TAYD earnings analysis
What we found in TAYD's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 24%, and the business became more concentrated in aerospace/defense as structural sales weakened. The backlog supports a favorable near-term revenue outlook, but execution, margin recovery and concentration risks warrant a neutral assessment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Specialized product platform and ongoing innovation
- The company operates a specialized product platform spanning nine categories, including Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, and Custom Actuators. Management states it continues to develop “new and advanced technology products,” including custom derivatives for aerospace and defense applications.
- Backlog more than doubled
- Backlog increased to $52.8 million across 139 open sales orders at May 31, 2026, from $27.1 million across 142 orders a year earlier. Aerospace/defense represented 92% of backlog versus 75% at fiscal 2025 year-end, and management expects to recognize the majority of remaining backlog revenue in fiscal 2027.
- Profitable despite lower sales
- The company generated $41,649,673 of fiscal 2026 revenue, $18,347,116 of gross profit and $7,342,956 of operating income, implying gross and operating margins of 44.0% and 17.6%, respectively. Diluted EPS was $2.62, compared with $2.87 in fiscal 2025.
- Aerospace mix and owned capacity
- Aerospace/defense revenue increased 1% to $27,522,079 and reached 66% of total revenue, while U.S. revenue represented 87% of sales. The company owns more than 54,000 square feet of facilities on Tonawanda Island plus two additional industrial buildings totaling 46,000 square feet.
- Strong liquidity funds expansion
- Operating cash flow was $7,023,069 in fiscal 2026, while capital expenditures were $2,136,301, primarily for manufacturing machinery, testing equipment, technology upgrades and facility improvements. The company had $40,574,152 in short-term investments and no balance outstanding on its $10,000,000 demand line of credit.
- Retains cash while repurchasing shares
- Capital allocation included $1,317,972 of treasury-stock purchases and $1,924,680 of proceeds from common-stock issuance, largely from option exercises. The company does not pay a cash dividend and plans to retain cash for working capital needs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Backlog concentration in aerospace/defense
- Structural sales fell 31% to $10,262,939, and structural customers declined to 25% of revenue from 32% in fiscal 2025. Structural orders were only 5% of backlog at May 31, 2026 versus 19% a year earlier, while aerospace/defense accounted for 92% of backlog, increasing dependence on one end market.
- Lower revenue and margin pressure
- Revenue declined 10% to $41,649,673, gross margin fell to 44% from 46%, and operating income decreased 24% to $7,342,956. Long-term-project revenue was 25% lower year over year, while research and development costs increased 75% to $775,995, creating pressure for future project execution and margin recovery.
- Newly expanded construction litigation
- The company was named in third-party claims related to the 432 Park Avenue litigation, including claims associated with a June 15, 2026 amended fraud complaint. Discovery in the Fraud Action remains ongoing and is expected to conclude around February 26, 2027; the company states it cannot determine the likelihood of an unfavorable outcome or quantify a potential loss.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.62
- Gross margin
- 44%
- Operating margin
- 17.6%
- Segment
- Single operating segment: Taylor Devices manufactures shock absorption, rate control and energy storage products across nine product categories.
- Segment
- Customer mix: Aerospace/Defense $27,522,079 (66% of revenue); Structural $10,262,939 (25%); Industrial $3,864,655 (9%).
- Segment
- Geographic mix: United States 87% of revenue; Asia 8%; other countries 5%.
What they said about what is next.
No numeric annual or quarterly revenue/EPS guidance is provided. Management expects to recognize the majority of remaining backlog during fiscal 2027, with the balance during fiscal 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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-Q · January 3, 2025
- Taylor Devices reported Q2 sales of $8,548,881 (down $1,791,000 or 17% vs. Q2 prior year) and diluted EPS of $0.34 (down from $0.56). Gross margin contracted to 45% (vs. 47% prior year) and operating income fell to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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