10-Q · June 12, 2026
Gencor Industries reported Q2 2026 earnings with revenue of $33.8 million, a decrease of 11.6% from the prior quarter. Diluted EPS matched estimates at $0.26 but marked a 37% decline year-over-year. Gross margins…
Earnings analysis · 10-Q
GENC earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Gencor delivered a strong Q2 FY2026, with revenue up 25.3% year over year to $33.805 million, operating margin up 560 basis points to 17.2%, and diluted EPS up to $0.39 from $0.26. Backlog expanded to $79.2 million from…
Read full summary
Gencor delivered a strong Q2 FY2026, with revenue up 25.3% year over year to $33.805 million, operating margin up 560 basis points to 17.2%, and diluted EPS up to $0.39 from $0.26. Backlog expanded to $79.2 million from $26.2 million, and the company remains debt-free with $164.169 million of cash and marketable securities. Offsetting concerns include weak nine-month cash conversion, capital expenditures of $1.698 million against $1.369 million of operating cash flow, persistent material weaknesses in internal controls, and tariff and customer-concentration exposure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.39
What stood out
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Revenue rebounded sharply
Q2 FY2026 revenue increased 25.3% year over year to $33.805 million from $26.986 million, and rose approximately 40.8% from about $24 million in Q1 FY2026. Management attributed the annual increase primarily to higher contract equipment revenue recognized over time and associated freight revenue.
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Gross profit expanded year over year
Gross margin was 27.9%, up 140 basis points from 26.5% year over year, although down approximately 70 basis points from 28.6% in Q1 FY2026. Gross profit increased to $9.434 million from $7.143 million.
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Operating leverage improved
Operating income increased 85.0%, or $2.665 million, to $5.802 million from $3.137 million year over year. Operating margin improved to 17.2% from 11.6% and was up from 13.2% in Q1 FY2026.
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EPS growth accelerated
Diluted EPS increased to $0.39 from $0.26 year over year and $0.23 in Q1 FY2026. Net income rose 48.5%, or $1.855 million, to $5.683 million.
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Backlog reached a record level
Backlog increased to $79.2 million at June 30, 2026 from $26.2 million at June 30, 2025, providing substantially greater contracted revenue visibility despite the company's seasonal demand pattern.
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Debt-free balance sheet
Liquidity remained strong with $26.258 million of cash and cash equivalents plus $137.911 million of marketable securities, while the company had no short-term or long-term debt outstanding at June 30, 2026.
What to watch
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Cash conversion remained weak
Operating cash flow was only $1.369 million for the first nine months of FY2026 versus $3.343 million in the prior-year period, while capital expenditures were $1.698 million versus $951,000. The filing does not disclose free cash flow; operating cash generation after capex was therefore approximately negative $329,000 on a derived basis.
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Internal-control weaknesses persist
Material weaknesses in IT general controls and the broader internal-control framework were not remediated as of June 30, 2026. Management specifically identified ineffective controls over user access, program changes, close processes, journal entries, reconciliations, segregation of duties, and monitoring.
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Tariffs and customer concentration
Tariffs may increase costs for sourced parts and products, and management stated it is not known whether the additional costs can be passed to customers. Customer concentration also remains material: two customers represented 17.2% and 13.4% of Q2 revenue, respectively.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that results for the quarter and nine months are not necessarily indicative of the fiscal year ending September 30, 2026. The company reported backlog of $79.2 million at June 30, 2026 versus $26.2 million at June 30, 2025.
Earlier filings 4
10-Q · February 6, 2026
Gencor Industries, Inc. reported Q1 2026 results, with revenues of $23.6 million, down 25% from the previous year, and diluted EPS of $0.23, a decrease from $0.26 in Q1 2025. The company's gross profit margin improved…
10-K · December 9, 2025
Gencor Industries, Inc.'s 2025 10-K report reveals a slight increase in net revenue of 2.0% year-over-year, driven mainly by equipment sales recognized over time. Despite challenges, the company maintained profit…
10-Q · August 8, 2025
Gencor Industries, Inc. reported a 5.6% year-over-year increase in revenue for Q3 2025, totaling $26.986 million, with net income rising markedly to $3.828 million or $0.26 per share. Contrasting with prior significant…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.