Operating loss for the quarter ended September 30, 2025 was ($0.2) million compared to operating income of $1.2 million for the quarter ended September 30, 2024 due to lower gross profit margins and higher selling, general and administrative ("SG&A") expenses. The Company had net non-operating income of $1.9 million for the quarter ended September 30, 2025 compared to $2.5 million for the quarter ended September 30, 2024. The Company had an income tax benefit of ($0.3) million for the quarter ended September 30, 2025 compared to income tax expense of $2.3 million for the quarter ended September 30, 2024. Net income for the quarter ended September 30, 2025 was $1.9 million compared to $1.5 million for the quarter ended September 30, 2024.
For the year ended September 30, 2025 net revenue increased 2.0% to $115.4 million from $113.2 million for the year ended September 30, 2024. Gross profit margin was relatively unchanged at 27.5% in fiscal 2025 compared to 27.7% in fiscal 2024.
Product engineering and development expense in fiscal 2025 decreased $555,000 to $2,758,000 from $3,313,000 in fiscal 2024 due to reduced headcount. Selling, General & Administrative ("SG&A") expenses in fiscal 2025 increased $610,000 to $14,937,000 from $14,327,000 in fiscal 2024. The increase in SG&A expenses was primarily due to increased professional fees and commissions on higher net revenue.
Fiscal 2025 operating income was $14,018,000 versus $13,687,000 in fiscal 2024. The benefit of increased sales in fiscal 2025 on similar gross margins to fiscal 2024 drove the higher operating income.
For the year ended September 30, 2025, the Company had net other income of $6,181,000 compared to $7,043,000 for the year ended September 30, 2024. Interest and dividend income, net of fees, was $4,373,000 for the year ended September 30, 2025 as compared to $3,435,000 for year ended September 30, 2024. Interest income for the year ended September 30, 2025 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 $1,800,000 for the year ended September 30, 2025 versus $3,621,000 for the year ended September 30, 2024. 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 and a shift in purchasing slightly longer duration treasuries and corporate bonds in fiscal 2025.
The effective income tax rate for fiscal 2025 was 22.5% versus 29.8% in fiscal 2024.
Net income for the year ended September 30, 2025 was $15,661,000, or $1.07 per diluted and basic share, versus $14,558,000, or $0.99 per diluted and basic share, for the year ended September 30, 2024.
At September 30, 2025, the Company had $136.3 million in cash and marketable securities, an increase of $20.9 million over the September 30, 2024 balance of $115.4 million. The Company's working capital was $197.7 million at September 30, 2025 versus $182.2 million at September 30, 2024. The Company has no short-term or long-term debt.
The Company's backlog was $23.6 million at December 1, 2025 compared to $56.2 million at December 1, 2024.
Marc Elliott, Gencor's President, stated, "Our overall performance for the year resulted in increased operating income and revenue, while maintaining profit margins comparable to fiscal 2024 in the face of increased competition in the marketplace. We experienced some top line softening in the last quarter, primarily due to lingering Liberation Day unease, as well as one-time extraordinary expenses that negatively affected gross profit. Despite this, we ended the year with improved net income over 2024, yielding $1.07 EPS for our stockholders and an increase in our cash reserves."
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 StatementsFor the Years Ended September 30, 2025 and 2024(Unaudited)
2025
2024
Net revenue
$
115,437,000
$
113,166,000
Cost of goods sold
83,724,000
81,839,000
Gross profit
31,713,000
31,327,000
Operating expenses:
Product engineering and development
2,758,000
3,313,000
Selling, general and administrative
14,937,000
14,327,000
Total operating expenses
17,695,000
17,640,000
Operating income
14,018,000
13,687,000
Other income (expense), net:
