Taylor Devices Posts $6.7M Net Income on $32.7M Revenue in Nine Months

Taylor Devices, Inc. (NASDAQ: TAYD), an industrial manufacturer of seismic dampers and shock absorption systems, reported net income of $6.7 million for the nine months ended February 28, 2026, up from $5.7 million in the same period a year earlier. Revenue rose 6% to $32.7 million from $30.7 million. Read more earnings reports.

Earnings per share reached $2.12 for the nine-month period, compared with $1.83 in the prior year. The company's gross profit margin compressed to 44% from 45% as cost of goods sold increased 9% to $18.3 million, outpacing the rate of revenue growth.

For the three months ended February 28, 2026, the company posted net income of $2.5 million on revenue of $11.2 million, compared with net income of $2.0 million on revenue of $10.6 million in the same quarter last year. Quarterly earnings per share climbed to $0.79 from $0.64.

Margin Pressure in Latest Quarter

Third-quarter gross margin fell to 40% from 43% in the prior-year quarter, as cost of goods sold rose 11% to $6.7 million while revenue grew just 6%. Operating income for the quarter came in at $2.3 million, up 15% from $2.0 million a year earlier, as selling, general and administrative expenses declined 11% to $2.1 million.

The company's operating income for the nine-month period reached $6.8 million, a 16% increase from $5.9 million in the prior year. Selling, general and administrative expenses decreased 6% to $7.2 million from $7.7 million, while research and development costs ticked up 12% to $358,000 from $319,000.

Balance Sheet and Cash Position

Taylor Devices held $2.5 million in cash and cash equivalents as of February 28, 2026, up from $1.2 million at the end of fiscal 2025. Short-term investments increased to $39.2 million from $34.8 million over the same period. Total current assets stood at $61.1 million.

The company's stockholders' equity grew to $70.1 million from $62.0 million at May 31, 2025. Current liabilities declined sharply to $5.3 million from $9.6 million, driven primarily by a 68% drop in billings in excess of costs and estimated earnings, which fell to $1.4 million from $4.4 million.

Operating activities generated $7.1 million in cash for the nine months, compared with $5.5 million in the prior-year period. The company spent $2.0 million on property and equipment acquisitions and increased short-term investments by $4.4 million. Financing activities brought in $606,000, primarily from stock issuances.

Project Activity and Receivables

Accounts receivable decreased 13% to $4.9 million from $5.6 million at fiscal year-end, while costs and estimated earnings in excess of billings rose 6% to $5.7 million. Days sales outstanding in accounts receivable increased to 39 days from 32 days. The company had 18 projects in progress with costs and estimated earnings in excess of billings, up from 14 projects at May 31, 2025.

Inventory declined 8% to $7.5 million from $8.1 million, with work-in-process falling 7% to $6.7 million and finished goods dropping 40% to $159,000. Inventory turnover improved slightly to 2.8 times from 2.7 times.