Taylor Devices (TAYD) Q3 2025 earnings summary

Executive summary

• Net revenue for the nine months ended February 28, 2025 decreased 5% year-over-year to $30.7 million, with net income down 12% to $5.7 million.

• U.S. sales declined 13% while international sales rose 61% year-over-year, reflecting a shift in project activity.

• Backlog increased to $33.3 million with 146 open sales orders, up from $30.2 million and 131 orders a year ago.

• Gross margin for the nine months was 45%, down one percentage point from the prior year.

Financial highlights

• Three-month net revenue fell 14% year-over-year to $10.6 million; net income dropped 26% to $2.0 million.

• Operating income for the nine months was $5.9 million, down from $7.0 million in the prior year.

• Earnings per share for the nine months were $1.83, compared to $1.91 a year ago.

• Cash and short-term investments totaled $35.4 million at quarter-end, up from $31.0 million at prior year-end.

• Inventory increased 17% to $10.0 million, with work-in-process comprising 87% of total inventory.

Outlook and guidance

• Majority of backlog expected to convert to revenue in fiscal 2025 and 2026; results may fluctuate due to project timing.

• No provision for dividends or profit sharing for the fiscal year.