Executive Summary

Q3 FY2024 revenue fell 8.3% year over year to $25.551M, with EPS at $0.17; weakness was driven by timing of shipments and reduced parts sales, compressing gross margin to 23.9% from 26.9% .
Sequentially, results decelerated from a strong Q2: revenue was $40.676M and EPS $0.42 in Q2 vs. $25.551M and $0.17 in Q3; gross margin slipped from 30.3% to 23.9% on lower absorption tied to reduced production .
Backlog reached $46.6M (up 67% y/y), supporting visibility into the next quarters despite current-quarter shipment timing and parts softness; cash and marketable securities were $116.585M with no debt .
No formal guidance and no conference call transcript were available; S&P Global consensus appears unavailable (MarketBeat shows no EPS/revenue consensus for 8/9/2024), making estimate beat/miss analysis impractical .

What Went Well and What Went Wrong

What Went Well

Elevated backlog of $46.6M (+67% y/y) reflected demand strength and order timing, with management calling it “a historic high for this time of year” .
Strong balance sheet with $116.585M in cash and marketable securities, $178.966M net working capital, and no debt provides flexibility .
Higher interest and dividend income ($0.966M) and realized/unrealized gains ($0.363M) lifted other income to $1.329M, partially offsetting operating softness .

Management quote: “Third quarter fiscal 2024 revenues dipped from the prior year, primarily due to timing of revenue recognition on orders nearing completion… We remain focused on our costs and look for new ways to improve productivity as we work on our substantial backlog and toward our fiscal year end goal.” — Marc Elliott, President .

What Went Wrong

Revenue decline (-$2.326M y/y) driven by reduced parts sales and equipment recognized at a point in time; shipment timing pushed revenue out of the quarter .
Gross margin contracted 300 bps y/y to 23.9% due to lower absorption from reduced production and lower parts sales, pressuring operating income (down to $1.993M from $3.453M y/y) .
Sequential step-down from Q2’s strong performance (revenue $40.676M, EPS $0.42, GM 30.3%) highlights sensitivity to shipment timing and mix .

Financial Results

Quarterly Trend (Sequential: Q1 → Q2 → Q3 FY2024)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$26.018	$40.676	$25.551
EPS ($USD)	$0.30	$0.42	$0.17
Gross Margin %	29.0%	30.3%	23.9%
Operating Income ($USD Millions)	$3.383	$7.072	$1.993
Net Income ($USD Millions)	$4.326	$6.222	$2.558
Backlog ($USD Millions)	$61.3	$50.4	$46.6

Year-over-Year Comparison (Q3 FY2023 → Q3 FY2024)

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$27.877	$25.551
EPS ($USD)	$0.22	$0.17
Gross Margin %	26.9%	23.9%
Operating Income ($USD Millions)	$3.453	$1.993
Net Income ($USD Millions)	$3.212	$2.558

Estimates vs. Actuals (Q3 FY2024)

Metric	Consensus	Actual
EPS ($USD)	N/A	$0.17
Revenue ($USD Millions)	N/A	$25.551

Note: S&P Global consensus data was unavailable for Q3 FY2024; third-party trackers list “N/A” for consensus on 8/9/2024 .

KPIs and Balance Sheet Highlights (Quarter End)

KPI	Q3 2024
Cash & Marketable Securities ($USD Millions)	$116.585
Net Working Capital ($USD Millions)	$178.966
Total Shareholders’ Equity ($USD Millions)	$194.689
Total Debt	$0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2024/Q4	None provided	None provided	Maintained (no guidance)
Gross Margin	FY2024/Q4	None provided	None provided	Maintained (no guidance)
OpEx	FY2024/Q4	None provided	None provided	Maintained (no guidance)
Tax Rate	FY2024	23.0% effective rate (descriptive)	23.0% effective rate (descriptive)	Maintained
Dividends	FY2024	None mentioned	None mentioned	Maintained

Management did not issue quantitative forward guidance in Q3 FY2024; commentary referenced demand strength and productivity focus .

