2025.

Net income for the quarter ended June 30, 2026 increased $1,855,000, or 48.5%, to $5,683,000, or $0.39 basic and diluted net income per common share, from $3,828,000, or $0.26 basic and diluted net income per common share, for the quarter ended June 30, 2025. The higher net income resulted primarily from the impact of higher net revenues, improved margins and lower SG&A expenses, offset by lower net non-operating income.

Net revenue for the nine months ended June 30, 2026 and 2025 were $91,180,000 and $96,606,000, respectively. The decrease of $5,426,000, or 5.6%, was primarily due to delayed timing of orders in the quarters ended December 31, 2025 and March 31, 2026.

At June 30, 2026, the Company had $164.2 million of cash and cash equivalents and marketable securities compared to $136.3 million at September 30, 2025. Net working capital was $211.3 million at June 30, 2026 compared to $197.7 million at September 30, 2025. The Company had no short-term or long-term debt outstanding at June 30, 2026.

The Company’s backlog was $79.2 million at June 30, 2026 compared to $26.2 million at June 30, 2025.

Marc Elliott, Gencor’s President and Chairman of the Board, commented, "Gencor’s third quarter revenue and profits exceeded our expectations, reflecting our strong manufacturing execution and effective cost management of our overall Operations. Our showing at the recent Conexpo-Con/Agg, coupled with the continued industry momentum, contributed to our record $79.2 million backlog. As remaining IIJA funding obligations continue to flow to states, and optimism surrounds the proposed Build America 250 highway funding bill, we believe we are well-positioned for sustainable performance throughout the remainder of the current fiscal year and into fiscal 2027."

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 June 30,				For the Nine Months Ended June 30,
	2026		2025		2026		2025

Net revenue	$	33,805,000	$	26,986,000	$	91,180,000	$	96,606,000
Cost of goods sold		24,371,000		19,843,000		64,284,000		69,442,000
Gross profit		9,434,000		7,143,000		26,896,000		27,164,000

Operating expenses:
Product engineering and development		680,000		741,000		2,067,000		2,099,000
Selling, general and administrative		2,952,000		3,265,000		11,692,000		10,824,000
Total operating expenses		3,632,000		4,006,000		13,759,000		12,923,000

Operating income		5,802,000		3,137,000		13,137,000		14,241,000

Other income, net:
Interest and dividend income, net of fees		1,176,000		1,142,000		3,464,000		3,289,000
Net realized and unrealized gains on marketable securities		241,000		894,000		439,000		1,037,000

Total other income, net		1,417,000		2,036,000		3,903,000		4,326,000

Income before income tax expense		7,219,000		5,173,000		17,040,000		18,567,000
Income tax expense		1,536,000		1,345,000		4,075,000		4,827,000
Net income	$	5,683,000	$	3,828,000	$	12,965,000	$	13,740,000

Net income per common share – basic and diluted	$	0.39	$	0.26	$	0.89	$	0.94

See accompanying Notes to Condensed Consolidated Financial Statements

GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets

	June 30, 2026 *(Unaudited)*	September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	26,258,000	26,587,000
Marketable securities at fair value (cost of $136,069,000 at June 30, 2026 and $107,237,000 at September 30, 2025)	137,911,000	109,714,000
Accounts receivable, less allowance for credit losses of ($438,000 at June 30, 2026 and $434,000 at September 30, 2025)	2,795,000	3,130,000
Contract assets	6,397,000	12,208,000
Inventories, net	46,985,000	53,503,000
Prepaid expenses and other current assets	2,562,000	1,399,000
Total current assets	222,908,000	206,541,000
Property and equipment, net	11,220,000	11,079,000
Deferred income taxes	4,740,000	4,584,000
Other long-term assets	116,000	392,000
Total Assets	238,984,000	222,596,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	3,607,000	1,842,000
Customer deposits	3,028,000	3,889,000
Contract liabilities	2,825,000
Accrued expenses	2,110,000	2,741,000
Current operating lease liabilities	63,000	339,000
Total current liabilities	11,633,000	8,811,000

Unrecognized tax benefits	2,582,000	1,983,000
Total liabilities	14,215,000	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; 12,338,845 shares issued and outstanding at June 30, 2026 and September 30, 2025	1,234,000	1,234,000
Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at June 30, 2026 and September 30, 2025	232,000	232,000
Capital in excess of par value	12,590,000	12,590,000
Retained earnings	210,713,000	197,746,000
Total shareholders’ equity	224,769,000	211,802,000
Total Liabilities and Shareholders’ Equity	238,984,000	222,596,000

See accompanying Notes to Condensed Consolidated Financial Statements

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