Gencor Q2 net revenue falls 11.5% as backlog doubles to $60.5M
GENC•Gencor’s Q2 net revenue declined 11.5% to $33.8M year-over-year, while gross profit margin rose 200 basis points to 31.7%. Operating income fell 34.6% to $4.24M due to a jump in trade show expenses to $3.53M, but backlog more than doubled to $60.5M.
1. Second Quarter Financial Results
Gencor reported net revenue of $33.8 million for the quarter ended March 31, 2026, down from $38.2 million a year earlier. Gross profit margin expanded to 31.7% from 29.7%, but net income declined 37% to $3.84 million, or $0.26 per share.
2. Expense Drivers and Profit Impact
Selling, general and administrative expenses rose to $5.84 million from $4.19 million, driven by trade show costs of $3.53 million versus $0.35 million last year. Operating income dropped 34.6% to $4.24 million, with operating margin narrowing to 12.5% from 17.0%.
3. Strong Balance Sheet and Record Backlog
At quarter end, Gencor held $155.1 million in cash, cash equivalents and marketable securities with no debt on the balance sheet. Backlog stood at a record $60.5 million, more than double the prior-year level, supported by continued infrastructure funding flows.