Earnings Call Themes & Trends

No earnings call transcript was available for Q3 FY2024 (MarketBeat lists “Conference Call Date: N/A”) . Themes below reflect press release narratives across quarters.

Topic	Previous Mentions (Q1 FY2024)	Previous Mentions (Q2 FY2024)	Current Period (Q3 FY2024)	Trend
Demand/Backlog	Backlog $61.3M; early orders anticipating strong road work; quoting activity steady	Backlog $50.4M; healthy demand despite high rates; strong World of Asphalt attendance	Backlog $46.6M; historic high for time of year (+67% y/y)	Strong but modestly easing sequentially; y/y robust
Pricing/Margins	GM 29.0% on improved efficiencies and price realization	GM 30.3% on improved absorption and favorable price realization	GM 23.9% on lower absorption from reduced production; parts softness	Sequential margin compression on mix/absorption
Shipment Timing	Point-in-time vs over-time mix noted	Over-time vs point-in-time mix; strong shipments	Delayed timing of shipments reduced recognized revenue	Timing headwind in Q3; likely defers revenue
Macro/IIJA	Preparing for World of Asphalt; broad regional opportunities	Industry confidence via Infrastructure Investment and Jobs Act	“Robust highway funding mechanism” supports growth	Supportive macro backdrop
Cost Focus	Improved manufacturing efficiencies	SG&A up on trade shows/pro fees/commissions	Ongoing productivity/cost focus; SG&A up slightly on pro fees	Continuous improvement, SG&A stable to up slightly
Financial Income	Gains/interest boosted non-op income	Non-op income solid; lower equity gains y/y	Other income $1.329M aided by interest/gains	Tailwind from cash/investments persists

Management Commentary

“Third quarter fiscal 2024 revenues dipped from the prior year, primarily due to timing of revenue recognition on orders nearing completion… elevated backlog of $46.6 million… We remain focused on our costs and look for new ways to improve productivity as we work on our substantial backlog and toward our fiscal year end goal.” — Marc Elliott, President .
“Second quarter results were strong across the board… healthy demand… backlog of $50.4 million is 34.8% higher than the prior year… well-positioned to capitalize on our success and new opportunities going forward.” — Marc Elliott .
“Gencor is benefiting from one of our largest backlogs… gross profit increased 29%… quoting activity remains steady as we react to vigorous market demands.” — Marc Elliott .

Q&A Highlights

No earnings call transcript or call details available for Q3 FY2024; conference call listed as “N/A” for 8/9/2024 .
Guidance clarifications not applicable; all commentary sourced from press release .

Estimates Context

S&P Global consensus estimates were unavailable for Q3 FY2024; third-party trackers list “N/A” for consensus EPS and revenue for 8/9/2024, indicating limited coverage .
With no consensus, estimate-based beat/miss analysis is not feasible; investors should monitor the restoration of coverage for forward comparison.

Key Takeaways for Investors

Shipment timing was the primary driver of the Q3 step-down; elevated backlog ($46.6M) suggests deferred revenue should convert in subsequent periods as orders ship .
Margin compression (23.9% GM vs 30.3% in Q2) was tied to lower absorption and parts mix; watch production cadence and parts demand to gauge margin recovery .
Strong balance sheet (>$116M cash & marketable securities; no debt) provides resilience and optionality for working capital and growth initiatives .
Other income from cash/investments was a notable tailwind ($1.329M), partially cushioning operating softness; this is non-operational and may be volatile .
Absence of formal guidance and limited Street coverage increase reliance on backlog trends and quarterly shipment timing; trading setups may hinge on evidence of shipment catch-up and margin normalization .
Macro support from infrastructure funding remains a narrative positive; track order intake and regional activity for confirmation .
Near term: watch Q4 shipment execution and parts recovery; Medium term: evaluate sustained backlog conversion, absorption improvements, and SG&A discipline to maintain margins .

GENCOR INDUSTRIES INC (GENC)·Q3 2024 Earnings Summary