Gencor Industries, Inc. (NYSE American: GENC) builds hot mix asphalt plants, asphalt pavers and industrial combustion systems from Orlando, Florida. At June 30, 2026 it held $26.3 million in cash and $137.9 million in marketable securities, $164.2 million combined, and carried no debt.
At the October 5 close of $17.68, Gencor's 14.66 million shares were worth $259.1 million. Cash and securities equal 63% of that figure. The remaining $95.0 million is what the market is assigning to the operating business, which earned $13.1 million of operating income in the first nine months of its fiscal year.
Source: Gencor Form 10-Q for the quarter ended June 30, 2026, filed August 10, 2026 (balance sheet, income statement, share count). Price: stockanalysis.com, close of October 5, 2026. Market value and percentages are Desk arithmetic.
What the June Quarter Showed
Net revenue for the quarter ended June 30, 2026 rose 25.3% to $33.8 million from $27.0 million a year earlier. The company attributed the increase primarily to contract equipment revenue recognized over time and the freight that came with it.
Margins moved the same way. Gross margin rose 140 basis points to 27.9%. Selling, general and administrative expense fell $313,000 to $3.0 million, which the company tied to lower professional services costs. Operating income rose 85.0% to $5.8 million, and operating margin widened to 17.2% from 11.6%. Net income was $5.7 million, or $0.39 a share, against $3.8 million, or $0.26.
The nine month picture is flatter. Revenue for the nine months ended June 30, 2026 fell 5.6% to $91.2 million, which the company put down to delayed timing of orders in the December and March quarters. Nine month net income was $13.0 million, or $0.89 a share, against $13.7 million, or $0.94. All figures here are GAAP; Gencor does not report non-GAAP measures in the filing.
Source: Gencor Form 10-Q, quarter ended June 30, 2026, Item 2 (Results of Operations). Revenue growth rate is Desk arithmetic.
A Backlog That Tripled
The figure that changed most was the order book. Gencor reported backlog of $79.2 million at June 30, 2026, against $26.2 million at June 30, 2025.
Gencor Backlog at June 30
Source: Gencor Form 10-Q, quarter ended June 30, 2026, Liquidity and Capital Resources.
That backlog equals 87% of the revenue Gencor recognized in the whole nine month period. Two things temper it. The company says its products typically slow down in the third and fourth calendar quarters, so a large order book entering autumn does not convert evenly. And the June quarter leaned on a small number of buyers: one customer accounted for 17.2% of quarterly revenue and a second for 13.4%. Over the nine months, no customer reached 10%.
Source: Gencor Form 10-Q, quarter ended June 30, 2026, Seasonality section and Note 6 (Customers with 10% or Greater of Net Revenues). Backlog to revenue ratio is Desk arithmetic.
Where the Cash Sits
The $137.9 million securities portfolio is run by an outside investment manager and can be sold at any time, according to the filing. At June 30, 2026 it held:
- $86.5 million in government securities
- $28.7 million in corporate bonds
- $12.6 million in exchange traded funds
- $6.3 million in equities
- $2.7 million in mutual funds
- $1.0 million in cash and money funds
The portfolio produced $3.5 million of interest and dividend income, net of fees, over the nine months. Against $239.0 million of total assets, total liabilities were $14.2 million, and shareholders' equity stood at $224.8 million.
One line in the cash flow statement needs reading in context. Reported operating cash flow for the nine months was $1.4 million, down from $3.3 million. Gencor books purchases of marketable securities inside operating activities, and those purchases were $28.5 million in the period; the company describes $25.0 million of that as a transfer from operating cash into investments. Before those purchases, operating cash flow would have been $29.8 million. Capital spending was $1.7 million.
Source: Gencor Form 10-Q, quarter ended June 30, 2026, condensed consolidated balance sheet, statement of cash flows, and Liquidity and Capital Resources. Operating cash flow before securities purchases is Desk arithmetic, not a company figure.
A Share Count That Has Not Moved
Gencor had 12,338,845 common shares and 2,318,857 Class B shares outstanding at both September 30, 2025 and June 30, 2026, and the same figures at September 30, 2024. The company reports no equity compensation plans and no common stock equivalents. Growth in equity over the period came from retained earnings, not from new shares.
Source: Gencor Form 10-Q, quarter ended June 30, 2026, cover page, balance sheet and statements of shareholders' equity.
Who Controls the Company
Gencor has two classes of stock. Under its certificate of incorporation, Class B holders elect 75% of the board voting as a separate class; on other matters the two classes generally vote together, one vote per share.
