Taylor Devices (TAYD) Q4 2024 earnings summary

Executive summary

• Net revenue increased 11% year-over-year to $44.6 million, with net income up 43% to $9.0 million for the fiscal year ended May 31, 2024.

• Gross profit margin improved to 47% from 42% last year, driven by price increases and operational improvements.

• Sales to aerospace/defense customers surged 71%, while structural sales declined 30% and industrial sales fell 12%.

• U.S. sales rose 18%, while sales to Asia dropped 55%.

• Backlog remained stable at $33.1 million, with 72% from aerospace/defense customers.

Financial highlights

• Operating income rose to $9.5 million from $6.8 million, aided by lower R&D costs and higher gross margin.

• R&D expenses decreased 65% to $388,000, reflecting project completions.

• SG&A expenses increased 21% to $11.0 million, mainly due to higher personnel costs.

• Effective tax rate was 18%, up from 16% last year.

• Earnings per share were $2.68 basic and $2.58 diluted, compared to $1.79 and $1.77 last year.

Outlook and guidance

• Majority of current backlog expected to be recognized as revenue in fiscal 2025, with the remainder in 2026.

• Management expects cash, operations, and credit capacity to be sufficient for the next twelve months.