10-K · August 18, 2026
Taylor Devices remains highly profitable and financially strong, with $52.8 million of backlog, $40.6 million of short-term investments and no drawn debt. However, fiscal 2026 revenue declined 10%, operating income fell…
Earnings analysis · 10-Q
TAYD earnings analysis
Filed October 2, 2026 · Our reading of the company's report
The latest report
Taylor Devices reported a materially weaker quarter: revenue declined 26% to $7.3 million, gross margin fell 15 percentage points to 30%, and operating income collapsed 98.3% to $38,000. Backlog remains a key offset at…
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Taylor Devices reported a materially weaker quarter: revenue declined 26% to $7.3 million, gross margin fell 15 percentage points to 30%, and operating income collapsed 98.3% to $38,000. Backlog remains a key offset at $55.2 million, including a $19.0 million scheduled non-project order, but revenue timing and mix have caused severe near-term earnings pressure. Higher aerospace/defense concentration, increased work-in-process inventory of $8.203 million, and planned capital-expenditure commitments of $1.928 million add execution and liquidity risks despite favorable backlog.
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.
What stood out
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Backlog remains at a record level
Backlog increased to $55.2 million from $52.8 million at the prior fiscal year-end and included 151 open orders versus 127 at August 31, 2025. Management expects the majority of the remaining backlog to be recognized during the current fiscal year.
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Investment income provided support
Other income rose 9% year over year to $418,000, driven by interest income on short-term investments. The company also reported no debt-related liquidity pressure in the filing.
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Customer advances improved liquidity
Accounts receivable declined to $3.371 million from $3.932 million at May 31, 2026, while DSO increased only to 42 days from 40 days. BIEC rose to $4.539 million from $1.367 million, reflecting customer billings ahead of revenue recognition.
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No reported control deficiencies
The company maintained effective disclosure controls as of August 31, 2026, and reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Sharp revenue and margin contraction
Sales fell 26% year over year to $7.300 million from $9.918 million, while gross margin dropped to 30% from 45%. Management attributed the deterioration to lower revenue and an unfavorable sales mix.
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Profitability nearly eliminated
Operating income declined 98.3% to $38,000 from $2.245 million, producing an operating margin of approximately 0.5%. Net income decreased by $1.733 million, or 79%, versus the prior-year quarter.
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Greater aerospace concentration
Aerospace/Defense represented 58% of quarterly sales versus 51% a year earlier, while structural sales declined to 26% from 38%. This increases exposure to concentration and project-timing risk, particularly because long-term-project revenue was 33% lower year over year.
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Working capital tied up in inventory
Total inventory increased 20% to $10.476 million from $8.735 million at May 31, 2026, including a 22% increase in work-in-process to $8.203 million. Inventory turnover declined to 2.1 from 2.6.
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Planned capacity spending
Capital expenditures were $242,000 in the quarter, up from $185,000 a year earlier, and the company had $1.928 million of capital-expenditure commitments over the next twelve months while evaluating additional capacity expansion.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects to recognize the majority of the $55.2 million backlog during the current fiscal year, with the balance during the fiscal year ending May 31, 2028. A $19.0 million non-project order is scheduled for delivery of $1.7 million in fiscal 2027, $5.0 million in fiscal 2028, $10.0 million in fiscal 2029 and $2.3 million in fiscal 2030.
Earlier filings 4
10-Q · March 31, 2026
Taylor Devices reported Q3 sales of $11,173,201 (a 6% increase vs. the prior-year quarter) and diluted EPS of $0.79 (up from $0.64). Gross margin compressed to 40% (down 3 percentage points year-over-year) while…
10-K · August 15, 2025
Taylor Devices, Inc. reported notable revenue growth in its 2025 10-K filing, achieving a record high in quarterly sales of $15,561,154 and full-year revenues of $46,293,000, an increase of 4% from the previous year.…
10-Q · March 28, 2025
Taylor Devices reported quarterly sales of $10,564,834 and diluted EPS of $0.64 for the three months ended February 28, 2025. Revenue and gross profit were down versus the prior-year quarter (sales fell $1,689,259 or…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.