On May 1, 2026, members of the Elliott family LLC, including E.J. Elliott, assigned their interests to Marc G. Elliott as a gift for no consideration. The company reported that as a possible change in control. As of that date Marc G. Elliott, Gencor's President and Chairman, may be deemed to beneficially own 14.5% of the common stock and 95.5% of the Class B stock, and he has disclaimed beneficial ownership beyond his pecuniary interest.
Source: Gencor Form 8-K, Item 5.01, filed May 7, 2026; Schedule 13D filed May 8, 2026.
A Difficult Spring for Reporting
The March quarter report did not arrive on time. Gencor filed a notice of late filing on May 12, 2026, saying it needed more time to complete the review of its financial statements. On May 19 it received a delinquency notice from NYSE Regulation because the report had not been filed by May 18, the end of the extension period.
In the same weeks, Chief Financial Officer Eric Mellen gave notice on May 14 that he would retire effective June 10, and the company appointed Raymond Cole as Interim Chief Financial Officer on June 1. The March quarter 10-Q was filed on June 12, and on June 15 the exchange confirmed Gencor had regained compliance. The June quarter report followed on August 10.
The underlying issue is still open. Material weaknesses in internal control identified in the 2025 annual report, covering information technology general controls and the risk assessment, control activity and monitoring components of the control framework, had not been remediated as of June 30, 2026. The company says new controls are in place but have not operated long enough to conclude they work.
Source: Gencor Form 12b-25 (NT 10-Q) filed May 12, 2026; Form 8-K, Item 3.01, filed June 1, 2026; Form 8-K, Item 5.02, filed May 20, 2026; Form 8-K, Item 5.02, filed June 4, 2026; Form 8-K, Item 3.01, filed June 17, 2026; Form 10-Q, quarter ended June 30, 2026, Item 4.
Valuation at Publication
Gencor Industries, Inc. (NYSE American: GENC)
| Measure | Figure |
|---|---|
| Share price | $17.68 |
| Market capitalization | $259.1 million |
| 52 week range | $12.22 to $20.19 |
| Average daily volume (20 days) | 56,990 shares |
| Shares outstanding (common and Class B) | 14,657,702 |
| Cash and marketable securities | $164.2 million |
| Debt | None |
| Total liabilities | $14.2 million |
| Shareholders' equity | $224.8 million |
Price data as of: October 5, 2026 close (stockanalysis.com). Balance sheet data as of: June 30, 2026 (Form 10-Q filed August 10, 2026). Market capitalization is the closing price multiplied by shares outstanding reported on the 10-Q cover.
Risks
- Open control weaknesses. The material weaknesses from the 2025 annual report were not remediated at June 30, 2026. A further late report would put the company back into the NYSE American late filer process.
- Finance leadership in transition. The CFO role has been held on an interim basis since June 1, 2026, and no permanent appointment has been filed since.
- Concentrated control. One holder may be deemed to own 95.5% of the Class B stock, which elects 75% of the board. Common shareholders have limited influence over board composition.
- Lumpy, seasonal revenue. Nine month revenue fell 5.6% on order timing, and two customers made up 30.6% of June quarter revenue between them.
- Tariffs. The company says tariffs affect some of its parts and export markets, and that it is not known whether added costs can be passed on to customers.
- Upside to the neutral read. A $79.2 million backlog against $26.2 million a year earlier, converted at June quarter margins, would carry results above the nine month trend.
Source: Gencor Form 10-Q, quarter ended June 30, 2026, Items 2 and 4 and Note 6; Gencor Form 8-K filings listed above. Combined customer share is Desk arithmetic.
The Desk's Read: Neutral
The operating side of Gencor had a good June quarter: revenue up 25.3%, operating margin at 17.2%, an order book three times last year's, no debt and a share count unchanged since at least September 2024. Close to two thirds of the market value sits in cash and securities that management describes as liquid at any time.
The reporting side has not caught up. In 2026 the company filed a quarter late, lost its CFO, and still carries control weaknesses it has not yet shown to be fixed. The next marker is the annual report for the fiscal year ending September 30, 2026: whether it arrives on time, and what it says about remediation, will say more about Gencor than the backlog does.
Sources
- Gencor Industries, Form 10-Q for the quarter ended June 30, 2026, filed August 10, 2026 (SEC EDGAR)
- Gencor Industries, Form 8-K, Item 5.01, filed May 7, 2026, and Schedule 13D filed May 8, 2026
- Gencor Industries, Form 12b-25 (NT 10-Q) filed May 12, 2026
- Gencor Industries, Form 8-K, Item 5.02, filed May 20, 2026 and June 4, 2026
- Gencor Industries, Form 8-K, Item 3.01, filed June 1, 2026 and June 17, 2026
- stockanalysis.com, GENC overview and statistics, close of October 5, 2026
Disclosure
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